Kingfisher (LON:KGF) is seeking to sell six B&Q stores as it looks to raise cash to fund chief executive Veronique Laury’s turnaround plan, The Sunday Times has reported. The news comes ahead of the FTSE 100 group’s third-quarter results on Wednesday.
Kingfisher’s share price has surged in London in today’s session, having gained 1.77 percent to 247.10p as of 10:21 GMT, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.25 percent higher at 7,031.72 points. The group’s shares have given up just under a fifth of their value over the past year, as compared with about a 4.7-percent dip in the Footsie.
Kingfisher seeks to raise cash
The Sunday Times reported yesterday that Kingfisher was understood to be attempting to raise £125 million by selling and leasing back B&Q stores in Birmingham, Croydon, Southampton and Cardiff, plus two in the northeast of England. The moves comes with CEO Veronique Laury’s effort to overhaul product ranges having led to a build-up of inventory as old ranges are cleared out.
Blue-chip group to post results
Kingfisher is scheduled to update investors on its third-quarter performance on Wednesday, following its interim results in September, when the B&Q owner posted a drop in revenue and profits, having suffered from a continued poor performance in France. At the time Laury, however, noted that the company remained on track to deliver its strategic milestones for the year.
Lee Wild at Interactive Investors said in a note on Friday that progress toward a more digital and efficient business will be the focal point of this week’s third-quarter results, and that there will need to be evidence of success turning round the French operation.