B&Q restructuring costs parent Kingfisher €25m
B&Q owner Kingfisher has set aside nearly €25m to cover the cost of restructuring its loss-making business in Ireland.
Releasing full-year results, Kingfisher confirmed that its nine B&Q stores in Ireland made a combined £7m (€ 8.2m) loss in the last financial year.
The company placed its B&Q stores here in examinership in January. Under the terms of a proposed scheme, it is planning to close two of those stores, in Waterford and Athlone.
It said that it had made a £21m (€24.7m) provision for the restructuring process.
"Following a sustained decline in trading at B&Q Ireland, the group undertook a detailed review of its Irish operations and as a result B&Q Ireland entered into an exam- inership process in January," said Kingfisher.
"The £21m restructuring charge represents provisions recorded for the impairment of properties and estimated costs of exiting leases and other closure activities."
It added that about £13m of the charge will result in a cash outflow, of which around £11m will be incurred in the current financial year. The two B&Q stores that are closing in Ireland employ 69 part-time and 23 full-time staff. It has said that its annual rent roll for its nine Irish outlets is €11.6m, about €5.8m above current market rates.
Its turnover here fell 24.2pc from a peak of €124m in 2009 to €94.2m in the financial year to end January 2012.
Kingfisher said its like-for-like sales at B&Q stores in the UK and Ireland fell 5.6pc last year to £3.7bn (€4.3bn). Its group sales fell 2.9pc to £10.5bn (€12.3bn), while pre-tax profit slumped 11.4pc to £715m (€842.6m).