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Annual Report
and Accounts
2025/26
Better Homes.
Better Lives.
For Everyone.
Our purpose
At Kingfisher, we believe a better world starts with better
homes and we strive to help make that happen.
Who we are
Kingfisher is an international home improvement company.
We offer home improvement products and services to
consumers and trade professionals through our stores
ande-commerce channels.
Our leading retail banners
Contents
Strategic Report
2
Kingfisher at a glance
3
Financial highlights
4
Chief Executive Officer’s statement
6
Our investment case
7
Our strategy
8
Performance against priorities
10
Key performance indicators
12
Business model
14
People and culture
17
Section 172 statement
18
Our stakeholders at a glance
19
Stakeholder engagement
23
Non-financial and sustainability information statement
24
Responsible Business
28
Climate-related disclosures
31
Financial review
38
Trading review by division
43
Risks
49
Viability statement
51
Going concern
Governance
52
Chair’s statement
53
Corporate governance
55
Board of Directors
57
Board composition
58
Board activities
59
Assessing and monitoring culture
61
Board effectiveness
63
Nomination Committee report
67
Responsible Business Committee report
68
Audit Committee report
73
Directors’ remuneration report
99
Directors’ report
102
Statement of directors’ responsibilities
103
Our response to the Task Force
on Climate-related Financial Disclosures
Financial Statements
115
Independent auditors’ report
127
Consolidated income statement
128
Consolidated statement of comprehensiveincome
129
Consolidated statement of changes in equity
130
Consolidated balance sheet
131
Consolidated cash flow statement
132
Notes to the consolidated financialstatements
179
Company balance sheet
180
Company statement of changes in equity
181
Notes to the Company financial statements
191
Group five year financial summary
Other Information
192
Shareholder information
194
Glossary
Kingfisher delivered a strong performance,
driven by strategic progress and financial
discipline. We remain focused on executing
our strategic priorities, maintaining cost
discipline and driving shareholder returns.”
Thierry Garnier
Chief Executive Officer
It continues to be a privilege to chair
Kingfisher, a growing and innovative business
with a clear purpose and passionate
colleagues focused on creating sustainable
value for all our stakeholders.”
Claudia Arney
Chair of the Board
1Kingfisher 2025/26 Annual Report and Accounts
Kingfisher at a glance
Our strategic principles
1,296
1
256
2
28
108
3
145
3
1
Kingfisher
banners are
not the same.
This is a strength.
3
We help ‘power’
our banners as
a Group.
2
We have a clear
vision to build
customer
propositions
for the future.
4
We are agile,
human and lean.
Where we operate
Kingfisher operates in seven countries
across Europe under banners B&Q,
Castorama, Brico Dépôt, Screwfix,
TradePoint and Koçtaş.
Our corporate website
kingfisher.com
Our Responsible Business website
kingfisher.com/responsible-business
All figures on this page relate to the year ended 31 January 2026.
1. B&Q 317, Screwfix 979.
2. Castorama 94, Brico Dépôt 127, Screwfix 35.
3. Our banner in Turkey, Koçtaş, is operated asa50% joint venture. Store figure as of31 January 2026.
4. Turkey joint venture included.
5. Total, not full-time equivalent.
70,000+
4,5
colleagues
1,800+
stores
3,700+
suppliers across 70 countries
Other
Information
2 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
1. Variance in constant currency.
2. Alternative Performance Measure (APM). See the Glossary on pages 194 to 197 for definitions and reconciliations of APMs.
3. The Board has proposed a final dividend per share of 8.60p (FY 24/25: 8.60p), resulting in a proposed total dividend per share of 12.40p in respect of
FY25/26 (FY 24/25: 12.40p). The final dividend is subject to the approval of shareholders at the Annual General Meeting on 26 June 2026.
Evaluation of our key performance indicators against our strategy can be found on pages 10 and 11 and pages 31 to 37.
Financial highlights
Total dividend
3
12.40p
2024/25: 12.40p
Net debt
2
to Adjusted EBITDA
2
1.4x
2024/25: 1.6x
Shareholder returns
£474m
2024/25: £453m
Free cash flow
2
£512m
2024/25: £511m
Net debt
2
£(1,878)m
2024/25: £(2,015)m
Net cash flows from
operating activities
£1,433m
2024/25: £1,302m
Retail profit
2
/margin
2
£734m
2024/25: £696m
5.7%
20bps
1
2024/25: 5.4%; (30)bps
1
Gross profit
2
/margin
1, 2
£4,930m
2024/25: £4,763m
38.1%
80bps
2024/25: 37.3%; 50bps
Sales
£12,945m
2024/25: £12,784m
1.1%
1
/1.3%
Like-for-like²/reported
2024/25: (1.7)%
1
/2023/24: (3.1)%
1
Statutory profit – pre-tax
andpost-tax
Pre-tax
£378m
2024/25: £307m
Post-tax
£245m
2024/25: £185m
Basic earnings per share (EPS)
– adjusted and statutory
Adjusted
2
23.8p
2024/25: 20.7p
Statutory
14.0p
2024/25: 10.1p
Adjusted pre-tax
profit
2
£560m
2024/25: £528m
For the year ended 31 January 2026
3Kingfisher 2025/26 Annual Report and Accounts
Kingfisher delivered a strong performance in
2025/26. This was driven by both our strategic
progress and financial discipline. I would like to
thank all our colleagues for their dedication and
commitment, and the part they played to help us
grow, innovate and deliver our purpose.
Business performance
Our results for 2025/26 showed a business in good financial
health. Total sales were up 0.2% on a constant currency basis to
£12,945m and our underlying like-for-like sales growth of 1.4% was
driven by an increase in sales volumes and customer
transactions. Adjusted profit before tax was up 6.0% to £560m
and up 13% year-on-year when corrected for a one-off UK
business rates refund received in the prior year. We also
delivered strong free cash flow of £512m. Overall, we delivered
slightly above our twice-upgraded guidance.
We also continued to grow our market share across banners,
outperforming our markets at B&Q, Screwfix, Brico Dépôt
France, Castorama France and Brico Dépôt Iberia. B&Q and
Screwfix were standout performers, with total like-for-like sales
growth of 3.3% at B&Q and 3.2% at Screwfix. In France, both
Castorama and Brico Dépôt performed ahead of a market that
reflected the continued subdued consumer backdrop. In Poland,
total sales were flat, and in line with the market.
Our core categories (67% of sales) showed continued resilience,
with the UK banners’ solid performance led by strong interior
paint sales at B&Q and sustained growth in Tools at Screwfix.
Growth in big ticket categories (15% of sales) was helped by
successful new kitchen ranges. Seasonal sales (18% of the total)
were also strong, with favourable weather in the first half of the
year.
Strategic progress
Our performance was underpinned by progress against our
strategic priorities, particularly in two key initiatives - trade and
e-commerce - which both achieved double-digit sales growth.
We continue to apply our strategy successfully in our UK banners,
replicating this success in other markets.
Growing our trade business
Appealing to trade customers continues to be very important, as
builders, plumbers, electricians and decorators visit stores more
frequently and spend more. Across the Group, trade customer
sales (excluding Screwfix) increased +23% year-on-year, now
representing 30% of sales (up 3 ppts). Trade sales reached
£3.9bn in total. Our updated ambition is to reach £5bn Group
trade sales in the medium term.
Our trade propositions continue to improve. Dedicated trade
zones are now live across all banners, with features including
separate parking, entrances and payment points. Elsewhere, we
continue to expand our trade-focused ranges, with the addition
of new OEB and branded products, and are investing further in
colleagues dedicated to building trade customer relationships.
We now have trade loyalty propositions across all geographies,
with total membership up 18% year-on-year and opportunities for
further growth.
Scaling our digital ecosystem
Our digital ecosystem is designed to drive traffic to our websites
and footfall to our stores. Our online marketplaces, which are now
live across all our markets, bring in new customers and broaden
their choices with products from third-party sellers. Our loyalty
programmes and apps build our data capabilities, which present
opportunities for monetisation through retail media.
Our e-commerce sales (excluding Screwfix) grew +20%, taking
our e-commerce penetration to 21% of Group sales. This was up
2 ppts year-on-year (and up 15 ppts versus FY19/20).
In our digital ecosystem, we see marketplaces positively
impacting our own first-party business. For example, we find
about 50% of diy.com customers are new to B&Q, and 15% of
those who purchase a marketplace product go on to purchase a
first-party product. By the end of the year, Group GMV (the value
attributed to sales through marketplaces) was up +58% to £518m,
representing 15% of total e-commerce sales (FY 24/25: 10%), and
there were 3.7m products available at diy.com alone. In 2026/27,
we will focus on onboarding further cross-border vendors across
all markets, introducing new marketplace functionalities, and
upgrading our platform for sellers.
With our digital ecosystem generating significant volumes of data,
our banners utilise it to provide a more personalised offer to
customers and generate retail media revenue. Our banners'
loyalty programmes fuel the data generation used for retail
media, with membership through our app and rewards
programmes up +13% across the Group.
The apps are also going from strength to strength, now
representing 29% of total e-commerce sales (FY 24/25: 28%)
with an average of 3.5m monthly active app users across the
Group (+15% year-on-year). We're also harnessing select AI use
cases to further improve customer and colleague experiences,
such as with our product recommendation and personalisation
engines, which generated c. £165m of Group sales.
Chief Executive Officer’s statement
Scan the QR code or visit
www.kingfisher.com/
fullyearresults
for more information.
Our performance was underpinned by
progress against our strategic priorities,
particularly in two key initiatives - trade and
e-commerce.”
Thierry Garnier
Other
Information
4 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
But, with c. 90% of online orders fulfilled from stores, our banners'
stores remain at the heart of our operations, serving as both
experiential showrooms and online fulfilment hubs. This is how we
provide unparalleled speed and convenience for our customers.
B&Q for example now offers Click & Collect on third-party
marketplace products, and Castorama France and Poland plan to
introduce similar offers in 2026. Click & Collect comprised 63%
of total e-commerce sales in 2025/26.
Our longer-term ambitions for our digital ecosystem remain: for
e-commerce to reach 30% of our sales, one third of which from
marketplace; and for retail media and data monetisation income
to reach up to 3% of the Group’s total e-commerce sales.
Responsible business
We remain committed to leading the industry as a responsible
business, creating better homes and better lives for everyone.
Our Sustainable Home Products (SHP) programme, which gives
customers more sustainable, quality and affordable options to
future-proof their homes, now accounts for 70% of our Own
Exclusive Brand (OEB) products, and 58.2% of Group sales (up
almost 5 ppts year-on-year). We exceeded our Scope 1, 2 and 3
emissions targets for the year, and continue to target reductions
(versus our previously announced baseline years).
Our people are at the heart of our business, and we continue to
work hard to make Kingfisher a more agile and inclusive company.
I am proud of our Employee Net Promoter Score (eNPS) of 58,
maintaining our position in the top 5% of worldwide retailers.
Across the Group, we've also invested more than £6m in community
projects, reaching more than 5m people since 2016/17.
We will publish the details of our updated responsible business
ambitions, extending to 2030, in Q2 2026/27.
Looking ahead
While the consumer environment in our markets remains mixed,
we remain focused on executing our strategic priorities,
maintaining cost discipline and driving shareholder returns.
Finally, I would like to again thank all our colleagues across the
Group and in our banners for all their hard work and dedication
this year.
Thierry Garnier
Chief Executive Officer
23 March 2026
5Kingfisher 2025/26 Annual Report and Accounts
Our investment case
Leading market positions, attractive growth drivers
1. TAM = 2025 estimated total addressable market sizes.
Leading banners
powered by Kingfisher
Attractive
growth drivers
Clear
financial priorities
Grow our
trade business
Scale our digital
ecosystem
Win through our offer,
OEB and services
Grow our banners
andformats
Sales to grow ahead
of our markets
Profit to grow
ahead of sales
Strong
FCF generation
UK & Ireland
£60bn TAM
1
France
£52bn TAM
1
Poland
£18bn TAM
1
Iberia
£21bn TAM
1
Other
Information
6 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
Our strategy
We are scaling our digital ecosystem to offer our
customers faster fulfilment of orders by leveraging our
store estate, and broader product ranges via our online
marketplaces. We are leveraging data and AI to optimise
the digital shopping journey. Our apps drive customer
loyalty and engagement. With over 1bn annual visits across
our digital channels, we are offering vendors a powerful
platform to showcase their products through our growing
retail media capability. We are also using data and AI to
increase productivity across our business.
Scale our digital
ecosystem
Trade customers typically visit our stores more frequently
and spend more than the average retail customer. We are
focused on expanding our trade customer proposition
across our banners through the further roll-out of trade
counters, dedicated colleagues, specialised product
ranges, new services and loyalty programmes, and an
enhanced omnichannel customer experience.
Grow our trade business
Our banners hold leading positions in their key markets,
each with a distinct model and clear customer proposition,
supported by a range of store formats. Where attractive
space opportunities exist that meet our investment criteria,
we continue to complement our existing store estate.
Compact stores play an important role in our expansion,
allowing us to capture customers in high-density urban
areas and offering convenience and fast fulfilment through
Click & Collect and home delivery.
Grow our banners
andformats
We are committed to leading our industry in responsible
business practices and energy efficiency across four
priority areas for Responsible Business where we can
maximise our positive impact on the lives of our customers,
colleagues, communities, and the planet.
Lead the industry in responsible
business and energy efficiency
We have adopted a culture of speed and agility, given the
rapidly changing environment in which we do business. We
are also structurally reducing our cost base and improving
inventory management.
Agile, human and lean
We are strengthening our customer offer by expanding
choice through broader product ranges including via
ourmarketplace and new fulfilment propositions and
byenhancing our trade offer so we can support the full
needs of our customers. A key pillar of our offer is our
ownexclusive brands (private label), where we provide
innovative solutions at affordable prices. This includes
arich portfolio of brands that have built strong customer
relationships in their respective categories over many
years, while also helping customers reduce environmental
impacts through our Sustainable Home Products. Alongside
this, we offer a growing portfolio of complementary
services that support customers withtheirprojects and
drive deeper engagement.
Win through our offer,
OEB and services
Better Homes. Better Lives. For Everyone. At Kingfisher, we believe a better world starts with better
homes and we strive to help make that happen.
Our strategic plan – ‘Powered by Kingfisher’ – aimsto maximise the benefits of combining our distinct banners with the scale,
strengthand expertise of the Group. See more on how we create value on pages 12 and 13.
We are investing for growth in multiple areas ofthebusiness, underscoring our confidence in the medium-to-longer term outlook
forhome improvement growth in our markets.
1
4
5
2
3
6
7Kingfisher 2025/26 Annual Report and Accounts
Performance against priorities
Strategic
priorities Key progress Proof points for FY 25/26 Forward focus for FY 26/27
Grow our
trade business
- Dedicated trade zones now live in all
banners
- Further investment in dedicated
sales partners
- Loyalty programmes for trade
customers now active in all markets
(including via apps)
- Added further trade-specific ranges
and services
£3.9bn
total trade customer
sales
30%
trade sales
penetration, up 3
ppts
279
trade sales partners
in role (2024/25: 105)
18%
increase in trade
loyalty programme
membership
- Further roll-out of trade counters.
- Continue to recruit and train trade
sales partners in all markets.
- Continue to enhance trade-specific
product ranges and services in all
markets.
- Deliver enhanced omnichannel
customer experience.
Longer-term ambitions:
For Group trade sales to reach £5bn in
the medium term.
Scale our digital
ecosystem
- Expansion of digital hubs across
estate
- Strengthened fulfilment capabilities
- Continued success of marketplaces,
with propositions now live in all
markets
- B&Q’s rollout of the UK’s first
marketplace Click & Collect service
- AI-driven customer and colleague-
facing initiatives enhancing customer
journeys and productivity
- Retail media capabilities now live in all
banners and launched Core IQ (our
data monetisation platform)
- Strong app user growth and
engagement, with help from loyalty
programmes
21%
e-commerce sales
penetration (up 2
ppts), totalling £2.7bn
£518m
Group marketplace
GMV
(up 58% year-on-
year)
63%
of total e-commerce
sales fulfilled through
Click & Collect
c.£165m
of Group sales
driven by AI-
powered product
recommendation
and personalisation
engines
- Continue on-boarding of cross-border
vendors to all marketplaces.
- Introduce new marketplace
functionalities.
- Launch new media formats across web
and app and build capabilities to extend
campaigns off-site.
- Expand Core IQ across banners.
- Continue to lead industry in
development and deployment of
impactful AI tools.
Longer-term ambitions:
E-commerce to reach 30% sales
penetration, one third of which from
marketplace. Retail media and data
monetisation income to reach up to 3%
of the Group’s total e-commerce sales.
Win through
our offer, OEB
and services
- Significantly expanded product offer
through marketplace and for trade
customers
- Improved OEB range visibility in
stores and online
- Continued to strengthen product
ranges at opening price points
£5.5bn
total OEB sales,
representing 43% of
Group sales
70%
of OEB product
sales from
Sustainable Home
Products (target
achieved)
- Develop further innovative OEB
products that help make home
improvement tasks easier.
- Strengthen product offer in the lowest
retail price quartiles.
- Further strengthen services offer for
DIY and trade customers, such as
installations, removing key pain points
in complex projects.
Grow our
banners and
formats
- Rapid conversion of eight acquired
Homebase stores by B&Q
- Compact & City stores continued
encouraging performances
- Further expanded Screwfix in the UK,
Ireland and France
- First two Castorama France
franchises opened
41
net new stores
across all banners
39
Screwfix City stores
now open (13 new)
24
Castorama France
stores addressed as
part of
modernisation plan
- Open first standalone TradePoint
store.
- Net 12 Screwfix and five B&Q store
openings planned.
- Net two Brico Dépôt France and Iberia
store openings planned.
- Net two Castorama Poland store
openings planned.
- Continue building brand awareness of
Screwfix France, and net five new
store openings planned.
Longer-term ambitions:
Net space growth to drive an uplift in
sales of c. +1.5% to +2.5% per annum.
Other
Information
8 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
Strategic
priorities Key progress Proof points for FY 25/26 Forward focus for FY 26/27
Lead the
industry in
responsible
business and
energy
efficiency
- Exceeded FY 25/26 Scope 1, 2 and 3
emissions targets
- Continued to give customers more
sustainable, quality and affordable
options to future-proof their homes
- Further progress on gender
representation and skills
- Exceeded FY 25/26 target of
reaching over 2m people with the
greatest housing needs
58.2%
of Group sales from
SHPs (Sustainable
Home Products), up
5 ppts year-on-year
>20k
SKUs across the
Group carrying the
Green Star product
mark
>5m
people reached
through community
projects across the
Group (since
2016/17)
- Mobilise the next iteration of our
Responsible Business strategy,
including a 2030 ambition.
Agile, human
and lean
- Strong focus on performance,
leadership development, succession
planning and operating model
transformation
- Maintained strong colleague
engagement
- Continued to make progress in
lowering structural cost base across
multiple areas of the business
58
employee Net
Promoter score
5%
our placing in the top
percentile of global
retail benchmarks
for colleague
engagement
- Maintain focus on performance,
leadership development, succession
planning and operating model
transformation.
- Continue to assess our culture through
both formal and informal channels.
- Diversity and inclusion remains the
foundation.
9Kingfisher 2025/26 Annual Report and Accounts
Key performance indicators
Total sales increased by +0.2% on a constant currency basis, to
£12,945m. Excluding Romania, the Group’s total sales increased
by +1.8%. On a constant currency basis, UK & Ireland and Iberia
achieved sales growth ahead of their markets. France declined
against a subdued consumer backdrop but outperformed the
market. Poland sales were flat and in line with the market. On a
reported basis, which includes the impact of exchange rates, total
sales increased by +1.3%.
