B&Q owner Kingfisher seeks new boss as profits slump 53%

B&Q owner Kingfisher says it is looking for a new boss after reporting a 53% fall in profits and acknowledging that UK economic weakness and problems in France have hit turnaround plans.

The group confirmed it has launched a hunt to replace chief executive Veronique Laury, who has led the business since 2014.

It follows speculation that the board was preparing to sack her as the group suffered declining profits and sales.

A date for her departure has not yet been decided.

Kingfisher reported pre-tax profits of £322m for the year to the end of January compared to £682m the year before.

It was weighed down by weakness at its French Castorama brand as well as losses in Russia and Romania, plus a £111m charge for store closures in the UK, Ireland and Europe.

In the UK and Ireland, like-for-like sales at DIY chain B&Q fell 3%, partly because of a decision to scrap kitchen and bathroom installation services.

However, the Screwfix brand saw growth of 4.1% driven by trade sales to plumbers and electricians and will continue to grow its number of stores in the UK.

Sales at France's Castorama tumbled by 7.1% - blamed on weak footfall as well as "national demonstrations" at a time when gilets jaunes protests have been gripping the country.

Kingfisher said it was considering the sale of 15 loss-making Castorama stores. It is also closing all 19 of its Screwfix stores in Germany.

Shares fell 6%.

The group is three years into its "ONE Kingfisher" transformation plan led by Ms Laury which aims to boost profits by £500m by 2020-21.

Its overhaul has included the closure of 65 B&Q stores and about 3,000 job losses in the UK and Ireland.

Kingfisher said it was meeting its targets to deliver the shake-up but said it was "increasingly evident" that attempting to measure out the benefits of the transformation separately "no longer reflects how we manage the business".

The group added that it had been hit by a combination of "internal factors" including transformation-related disruption and the performance of Castorama, and "external challenges" including weaker than expected growth and higher wage inflation in the UK.

It said that for the year ahead the outlook was "mixed".

"The UK market remains uncertain and we are mindful of softer housing market activity in France," the group said.

Departing chief executive Ms Laury said: "Leading the transformation has been so exciting but also very challenging. I believe it is right for someone else to lead the next phase."

Chairman Andy Cosslett said she had been a "powerful leader of the business".

He added: "We are now moving into a new phase where we can extract more of the benefits resulting from the hard work that has been put in, and it is therefore timely that we commence a succession process."