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    KGF   GB0033195214


Delayed Quote. Delayed London Stock Exchange - 05/25 11:35:26 am
262.6 GBX   +3.67%
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Kingfisher, Travis Perkins rise on Wesfarmers' sale of Homebase

05/25/2018 | 04:21am EDT

LONDON (Reuters) - Shares in British home improvement firms Kingfisher and Travis Perkins rose on Friday after Australia's Wesfarmers quit the UK market, offloading its Homebase unit to a private equity firm.

Retail conglomerate Wesfarmers sold the 255-store loss-making Homebase chain, the No. 2 UK player, for a nominal 1 pound to London-based turnaround specialist Hilco just two years after buying it, ending an ill-fated offshore adventure that cost it $1 billion.

Kingfisher, the UK market leader which owns the B&Q and Screwfix chains, rose as much as 4 percent in early trading, while Travis Perkins, which owns No. 3 player Wickes, rose 2 percent.

Hilco said the 24 pilot stores Wesfarmers converted to the Bunnings brand will convert back to the Homebase brand.

It said it planned to reinvigorate the Homebase brand but did not give any details on its plans for the rest of the store estate or for job numbers. A spokeswoman declined to comment beyond the statement.

Hilco currently manages about 20 investments, with a combined turnover of over 1 billion pounds.

Previous restructuring projects include music retailer HMV, the UK arm of stationer Staples and home furnishings retailer Habitat.

Analysts at Jefferies said the Wesfarmers disposal was particularly good news for Kingfisher as Wickes is more oriented towards tradesmen.

"Ultimately, the risk ahead of today was that Wesfarmers would be irrational and back a significant investment to rebrand Homebase stores into Bunnings," they said, reiterating their "buy" recommendation.

They said Homebase under Hilco's ownership would become "much more sensitive to short, and mid-term, margin and cashflow challenges."

On Thursday Kingfisher said its quarterly sales were hit by winter snow storms which kept British and French shoppers at home.

(Reporting by James Davey; Editing by Keith Weir)

© Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
ADVENTURE INC. -2.43% 8430 Delayed Quote.20.50%
KINGFISHER PLC 3.67% 262.6 Delayed Quote.-25.13%
TRAVIS PERKINS PLC 1.92% 1169.5 Delayed Quote.-26.18%
WESFARMERS LIMITED 1.12% 46.83 Delayed Quote.-21.91%
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Analyst Recommendations on KINGFISHER PLC
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Sales 2023 12 773 M 16 039 M 16 039 M
Net income 2023 586 M 736 M 736 M
Net Debt 2023 1 866 M 2 344 M 2 344 M
P/E ratio 2023 9,07x
Yield 2023 4,61%
Capitalization 5 235 M 6 573 M 6 573 M
EV / Sales 2023 0,56x
EV / Sales 2024 0,53x
Nbr of Employees 81 710
Free-Float 99,1%
Duration : Period :
Kingfisher plc Technical Analysis Chart | KGF | GB0033195214 | MarketScreener
Technical analysis trends KINGFISHER PLC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 20
Last Close Price 261,40 GBX
Average target price 305,16 GBX
Spread / Average Target 16,7%
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Managers and Directors
Thierry Garnier Chief Executive Officer & Director
Bernard L. Bot Chief Financial Officer & Director
Andrew Cosslett Director
Rakhi Goss-Custard Independent Non-Executive Director
Jeff Carr Independent Non-Executive Director
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