Retail profit increased by 4.4% to £734m, reflecting higher profits
in the UK and Iberia despite the prior year benefitting from £33m
business rates refunds in B&Q. On a reported basis, retail profit
increased by 5.4%.
Financial performance indicators
Total sales
Retail profit
1
We use a range of financial and non-financial key performance indicators (KPIs) to track and evaluate delivery of our ‘Powered
byKingfisher’ strategy.
1. Denotes an Alternative Performance Measure (APM). APMs are defined in the Glossary on pages 194 to 197.
Free cash flow of £512m, driven by earnings growth, receipts of
tax settlements relating to prior years and effective working
capital management, while increasing capex investment. Gross
capital expenditure was £388m, up £71m (+22%) through freehold
acquisitions at B&Q, investment in technology and in customer
facing maintenance in our existing stores.
Free cash flow
1
2023/24
2024/25
2025/26
£12,945m
£12,980m
£12,784m
2023/24
2024/25
2025/26
£749m
£696m
£734m
£511m
£514m
£512m
LFL sales of +1.1% excludes a (1.6)% impact from the disposal of
Romania and a +0.7% contribution from net space growth.
Underlying LFL sales performance (excluding calendar and leap
year impacts) was +1.4%. Space growth was driven by the
conversion of acquired Homebase stores at B&Q, new Screwfix
openings in the UK and France, and expansion at Castorama
Poland. 41 net stores were opened during the year.
Adjusted pre-tax profit
1
Like-for-like sales
1
Adjusted pre-tax profit increased by +6% to £560m on a
reported rate basis (FY 24/25: £528m), reflecting higher retail
profit and lower net finance costs, partially offset by higher
central costs.
2023/24
2024/25
2025/26
£560m
£568m
£528m
2023/24
2024/25
2025/26
(3.1)%
(1.7)%
1.1%
Other
Information
10 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
Non-financial performance indicators
Inclusion and diversity Responsibly sourced wood and paper
We have continued to strengthen gender diversity across the
Group. Women represent 33.3% of senior leadership (FY
2024/25: 30.1%) and 40.5% of management, with the management
target achieved (FY 24/25: 39.8%). Improving gender diversity in
senior leadership remains a priority.
The share of responsibly sourced wood and paper in our
products, measured as a percentage of total SKUs sold,
increased to 99.4%
1
(FY24/25: 97.9%), continuing progress
towards our Group target. Responsibly sourced wood and paper
reached 99.6% within OEB products.
1. 99.1% is responsibly sourced in line with the criteria outlined in our policy. The remaining 0.3% relates to products sourced from a small number of companies,
which we have assessed based on alternative, externally validated criteria.
2. FY 23/24 and FY 24/25 reduction figures have been restated to reflect the removal of Romania from the Group reporting boundary.
We have achieved our community target to help two million people whose housing needs are greatest by 2025/26, ahead of schedule.
Total Group sales from Sustainable Home Products (SHP)
increased to 58.2% in FY 25/26 (FY 24/25: 53.4%) with SHP sales
for OEBs products reaching 70.1% (FY 24/25: 63.3%). The OEB
element of the target has been achieved, with further progress
made towards the Group-level target.
Sustainable Home Products: % of retail sales
99.4%
1
96.6%
97.9%
2023/24
2025/25
2025/26
39.6%
28.6%
2023/24
2024/25
2025/26
33.3%
30.1%
39.8%
40.5%
Carbon emissions reduction
We have exceeded our FY 25/26 science-based target, reducing
Scope 1 and 2 emissions by 68.7% compared with the FY 16/17
baseline. Scope 3 emissions from supply chain and product use
have reduced by 46.2% per £m of turnover since FY 17/18,
exceeding our FY 25/26 science-based target.
40.4%
2
64.7%
2
2023/24
2024/25
2025/26
68.7%
67.4%
2
39.6%
2
46.2%
60.1%
49.4%
2023/24
2024/25
2025/26
58.2%
53.4%
63.3%
70.1%
Senior leadership, % of women
Management, % of women
Scope 1 and 2 (own operations), % absolute emissions reduction
Scope 3, % emissions intensity reduction
Total Group sales
Share of SHP sales for OEBs
11Kingfisher 2025/26 Annual Report and Accounts
Business model
We offer home improvement
productsand services
toconsumers and trade
professionals across ourstores
via our e-commerce channels,
andthrough our franchise
andjoint venture partners.
Bydelivering our strategy
andoperating as a responsible
business, we create sustainable
value for our customers,
colleagues, shareholders,
suppliers and wider society.
Further information on how we consider
theimpact of climate change and build
sustainable value for our stakeholders
canbefound on pages 28 to 30, 79
and 103 to 114.
Our key resources
Engaged colleagues with the right
skillstoserve customers.
Our people and culture
c. £13 billion of sales: collective
buyingscale.
Our financial
strengthand scale
Distinct banners which address diverse
customer needs withdifferent models,
strong customer relationships
andaclearpositioning and plan.
Our banners occupy number one or
number two positions inourkey markets.
Our diverse and
trustedbanners and
formats
Our market-leading
positions
Strong network of stores and strong
e-commerce capabilities, aswell as
franchiseand joint venture partners.
Our own exclusive brands (OEBs) allow
ourbanners to offer differentiated
products in terms ofinnovation,
affordability andreducing
environmentalimpact.
Our technology Our own exclusive
brands
Close collaboration with our suppliers
tobring the best homeimprovement
products to our customers at great
prices,whileensuring they meet our
ethical standards.
Longstanding commitment to make
apositive impact for communities,
colleagues, customers and the planet.
Our supplier
relationships
Our Responsible
Business practices
Other
Information
12 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
How we create value Who we create value for
Customers
Making better homes and
better lives for everyone;
helping tradespeople to get
their jobs done quickly
andaffordably.
Communities
and society
Operating as a responsible
business, with strong
community involvement.
Shareholders
Delivering sustainable
valuecreation.
Partners
Growing our business through
different partnership models,
including wholesale, licencing
and franchise models.
Colleagues
Inclusive, rewarding work
andcareers, developing skills.
Environment
Protecting and restoring
natural resources and
tacklingclimate change.
Suppliers
Sharing value in our
supplychain.
The differentiation of our retail banners across trade (Screwfix,
TradePoint), discounters (Brico Dépôt France, Brico Dépôt
Iberia), and more general DIY needs (B&Q, Castorama France,
Castorama Poland, Koçtaş) is a unique strength for us.
Kingfisher’s scale and resources are a critical source of
competitive advantage for our banners, providing Group-wide
OEB product development and supply, leading-edge technology
platforms and digital capabilities, international sourcing and
buying scale, data-driven AI-powered tools, products & services,
shared services and best practices.
Our strategic plan – ‘Powered by Kingfisher’ – maximises the
benefits of combining our distinct retail banners (which serve a
range of different customer needs) with the scale, strength and
expertise of the Kingfisher Group. We continue to invest for
growth in multiple areas of the business, driving market share
gains through our strategic growth initiatives:
Strategic growth initiatives
— Grow our trade business
— Scale our digital ecosystem
— Win through our offer, OEB and services
— Grow our banners and formats
Medium-term financial priorities
Kingfisher is an agile and lean organisation thatisstrongly
positioned to deliver profitable growth through self-help and
operating leverage. Supported byKingfisher’s key strategic
priorities, the Group’s medium-term financial priorities are
asfollows:
— Sales to grow ahead of our markets
— Profit to grow faster than sales
— Strong cash generation to drive growth investment
andattractive shareholder returns
13Kingfisher 2025/26 Annual Report and Accounts
People and culture
Our People and Culture Plan for 2026–2029 is a core part of the
‘Powered by Kingfisher’ strategy and focuses on building an
organisation that delivers performance and growth.
Guided by our purpose to help ‘make better homes, better lives,
for everyone’ we are building the critical capabilities our strategy
demands, from strengthening key skills to fostering an agile,
human and lean culture. Our plan is built around three priorities;
— A culture of agility, trust and inclusion, to unlock high performance
— An effective, lean organisation that enables reinvestment
forsustainable growth
— Attracting, developing and retaining the critical skills and talent
needed for the future
In 2025/26, we accelerated the development of organisational
capabilities to support delivery of our strategic priorities, with a
strong focus onperformance, leadership development,
succession planning and operating model transformation. This
work helps to position Kingfisher todeliver sustainable growth by
combining operational efficiency with a culture that attracts,
develops and retains the talent needed to power our strategy.
Colleague engagement continues to be a strength, reflected
inaneNPS score of 58, placing us among the top performers
inglobal retail benchmarks. We have achieved key milestones in
our representation targets and continue to build on this progress
with renewed goals for 2030. Inclusion remains a foundation of
our approach, ensuring that every colleague feels they belong,
can share ideas and build thecareer they want.
Building a high-performance culture
In 2025/26, we made strong progress towards creating a
high-performance culture.
To better understand our performance strengths and
opportunities, we partnered with behavioural scientists to
establish a clear cultural baseline using engagement-survey
insight and data to identify the existing strengths we can build on,
as well as opportunities to clarify expectations and strengthen
support for colleagues.
We introduced programmes to strengthen a performance-driven
mindset by improving the quality of objective setting, review
discussions and ongoing feedback. Group colleagues participated
in training on effective goal setting and we focused on raising the
standard of performance conversations, making them clearer,
more consistent and more meaningful. Incentive structures were
also refined, with updates to the senior leader bonus plan to
reinforce the link between performance, reward and accountability.
At B&Q, Objectives and Key Results (OKRs) were introduced
at business and functional levels to create greater clarity
and alignment for colleagues and teams on performance,
with Castorama Poland implementing similar programmes.
CastoramaFrance revised its 2026–2028 profit-sharing
agreement to link rewards to store performance. In 2026,
storeincentives will focus on project sales, toboost expertise
and customer experience.
To foster a culture of feedback for performance and growth,
we trained Group colleagues in giving and receiving feedback,
a key component of a high performance culture. B&Q invested
in introducing common tools and equipping leaders through a
dedicated range of targeted engagement and development
sessions. Similar programmes of feedback training have been
launched and cascaded across the Group including at Screwfix,
Castorama Poland and Brico Dépôt Iberia.
Creating an effective, lean and agile organisation
We continued to evolve our operating model, with Head Office
reviews identifying opportunities to streamline processes and
unlock productivity, alongside organisational changes delivered
across the banners. These changes created more focused roles
and accelerated digital transformation, including building new
capabilities suchas retail media.
At Castorama France, a head office reorganisation streamlined
processes and strengthened operational effectiveness,
sharpening the focus on delivering an improved customer
experience. At B&Q, head office change programmes focused
on reinvesting in new capabilities to reduce duplication and
enabled the creation of more strategically aligned roles.
Teams were reshaped through targeted role consolidation,
talent redeployment and capability building. Alongside these
changes, B&Q modernised its store management structure,
introducing more customer-focused leadership roles and
reallocating time to front-line colleagues to improve
customerservice.
Taken together, these changes reflect a Group-wide shift
towards clearer structures, stronger capabilities and more
focused investment in the areas that drive efficiency, improved
customer experience and long-term business strength.
Building leaders and skills for future growth
We focused on building the leadership capability and skills needed
for sustainable growth by strengthening succession plans for
senior roles and investing in critical future capabilities, including
digital expertise.
We made strong progress in developing future leaders by
broadening and diversifying our talent pools, attracting
high-quality senior hires, and expanding leadership development
programmes. We invested in our senior leadership cohorts, with
12 Leadership Teams (187 leaders) strengthening capability in trust,
clarity and alignment, the core ingredients of high-performing
teams, supported by new leadership and communication
programmes. Further development is planned throughout 2026.
Diversity in leadership continued to improve, with women
representing 53% of all senior appointments, rising to 65% where
a diverse shortlist was used.
We strengthened our succession pipeline by identifying and
developing successors for key roles, increasing cross-business
career moves, and applying more rigorous assessments to
improve our understanding of potential and future readiness.
Other
Information
14 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
B&Q has continued to invest in colleague capability to support
long-term success, strengthening showroom selling expertise
through targeted training for Showroom Advisors, Managers and
Store Managers, delivered in partnership with Reality Training Ltd.
This programme focuses on practical, customer-led behaviours
and has already driven a 5.5% improvement in conversion since
the project began.
Screwfix launched ‘Everyday Leadership Principles’, setting clear
expectations for leaders, and began a leadership effectiveness
programme for Directors, continuing into 2026.
Skills building for the wider colleague population remains a focus
with apprenticeships central to our approach, with more than
12,000 completed to date. This includes over 700 colleagues
currently enrolled at B&Q and around 250 completing
qualifications in FY 25/26. B&Q now offer over 40 nationally
recognised qualifications, enabling colleagues to grow their
careers while building the skills needed for the future. B&Q’s
commitment to inclusive development was recognised at the
Multicultural Apprenticeship Awards, where it was named
Employer of the Year – Retail, Hospitality and Tourism. Screwfix
was again named a Top 100 Apprenticeship Employer and
shortlisted for Apprenticeship Programme of the Year.
Castorama Poland invested in early-career development through
its “Kierunek Castorama” vocational apprenticeship scheme and
“Be One of Us!” internship programme, providing hands-on
experience and strengthening the long-term talent pipeline.
Investing in our people and growing
engagement
Listening to our colleagues remains key to how we work. Through
colleague forums, networks and engagement surveys, we ensure
colleague voices shape our strategy and culture. Ourfifth annual
engagement survey, conducted via the Workday Peakon
platform, delivered an eNPS score of 58, maintaining our
position in the top 5% of global retail benchmarks for the third
consecutive year. Engagement has risen by 10 points since
launching the platform in 2021, with strong performance across
key drivers:
— Growth (55 eNPS) is the driver that performs highest against
the retail benchmark, Colleagues value the availability of
training programmes, especially apprenticeships. Apprentices
score Growth 25 points above the Kingfisher benchmark.
— Reward (31 eNPS): Continues to outperform benchmarks,
reflecting the positive impact of recent pay investments.
— Wellbeing (45 eNPS) has emerged as the highest impact
strength, scoring 43 points above the median retail benchmark.
Many colleagues attribute this to high levels of care from
managers and peers who create a supportive environment
every day.
Our inclusion scores remains strong, with “Sense of belonging” up
one point to 55 eNPS and “Fair opportunities for all backgrounds”
steady at 76 eNPS, both ranking in the top 5% ofPeakon’s global
Inclusion and Diversity benchmark. Colleague sentiment indicates
our approach is authentic and embedded inour culture, while we
remain mindful of adapting to evolving attitudes and diverse
cultural contexts across our markets.
We continue to assess our culture through both formal and
informal channels, including regular colleague surveys, the
Kingfisher Colleague Forum (KCF), works councils, colleague
networks, social channels and Town Hall meetings. These forums
provide meaningful dialogue between colleagues and senior
leadership, helping shape decisions on business-critical topics,
from AI and cyber security, to embedding diversity and allyship
ambitions across our markets, ensuring colleague insight drives
strengthened capability and organisational resilience. Insights from
engagement surveys and forums are shared with the Board to
inform decision-making, and a Non-Executive Director attended
the KCF twice during the year to maintain a direct link to colleague
voice (see page 59).
In parallel with colleague listening, we continue to monitor
workforce trends and workforce indicators closely across all
banners, with Q4 data showing meaningful shifts in attrition and
stable levels of overall absence. Retail attrition trends improved
across our UK banners, with overall attrition falling from 9.7% to 5.6%
in Q4, placing both B&Q and Screwfix below BRC benchmarks,
while head office attrition remained stable at 3.2%.
As a responsible employer, we continue to monitor cost of living
trends across all our markets and take proactive steps to support
colleagues in both our stores and our head offices. Despite the
challenging external environment, we remain committed to
investing in pay and benefits. In April 2025, we implemented further
increases to minimum hourly pay rates at B&Q and Screwfix,
reinforcing our priority to support colleagues and maintain strong
market competitiveness.
Over the past five years, we have delivered a cumulative increase
of more than 40% in hourly pay rates across our UK businesses
and comparable levels of uplift have been achieved internationally.
These sustained increases reflect our long term commitment to
fair, competitive pay, even during periods of significant economic
and operational pressure.
Alongside pay, we continue to strengthen our broader approach
to benefits and supporting financial wellbeing. Across our markets,
we provide financial education programmes designed to help
colleagues build confidence in managing their personal finances
and planning for the future. We offer all eligible colleagues a high
quality UK pension scheme that supports long term financial
security and we operate colleague support funds, offering
targeted financial assistance to those facing unexpected or
difficult circumstances. These initiatives ensure that colleagues
have access to support when they need it most.
Across the business, we continue to make steady progress on
reducing our gender pay gap each year. We know that meaningful,
long-lasting change takes time, but it’s encouraging to see
consistent improvement. We remain committed to investing in all
colleagues through fair, competitive pay and through opportunities
for growth and development which we believe will continue to drive
positive results across all areas of our diversity reporting.
We have worked diligently to prepare for the upcoming EU Pay
Transparency Directive through a cross-banner working group.
Our European banners have focused on strengthening job
evaluation frameworks, reviewing and aligning pay bands, and
engaging colleagues across the business to ensure readiness.
Thiscollaborative effort has helped build a consistent, transparent,
and well-understood approach as we move toward compliance.
15Kingfisher 2025/26 Annual Report and Accounts
Driving performance through diversity
andrepresentation
We continued to make strong progress on gender
representation, including a significant achievement this year:
women now hold 40.5% of management roles, meeting our FY
25/26 target. Further detail is outlined in the graphs below. We
remain committed toachieving our goals for women in senior
leadership and toreporting transparently on our progress.
In the FTSE Women Leaders Report, published in February 2026,
itwas reported that Kingfisher had improved gender representation
by 2.1% year on year, rising from 35
th
to 28
th
place in the FTSE 100.
Since 2020, representation at Group Executive and their direct
reports has increased by 12.7%, putting us 2.9% above the FTSE 100
average and making us the only retailer to have made consistent
progress every year since 2020.
We maintained our broader focus on diversity and inclusion,
including ethnicity. As confirmed in the Parker Review for
the2025 reporting period, 4.2% of our UK Senior Leadership
population identify as from an ethnic minority background. We
continue to work with external partners to ensure accountability
and best practice. We also strengthened our understanding of
workforce demographics, reaching 75% completion in our UK
diversity data campaign and introducing candidate diversity
questions to support a fairer recruitment experience. To further
embed inclusion and connection, we expanded in-person
onboarding in the UK and launched a new volunteering hub
tohelpcolleagues engage with the communities we serve.
Across our banners, we continued to advance diversity
andinclusion through targeted development programmes.
Castorama France expanded its Woman Leader programme
andB&Q strengthened its pipeline of female leaders by +1.3%
YoYthrough ongoing D&I education and initiatives like the
WomenInLeadership Apprenticeship. Our commitment to
diversity has been recognised externally, with Brico Dépôt
Iberiaranked among the top 13 companies for attracting
anddeveloping female talent in 2025 by Instituto Más Mujeres
and was acknowledged by Intrama as one of Spain’s top50
organisations for best practices in Diversity, Equity andInclusion.
Castorama France achieved a score of 99/100 on the national
Gender Equality Index, reflecting its strong and sustained
progress on inclusion and pay equity.
Affinity networks continued to grow under the theme of
Belonging, and Kingfisher hosted its first Inclusion & Diversity
Summit in 2025, bringing together network chairs from across
banners toshare best practice and expand their reach beyond
the UK.
Our People Plan 2026–2029
Looking ahead, we will maintain focus on three priorities:
— Building a culture of performance for growth
— Further optimising our operating model
todrivegrowthefficiently
— Building leaders and skills for now and the future
We will continue to embed our work on colleague
engagement,diverse representation, inclusion, learning
andcareer development, supported by strong governance
andactive listening through the Kingfisher Colleague Forum,
ourother colleague fora, andengagement surveys.
