B&Q and Screwfix owner, Kingfisher, has upgraded its full-year profit and free cash flow guidance after citing strong demand in its H1 results.

The retailer posted a 3.6% annual jump in gross profit to £2.57bn, as sales across the group also climbed marginally by 0.8% to total £6.81bn.

As a results, the retail group is now targeting the upper end of its full-year profit range of £480m to £540m.

Kingfisher was announcing its results for the six months to 31 July and reported that its UK performance across both B&Q and Screwfix had been “strong”, with like-for-like growth of 4.4% and 3%, respectively.

The company’s CEO, Thierry Garnier, said Kingfisher had been “encouraged” by underlying quarter-on-quarter growth in its core categories, and a third consecutive quarter of growth in big ticket sales.

“We delivered a strong first half with high quality underlying like-for-like sales growth of 1.9%, driven by increased volumes and transactions,” Garnier said.

“In a higher cost environment, we remain disciplined on managing costs and cash. Our margin and operating cost initiatives combined with the positive impact of our strategic drivers enabled us to deliver 10.2% growth in adjusted profit before tax and 16.5% growth in adjusted earnings per share. Free cash flow rose by 13.5%.”

Garnier also said the company’s expectations for the year remain consistent with what it outlined in March but added that it was still mindful of “mixed consumer sentiment” and “political uncertainty”.

“Combined with our H1 performance, this gives us the confidence to upgrade our full-year profit and free cash flow guidance and to accelerate our share buyback programme,” he added. “We remain focused on executing our strategic priorities, maintaining cost discipline and driving shareholder returns.”

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