Equal opportunities
We are committed to creating a workplace where everyone
istreated with fairness, respect and dignity. No colleague is to
betreated less favourably or experience discrimination (unlawful
orotherwise) on any grounds. Entry into and progression within
the company is based solely on personal ability and competence
to meet set job criteria. Our Equal Opportunities, Inclusion and
Diversity policy applies to every part of employment, including full
and fair consideration during recruitment and selection processes,
opportunities for training, development and promotion, and terms
and conditions of employment. Our employment policies,
practices and procedures promote accessibility for disabled
people, providing reasonable adjustments and appropriate
training for their aptitudes and abilities, where appropriate.
The Board
37.5%
62.5%
Female: 3
Male: 5
Management roles
40.5%
59.5%
Female: 4,961
Male: 7,302
Senior leadership
33.3%
66.7%
Female: 104
Male: 208
People and Culture continued
Total workforce
42.7%
57.3%
Female: 29,753
Male: 39,967
42.4%
57.6%
Female: 39
Male: 53
Group Executive and
their direct reports
Board, senior management and employee diversity
Other
Information
16 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
Section 172 statement
The directors confirm that, throughout the year, they have acted in the way they consider, in good faith,
would be most likely to promote the success of the company for the benefit of its members as a whole,
and in doing so had regard (among other matters) to Section 172(1)(a) to (f) of the Companies Act 2006.
Kingfisher’s actions and behaviours are governed by a robust governance framework, including the Kingfisher Code of Conduct and
Group policies. This framework allows the Board to have due regard to the impact of decisions on the matters specified in Section172
of the Act, as outlined in the table below. Before reaching a decision, the Board considers the potential impact on key stakeholders, the
environment, the Group’s reputation and long-term success. We recognise that some decisions may not result in positive outcomes
for all stakeholders. However, by aligning decisions with the company’s purpose, vision, and values together with our strategic priorities
and having a process in place for decision-making, the Board aims to act in the best interests of the company and consider the
interests of its stakeholders.
Information regarding engagement with stakeholders is provided on pages 19 to 22 and 59 to 60. Further information on the Board’s
activities and other significant decisions made during the year can be found on page 58.
Section 172(1)
matters Approach and where to find further information
a. The likely
consequences
ofany decision
in the long-term
Board decisions are guided by the Group’s purpose, strategy and long-term plans and consider the potential impacts
ofdecisions onthecreationof long-term value.
Performance againstpriorities pages8 and 9 Viability statement pages 49 and 50
Risks page 43 Principal risks pages 44 to 48
b. The interests of
the company’s
employees
The Board sets the Group’s purpose, values and standards to reflect its culture and commitment to diversity
andinclusion. The Board recognises that colleagues are critical to the successful delivery of our strategy and priorities
and considers failing to attract, retain and develop colleagues to be a principal risk.
Business model pages12 and 13 Principal risks page 44 to 48
People and culture pages14 to 16 Remuneration Committee page73
Non-financial andsustainability
information statement (NFIS)
page 23 Responsible Business Committee page 67
Responsible Business pages 24 to 27
c. Fostering the
company’s
business
relationships
withsuppliers,
customers
and others
The Group Executive oversees relationships with suppliers, customers and other counterparties within their areas of
responsibility, assesses any feedback and, where appropriate, reports the outcomes of engagement activities.
The Board considers a resilient supply chain is key to the achievement of our strategic objectives, and any major
disruption toour supply chain is considered a principal risk. New suppliers are subject to risk-based due diligence checks
and must comply with our Code of Conduct.
Business model pages12 and 13 Principal risks pages44 to 48
Responsible Business page 24 to 27 Viability statement pages 49 and 50
d. The impact of
the company’s
operations on
the community
and the
environment
The Board recognises the importance of supporting communities to strive for better homes and seeks to invest
inhelping those most in need, giving our time, products and financial contributions in line with our purpose, values
andstandards.
The Board sets our Responsible Business priorities relating to communities and the environment. The Responsible
Business Committee monitors delivery of these priorities and ensures that policies and frameworks are in place to allow
the Group to conduct its business responsibly in relation to environmental and social matters.
Business model pages12 and 13 Responsible Business Committee page 67
Responsible Business pages 24 to 27 Responsible Business Report kingfisher.com/
responsible-business
TCFD pages103 to 114 NFIS page 23
e. Maintaining a
reputation for
high standards
of business
conduct
The Board recognises that our stakeholders expect our business to be conducted in a responsible manner. This belief
isembedded throughout Kingfisher as we expect everyone working for us or with us to carry out our business
professionally, fairlyand with complete integrity.
The risk of failing to deliver these standards is included in the Board’s review of the Group’s principal risks. The Audit
Committee oversees the Group’s requirements for high standards of conduct and business ethics. The Responsible
Business Committee ensures that policies and frameworks are in place to allow the Group to conduct its business
responsibly in relation to ethical matters.
Business model pages12 and 13 Responsible Business pages 24 to 27
People and culture pages 14 to 16 Principal risks pages 44 to 48
NFIS page 23 Audit Committee report pages 68 to 72
f. Acting fairly
between
members of
the company
The Board oversees the Investor Relations programme which involves routine engagement with the company’s
shareholders. The Board receives feedback on engagement, and the Chair and other non-executive directors make
themselves available formeetings as appropriate and attend the company’s AGM.
The Investor Relations programme is designed to promote engagement with investors and is typically conducted after
thefulland half-yearly results announcement. Shareholder presentations are made available on the company’s website.
Business model pages12 and 13 Directors’ report pages99 to 101
Financial review pages 31 to 37 Directors’ Remuneration report pages 73 to 98
17Kingfisher 2025/26 Annual Report and Accounts
Investors
Our investors rely on us to
protect and manage their
capital in a responsible way
while generating long-term
value. Investors and potential
investors need a clear
understanding of our
business, our growth potential,
ourstrategy to realise that
potential, our performance
and the risks and uncertainties
we are managing.
Regulators and
government
Our relationship with
government means
wecan provide our best
employment opportunities
and contribute economic
prosperity in the places
where we operate. Our
relationship with regulators
ensures that our strategy
and discussions about risk
and culture align with
regulator expectations.
Customers
Customer satisfaction and
safety are pivotal to the
success of our business.
Theneeds, behaviours and
feedback of our customers
are collected, assessed,
and used to develop our
long-term strategy.
Colleagues
We strive to ensure our
relationship with our colleagues
is supportive, open and inclusive.
Being able to attract, retain, and
develop diverse talent is one
important part of fostering a
stronger and inclusive culture,
as is considering the views of
colleagues in decision-making.
Communities and
non-governmental
organisations
We aim to be a positive impact on
the lives of our customers,
colleagues and communities and
in doing so create value for all our
stakeholders. It is also important
to us that we meet growing
expectations on companies to
undertake strong environmental,
social and governance action.
Suppliers
The strong relationships
wehave with our suppliers
are critical to delivering
customer needs, supporting
responsible business,
maintaining quality standards
and enhancing affordability.
These partnerships drive
reliability, sustainability and
value for all our stakeholders.
Our stakeholders at a glance
We are focused on creating value for all our stakeholders through our vision to make better homes and
better lives accessible for everyone while delivering sustainable, long-term performance.
Engagement with our stakeholders is integral to the development and execution of our strategy and forms a key part of the Board’s
decision-making process. This section details how we have continued to engage with our stakeholders during the year and key
outcomes and priorities as a result of this engagement. We welcome any feedback from our stakeholders.
Other
Information
18 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
Stakeholder engagement
Group engagement
— Continuous retail and trade customer surveys. Over 1.4 million
customers surveyed: monitoring customer satisfaction
in-store and on our websites; tracking consumer brand
perceptions over time against our competitors on a range of
issues, including sustainability and carbon impact; monitoring
consumer sentiment and home improvement activity levels.
— Commissioning of ad hoc research to gather feedback
before and after launching new products, services,
orstoreconcepts.
— Monitoring of customer reviews on our websites
andcustomer ratings and comments on Google.
— Regular ‘price reality’ and ‘price perception’ monitoring
ofprice indices versus our competitors in key categories.
— Meeting and engaging with customers at Screwfix Live
in September 2025 which saw over 30,000 visitors in
attendance (up 16% year-on-year).
Board engagement
— Regular updates on customer opinion, behaviour and
feedback, monthly net promoter scores (NPS), brand health
tracking and customer insight.
— Receipt of a commercial dashboard on a monthly basis
which consolidates a broad range of metrics, including price
indices, market trends, competitor activity and customer
insight by banner.
— Reviewed the action being taken to strengthen the company’s
defences against the rising risk of cyber threats.
— Regular reviews of the impact of Responsible Business issues
on our customers.
Performance metrics and highlights in 2025/26
— Continued transformation of our ranges to support customers
to make sustainable choices: our OEB Sustainable Home
Products (SHP) sales are now 70% of total.
— Launch of initiatives to grow business with trade customers,
e.g.,dedicated space and sales partners in stores and specific
loyalty programmes.
— The growth of the Screwfix app and Screwfix Sprint,
evidencing the impact of providing more convenience to
customers.
— The sustained growth of marketplace across our markets,
allowing us to offer increased choice and speed.
Priorities for 2026/27
— Deliver an excellent customer service and experience in-store
and online.
— Continue to develop a strong proposition for trade customers.
— Continue to grow the Screwfix app, including Rewards and Sprint.
— Deliver innovative, high-quality and sustainable product ranges.
Customers
See our strategy
on page 7.
1 42 53 6
Link to strategy
Group engagement
— Engagement with colleagues by the business is set out
onpage 15.
Board engagement
— Regular Board and individual director visits to our offices and
stores. During the year, this included visits to: B&Q, Screwfix
City, Brico Dépôt Marseille, Castorama Toulon la Seyne,
Castorama Gdańsk Oliwa and Kowale stores, and the head
office of Castorama France (see page 60).
— Review of progress against key metrics of culture through
both informal and formal mechanisms, including aculture
dashboard (see page 59).
— Remuneration Committee reviews of workforce
remuneration (see page 73).
— Direct engagement through the Kingfisher Colleague
Forum,with feedback presented to the Board twice a year
(see page 59).
Performance metrics and highlights in 2025/26
— Invested in leadership development, driving curiosity,
engagement, and retention within the Kingfisher Leadership
Team, while building aconnected leadership community.
— Employee net promoter score (eNPS) of 58, within the top 5%
percentilefor retail.
— Progress made implementing pay transparency readiness
plans across all markets in preparation for the EU Pay
Transparency Directive.
— Conducted end-to-end Head Office reviews to build clear
insight around our current organisational design and capability
to drive efficiency and effectiveness.
— Launched a TikTok channel to connect with younger audiences
and build awareness of Kingfisher as an employer ofchoice.
Priorities for 2026/27
— Build a culture of agility and inclusion, built on trust, to unlock
high performance.
— Shape a lean, adaptive organisation that enables reinvestment
for sustainable growth to support more efficient, consistent
and coordinated delivery across the organisation.
— Attract, develop and retain the critical skills and talent needed
to power future growth.
— Continue to optimise colleague reward.
— Compliance with the EU Pay Transparency Directive.
Colleagues
See our strategy on page 7.
5 6
Link to strategy
19Kingfisher 2025/26 Annual Report and Accounts
Group engagement
— Holding meetings on an ongoing basis; approximately 430
interactions with 270 institutional investors and sell-side
analysts on general business topics.
— Investor and analyst presentations, roadshows, conferences,
fireside chats and interview series, store tours attended as
appropriate by the CEO, CFO, Chair and Responsible
Business team.
— Market disclosures, including results announcements, trading
updates and ad hoc updates.
Board engagement
— Regular engagement by the CEO, CFO, and Chair
withinvestors, covering key financial announcements,
business performance and specific issues.
— Regular feedback to the Board from investor roadshows
across eight countries.
— Receipt of reports on investor and financial market
sentiment and expectations.
— Engagement with shareholders at Kingfisher’s 2025 AGM.
Performance metrics and highlights in 2025/26
— Delivered a comprehensive investor engagement plan,
including post-results management roadshows, fireside
chats and conferences.
— Strengthened engagement with investors through events and
new means of communication including through social media,
Kingfisher one-page at a glance and Kingfisher investment
thesis.
— Broadened our investor targeting efforts through investor
outreach in new geographies including the Middle East and Asia.
Priorities for 2026/27
— Effective communication of progress against our four strategic
growth drivers.
— Maintain regular, proactive dialogue with investors to gather
feedback on strategy, performance, governance and priorities.
— Ensure relevant investor feedback is considered by
management and the Board and informs disclosures and
strategic decision-making.
Investors
See our strategy
on page 7.
1 42 53 6
Stakeholder engagement continued
Case study:
Acceleration of share buybackprogramme
Kingfisher has a strong record of
returning capital to shareholders,
having executed three £300m
buyback programmes since 2021.
During the year, the Board
announced that a fourth £300m
ofsurplus capital was available
toreturn to shareholders via
asharebuyback programme
(theProgramme) and subsequently
approved an acceleration of the
Programme.
After Kingfisher saw £94m exceptional cash inflows, primarily
from an EU state aid tax refund (£64m) and from the sale of
the Romania business (£33m), the Board considered an
acceleration of the Programme. In reaching its decision,
theBoard considered the commitment carefully, giving due
consideration to the views of the company’s main stakeholder
groups and Section 172 matters. Guided by the company’s
capital allocation policy and financial priorities, it was agreed
that the acceleration would also demonstrate the Board’s
confidence in the company’s long-term growth and strategy.
Following a thorough review of the Group’s cash and liquidity,
the Board determined there was expected to be sufficient
capacity for ongoing investment in the business, ensuring
strategic priorities could be well funded alongside attractive
returns to shareholders. The Board also judged that the
Programme was not expected to introduce significant
additional financial risk in terms of credit metrics, pension
scheme obligation or the Group’s overall liquidity position.
Proactive engagement was undertaken with lenders and
investors on shareholder returns to discuss the rationale for
the Programme and its subsequent acceleration, including
that it was reflective of Kingfisher’s robust cash position and
balance sheet, supported by strong trading, upgraded
half-year guidance, and a £94 million of one-off cash inflows.
Link to strategy
Other
Information
20 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
Group engagement
— Engagement with suppliers on our Code of Conduct
and Responsible Business strategy (including Scope 3
carbonreductions).
— Conducting risk-based anti-bribery and corruption
due diligence, and supplier ethical risk assessments and
audits which include factory and production site visits.
— Reporting on our payment practices under the UK
Government’s Duty to Report requirements.
— Regular review of annual supplier survey insights to track
end-to-end supplier experience in working with Kingfisher.
Board engagement
— Reviewed the progress made towards Scope 3 supplier
decarbonisation ambitions, responsible sourcing and climate
targets (see page 25).
— Board and Audit Committee updates on supply
chain resilience and exposure in the context of
geopolitical events.
— Consideration of supplier insights and demands to
strengthen capabilities and buying processes across
banners and Offer & Sourcing.
Performance metrics and highlights in 2025/26
— Continued focus on sustainability by making our products
greener to deliver SHP targets and Scope 3 carbon reductions.
— Continuous review of our global sourcing footprint, not only as
a risk mitigation measure but as a growth and competitiveness
enabler.
— 1,369 OEB and branded suppliers surveyed scoring 8.48/10
overall (+0.8% vs 2024/25) with an overall response rate
of70.3%.
— Monitored the impact of proposed regulatory changes
on supplier payment practices.
Priorities for 2026/27
— Focus on supporting our suppliers to build decarbonisation
plans while working with industry and peers to align and drive
collective action on Scope 3 carbon reduction.
— Long-term partnerships, stability and transparency
andfairpayment terms.
— Heightened focus on supplier performance and accountability
through active monitoring, transparent sharing and tracking
against clearly defined KPIs.
— Use data-led insight to drive continuous improvement,
informed decision-making and targeted intervention with
suppliers, where needed.
Suppliers
See our strategy
on page 7.
1 42 3 5
Group engagement
— Engagement with this stakeholder category is predominantly
undertaken in pursuit of our Responsible Business priorities
and therefore captured on page 25.
— Collaboration with organisations such as the Business
Disability Forum to develop the inclusivity agenda and the
Slave FreeAlliance to tackle modern slavery.
— Collaborating with peers through the UN Global Compact
and the British Retail Consortium’s Climate Action Roadmap.
Board engagement
— Board and Responsible Business Committee reviews
ofprogress of our community programmes and
environmental work.
— Kingfisher’s membership of and engagement through
theCEO with the European DIY Retail Association and
theGlobal Home Improvement Network (EDRA/GHIN).
— Receipt of updates on community investments made
during2024/25.
Performance metrics and highlights in 2025/26
— Recognised as a global leader on climate transparency
onCDPs (formerly known as Carbon Disclosure Project)
prestigious Climate A List, within top 4% of companies
worldwide scored by CDP.
— Progress on our Communities strategy is reported on page 25.
— Community work continues to resonate strongly with colleagues.
Priorities for 2026/27
— Continued focus on working towards achieving net zero
emissions for our operations by 2040 and across our wider
value chain by 2050.
— Maintain Board oversight of our community investment,
including endorsement of priority areas and monitoring delivery.
— Sustain our focus on community engagement through targeted
charitable giving and enabling colleague volunteering.
— Support the transition into the new Responsible Business 2030
strategy by maintaining engagement with community partners
and NGOs.
Communities and
non-governmental
organisations (NGOs)
5
See our strategy on page 7.
Link to strategy
Link to strategy
21Kingfisher 2025/26 Annual Report and Accounts
Group engagement
— Direct engagement with the governments and regulators
ineach of Kingfisher’s key markets as well as with
EU institutions.
— Engagement with retail trade associations, including the
British Retail Consortium, Eurocommerce, EDRA/GHIN, the
French DIY Retail Association, and business associations
such as AFEP (France) and Lewiatan (Poland).
— Attendance at government meetings and events, responding
to consultations, and participation in parliamentary inquiries.
Board engagement
— Updates on company engagement with regulators,
government stakeholders, and political representatives,
bothdirectly and via industry associations and
other partners.
— Receipt of bi-annual updates on material political issues
impacting Kingfisher across its geographies, including
monitoring actions and next steps.
— Ongoing monitoring of macroeconomic and geopolitical
forces on performance.
— Updates on key governance and regulatory changes
thatmay impact Kingfisher.
— Response to policy consultations and formal
information requests.
Performance metrics and highlights in 2025/26
Progress made on issues including:
— Continue to support initiatives to maintain a level playing field
across the retail sector in all our markets.
— Support for UK and EU announcements to end low-value
imports exemption for third country direct imports to
consumers, creating a level playing field with online-only third
country retailers.
— Home energy efficiency government support in France and
Poland.
— Continued focus on skills reform in the UK.
Priorities for 2026/27
— Protect the business through our level playing field advocacy
across issues (payment terms, business rates in the UK,
corporate taxation in France).
— Maintain a clear vision on climate related risks
andopportunities.
— Compliance with increasing reporting and disclosure rules with
particular focus on ESG, corporate governance and controls,
and EU pay gap and transparency.
Regulators
and government
See our strategy
on page 7.
1 42 53 6
Stakeholder engagement continued
Link to strategy
Other
Information
22 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
This statement is made in compliance with sections 414CA and 414CB of the Companies Act. TheGroup’s climate-related
financial disclosures have been prepared in accordance with the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD) and in compliance with the Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022
and these are included on pages 103 to 114. We have included a TCFD alignment index on page 28 of the Strategic Report containing
cross-references to where specific disclosures can be found. A description of the Group’s polices, the due diligence measures we
undertake to implement them and the results of applying these policies, are set out inthetable below.
For information on: Business model – see pages 12 and 13. Non-financial KPIs – see page 11. Principal risks and uncertainties – see pages
44 to 48.
Policy
1
and description Due diligence and key outcomes
More information on matters, due
diligence and key outcomes **
Environmental matters
Environmental Policy
The policy outlines the company’s commitments and the actions
being taken to address impacts on climate change, biodiversity,
nature and forests as well as waste management.
Environmental impacts, risks, and opportunities are assessed in line with
regulatory requirements. KPIs are tracked and reported annually,
withpolicy reviewed each year.
- Performance against priorities:
pages 8 and 9
- KPIs: page 11
- TCFD: pages 103 to 114
- Responsible Business: pages
24 to 27
- Supplier engagement: page 21
- Principal risks: pages 44 to 48
- Consideration of climate-
related matters pages 28 to 30
and Note 3
Forest Positive Policy
This policy outlines our requirements to support our journey
tobecome Forest Positive through responsible sourcing,
avoiding deforestation and protecting and restoring forests.
All goods containing wood or paper must come from responsible
sources (recycled, FSC/PEFC wood with full Chainof Custody).
Vendors must submit supply chain data toverify compliance.
Sustainable Packaging Policy
This policy outlines the requirements for our Own Exclusive
Brand products’ packaging.
Packaging sustainability data is collected regularly. OEB vendors must
provide accurate packaging information, and may be audited through
the Vendor Internal Packaging Audit (VIPA) programme. The policy
drives increased recyclability and plastic reduction.
Chemicals Policy
The policy outlines how we control certain chemicals in our OEB
products through transparency, chemicals management, and
supplier collaboration.
Annual assessments and updates to ensure the policy’s effectiveness
in safeguarding health and the environment. The policy drives an annual
increase in product transparency and share of products meeting SHP
Chemical criteria.
Colleagues
Code of Conduct
Our Code of Conduct summarises our approach to doing
business and the ethical standards we expect.
A description of the due diligence process is on page 27
There were no material Code of Conduct breaches during the year.
- Performance against priorities:
pages 8 and 9
- KPIs: page 11
- People and culture: pages 14 to
16
- Colleague engagement: page
19
- Responsible Business: pages
24 to 27
- Responsible Business
Committee: page 67
- Principal risks: page 44
Equal Opportunities, Inclusion and Diversity Policy*
This policy outlines our commitments to foster inclusive
behaviours for all.
Diversity is monitored with set targets, supported by training and clear
procedures to report non-inclusive behaviours.
Health and Safety Policy Statement*
This policy applies to all Kingfisher colleagues, third parties
andsites, and sets out the key measures and processes
tominimise the risk of harm.
Due diligence includes regular reporting and audits at banner level. The
policy statement aims to drive improvement in workplace safety.
Human Rights
Human Rights Policy
This policy states our commitment to respect human rights, and
our commitment to implement due diligence procedures across
Kingfisher and its supply chain.
Risk assessments identify and address human rights risks. Supplier
audits ensure compliance with ethical standards, andgrievance
mechanisms allow confidential reporting ofconcerns. The policy seeks
to ensure fair labour practices for our colleagues and within our supply
chain, and aims to reduce the risk of human rights violations.
- Supplier engagement: page 21
- Responsible Business: page 26
- Principal risks: page 45
Supply Chain Workplace Standards
This policy sets out the standards that we ask all companies in
our supply chain to comply with, in order to ensure respect for
human rights.
Regular ethical audits assess supplier compliance with labour and
environmental standards. Monitoring is supported by platforms like
Sedex, amfori BSCI, and EcoVadis. The standards promote ethical
sourcing and enhance transparency across our supply chain.
Social matters
Community Policy
This policy outlines how we and our retail banners are striving for
better homes for everyone in our communities.
We partner with registered charities to create positive impact on the
communities we serve. Invested £6.7 million in our communities with an
additional £4.1 million raised by our colleagues and customers.
- Responsible Business: pages
24 to 27
- Responsible Business
Committee: page 67
- Communities and NGO
engagement: page 21
Anti-bribery and corruption
Anti-Bribery and Corruption Policy*
The policy sets out the key principles and processes in place to
prevent bribery and corruption across Kingfisher and its supply
chain.
Suppliers undergo ethical screening, and colleagues receive
anti-bribery training. A whistleblowing policy allows anonymous
reporting, and regular audits monitor compliance.
- Responsible Business: page 27
- Principal risks: page 46
- Audit Committee: page 71
Gifts and Hospitality Policy*
This policy outlines the process, rules on acceptance and
offering of Gifts and Hospitality.
Clear guidelines define acceptable gift and hospitality thresholds.
Pre-approval processes and gift registers to ensure transparency and
accountability.
Whistleblowing Policy*
This policy outlines the process for confidentially reporting
misconduct without fear of retaliation.
The confidential Speak Up platform allows anonymous reporting,
managed by an independent third party. Reports are reviewed and
investigated with regular oversight from the Audit Committee.
Colleagues receive training on the policy.
1. All policies except those marked with an asterisk are available on the company’s website kingfisher.com/responsiblebusinesspolicies.
* Policies marked with an asterisk are accessible to colleagues via the company’s intranet.
* * Further details on outcomes are available in our Responsible Business Report and Modern Slavery Statement on our website.
Non-financial and sustainability
information statement
23Kingfisher 2025/26 Annual Report and Accounts
Responsible Business
Operating as a Responsible Business
Kingfisher has championed responsible practices across all aspects of its business for over 30 years. Five years ago, building
onourstrong Environmental, Social and Governance (ESG) credentials, we launched our ‘Powered by Kingfisher’ strategy
includingresponsible business priorities and targets for 2025/26.
Our four Responsible Business priorities
We have been focusing on areas where we believe we can use our experience, scale and influence to deliver positive impact.
Theseare: colleagues, planet, customers and communities. As we close out this strategy, we are preparing to launch the next
iterationwhich will take us through to 2030.
Full details of this year’s progress will be published in our dedicated Responsible Business Report in Q2 2026/27.
See page 25 for details of our progress against the targets for our four key priorities
We will be a more inclusive company
We will help make greener,
healthierhomesaffordable
We will help tackle climate change and continue
ourjourneytobecome Forest Positive
We are striving for better homes
foreveryoneinourcommunities
Our commitment
We will be a more inclusive company by breaking
downbarriers to employment and progression,
andbybuildingskillsfor life.
Our commitment
We will help millions of customers have agreener, healthier
home – one that isenergy efficient, comfortable, uses
fewer resources and is affordable torunand maintain.
Our commitment
We will help tackle climate change by reducing carbon
emissions from our business, products and supply chains.
Wewill work towards becoming Forest Positive through
our commitment to responsible sourcing andinvesting
inforest protection andrestoration projects.
Our commitment
We will donate our products, expertise and time
tohelppeople whose housing needs are greatest
inthecommunities we serve.
Colleagues
Customers
Planet
Communities
Other
Information
24 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
Key priorities Our targets Our progress
Colleagues
- Improve gender balance to
35% women in senior
leadership and 40% women
in management by FY
25/26.
- Enable more than 20,000
colleagues to complete an
apprenticeship, traineeship
or formal qualification by
FY 30/31.
- Increased women’s representation in senior leadership to 33.3% (FY 24/25: 30.1%),
Since setting our diversity targets, representation at this level has increased by 10
percentage points, reflecting continued progress towards our target.
- Increased women’s representation in management to 40.5% (FY 24/25: 39.8%),
exceeding our management target.
- Continued to prioritise inclusion, with a focus during the year on strengthening
diversity across our talent pipelines.
- 4,410 colleagues across the Group completed apprenticeships, traineeships
andformal qualifications, bringing the total to 12,658 since FY 23/24. Thisprogress
brings us on track to achieve our 2030 target.
Learning and inclusivity form part of our People and Culture Plan, as set out on pages 14
to16.
Planet
- Reduce Scope 1 and 2
emissions by 37.8% in
absolute terms, and Scope
3 emissions by 40% per £m
of turnover by FY 25/26
compared with FY 16/17 and
FY 17/18 respectively.
- Reach net zero emissions
for our operations (Scope 1
and 2) by FY 40/41 and
across our value chain
(Scope 3) by FY 50/51.
- Achieve 100% responsibly
sourced wood and paper
for our products and
catalogues by FY 25/26.
- Work towards becoming
Forest Positive by FY
25/26.
- Exceeded our FY 25/26 science-based targets, delivering 68.7% reductions
inScope 1 and 2 emissions and 45.9% reductions in Scope 3 emissions from supply
chain and product use per £m of turnover.
- Set and validated new near-term science-based targets for FY 30/31 to reduce
absolute Scope 1 and 2 emissions by 70.2% and Scope 3 emissions from supply
chain and product use by 46.0% against the FY 17/18 baseline, with reductions
of64.1% and 37.4% achieved in FY 25/26 respectively.
- Building on 30 years of legacy in responsible sourcing, and through a concerted
effort with our suppliers in the past five years, we have reached a level of 99,4%
1
responsibly sourced wood and paper (FY 24/25: 97.9% ). We also maintained 100%
responsibly sourced catalogue paper
- Continued to support industry-wide initiatives and work with suppliers on our joint
decarbonisation targets to drive collective progress
2
.
- Continued to invest in six community-managed forestry projects in key
tropicalsourcing regions as a founding member of the Rainforest Alliance
ForestAllies initiative.
- Screwfix and B&Q continued to work with the Woodland Trust, supporting habitat
restoration projects at Kingsettle and Snaizeholme. Colleagues from Brico Dépôt
France planted trees in partnership with Reforest’Action, and Castorama Poland
partnered with the United Nations Environment Programme’s Global Resource
Information Database (UNEP/GRID) to restore Polish national parks.
Customers
- Attain 60% of Group sales
from our Sustainable Home
Products (SHPs), including
70% of sales for our Own
Exclusive Brand (OEB)
products by FY 25/26.
- 58.2 % of total Group sales came from SHPs that help create greener, healthier
homes (FY 24/25: 53.4%), an increase of 16 percentage points since the target
wasset.
- 9.8% of group sales were from energy-saving, energy-efficient and water-saving
products (FY 24/25: 9.8%).
- Increased the share of OEB sales from SHPs to 70.1% (FY 24/25: 63.3%), achieving
our target.
- Rolled out our Green Star mark across all banners, making it easier for customers
toidentify and shop for products with a lower environmental impact. The number
ofSKUs carrying the mark doubled this year to approximately 20,000.
- Introduced new product ranges aligned to our SHP criteria, including more
energy-efficient, repairable and higher recycled-content products.
- Expanded refurbished product offers and capabilities at Screwfix and B&Q,
andtested rental models in Castorama France following strong customer
demandin Poland (see case study on page 26).
Communities — Having met our target to
help more than two million
people whose housing
needs are greatest by FY
25/26, we continue to
report on progress.
- Invested £6.7 million (FY 24/25: £6.0 million) in our communities, with an additional
£4.1 million (FY 24/25: £2.7 million) raised by our colleagues and customers
3
.
- Continued to focus on three priority areas: fix homes, share DIY skills and provide
emergency support.
- Strengthened charitable partnerships through our Foundations, including a new
partnership between the Screwfix Foundation and Hospice UK and the expansion
ofits activities into the Republic of Ireland.
- Expanded colleague and customer fundraising initiatives, with micro-donations
atpoint of sale, first implemented at Screwfix, subsequently adopted by B&Q
andcurrently being trialled in Poland.
- Supported disaster relief efforts across our geographies, including responses
tothe fires in Spain and Portugal and floods in the UK.
1. 99,1% is responsibly sourced in line with the criteria outlined in our policy. The remaining 0.3% relates to products sourced from a small number of
companies, which we have assessed based on alternative, externally validated criteria. For our OEB products, the number is at 99,6%
2. The targets are: (i) for Kingfisher’s 100 biggest suppliers by Scope 3 emissions, to create a Science Based Targets initiative (SBTi)-aligned roadmap and
decarbonisation target by 2028; (ii) for the next 450 suppliers, to create an SBTi-aligned roadmap and decarbonisation target by 2030; and (iii) for the
remaining vendors, to set a climate reduction plan by 2030.
3. The community contributions include estimated management costs and time volunteered by colleagues.
25Kingfisher 2025/26 Annual Report and Accounts
Our Responsible Business fundamentals
Our priorities are underpinned by our commitment to our
Responsible Business fundamentals. These are the practices
towhich we adhere to ensure we continue to operate
responsibly across our business.
We have a clear Group policy that allows usto work effectively
with key stakeholders across our functions and banners to
continually improve performance.
A full update will be published in the Responsible Business Report
in Q2 2026/27.
Responsible sourcing and human rights
We respect, protect and promote the human rights of our
colleagues, workers across our supply chain and others affected
by our business activities.
Our Human Rights Policy aligns with international agreements
andguidelines, including the United Nations Guiding Principles
onBusiness and Human Rights, the International Bill of Human
Rights (which includes the Universal Declaration of Human Rights),
the UN Global Compact, the International Labour Organization’s
Declaration on Fundamental Principles and Rights at Work,
theChildren’s Rights and Business Principles, and UN
conventionson the elimination of discrimination.
We work with our suppliers to raise standards on the
environment, labour practices, and human rights in our supply
chain. Our due diligence includes ethical risk identification and
assessment processes, ethical audits with follow up corrective
action plans as necessary, supplier training and engagement,
andcollaboration with human rights experts such as Slave Free
Alliance, a victim-focused social enterprise.
For further details and performance data see our Modern Slavery Act
Transparency Statement at www.kingfisher.com/Modern-Slavery.
Case study:
Focusing on the circular economypropositions
to meetourcustomers’ needs
Health and safety
We believe every colleague is entitled to a safe working
environment. While overall corporate responsibility for Health
andSafety sits at Board level, the Group Executive has overall
operational responsibility. The Group Head of Health and Safety
provides strategic leadership, supported by our banner heads
ofHealth and Safety, who collectively form a dedicated safety
network. Our Group Health and Safety team also works closely
with Health & Safety Committees at banner level.
Health and safety performance is regularly monitored at multiple
levels of the Group. Our key health and safety performance
indicators were reviewed by the Group Executive four times
andby the Board twice in FY 25/26. We also publish our health
and safety performance data annually in our Responsible
Business Report.
Waste and chemicals
We are committed to achieving zero waste to landfill and
increasing recycling. In the UK, France and Poland, these policy
commitments are integrated into contracts with waste
management partners, and we regularly review progress.
Wehave a Group packaging policy and B&Q and Screwfix have
their own Sustainable Packaging Guidelines which aim to minimise
the amount of packaging used on the products they sell and,
where packaging is unavoidable, to maximise the use of reusable,
recyclable and recycled materials.
We are committed to strict compliance with all applicable
regulations related to chemicals, and where we have identified
other chemicals that we consider less sustainable, we are starting
to phase these out of our products. Our Chemicals team
collaborated with the Product Sustainability team to enhance
supplier transparency on product formulations, enabling us
toidentify where they use substances considered of concern
tohuman health or the environment, and explore potential
alternative substitutes. In FY 25/26, we expanded and
To better serve our customers, and reduce ourimpact
ontheenvironment, our banners have continued to test
various circular economy models such as more affordable
refurbished products, repair and rental services.
Castorama Poland has doubled transactions this year withits
CastoRent service. Castorama France is also testing
different rental offers. B&Q has expanded its ‘Refurbished by
B&Q’ rangetoover 200 products including taps, showers
andpressurewashers.
Screwfix was awarded Highly Commended inthe Company
of the Year category at this year’s UK Green Business awards
recognising, among other initiatives, its expanded refurbished
product capabilities. ‘Refurb byScrewfix’ has refurbished and
repaired morethan 250,000 tools since 2022.
In the coming years we will build on what we’ve learned so far,
to ensure products are more accessible and last longer for
our customers and we continue to reduce our impact on the
environment.
Responsible Business continued
Other
Information
26 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
consolidated chemical criteria in the SHP guidelines to include
non-formulated products and articles. This is to ensure our
chemical strategy going forward aligns with the regulatory
changes expected in the EU in the coming years.
Ethical conduct
Our Code of Conduct sets out our personal and shared
responsibilities for meeting high ethical standards. It summarises
our approach to doing business, and the ethical standards we
expect, while helping us promote a culture where transparency,
honesty and fairness are the norm.
Read more at www.kingfisher.com/responsible-business/our-policies/
company-policies.
All Kingfisher, colleagues and third parties must comply with the
Code of Conduct. Colleagues are required to complete annual
training which covers the key principles and how to raise
concerns. Colleagues working in sensitive areas of the business,
or in higher-risk roles, must also complete training on fair
competition and market abuseregulation.
We have related Group policies, online approval and reporting
procedures for gifts and hospitality, conflicts of interest, and a
policy on competition law.
Our Group Ethics and Compliance Committee (GECC),
chairedby our CFO, oversees the company’s ethical standards,
compliance and priorities. Compliance reports and investigations
are reviewed quarterly. Local ethics and compliance committees
in each of our banners provide ongoingsupport and insight.
We use a third-party due diligence tool to support our processes
in areas such as anti-bribery and corruption, data protection,
sanctions, and conflict of interest. We also operate a confidential
whistleblowing hotline. The Board and Audit Committee receive
regular updates about whistleblowing reports as well as the
outcome of sensitive internal investigations.
For more information see page 71 of the Audit Committee report.
Responsible Business governance
Our Responsible Business Committee (RBC) met three times
thisyear to oversee the final year of delivery of the current
Responsible Business strategy 2025, ensuring it is embedded
ingovernance and remains robust and transparent.
Another priority this year was guiding the development of the
2030 Responsible Business strategy, ensuring the refreshed
strategy builds on the work done to date, is aligned to our
purpose, unique to Kingfisher and aligned with the Group’s
strategic objectives.
The Committee received quarterly updates on progress against
the current strategy and was updated on Kingfisher’s approach
to ESG regulation and actions taken in response.
For more information see page 67 of the Responsible
Business Committee report.
Further governance of climate-related risks and opportunities
isdetailed on page 103 in our response to the Task Force on
Climate-related Financial Disclosures.
Kingfisher has an ongoing £650m three-year revolving credit
facility with a group of our relationship banks. The facility
includestargets linked to sustainability metrics.
Environmental, social
andgovernancedisclosure
We disclose our ESG progress and performance through several
external benchmarks, including CDP (formerly the Carbon
Disclosure Project) and the Workforce Disclosure Initiative (WDI).
We continue to align our reporting to the Global Reporting
Initiative (GRI), Task Force on Climate-related Financial
Disclosures (TCFD) (see page 103) and the Sustainability
Accounting Standards Board (SASB) standards for Multiline and
Speciality Retailers and Distributors. Our disclosures also meet
the Companies (Strategic Report) (Climate-related Financial
Disclosure) Regulations 2022 amended sections 414C, 414CA
and414CB of the Companies Act 2006. See our Non-financial
and Sustainability Information Statement on page 23.
We continue to closely monitor developments in regulatory and
reporting requirements, including the EU Corporate Sustainability
Reporting Directive (CSRD) and UK Sustainability Disclosure
Standards (SDS). To ensure readiness, we have an ESG reporting
programme in place to align our practices to meet current and
future ESG disclosure obligations.
See page 67 for the Responsible Business Committee report and page 68
of the Audit Committee report. More information is also available at
www.kingfisher.com/responsible-business for more information.
27Kingfisher 2025/26 Annual Report and Accounts
We are committed to decarbonising our business in line with climate science, and being transparent about the impacts, risks and
opportunities that climate change poses to our business. In line with UK Listing Rule 6.6.6R(8), Kingfisher plc is required to disclose,
onacomply or explain basis, its consistency with the recommendations of the Task Force on Climate-related Financial Disclosures
(TCFD). Kingfisher is also in scope of the Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 and
therefore required to incorporate Climate-related Financial Disclosures (CFD)-aligned climate disclosures in its Annual Report and
Accounts. We have prepared our disclosures in accordance with TCFD and in full compliance with the FCA and CFD requirements.
We consider our disclosure to be consistent with the TCFD recommendations and recommended disclosures and have summarised
this in the TCFD alignment index below.
TCFD alignment index
TCFD pillar Recommended disclosures
Disclosure status
(comply/explain) Link to information/Kingfisher response
Governance a) Describe the board’s oversight of
climate-related risks and
opportunities.
Comply
- Governance section page 103 – Board-level oversight
of climate-related risks and opportunities (role of GCC,
GIC, andbanner boards).
b) Describe management’s role in
assessing and managing climate-
related risks and opportunities.
Comply
- Governance section pages 103 and 104 – management’s role
in assessing and managing climate-related risks and opportunities.
- Governance section page 105 – TCFD governance
structure(infographic).
Strategy a) Describe the climate-related risks
and opportunities the organisation
has identified over the short,
medium, and long term.
Comply
- TCFD strategy section (our climate-related risks and opportunities)
page 106 – Time horizons – description andrationale for selection.
- TCFD strategy section pages 106 and 107 – our approach
toclimate scenario analysis.
b) Describe the impact of climate-
related risks and opportunities on
the organisation’s businesses,
strategy, and financial planning.
Comply
- Page 106 – additional impacts of climate-related risks and
opportunities on our strategy and financial planning.
- Pages 106 and 107 – our approach to climate scenario analysis.
- TCFD strategy section page 107 – results of scenario analysis.
c) Describe the resilience of the
organisation’s strategy, taking into
consideration different climate-
related scenarios, including a 2°C or
lower scenario.
Comply
- TCFD strategy section pages 106 and 107 – Our approach to
climate scenario analysis.
- Pages 108 to 111 – Table 1: results of scenario analysis.
Risk
management
a) Describe the organisation’s
processes for identifying and
assessing climate-related risks.
Comply
- TCFD risk management section page 112 – processes foridentifying
and assessing climate-related risks.
b) Describe the organisation’s
processes for managing
climate-related risks.
Comply
- TCFD risk management section page 112 – processes foridentifying
and assessing climate-related risks.
- Page 112 – Kingfisher’s processes for managing
climate-related risks.
c) Describe how processes for
identifying, assessing, and managing
climate-related risks are integrated
into the organisation’s overall
risk management.
Comply
- TCFD risk management section page 112 – processes foridentifying
and assessing climate-related risks.
- Page 112 – Kingfisher’s processes for managing
climate-related risks.
Metrics
and targets
a) Disclose the metrics used by the
organisation to assess climate-
related risks and opportunities in line
with its strategy and risk
management process.
Comply
- TCFD Metrics and targets section – pages 112 to 114 – metrics
forassessing climate-related risks and opportunities.
- Pages 113 and 114 – Table 2: Kingfisher metrics and targets for
identifiedclimate-related impacts.
- Page 114 – Executive remuneration.
b) Disclose Scope 1, Scope 2, and, if
appropriate, Scope 3 greenhouse
gas (GHG) emissions, and the
related risks.
Comply
- Pages 29 and 30 – Our greenhouse gas emissions and energy use
data.
- Page 30 – Five-year performance and baseline comparison.
c) Describe the targets used by the
organisation to manage climate-
related risks and opportunities and
performance against targets.
Comply
- Page 113 – Table 2: Kingfisher metrics and targets for identified
climate-related impacts.
- Page 114 – Table 3: progress on climate-related targets.
Climate-related disclosures
Other
Information
28 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
A description of the external assurance of our climate-related financial disclosures can be found in the independent auditors’ report to
the members of Kingfisher plc on page 122. In addition, our GHG emissions and associated energy data for Scope 1 and 2 (market-
based) as well as categories 1.1, 11.1 and 11.2 of our Scope 3 GHG emissions are subject to annual independent assurance (ISAE 3000
limited assurance). The assurance statement with details on the scope and conclusion of the work will be published in our 2025/26
Responsible Business Report.
Streamlined Energy and Carbon Reporting
In line with the SECR (Streamlined Energy and Carbon Reporting) requirements, we report our emissions and energy use split between
the UK and other countries. UK emissions account for 61.6% of global market-based emissions and UK energy use accounts for 59.0%
of total energy use. Carbon footprint and energy intensity calculations are based on total floor area of occupied properties.
7,795,775 m2 in FY 25/26 (FY 24/25: 7,766,178 m2). This is because a significant component of our direct environmental impact derives
from our property portfolio.
In FY 25/26, we continued to improve energy efficiency in our operations through key measures, such as optimising heating, cooling
and lighting controls, installing LED lighting and relamping to more efficient versions, replacing gas heating with electric Air Source Heat
Pumps (ASHPs), and expanding on-site renewables, including the continued rollout and upgrading of solar PV to reduce reliance on grid
power. We also progressed further electrification across the estate, with additional properties transitioning to all-electric heating.
These are in line with the three-year energy reduction plans for each banner (key energy-efficiency measures in FY 24/25 included
installing LED lighting, optimising existing heating, cooling and lighting controls, replacing gas heating systems with ASHPs, and installing
biomass boilers and solar PV).
Since FY 16/17 our energy intensity has decreased by 34% due to continuous energy efficiency efforts, including those outlined above.
Our overall energy consumption in FY 25/26 increased year-on-year by 3.2% and has reduced by 29.1% since our FY 16/17 baseline.
In FY 25/26, 98% of our electricity came from zero-carbon and renewable sources, supported by Renewable Energy Certificates.
Our Greenhouse gas emissions data [TCFD Metrics and targets (b)]
2025/26 2024/25 (restated)
Metric Unit Global UK only
Global
(excl. UK) Global UK only
Global
(excl. UK)
% change
(global)
Scope 1 tCO
2
e 76,455 51,534 24,921 80,074 55,519 24,555 -4.5%
Scope 2 – location based tCO
2
e 73,783 27,658 46,125 80,969 31,930 49,039 -8.9%
Scope 2 – market based tCO
2
e 8,447 777 7,671 8,275 626 7,649 2.1%
Total Scope 1 and 2 – location based tCO
2
e 150,238 79,192 71,046 161,043 87,449 73,594 -6.7%
Total Scope 1 and 2 – market based tCO
2
e 84,902 52,310 32,592 88,348 56,146 32,202 -3.9%
Carbon footprint (market-based) kgCO
2
e/m
2
10.9 14.9 7.6 11.4 16.0 7.5 -4.3%
Total energy consumption GWh 861 508 353 834 498 336 3.2%
Total energy intensity kWh/m
2
110.4 145.0 82.2 107.4 142.2 78.9 2.8%
The figures may not add up due to rounding.
Following the sale of Brico Dépôt Romania in FY 25/26, Romania has been excluded from the Group’s carbon and energy reporting in
line with Kingfisher’s carbon accounting methodology. Accordingly, reported GHG emissions and energy data for all years presented,
including the baseline year, have been restated to exclude Romania.
29Kingfisher 2025/26 Annual Report and Accounts
Five year performance and baseline comparison [TCFD Metrics and Targets (b)]
Metric Unit 2025/26
2024/25
(restated)
2023/24
(restated)
2022/23
(restated)
2021/22
(restated)
2016/17
(restated)
baseline
% change
against
baseline
Total energy consumption GWh 861 834 891 1,067 1,176 1,214 -29.1%
Total Scope 1 and 2 – market based tCO
2
e 84,902 88,348 95,689 133,833 206,516 270,974 -68.7%
Carbon footprint (market-based)
per m
2
of floor space kgCO
2
e/m
2
10.9 11.4 12.5 17.7 28.0 37.4 -70.9%
Carbon footprint (market-based)
per £ million turnover tCO
2
e/£m 6.6 7.1 7.5 10.5 16.0 25.2 -74.0%
Selected Scope 3 GHG emissions data [TCFD Metrics and Targets (b)]
Metric Unit 2025/26
2024/25
(restated)
2023/24
(restated)
2017/18 baseline
(restated)
Scope 3 GHG Emissions: Category 1.1 – purchased goods and services
(GFR) tCO
2
e 4,523,178 4,604,676 4,882,444 5,640,294
Scope 3 GHG emissions: Category 11 – use of soldproducts tCO
2
e 11,839,463 13,155,790 12,924,031 20,485,971
Scope 3 GHG emissions: (Category 1.1 & 11) tCO
2
e 16,362,641 17,760,466 17,806,475 26,126,265
Scope 3 footprint per £ million turnover tCO
2
e/£m 1,264 1,418 1,401 2,349
The table above only covers selected Scope 3 GHG emissions used in our SBTi targets from use of sold products and upstream
Scope 3 GHG emissions from purchased goods for resale and services. Our total Scope 3 footprint with a detailed category-wide
breakdown as per GHG protocol will be published in our Responsible Business Performance Data Appendix in June 2026.
Methodology
We calculate our greenhouse gas (GHG) emissions in line with the GHG Protocol: Corporate Accounting and Reporting Standard.
The CO
2
e includes the seven main greenhouse gases that contribute to climate change: carbon dioxide (CO
2
), methane (CH4),
nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3).
We use the CO
2
e emission factors published annually by the UK Government (DESNZ). The data, as of 2025/26, is calculated using
the ‘2025 UK Government GHG Conversion Factors for Company Reporting’, version 1.1 (expiry 10 June 2026). We record activity
data(e.g. electricity consumption or gas consumption) and multiply with the relevant emission factors. Our Scope 1 emissions cover
the combustion of fuels, while our Scope 2 emissions account for the purchase of electricity and heat for our own use. For Scope
2 market-based emissions, we use a combination of conversion factors according to the data hierarchy (as defined under the WRI/
WBCSD GHG Protocol). We obtain supplier-specific emissions factors where available and use national residual mix emission factors
published by the Association of Issuing Bodies (European Residual Mixes 2024, Version 1.1, 11 August 2025).
We collect and consolidate energy use data from our stores, offices, and other buildings, using Automated Meter Readings (AMRs) or
invoice data. Where data is unavailable, we estimate usage through pro-rata calculations or by applying average energy consumption
per m² from similar sites. Our property energy data covers energy used in stores, offices and other buildings (e.g. distribution centres
or data centres) that are owned or leased by us where we have operational control of the energy use. Energy use data includes the
combustion of fuels, the purchase of electricity and heat by Kingfisher for its own use. Kingfisher reports energy consumption data
in GWh as it is not practical for us present the data in KWh. We continue to evaluate ways to align.
We use an operational control boundary, in line with the operational control approach as defined by the WRI/WBCSD GHG Protocol.
We include emissions from our wholly-owned subsidiaries. For our Koçtaş joint venture, as we do not have full operational control,
we include proportional emissions under Scope 3 (category 15, Investments). Kingfisher does not carry out any activities within the
UK offshore areas, therefore this is not covered by the disclosure.
Our data covers our material Scope 1 and 2 impacts: emissions from property energy use and operationally controlled delivery fleets.
We calculate both our market-based and our location-based emissions from electricity consumption. Our carbon reduction target
isbased on the market-based emissions.
We report energy consumption and GHG emissions on a calendar-year basis, which differs from our financial reporting period used
in the Directors’ report, as it allows additional time for data collection, verification, and quality assurance. We are working towards
aligning this with our financial year in the future. Detailed information on the scope of the data and the methodologies used to calculate
our data are explained in our Responsible Business Data Collection Methodology document.
Climate-related disclosures continued
Other
Information
30 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
A summary of the reported financial results for the twelve months ended 31 January 2026 is set out below.
Note: all commentary below is in constant currency, unless stated otherwise.
Financial summary
% Total Change % Total Change
2025/26 2024/25 Reported Constant currency
Sales £12,945m £12,784m +1.3% +0.2%
Gross profit £4,930m £4,763m +3.5% +2.5%
Gross margin % 38.1% 37.3% +80bps +80bps
Operating profit £469m £407m +15.2%
Statutory pre-tax profit (PBT) £378m £307m +23.0%
Statutory post-tax profit £245m £185m +32.7%
Statutory basic EPS 14.0p 10.1p +39.5%
Net cash flows from operating activities £1,433m £1,302m +10.1%
Total dividend per share 12.40p 12.40p –
Adjusted metrics
Like-for-like (LFL) sales +1.1%
Retail profit £734m £696m +5.4% +4.4%
Retail profit margin % 5.7% 5.4% +30bps
Adjusted pre-tax profit (PBT) £560m £528m +6.0%
Adjusted pre-tax profit margin % 4.3% 4.1% +20bps
Adjusted post-tax profit £416m £381m +9.2%
Adjusted basic EPS 23.8p 20.7p +14.9%
Free cash flow £512m £511m +0.1%
Net leverage
1
1.4x 1.6x
1. Refers to net debt to Adjusted EBITDA. Net debt includes £2,238m (FY 24/25: £2,253m) of total lease liabilities, including nil of lease liabilities held for sale
(FY24/25: £42m).
Sales
Total sales increased by +0.2%, to £12,945m. Excluding Romania, the Group’s total sales increased by +1.8%. UK & Ireland and Iberia
achieved sales growth ahead of their markets. France declined against a subdued consumer backdrop but outperformed the market.
Poland sales were flat and in line with the market. On a reported basis, which includes the impact of exchange rates, total sales
increased by +1.3%.
Like-for-like sales
LFL sales of +1.1% excludes a (1.6)% impact from the disposal of Romania and a +0.7% contribution from net space growth. Underlying
LFL sales performance (excluding calendar and leap year impacts) was +1.4%.
Space growth was driven by the conversion of acquired Homebase stores at B&Q, new Screwfix openings in the UK and France,
andexpansion at Castorama Poland. 41 net stores were opened during the year.
A reconciliation from LFL sales to total sales is set out below:
2025/26
£m
2024/25
£m
Increase/
(decrease)
LFL sales (constant currency) 12,749 12,609 +1.1%
Non-LFL sales 196 307 n/a
Total sales (constant currency) 12,945 12,916 +0.2%
Impact of exchange rates – (132) n/a
Total sales (reported rates) 12,945 12,784 +1.3%
Gross margin
Gross margin % increased +80 basis points to 38.1%, mainly from Kingfisher’s buying and sourcing scale, growth from marketplace and
retail media, AI driven promotional effectiveness, improved inventory management and clearance activity, banner mix, the disposal of
Romania and FX tailwinds. Group gross profit was up by +2.5%.
Financial review
31Kingfisher 2025/26 Annual Report and Accounts
Financial review continued
Operating costs
Operating costs increased by 2.1%. Excluding prior year business rates refunds at B&Q, operating costs increased by 1.3%, driven
primarily by new store openings, higher staff pay rates, higher variable compensation, and increased employer national insurance
contributions in the UK, as well as similar taxes in France. These increases were partly offset by structural savings delivered through
our cost-reduction programme, alongside targeted actions in France and Poland to flex staffing levels and discretionary spend.
Retail profit
Retail profit increased by 4.4% to £734m, reflecting higher profits in the UK and Iberia despite the prior year benefitting from
£33mbusiness rates refunds in B&Q. On a reported basis, retail profit increased by 5.4%. The Group’s retail profit margin increasedby
30 basis points to 5.7%, at reported rates (FY 24/25: 5.4%).
Adjusted pre-tax profit
Adjusted pre-tax profit increased by +6% to £560m on a reported rate basis (FY 24/25: £528m), reflecting higher retail profit and lower
net finance costs, partially offset by higher central costs. Adjusted pre-tax profit margin was up by 20bps to 4.3% (FY 24/25: 4.1%).
Statutory pre-tax profit
Statutory pre-tax profit increased by +23.0% to £378m (FY 24/25: £307m). This reflects higher operating profit and lower adjusting
items year-on-year (see adjusting items below).
A reconciliation from the adjusted basis to the statutory basis for pre-tax profit is set out below:
2025/26
£m
2024/25
£m
Increase/
(decrease)
Retail profit (constant currency) 734 703 +4.4%
Impact of exchange rates – (7) n/a
Retail profit (reported) 734 696 +5.4%
Central costs (80) (62) +28.9%
Share of interest and tax of joint ventures & associates (3) (6) n/a
Net finance costs (91) (100) (9.2)%
Adjusted pre-tax profit 560 528 +6.0%
Adjusting items before tax (182) (221) n/a
Statutory pre-tax profit 378 307 +23.0%
Net finance costs of £91m (FY 24/25: £100m) consist principally of interest on lease liabilities.
Adjusting items before tax were a total charge of £182m (FY 24/25: charge of £221m), driven by the goodwill impairment in Castorama
France, store impairment charges, the disposal of Romania, along with operating model restructuring costs.
The charges also include a £19m impairment of the Group’s joint venture, Koçtaş, reflecting the continued challenging trading
environment and ongoing macro-economic uncertainty in Turkey. Following this impairment, the carrying amount of the investment
has been reduced to nil.
Please see note 6 in the consolidated financial statements.
Taxation
The Group’s adjusted effective tax rate (ETR) is sensitive to the blend of tax rates and profits in the Group’s various jurisdictions.
Itishigher than the UK statutory rate because of the amount of Group profit that is earned in higher tax jurisdictions, and because
nofuture benefit is assumed for losses incurred in certain overseas territories. The adjusted ETR, calculated on profit before adjusting
items, prior year tax adjustments, one-off items, and the impact of future rate changes, is 26% (FY 24/25: 28%). The adjusted ETR is
lower than the prior year rate primarily due to lower losses recorded in territories in which tax credits are not recognised, and limited
losses recorded in Brico Dépôt Romania following the Group’s divestment of the business on 2 May 2025.
The statutory effective tax rate includes the impact of adjusting items (including prior year tax items). The impact of these result
inastatutory effective tax rate of 35%.
Pre-tax profit
£m
Tax
£m
2025/26
%
Pre-tax profit
£m
Tax
£m
2024/25
%
Adjusted effective tax rate 560 (144) 26% 528 (147) 28%
Adjusting items (182) 11 (221) 25
Statutory effective tax rate 378 (133) 35% 307 (122) 40%
Other
Information
32 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
In FY 21/22, Kingfisher paid £64m (including interest) to HM Revenue & Customs (HMRC) in relation to the European Commission’s
2019state aid decision concerning the UK’s controlled foreign company tax rules. In September 2024, the European Court of Justice
annulled this decision, and, in March 2025, HMRC repaid the tax and interest previously assessed, plus a £5m payment of interest
(interest payment included in free cash flow). This has been reflected in ‘other tax authority receipt’ in the cash flow statement and
does not form part of free cash flow.
Adjusted basic earnings per share increased by 14.9% to 23.8p (FY 24/25: 20.7p), which excludes the impact of adjusting items. Basic
earnings per share increased by 39.5% to 14.0p (FY 24/25: 10.1p). Please refer to note 11 of the consolidated financial statements for
more detail.
Tax contribution
Kingfisher makes a significant economic contribution to the countries in which it operates. In FY 25/26 it contributed £2.3 billion in taxes
it both pays and collects for these governments. The Group pays tax on its profits, its properties, in employing over 70,000 people, in
environmental levies, in customs duties and levies as well as in other local taxes. The most significant taxes it collects for governments
are the sales taxes charged to its customers on their purchases (VAT) and employee payroll-related taxes. Taxes paid and collected
together represent Kingfisher’s total tax contribution which is shown below:
Total taxes paid as a result of Group operations
2025/26
£bn
2024/25*
£bn
Taxes borne 0.7 0.7
Taxes collected 1.6 1.6
Total tax contribution 2.3 2.3
* 2024/25 comparatives are presented on a constant currency basis.
Both current and prior year figures exclude the tax contribution of discontinued operations.
Kingfisher participates in the Total Tax Contribution survey that PwC perform for the Hundred Group of Finance Directors. The 2025
survey ranked Kingfisher 30
th
(2024: 28
th
) for its Total Tax Contribution in the UK. In 2025, 88 (2024: 90) companies contributed to
thesurvey.
Taxation governance and risk management
The Kingfisher Code of Conduct applies high standards of transparency, honesty and fairness to our colleagues and suppliers. The
Code of Conduct requires that we carry out our work ethically and in compliance with the law. We have a zero-tolerance approach to
tax evasion and the facilitation of tax evasion. These principles underpin our approach to tax. Our core tax objectives are to pay the
right amount of tax at the right time and to comply with all relevant tax legislation in all Group entities. We undertake our activities and
pay tax in the countries in which we operate in compliance with the local and worldwide tax rules. These tax objectives are met through
the application of the Group Tax Standards, which are Board approved, and other relevant Group policies and standards, which
document our approach to tax compliance, tax risk management and tax planning to ensure that consistent minimum standards are
observed throughout the Group.
The responsibility for tax policy and management of tax risks lies with the Chief Financial Officer and the Group Tax Director who
engage regularly with the Board and the Audit Committee on all tax matters.
Tax risks can arise from changes in law, differences in interpretation of law and the failure to comply with the applicable rules and
procedures. The Group seeks to take a balanced approach to tax risk having regard to the interests of all stakeholders including
investors, customers, staff and the governments and communities in the countries in which it operates. As a multinational group,
operating in an increasingly complex and changing international corporate tax environment, some risk is unavoidable.
Kingfisher manage and control this risk through local management, the tax specialists that it employs and agile monitoring of changes in
law and interpretation of law. The Group may engage with reputable professional firms on areas of significant complexity, uncertainty
or materiality, to support it in complying with its tax strategy. Group companies work within a tax controls framework, and compliance
with this is monitored by the Internal Audit and Risk team.
The Group seeks to engage with tax authorities with professionalism, honesty and respect. It works with all tax authorities in a timely
and constructive manner to resolve disputes where they arise, although it is prepared to litigate where this is not possible.
33Kingfisher 2025/26 Annual Report and Accounts
Management of balance sheet and liquidity risk and financing
Management of cash and debt facilities
Kingfisher regularly reviews the level of cash and debt facilities required to fund its activities. This involves preparing a prudent
cashflow forecast for the medium term, determining the level of debt facilities required to fund the business, planning for repayment
or refinancing of debt, and identifying an appropriate amount of headroom to provide a reserve against unexpected outflows and/or
impacts to cash inflows. To retain financial flexibility, we aim to maintain strong liquidity headroom (including cash and cash equivalents,
short term deposits and committed debt facilities), which is currently set at a minimum of £800m.
Net debt to adjusted EBITDA
As of 31 January 2026, the Group had £1,878m (FY 24/25: £2,015m) of net debt on its balance sheet. Net debt includes £2,238m
(FY24/25: £2,253m) of total lease liabilities, including nil of lease liabilities held for sale (FY 24/25: £42m). The ratio of the Group’s net
debt to adjusted EBITDA was 1.4 times as of 31 January 2026 (1.6 times as of 31 January 2025). At this level, the Group has financial
flexibility while retaining an efficient cost of capital. The Group’s target maximum net debt to adjusted EBITDA is c.2.0 times over the
medium term.
Net debt to adjusted EBITDA is set out below:
2025/26
£m
2024/25
£m
Retail profit 734 696
Central costs (80) (62)
Depreciation and amortisation 667 656
Adjusted EBITDA 1,321 1,290
Net debt 1,878 2,015
Net debt to adjusted EBITDA 1.4 1.6
Credit ratings
Kingfisher holds a BBB credit rating with Fitch and a BBB rating with Standard and Poor’s. The outlook is Stable across both agencies.
Revolving credit facility
In May 2024 the Group entered into a new £650m Revolving Credit Facility (RCF) agreement with a group of its relationship banks,
linked to sustainability targets. In May 2025 the credit facility was extended by one year and now expires in May 2028. As of 31 January
2026, this RCF was undrawn.
Term loans
The Group’s two term loans were refinanced in H1 25/26 with £50m now maturing in June 2027 and £50m in January 2028,
withthelatter linked to the Group’s sustainability targets.
Covenants
The terms of the committed RCF and both term loans require that the ratio of Group operating profit (excluding adjusting items)
tonetinterest payable (excluding interest on IFRS 16 lease liabilities) must be no less than 3:1 for the preceding 12 months as at the
halfand full year-ends. As of 31 January 2026, Kingfisher was compliant with this requirement.
Total liquidity
As of 31 January 2026, the Group had access to over £1.1bn in total liquidity, including cash and cash equivalents of £462m
(netofbankoverdrafts), and access to a £650m RCF.
Financial review continued
Other
Information
34 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
Free cash flow
A reconciliation of free cash flow is set out below:
2025/26
£m
2024/25
£m
Operating profit 469 407
Adjusting items 182 221
Operating profit (before adjusting items) 651 628
Other non-cash items
1
728 703
Change in working capital 74 108
Pensions and provisions (5) (5)
Net rent paid (508) (512)
Net interest received 23 15
Tax paid (63) (109)
Gross capital expenditure (388) (317)
Free cash flow 512 511
Ordinary dividends paid (218) (228)
Share buybacks (256) (225)
Share purchase for employee incentive schemes (25) (26)
Disposal of NeedHelp – (3)
Disposal of Romania 33 –
Other tax authority receipt
2
64 –
Investment in joint venture – (19)
Disposal of assets and other
3
(3) (19)
Net cash flow 107 (9)
Opening net debt (2,015) (2,116)
Lease liabilities disposed 38 –
Movements in lease liabilities (1) 107
Other movement including foreign exchange (7) 3
Closing net debt (1,878) (2,015)
1. Includes depreciation and amortisation, share-based compensation charge and pension operating cost.
2. Refund received in relation to the EC state aid challenge (refer to Taxation section above for further details).
3. Includes adjusting cash flow items (principally comprising restructuring costs), partially offset by proceeds from the issue of new shares and the disposal
ofassets.
Operating profit (before adjusting items) was £23m higher than last year, reflecting higher retail profit partially offset by higher
centralcosts. The working capital inflow of £74m was largely driven by an increase in payables of £91m. This increase reflects higher
purchasing to replenish availability following stronger LFL sales and higher deferred income. Inventory ending the year broadly flat
(up£1m) as higher volumes including store expansion were offset by a five day reduction in stock days. Receivables increased by £16m,
driven in part by increase in trade credit sales and prepayments related to tech contracts.
Net tax paid was £46m lower than last year, predominantly reflecting receipts of refunds relating to settlements of prior years.
Gross capital expenditure up £71m (+22%) to £388m, with increase driven by freehold acquisition, technology investment and spend in
existing stores. 32% of capex was invested in growth (new stores, new tech and range reviews), 42% in store and tech maintenance,
and 25% in other areas, including supply chain investment and the B&Q freehold acquisition.
Overall, free cash flow was £512m. Net debt as of 31 January 2026 (including lease liabilities) was £1,878m (FY 24/25: £2,015m).
35Kingfisher 2025/26 Annual Report and Accounts
Financial review continued
A reconciliation of net cash flows from operating activities to free cash flow and net cash flow, and to the statutory net movement
incash and cash equivalents and bank overdrafts, is set out below:
2025/26
£m
2024/25
£m
Net cash flows from operating activities 1,433 1,302
Net lease rent paid (508) (512)
Net interest received 23 15
Gross capital expenditure (388) (317)
Other tax authority receipt
1
(64) -
Operating cash flows relating to adjusting items
2
16 23
Free cash flow 512 511
Ordinary dividends paid (218) (228)
Share buybacks (256) (225)
Share purchase for employee incentive schemes (25) (26)
Other tax authority receipt
1
64 -
Investment in joint venture - (19)
Disposal of Romania 33 -
Disposal of NeedHelp - (3)
Disposal of assets and other
3
(3) (19)
Net cash flow 107 (9)
Arrangement fees paid (1) (2)
Net increase in cash and cash equivalents and bank overdrafts 106 (11)
1. Refund received in relation to the EC state aid challenge (refer to Taxation section above for further details).
2. Includes cash flows relating to adjusting items, principally comprising restructuring costs.
3. Includes adjusting cash flow items (principally comprising restructuring costs), partially offset by proceeds from the issue of new shares and the disposal
ofassets.
Dividends
The Board has proposed a final dividend per share of 8.60p (FY 24/25 final dividend: 8.60p). This results in a proposed total dividend per
share of 12.40p in respect of FY 25/26, which is in line with the prior year (FY 24/25: 12.40p) and equates to a dividend cover of 1.9
times. The final dividend is subject to shareholder approval at the Annual General Meeting on 26 June 2026. If approved, it will be paid
on 3 July 2026 to shareholders on the register at close of business on 29 May 2026. The shares will go ex-dividend on 28 May 2026.
Adividend reinvestment plan (DRIP) is available to shareholders who would prefer to invest their dividends in the company’s shares.
The last date for receipt of DRIP elections is 12 June 2026.
Capital allocation priorities
The Group’s objectives in managing capital are to:
— Invest in attractive growth opportunities.
— Deliver sustainable dividend growth.
— Provide capital returns to shareholders.
— Maintain financial resilience and an efficient balance sheet.
We allocate capital, subject to strict returns criteria, to growth opportunities with high ROCE aligned with our strategic priorities.
Ourtarget gross capital expenditure is c.3% of total sales per annum.
Our target ordinary dividend cover range is 2.25 to 2.75 times, based on adjusted basic earnings per share. We may move outside of
this target range, from time to time. Overall, our aim is to grow the ordinary dividend progressively over time. If surplus capital remains
after having achieved all the above objectives, the Board will return surplus capital to shareholders primarily via share buybacks.
To maintain a solid investment grade credit rating, our maximum net debt to Adjusted EBITDA is c.2.0 times over the medium term.
Toretain financial flexibility, we aim to maintain strong liquidity headroom (including cash, cash equivalents and committed debt facilities),
which is currently set at a minimum of £800m. As of 31 January 2026, the Group had access to over £1.1bn in total liquidity, including
cash and cash equivalents of £462m (net of bank overdrafts), and access to a £650m RCF.
Other
Information
36 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
Return on capital employed (ROCE)
In FY 25/26, Kingfisher’s post-tax ROCE was 8.2% (FY 24/25: 7.4%). The increase was primarily driven by higher profits in UK & Ireland.
Kingfisher’s weighted average cost of capital (WACC) was 8.4% (FY 24/25: 8.8%). ROCE by geographic division is analysed below:
Sales
£bn
Proportion
of Group
sales
Capital
employed
(CE) £bn
Proportion
of Group
CE
ROCE
2025/26
ROCE
2024/25
UK & Ireland 6.7 52.0% 2.8 46.8% 15.5% 14.9%
France 3.9 29.9% 1.6 27.7% 4.4% 4.3%
Poland 1.8 14.2% 1.2 19.4% 6.1% 6.4%
Other International 0.5 3.9% 0.2 3.9% n/a n/a
Central 0.1 2.1% n/a n/a
Total 12.9 5.9 8.2% 7.4%
Property
Kingfisher owns a significant property portfolio, the majority of which is used for trading purposes. A formal valuation of the portfolio
was undertaken by external professional valuers in October 2025. Based on this exercise, on a sale and leaseback basis with Kingfisher
in occupancy, the value of the property portfolio was £2.8bn (FY 24/25: £2.7bn). This is compared to a net book value of £2.2bn (FY
24/25: £2.2bn) recorded in the financial statements (including investment property and property included within assets held for sale).
Balance sheet values were frozen as of 1 February 2004, on transition to IFRS.
2025/26
£bn
2025/26
Yields
2024/25
£bn
2024/25
Yields
France 1.3 8.3% 1.3 8.4%
UK 0.6 7.5% 0.5 7.5%
Poland 0.8 8.6% 0.7 8.3%
Other 0.1 n/a 0.2 n/a
Total 2.8 2.7
Pensions
As at 31 January 2026, the Group had a net defined benefit pension asset of £83m (2025: £101m), comprising a £181m surplus
intheUKscheme and an overseas net deficit of £98m. The reduction in the net surplus primarily reflects asset losses partially
offsetbyreduced liabilities due to a higher discount rate for the UK scheme. In accordance with the scheme’s Statement of Funding
Principles, the Trustee and Kingfisher agreed to cease annual employer contributions for the period from August 2022 to July 2025,
and subsequently for the period from August 2025 to July 2028. A full actuarial valuation of the UK scheme is carried out every
threeyears, with the latest completed at 31 March 2022, and the 2025 valuation ongoing. Please refer to note 28 of the consolidated
financial statements.
Risks
The Group’s principal risks and uncertainties have been reviewed as part of our full year procedures. We have introduced a new
technology resilience risk to reflect the importance of developing and maintaining resilient systems. We have also merged risks relating
to changing customer expectations and competitor behaviour into a single market landscape risk.
Further details of the Group’s risks and risk management process can be found on pages 43 to 48.
37Kingfisher 2025/26 Annual Report and Accounts
Trading review by division
Note: all commentary below is in constant currency.
UK & Ireland
£m 2025/26 2024/25
% Reported
Change
% Constant
Currency
Change
% LFL
Change
B&Q 3,971 3,820 +4.0% +3.9% +3.3%
Screwfix 2,755 2,636 +4.5% +4.5% +3.2%
Total sales 6,726 6,456 +4.2% +4.1% +3.3%
Retail profit 575 558 +3.0% +2.9%
Retail profit margin % 8.5% 8.6% (10)bps
Market
The home improvement market was flat on a full year basis, aided by favourable weather in H1 driving strong demand for seasonal products.
B&Q
Total sales +3.9% to £3,971m. LFL +3.3% driven by volume, progress in trade and digital, customer transference from the closure
ofHomebase stores and strong seasonal performance in Q1. Core +1.6% led by tools and paint. Big ticket +6.2% driven by the
successful introduction of new kitchen ranges, supported by strong growth in Installations of +22%. Seasonal +6.5%, driven by strong
performance of outdoor categories in Q1, helped by favourable weather and successful capture of Homebase transference.
Market share gains driven by progress in our strategic initiatives, big-ticket innovation, successful capturing of transference from
theHomebase store closures and opening of eight former Homebase stores. E-commerce sales +21.5%, with penetration of 16.7% (FY
24/25: 14.6%) and strong performance across 1P and 3P. Marketplace GMV
1
grew +44.3% to £445m with a retail profit contribution
2
of
c.£15m. In addition to its 15-minute Click & Collect (C&C) for 1P orders, B&Q successfully rolled out the UK’s first marketplace C&C
service for 3P products across 300 stores. We have strengthened store-to-home fulfilment capabilities by expanding our Deliveroo
partnership to more B&Q stores. B&Q‘s AI powered product recommendation and personalisation engines generated c.10% of
e-commerce sales. Hello B&Q, a new digital virtual AI assistant that provides customers with tailored advice and product
recommendations, launched in Q4. B&Q also launched Lens, our visual search technology, in its app, with Lens users nearly twice as
likely as website users to convert product views into purchases.
TradePoint
TradePoint sales grew to £935m +5.2%, accounting for 23.5% of B&Q total sales (FY 24/25: 23.3%). TradePoint expanded to 224 B&Q
stores, representing 70% of the total estate (FY 24/25: 217). 123 trade sales partners are in role (FY 24/25: 44), supporting strong trade
sales performance. We expanded the direct-to-site offer, enabling trade customers to access products beyond our in-store range and
improving conversion of inbound enquiries into orders. Our partnership with Speedy Hire provides trade customers with access to
heavy machinery and tools in store and via our digital channels. Trade credit solutions are live with up to 60 days of interest-free credit.
E-commerce at TradePoint saw strong growth of +12%, particularly in C&C driving store footfall. App downloads were 3 times higher in
the current year, with app sales now accounting for 28% of TradePoint’s online sales and stronger sales conversion rates versus the website.
Space growth contributed +0.6%. B&Q rapidly converted eight acquired Homebase stores in early 2025. Its 12 Compact stores continue
toshow encouraging performance, with growth in new customers and C&C penetration running at c.3x that of the rest of the estate.
TradePoint announced its first standalone store to be opened in London in Q1 2026, targeting trade customers working in dense
urbanareas.
Screwfix
Total sales were up +4.5% to £2.755m. LFL +3.2% driven by strong volume growth and supported by range expansion, growing app
usage and anew loyalty programme. Core categories (c.85% of the total) grew +3.2%. Performance was broad-based across safety &
workwear, sealants & adhesives, power tools & accessories, electrical and plumbing.
There were strong market share gains across categories as Screwfix reaches new customers and continues to enhance its customer
proposition. Trade credit solutions are live with up to 60 days of interest-free credit. Screwfix launched a new rewards programme
through its app, with strong early engagement leading to a +13% increase in active rewards customers to 2.2m, supported by gamified
campaigns, personalised offers and surprise perks.
E-commerce sales increased +5.2%, bringing e-commerce sales penetration to 59.4% (FY 24/25: 58.2%). App sales grew by +14%
andnow account for over 41% of e-commerce sales (FY 24/25: 38%), helped by improved offering and personalised rewards,
avisualsearch engine Lens, streamlined collection via Check-In, and rapid delivery. We have strengthened our store-to-home
fulfilmentcapabilities by expanding our Deliveroo partnership to more Screwfix stores, complementing Screwfix’s Sprint proposition,
with deliveries in as little as 20 minutes to 60% of the UK postcodes.
1. Marketplace GMV is the total transaction value (including VAT) from the sale of products supplied by third-party e-commerce marketplace vendors. What is
recorded in revenue is the commission take rate which is c.10-15% of GMV.
2. Marketplace retail contribution includes only directly attributable run costs.
Other
Information
38 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
Space growth contributed +1.3% to total Screwfix sales with 27 net store openings. This included 13 new ultra-compact City stores,
bringing the total to 39, as our convenient locations better target professionals serving high density areas. We see potential for up
to100 City stores over time and remain on track to reach the medium-term goal of over 1,000 Screwfix stores.
UK & Ireland Retail Profit
Gross margin increased +80bps, supported by effective management of product costs, supplier rebates, the margin-accretive impact
of B&Q’s expanding marketplace and the contribution of retail media income, supported by FX tailwinds. Operating costs increased
+7.3%, driven by higher staff costs due to wage inflation, labour flexing to support increased volumes, increased UK employer NI
contributions, costs from new store openings, higher variable compensation and the annualisation of last year’s £33m one-off business
rates refund at B&Q. Cost increases were partially offset by savings achieved through structural cost reductions. Retail profit
increased +2.9% to £575m (FY 24/25: £558m) or +9.4% when excluding last year’s one-off business rates refund. Retailprofit margin
declined (10) bps to 8.5%, primarily due to the annualisation of last year’s business rates refund at B&Q. Excludingthis prior year one-off,
UK profit margin improved +40bps.
France
£m 2025/26 2024/25
% Reported
Change
% Constant
Currency
Change
% LFL
Change
Castorama 2,000 2,014 (0.7)% (2.3)% (2.2)%
Brico Dépôt 1,866 1,869 (0.2)% (1.8)% (2.3)%
Total sales 3,866 3,883 (0.4)% (2.1)% (2.2)%
Retail profit 97 95 +2.7% +1.0%
Retail profit margin % 2.5% 2.4% +10bps
Market
Market declined by c.(3)%, as consumer savings rates continue to be elevated.
Castorama
Castorama total sales decreased (2.3)% to £2,000m. LFL sales at (2.2)% were ahead of the market despite disruption from restructuring
the store portfolio. As10% of the store estate was undergoing transformation, H2 LFL were impacted by c. (0.6)%. To improve the
overall offer, 15% of ranges were reviewed, with encouraging impact on volume in surfaces & décor, tools and garden. Seasonal
performance of (0.9)% was ahead of other categories, driven by cooling and outdoor in H1, while big-ticket suffered from low demand
in the market with LFL sales down (4.5)%.
Trade sales growth was driven by the successful roll-out of the CastoPro trade proposition across the estate inH1,therapid
introduction of dedicated CastoPro zones in 50 stores and the implementation of a trade loyalty programme. Tradepenetration
reached 9% at the end of FY 25/26. Our in-house CastoRent service is now available across 14 stores, offeringlow-cost tool rental and
increasing exposure to our Erbauer and MacAllister OEB ranges.
E-commerce sales growth was driven by the rapid expansion of Castorama’s marketplace. Castorama onboarded 978 merchants,
growing marketplace to 1.6m SKUs and reaching online penetration of 21%. Hello Casto, our AI virtual assistant, continued to enhance
customer experience and supported conversion across 1P and 3P. Hello Casto visits increased +61%, and we have seen customers
who click through to a product from the assistant convert at more than twice the Castorama France average. Our in-house AI-powered
product recommendations and personalisation now generate c.30% of app revenue. Our data monetisation platform Core IQ was
successfully launched and more than 120 1P vendors now use the platform.
Space contributed (0.1)% to Castorama total sales, reflecting the successful conversion and opening of two franchise storeswithin the
existing estate in June 2025. The three compact stores are trading ahead of the estate average, with an opportunity to expand this
concept over time.
Castorama is making rapid progress in the restructuring and modernisation of its lowest-performing stores. 24 stores (c.25% of the
estate) have now been addressed under the following initiatives, delivering encouraging early results:
— Eight rightsized stores: Four completed in FY 25/26 have on average delivered double-digit percentage improvements in sales
density onaverage compared to the Castorama France average. Four are scheduled to complete in FY 26/27.
— Seven comprehensive refits: Toulon La Seyne and Givors were completed in H1, with resulting LFL sales performance well ahead
ofthe Castorama France average. Five have been completed in Q1 26/27.
— Five light touch modernisations: The stores completed in the year have delivered improvements in sales density compared
withtheCastorama France average following their reopening.
— Two stores transferred to Brico Dépôt: Montgeron has increased sales by c.10% along with a selling space reduction of 20%
following transfer to the Brico Dépôt banner. Thesecond store in Le Havre is expected to reopen in Q2.
— Franchises: The first two franchise stores opened in June, with first results encouraging. The transition to a franchise model
hasmoved these stores from loss-making positions to a positive profit contribution.
— Building on this momentum, Castorama has initiated work on a further nine stores.
39Kingfisher 2025/26 Annual Report and Accounts
Trading review by division continued
Brico Dépôt
Total sales decreased (1.8)% to £1,866m. LFL sales decreased (2.3)% but with improving sequential trends from H1 to H2 and sales
performance ahead of the market. There was continued strong focus on trade professionals, improved customer offer, enhanced
ranges and leading price positioning in key categories. Core LFL sales improved in H2 (2.2)% vs H1 (5.1)% with building and joinery
benefitting from increased investment in commercial campaigns. Big-ticket sales (1.2)% were supported by kitchen range reviews but
impacted by market weakness, particularly in H2. Seasonal sales +1.1% had a strong H2, led by heating propellants and garden power
tools.
Trade sales grew +26%, driven by significant development of the trade proposition. Penetration reached 13.1%, up 290bps, supported
by Brico Dépôt’s efficient model, offering competitive pricing and high in-store availability for time-pressed tradespeople. Brico Dépôt
opened two Pro corners during the year, built out its trade-focused range and increased investment in dedicated trade sales partners.
Trade loyalty membership more than doubled. Brico Dépôt strengthened its price competitiveness with bulk-buy pricing offers, driving
volume growth in key products.
E-commerce penetration reached 4.9%, with momentum from upgrades to our web presence.
Space growth contributed +0.5%, driven by the successful opening of the store transferred from Castorama, where sales increased by
c.10% along with a selling space reduction of 20%. The second transferred store, in Le Havre, is expected to reopen in Q2 FY 26/27. Brico
Dépôt France will also expand its partnership with Mr Bricolage, converting a Mr Bricolage store into a Brico Dépôt franchise in FY 26/27, in
addition to the existing OEB supply arrangement. The three 1,000 sqm Brico Dépôt compact stores currently open continue to trade well
ahead of the estate average.
France Retail profit
Gross margin increased +60bps, reflecting the effective management of product costs and supplier negotiations, lower stock
provisions driven by better inventory management and lower logistics costs from the reduction of c.10% of distribution centre space.
Operating costs decreased (0.6)%, with increases in staff pay, social taxes and IT costs offset by savings from structural cost
reductions, and the flexing of staff levels and discretionary spend. Retail profit increased +1.0% to £97m (FY 24/25: £95m, at reported
rates). Retail profit margin increased by +10bps to 2.5% (FY 24/25: 2.4%) despite market decline of 3%.
In 2024 we announced a plan to drive the next level of our performance and profitability in France. The plan targets a retail profit
margin of c.5%-7% over the medium term, driven by a combination of self-help measures and operating leverage from an improved
market environment. We are pleased with the delivery of our self help measures. The French market has declined by c.10% since 2024,
therefore the timing and trajectory of reaching our target is dependent on the pace of the market recovery.
Poland
£m 2025/26 2024/25
% Reported
Change
% Constant
Currency
Change
% LFL
Change
Total sales 1,843 1,788 +3.1% – (1.1)%
Retail profit 87 90 (3.5)% (6.4)%
Retail profit margin % 4.7% 5.1% (40)bps
Market
Market flat, with continued geopolitical uncertainty impacting the home improvement market.
Total sales were flat at £1,843m. LFL sales were down (1.1)%, reflecting a challenging market backdrop with sales performance in line
with the market (asmeasured by GfK). LFL returned to growth in Q4, led by seasonal sales aided by colder weather. Core delivered
sequential improvement in LFL sales in H2 (0.4)% vs H1 (2.5)%, led by building & joinery, as OEB range reviews in interior doors
delivered strong results. Full year big-ticket sales were (0.1)%, with strong performance in kitchens driven by new ranges and targeted
promotional activities, offset by softer performance inbathrooms. Installation services for kitchens and flooring are seeing
increasinguptake.
Trade sales grew +46.6% with penetration reaching 27% (FY 24/25: 18%) as Castorama drove further rollout of CastoPro zones,
recruited specialised trade sales partners and optimised its ranges for pro customers. 120 trade sales partners are now in role.
Thenew loyalty programme, which includes a cash-back feature saw 489k sign-ups and is successfully driving footfall into stores.
Inaddition, CastoRent is offering tool rental for tradespeople.
E-commerce sales increased +30% to £84m, benefiting from the launch of marketplace. A year into launch, Castorama’s marketplace has
recruited +350 vendors and reached 21% of e-commerce sales in January 2026. Space growth contributed +1.1% to total sales from one
net store opening in the current year, following five in the prior year. The proven 4,000 sqm medium-box format and the Smart compact
store concept continue to expand our population reach and enable entry into new catchments. We are also piloting standalone Design
Points in high traffic shopping malls, leveraging strong footfall to showcase our kitchen ranges, with orders fulfilledby nearby stores.
Other
Information
40 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
Poland Retail profit
Gross margin increased by 20bps, reflecting the effective management of product costs and supplier negotiations, partially offset
byhigher promotional sales, as consumers continue to focus more of their spend around promotional events. Operating costs
increased +1.7%, with increases in staff pay and IT costs, partially offset by structural cost reductions and the flexing of staff levels
anddiscretionary spend. IT costs include a one-off c.£5m impairment charge related to the acceleration of next-generation
technology, which resulted in the write-down of legacy systems. Excluding this charge, operating costs increase would have been
+0.8%. Retail profit decreased by (6.4)% to £87m (FY 24/25: £90m). Retail profit margin decreased by (40) bps to 4.7%, at reported
rates (FY 24/25: 5.1%). Excluding the impairment charge, retail profit margin would have been broadly flat.
Other International
Sales £m 2025/26 2024/25
% Reported
Change
% Constant
Currency
Change
% LFL
Change
Iberia 425 384 +10.6% +8.8% +8.8%
Screwfix France & Other
±
25 16 +42.4% +40.3% n/a
Romania
**
60 257 n/a n/a n/a
Other International 510 657 (22.5)% (23.3)% +8.0%
Other International (excl. Romania) 450 400 +12.0% +10.1% +9.3%
Retail profit £m
Iberia 15 8 +86.0% +82.9%
Screwfix France & Other
±
(31) (35) (9.5)% (10.9)%
Turkey (50% JV) (6) (9) n/a n/a
Romania
**
(3) (11) n/a n/a
Other International (25) (47) (46.0)% (43.6)%
Other International (excl. Romania) (22) (36) (37.9)% (34.3)%
± Screwfix France & Other consists of the consolidated results of Screwfix International, and results from franchise and wholesale agreements.
Theprioryearcomparator includes NeedHelp – we divested our c.80% equity interest on 18 July 2024.
* * On 2 May 2025 the Group completed the divestment of its 100% equity interest in Brico Dépôt Romania. The Group recognised a£31m loss on disposal
(included in adjusting items). Please see note 6 and note 34 of the consolidated financial statements.
Iberia
Iberia total sales increased by +8.8% to £425m. LFL sales were up +8.8% driven by volume & transaction growth. Positive LFL across all
categories. Continued strong focus on trade professionals, improved customer offer, enhanced ranges and leading price positioning in
key categories. Growth was also supported by strong demand in Valencia following last year’s flood damage. Market share gains in
Spain (AECOC) were driven by strong price positioning and effective commercial activation programmes.
Trade sales grew by 35.5% with penetration reaching 19.7% (FY 24/25: 15.8%), driven by the successful launch of the new loyalty
programme BricoClub Pro and the creation of trade zones in six stores. The e-commerce marketplace continued to scale, reaching
30% ofe-commerce online sales (FY 24/25: 25%). Brico Dépôt Spain has launched a hub network tofulfile-commerce orders,
covering its entire estate. The transition to a digital-hub fulfilment model led to a 10bps increase in digital conversion and improved
gross margin driven by lower delivery costs and reduced stock shrinkage.
Retail profit increased to £15m (FY 24/25: £8m), reflecting higher gross profit and strong cost control.
Screwfix France & Other
Following our first opening in Q4 2022, Screwfix France now has a total of 35 stores in operation, of which five stores were opened
intheyear. Store LFL sales grew +49%
1
, supported by the benefits of network effects and growing brand awareness in northern
France, assuccessful marketing is driving increases in store traffic. Brand awareness in the North region reached 21% (+4pts).
LFLgrowth continues to be higher in the more recently launched cohorts and strongest in areas with higher network effect.
Tradepenetration is at 54% (FY 24/25: 50%) with continued focus on enhancing the customer proposition through trade brands and
trade-focused campaigns. Franchise and wholesale agreements are currently in place with seven partners that are buying selected
Own Exclusive Brand (OEB) products, including Altex in Romania following their purchase of Brico Dépôt Romania. This has contributed
c.£4m in retail profit for the current year. There was a combined retail loss of £31m (FY 24/25: £35m).
1. Store LFL sales excludes online sales (Screwfix France launched as an online-only proposition in April 2021, with the first store opening in October 2022).
41Kingfisher 2025/26 Annual Report and Accounts
Turkey
In Turkey, total contribution to Group adjusted PBT was a net loss of £9m as demand remained constrained by high inflation and
interest rates, though the environment improved over the year, with LFL sales returning to positive figures for the full year. Please see
note 6 ofthe consolidated financial statements for more details.
Romania
On 2 May 2025, the Group completed the divestment of its 100% equity interest in Brico Dépôt Romania for proceeds of £53m.
TheGroup recognised a £31m loss on disposal (included in adjusting items). Kingfisher continues to supply OEB products into Romania
through our wholesale partnership with Altex. Please see note 6 and note 34 of the consolidated financial statements for more details.
LFL sales by category
% LFL Change
Core ‘Big-ticket’ Seasonal FY 25/26
UK & Ireland +2.4% +5.0% +6.1% +3.3%
B&Q +1.6% +6.2% +6.5% +3.3%
Screwfix +3.2% +2.4% +4.4% +3.2%
France (2.8)% (2.7)% (0.1)% (2.2)%
Castorama (1.9)% (4.5)% (0.9)% (2.2)%
Brico Dépôt (3.7)% (1.2)% +1.1% (2.3)%
Poland (1.5)% (0.1)% (0.8)% (1.1)%
Other International* +9.2% +6.3% +5.7% +8.0%
Iberia +10.5% +5.4% +6.8% +8.8%
Romania (4.1)% +8.7% +1.6% n/a
Group LFL +0.6% +1.1% +2.8% +1.1%
Excluding calendar impact
+0.9% +1.4% +3.1% +1.4%
* Includes Screwfix France and other.
Core (67% of sales): UK performance remained solid, led by strong interior paint sales at B&Q and sustained growth in tools at Screwfix.
Iberia reported strong growth across all categories, whereas trading in France and Poland was comparatively softer.
Big ticket (15% of sales): Growth was led by kitchen category sales, particularly at B&Q, supported by recent range reviews and soft
prior-year comparators, with Brico Dépôt France and Poland also delivering a solid performance. There was a softer performance in
Bathrooms, withrange reviews planned for FY 26/27.
Seasonal (18% of sales): Performance was led by the UK, supported by favourable weather in Q1 with LFL sales up +28%, driven by
outdoor andgarden categories. In Poland unfavourable H1 weather was partly offset by beneficial weather in Q4.
Trading review by division continued
Other
Information
42 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
Risks
Risk management andmaterialcontrols
Effective risk management underpins our ability to deliver our
strategic and operational objectives. Throughout the year, our
banners and Group Functions work closely with the Group Risk
team to ensure robust processes are applied, including regular
review of risk management practices. Individual Group Executive
members remain accountable for risks within their areas, while
the Group Executive collectively oversees identification,
assessment and management of the Group’s principal risks.
Work has progressed to comply with the UK Corporate
Governance Code 2024 provision 29. During the year,
wesimplified our risk descriptions, aligning risk appetite
anddocumenting material controls through facilitated
discussions across teams. An internal dashboard provides the
Board withclear visibility over assurance in place to mitigate our
risks. External guidance supported this process, with new
descriptions, appetite levels and controls validated by the Group
Executive and Board in September. Internal Audit conducted a
dry-run review of our material controls during the year,
identifying minor enhancements that are being remediated and
we remain on track to make a declaration over their
effectiveness next year.
Following the September review, the Board also performed
a robust risk assessment of our principal and emerging risks
atyear-end, along with the mitigating controls and actions.
The governance framework and the role of the Board, Audit
Committeeand Group Executive are set out from page 53.
To identify our risks, we consider our strategic objectives and
potential barriers over a three-year horizon. We combine a
top-down strategic view with a bottom-up operational view of
risks. Banners and Group Functions identify changes to risks
within their operations, starting with workshops involving local
leadership teams, discussing existing, new and emerging risks.
These inputs are consolidated and validated against external
benchmarking and horizon scanning to capture emerging risks.
The resulting principal risks are presented to the Group
Executive and non-executive directors for consideration
andapproval.
To assess our risks, we consider potential financial, reputational,
regulatory or operational impacts alongside the likelihood
ofoccurrence within our three-year outlook. This informs
appropriate actions and controls to manage risks to an
acceptable level. For each principal risk, we also assess
changesto the risk level compared to the prior year.
To manage our risks, ownership is assigned at all levels.
Each banner and Group Function is responsible for implementing
actions, controls, and procedures to manage and monitor
identified risks and to ensure controls operate effectively.
Mitigation plans are developed by local risk owners, validated
bythe respective Group Executive member and supported by
dedicated risk and control managers.
Risk monitoring is embedded throughout the year. Local
management regularly reviews mitigation plans while the Group
Executive and Board hold ongoing discussions and dedicated
sessions twice annually to assess the nature, likelihood and
impact of the Group’s principal risks and any changes since
theprevious review. These sessions also include mitigating
actions to ensure risks are proactively managed. The Audit
Committee oversees the risk assessment process and receives
presentations from banners and Group Functions on a rotating
basis covering strategic progress, local risks and mitigation plans.
Internal Audit incorporates operational and Group level risks into
its audit planning cycle, providing timely assurance on significant
risks, delivering a risk-focused assurance programme informed
by the risk management process.
Further information on this is included in the Audit Committee report
onpage 72.
Principal risks
Following a comprehensive review, we introduced a new
technology resilience risk to reflect the importance of
developing and maintaining resilient systems.
We also merged risks relating to changing customer expectations
and competitor behaviour into a single market landscape risk.
Other existing principal risks were updated to reflect our strategic
progress and shifts in the external operating environment.
All principal risks are given significant attention and focus.
We believe the highest severity risks are:
— Geopolitical instability creating macroeconomic volatility.
— Cyber and data security.
— Market landscape.
Principal risks are shown on pages 44 to 48.
Emerging risks
As part of our risk management process, we identify
andmonitoremerging risks. These risks are harder to
quantifyormay materialise beyond our outlook period.
We capture emerging risks through banner and Group
Functionreviews, asking what their future concerns are along
with actions to understand them. We also benchmark against
other companies’ disclosures. The reviews highlighted several
potential emerging risks which we will continue to monitor closely.
43Kingfisher 2025/26 Annual Report and Accounts
Risks continued
1
Supply chain resilience
How we manage and monitor the risk
— Our supply and logistics three-year roadmap was updated in
2025/26. It considers our future logistics capacity needs, based
onthe various sourcing, inventory and sales-generative strategies
identified in the Group’s strategic planning activities.
— Our business continuity plans cover our internal points of failure and
key partner service-continuity plans.
— We have established partnerships with key transportation and
logistics suppliers to align planning and secure capacity.
— We continue to improve demand forecasting to anticipate future
salesrequirements and work with suppliers to ensure
productavailability. Our supply chain visibility tools help us monitor
inventory health, track product movement and respond to events.
We are starting to review key suppliers by category to assess
capacity, volumes and the impact of potential supply interruptions.
— Our OEB supplier strategy includes initiatives to diversify our
‘sourcing footprint’, build alternative sources where possible and
guidance on sourcing regions to enhance resilience.
— We have a robust process for selecting suppliers. This includes
checks on financial strength, ethical and environmental risks and
their ability to manufacture products to the agreed specification.
Inaddition, our contracts allow us to hold vendors accountable for
the service level agreement associated.
— We are enhancing our organisational agility through continuous
macro-monitoring and proactive scenario assessment, ensuring we
can respond quickly and effectively as conditions evolve.
How we provide oversight to the Board
— The Board annually receives an update on Group and banner supply
and logistics strategies, OEB strategies and a summary confirming
that our business continuity plans are in place. Any significant vendor
issues are escalated immediately.
A resilient supply chain is key to our business to ensure
we have sufficient stock availability to meet our
customers’ needs. This requires us to have robust
supply chain solutions and be effectively managing
our suppliers and our logistics partners.
Failure to respond to major disruptions to our
supply chain could result in a material impact to
productavailability.
Risk trend
Global supply chains are operating in an increasingly
volatile and complex environment. Pressure on China-
based sourcing has intensified as demand shifts, while
tariff-driven purchasing windows have created container
availability challenges. There is also uncertainty posed by
recent events in the Middle East. Our sourcing and supply
chain strategy is designed to maintain resilience and
agility, enabling us to adapt to these structural changes.
Enhanced monitoring and contingency planning are
strengthening our ability to absorb shocks, while
safeguarding long-term continuity of supply and
costcompetitiveness.
Link to strategic priorities
— Grow our trade business.
— Scale our digital ecosystem.
— Win through our offer, own exclusive brands
andservices.
— Agile, human and lean.
2
Our people
How we manage and monitor the risk
— The Board has approved our Group strategy for people and culture,
with individual priorities agreed for each banner and Group Function,
including a focus on attracting, retaining, and developing their colleagues.
— The Group Executive and Board hold regular talent reviews
focused on ensuring senior leadership has the required capabilities
to deliver the strategy and activities to strengthen our leadership
succession pipeline.
— We are investing in tools and infrastructure to support our
colleagues’ learning, including a leadership development portal for
bite-size instant learning and e-learning for our store teams on
newproducts.
— Each banner closely monitors colleague sentiment through our
listening platform ‘Peakon’ and creates associated action plans
toimprove colleague sentiment.
How we provide oversight to the Board
— The Board receives the three-year People plan annually, along with a
review of colleague engagement. In addition, the Nomination
Committee receives a summary of the Group Executive succession
plan annually.
Our colleagues are critical to the successful delivery of
our ‘Powered by Kingfisher’ strategy and priorities.
Failure to attract, retain and develop colleagues with
appropriate skills and capabilities could impact our
ability to deliver our strategic priorities and business
objectives at the pace required.
Risk trend
This year we accelerated the development of
organisational capabilities to support long-term growth,
with a strong focus on performance, leadership
development, succession planning and operating model
transformation (see the People and culture section on
pages 14 to 16 for further information).
Link to strategic priorities
— Grow our banners and formats.
— Scale our digital ecosystem.
— Lead the industry in responsible business and
energyefficiency.
— Agile, human and lean.
Risk trend: Increasing No movement Decreasing New
Other
Information
44 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
3
Reputation and trust
How we manage and monitor the risk
— The Responsible Business Committee (RBC) leads and oversees the
delivery of the Responsible Business strategy. It is chaired by
anon-executive director and includes the CEO. The banners and
relevant Group Functions are responsible for delivery of the
strategy, with progress monitored against agreed targets.
— We have established a robust governance framework to oversee
health and safety, with Group standards setting minimum
requirements, implemented locally by banners.
— A framework is in place to ensure our products are safe and comply
with relevant regulations, supported by Group policies and
processes setting minimum requirements. In addition, our due
diligence of suppliers and partners covers a range ofESG issues,
from environment to modern slavery.
— We are evolving our frameworks for managing incidents, and for
responding to societal andgeopolitical issues, and we have specific
policies relating tocorporate affairs and external communications.
— Externally, we monitor developments and have regular engagement
with a range of stakeholders including NGO partners, trade
associations, politicians, civil servants, media, etc. in our key markets,
which helps to ensure that the company remains close to social and
environmental concerns.
How we provide oversight to the Board
— The Board receives a biannual summary of health & safety concerns.
Any serious matters of concern relating to the delivery of the
Responsible Business strategy, health & safety, product safety or
other incidents are reported to the Board as they arise.
Our customers, colleagues, suppliers and investors
expect us to perform our business in a way that is
responsible, reliable and in everyone’s long-term
interest. One of the many ways we strive to ensure this
is through our publicly communicated Responsible
Business strategy and targets.
The safety of our customers and colleagues is of
paramount importance andwe are committed to
ensuring our products and our working environments
are safe.
Failure to deliver on our obligations and commitments
or material breaches of our policies or controls, could
undermine trust in Kingfisher, damage our reputation
and impact our ability to meet our strategic objectives.
Risk trend
The level of scrutiny and expectations from our
stakeholders remains high and the opportunity to provide
an effective response is often limited.
Link to strategic priorities
— Lead the industry in responsible business and energy
efficiency.
— Agile, human and lean.
4
Climate change
How we manage and monitor the risk
— The Responsible Business Committee (RBC), chaired by a non-
executive director, supports and oversees the delivery of the
Group’s Responsible Business strategy, including how we manage
our approach to climate change.
— The Group Climate Committee, chaired by the CEO, monitors the
effectiveness of the company’s approach to assessing and
managing climate-related risks and opportunities. It provides
recommendations to the Group Executive on the management of
climate-related risks and opportunities.
— We have a range of commitments to reduce our emissions and
maximise opportunities for the transition to a net zero future, such as
our Sustainable Home Products targets, establishing science-based
targets for carbon emissions and alignment of our climate-related
ambitions with our financial performance (see TCFD section on
pages 103 to 114). Decarbonisation planning is also integrated into
each banner’s capital investment plans.
— We support several industry initiatives to tackle climate change,
including a collaborative Scope 3 task force, initiated by EDRA/GHIN
(the global trade bodies for home improvement retailers).
How we provide oversight to the Board
— The Board receives updates from the RBC as appropriate and annual
presentations on banner and Group Function strategies, which
consider significant risks and opportunities including climate change.
These are also contained within the TCFD disclosure, which the
Board approves annually.
Globally, the impacts and scale of climate change are
not fully understood and it continues to evolve.
Failure to monitor, understand and act upon the
opportunities and risks of climate change could impact
our long-term profitability.
Risk trend
Scrutiny on the validity and reliability of our response to
climate-related risks remains high.
Link to strategic priorities
— Win through our offer, own exclusive brands and services.
— Lead the industry in responsible business and
energyefficiency.
Risk trend: Increasing No movement Decreasing New
45Kingfisher 2025/26 Annual Report and Accounts
Risks continued
5
Legal and regulatory
How we manage and monitor the risk
— Policies and procedures are in place, clearly stating our expectation
to carry out our business fairly and with complete integrity.
— Our legal and compliance network, supported by external experts
where needed, monitors for legislative changes relevant to our
business, and helps us to identify, understand the impact of, and
comply with current and new legal obligations, so that we
can respond appropriately.
— A compliance programme is in place which covers key areas such as
our Code of Conduct, anti-bribery and corruption, data protection,
competition law and market abuse. This includes mandatory
Group-wide annual training on these areas; an independently
facilitated whistleblowing hotline across the Group, supported by
Speak Up champions to ensure that any concerns are investigated
appropriately; and third-party due diligence processes covering
risks such as sustainability, human rights, business integrity, data
protection and information security.
— The Group Ethics and Compliance Committee (GECC) ensures
that the Group approach to ethics and compliance is adequate
and effective. This includes approving compliance training and
reviewing the outcomes of investigations. Local Ethics and
Compliance Committees are in place in all banners to ensure a
consistent approach.
How we provide oversight to the Board
— The Board approves material changes to Group policies. Regular
reporting is provided to the Board and Audit Committee on material
legal and compliance matters, including topics such as data
protection, compliance programmes, material litigations,
whistleblowing and Speak Up, and material policy breaches.
The Group’s operations are subject to a broad range of
regulatory requirements in the markets in which we
operate, and new regulations continue to emerge.
Failure to ensure we comply with applicable laws and
regulations could impact our brands and reputation and
expose us to significant fines or penalties.
Risk trend
The legal landscape in which we operate continues to
evolve, with new regulations and greater complexity.
Wecontinue to monitor the potential impacts, as well as
focusing on the internal controls, systems and processes
that support compliance.
Link to strategic priorities
— Grow our banners and formats.
— Scale our digital ecosystem.
— Win through our offer, own exclusive brands
andservices.
— Lead the industry in responsible business and
energyefficiency.
6
Cyber and data security
How we manage and monitor the risk
— Cyber security receives Group Executive level sponsorship, and we
continue to make investments in support of our IT security roadmap.
— We use AI to strengthen existing technology capability toprotect us
against threats.
— We have a robust major incident management process, supported
by a third-party incident response and forensic retainer, and we run
regular assessments and exercises, including at Board level, to
ensure we are prepared for security incidents.
— We deliver mandatory training and run phishing awareness tests to
ensure colleagues understand the importance of their role in
cybersecurity.
— We regularly review the cyber threats facing Kingfisher and work
with security partners to evaluate and implement appropriate
controls, including within our IT general control framework.
— We commission continuous independent assurance to monitor
progress against our strategy and alignment to cyber security best
practice standards, to ensure we meet our maturity milestones.
How we provide oversight to the Board
— The Board receives an update annually on cyber security,
with additional updates provided throughout the year as and
whenrequired.
Cyberattacks and security incidents continue to
present a risk for all organisations, including both
Kingfisher and our vendors.
Failure to protect data, information and systems, detect
incidents and respond accordingly would negatively
impact our operations, profitability and reputation.
Risk trend
This remains one of our most significant risks and the
past year has seen several high-profile cyberattacks
against retailers.
Link to strategic priorities
— Grow our banners and formats.
— Grow our trade business.
— Scale our digital ecosystem.
— Win through our offer, own exclusive brands
andservices.
— Lead the industry in responsible business and
energyefficiency.
— Agile, human and lean.
Risk trend: Increasing No movement Decreasing New
Other
Information
46 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
7
Geopolitical instability creating
macroeconomicvolatility
How we manage and monitor the risk
— Our Group Corporate Affairs team monitors the political and
economic situations in our markets and countries which may impact
our operations. This is supported by membership of key business
trade associations in every market.
— Strategies are in place to identify, monitor and engage with
proposed changes to legislation that may impact our business.
— We are revising our incident and crisis management processes and
teams toensure that they are relevant and current, allowing us
toidentify, detect and respond to situations as they arise.
— Our banner and Group sourcing teams work to diversify our sourcing
options where appropriate. Our buying offices and supply chain
teams are focused on ensuring we maintain appropriate levels of
competitively priced products available from alternative sources
through periods of potential disruption.
— We have strong and distinct banners, with each able to set the right
product offer and pricing to meet our customers’ appetite for
spending and to respond in an agile, flexible way to changes in the
environment. Our OEBs, representing 43% of our sales, offer
particularly great value for customers in all our banners.
— We have access to significant committed liquidity facilities and
debt funding, through a Revolving Credit Facility (RCF), and drawn
term loans.
— Cash holdings are diversified across several financial institutions.
Wecontinuously monitor our exposure to these to ensure our credit
risk is effectively managed.
— We have appropriate treasury policies in place, enabling us
tousederivatives, investments and debt financing to minimise
theimpact of foreign exchange currency volatility for the Group.
How we provide oversight to the Board
— The Board receives regular Corporate Affairs updates and annual
presentations of banner Group Function strategies which consider
geopolitical trends. In addition, serious incidents are escalated as
they arise.
Kingfisher’s operations extend across the globe,
exposing us to both geopolitical uncertainty and local
volatility.
Failure to anticipate events or respond appropriately
could have a significant impact on our business
operations resulting in a loss of sales, increased costs
and negatively impacting our strategic objectives.
Risk trend
Heightened geopolitical volatility, including the use of
tariffs as political leverage, increases the risk of supply
disruption and cost inflation given Kingfisher’s global
sourcing footprint. Persistent tensions between major
trading nations continue to impact consumer confidence
in our core European markets and home improvement
spend. Geopolitical instability therefore remains a
significant driver of macroeconomic uncertainty and one
of our highest severity risks.
Link to strategic priorities
— Grow our banners and formats.
— Scale our digital ecosystem.
— Win through our offer, own exclusive brands
andservices.
8
Technology resilience
How we manage and monitor the risk
— Our technology roadmap ensures our infrastructure adapts to
support strategic initiatives. We continue to invest in both core
andcustomer-facing technologies, and we are modernising legacy
systems to enable faster, secure, more agile change across our
digital platforms.
— We work with third-party providers to strengthen our digital
capabilities and overall resilience. Partnering with experts through
our cloud partnerships gives us access to their skills and technology,
helping us attract and retain top engineering talent.
— We embed resilience principles from the outset when developing
ormodernising technology, building high-availability and recovery
paths as a priority.
— Our business continuity and disaster recovery plans ensure
wecanrecover quickly and in a structured way from incidents
affecting critical processes, assets, and third parties.
How we provide oversight to the Board
— The Board receives annual updates on the IT roadmap.
Kingfisher relies on several systems managed internally
and by third parties to serve our customers.
Failure to develop and maintain resilient systems could
disrupt critical operations and the delivery of our
strategic priorities, damaging our reputation.
Risk trend
The ‘Powered by Kingfisher’ strategy is increasingly reliant
on robust technological solutions. This new risk reflects
our commitment to ensuring the successful delivery of
our priorities, enabling future growth for Kingfisher.
Link to strategic priorities
— Grow our banners and formats.
— Grow our trade business.
— Scale our digital ecosystem.
— Win through our offer, own exclusive brands
andservices.
— Lead the industry in responsible business and
energyefficiency.
— Agile, human and lean.
Risk trend: Increasing No movement Decreasing New
47Kingfisher 2025/26 Annual Report and Accounts
9
Market landscape
How we manage and monitor the risk
— Our Customer and Market Intelligence team continuously monitors
customer trends and behaviours across all our markets, feeding into
our banner strategies to anticipate needs and develop relevant
offerings. This is reflected in dedicated teams’ focus on customer
data and digital experience, enabling us to better understand customer
behaviour and deliver personalised, omni-channel experiences.
— Retail media uses targeted advertising and data insights to help
usunderstand behaviour trends, optimise digital touchpoints and
enhance engagement. Our Centre of Excellence for online marketing
and digital trading monitors demand and benchmarks e-commerce
capabilities to identify opportunities in site speed, order
management and customer recommendations.
— We track Net Promoter Scores (NPS) against targets to
improve customer experience and satisfaction across digital and
in-store touchpoints.
— We compare price indices with competitors in key categories and
measure customer price perception on a regular basis to ensure
weremain competitive.
— We have launched strategic programmes to accelerate
e-commerce, placing stores at the centre of our fulfilment model.
Our online marketplaces expand product choice, reduce availability
risks and align with consumer trends. Our Technology Product board
meets quarterly to monitor financial and project portfolio
performance and to prioritise upcoming digital initiatives.
— Compact stores play a crucial role in addressing the consumer need
for convenience and enable us to further meet demand for fast
fulfilment, whether through click & collect or delivery. These formats
provide valuable learnings and attract new customer types.
— We continue to attract trade customers through formats such
asTradepoint and Casto Pro and expanded loyalty programme
offerings across all markets.
— We extend and refresh our own exclusive brand ranges based on
customer and banner feedback to deliver a differentiated, compelling
offer across all price points, with a strong focus on Sustainable Home
Products to meet changing customer preferences.
How we provide oversight to the Board
— The Board receives an annual update on market and customer
trends and annual presentations of banner and Group Function
strategies incorporating these market insights, as well as an annual
update on our IT strategy and roadmap.
The markets in which we operate are very competitive
and the pace of change remains high with increasing
customer demand for greater choice, experience
andvalue.
Failure to respond with speed to customer demand
orto changes in the external landscape could affect
ourability to remain competitive and adversely impact
our financial results.
Risk trend
This remains a key area of focus and one of our highest
severity risks. The previous responding to changing
customer expectations and competitor behaviour risks
were merged due to their similar impacts. This simpler
approach enables more efficient management by teams.
Link to strategic priorities
— Grow our banners and formats.
— Grow our trade business.
— Scale our digital ecosystem.
— Win through our offer, own exclusive brands
andservices.
— Lead the industry in responsible business and
energyefficiency.
— Agile, human and lean.
Risk trend: Increasing No movement Decreasing New
Risks continued
Other
Information
48 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
Viability statement
Assessment period
The directors consider a three-year period appropriate given
therapid change in consumer and retail markets. This aligns
withthe Group’s strategic planning period and timeframe for
implementing new ranges, stores and technology investments.
No major renewal or investment commitments beyond the
current levels (around 3% of revenues) are expected after this
three-year period. The Group’s debt repayment profile is not
relevant due to the low levels of debt, and the Revolving Credit
Facility (RCF) has a three-year horizon.
Assessment of prospects
The directors regularly assess the Group’s current and future
financial position, performance trends and forecasts against the
strategy, business model and principal risks outlined on pages 44
to 48. In addition, the directors regularly review the financing
position and future funding requirements, including
sensitivity analyses.
The Group remains operationally and financially strong, with
astrong track record of consistent profit and cash generation,
expected to continue in both the short and long term.
1
In its assessment of the Group’s prospects, the Board
hasconsidered the following:
— The Group’s strategy and how it addresses changing
customer preferences. Our growth has been high-quality,
volume-led, driven by our Group strategic initiatives in
e-commerce and trade. Online platforms increase product
choice and enable fast fulfilment times while our proprietary
marketplace technology delivers high-margin growth.
Wecontinue to grow our trade customer, based on frequent,
higher spending, and predictable shoppers through formats
likeTradepoint and Casto Pro, leveraging our existing store
footprint to increase store sales densities with limited
additional capex. Our trade business is both revenue and
margin accretive at a retail operating level. Looking ahead,
weremain confident in both our long-term growth and cash
generation opportunities.
— The inherent resilience of the Group’s activities. The Group
operates across diverse geographies and customer segments,
with a strong competitive position. We maintain a well-balanced
mix of retail and trade customers and a significant proportion
of our sales is linked to essential repairs and maintenance.
Ourgeographic spread helps mitigate political instability
or economic downturn in a particular country. Our diverse
product portfolio, including own exclusive brands (OEB) and
diversified sourcing footprint (both near and far sourcing)
strengthen stability.
— Expectations of the future economic environment. Political
and macroeconomic uncertainty persists across our markets.
Despite consumer uncertainty, our UK banners and Brico Dépôt
Iberia delivered strong results and grew market share. Our banners
in France and Poland faced subdued consumer demand
but performed in line with their markets, demonstrating the
resilience of our strategy. Longer term, we are well positioned
to benefit as the home improvement market inflects. Industry
trends, including ageing housing stock, investments in
sustainability anda continued interest from consumers in
adapting their homes to their evolving lifestyles, will endure
and provide theopportunity for sustained long-term growth.
— The Group’s financial position. The Group retains a
strong financial position; as of 31 January 2026, Kingfisher had
access to over £1.1 billion in total liquidity, comprising cash
and cash equivalents of £462 million (net of bank overdrafts)
and access to an undrawn Revolving Credit Facility (RCF) of
£650 million (which expires at the endof May 2028). The RCF
has a one-year extension option, andthe modelling assumes
this is renewed at a similar level (deemed highly likely). This
level of liquidity is sufficient for allviability scenarios. The
Group has low levels of debt andaproven track record of
strong cash generation. TheBoard considers this headroom,
coupled with the highly cash generative nature of the business,
to provide robust financial resilience and flexibility.
— Supplier and supply chain resilience. The Group’s supply
chain has remained resilient despite geopolitical uncertainty,
with product availability continuing to improve. While some
dependency on far-sourced products from Asia exists, we
mitigate this through dual-sourcing key OEB products and
maintaining updated business continuity plans. We work closely
with vendors to optimise inventory levels and strengthen
resilience in our supply chain.
— Climate change. We regularly assess climate-related risks and
opportunities. TCFD scenario analysis indicates no material
risks to our business model over the three-year time horizon
but highlights the opportunity to promote our more sustainable
products to customers (refer to TCFD section on page 108).
Taking these factors into account, we have shown that our
business model is resilient, and we are confident that our strategy
provides a strong foundation for sustainable long-term growth.
Assessment of viability
To assess our viability, we have modelled several severe but
plausible scenarios which would have the most material impact
onour liquidity. These were identified by considering how
ourprincipal risks could materialise either individually or
incombination, impacting the business both operationally
andfinancially.
In total, four severe but plausible individual scenarios have
been modelled, in addition to a fifth ‘collective’ scenario.
Thelatter considers the combined impact of scenarios 1, 3
and4detailed below, to model a worst-case situation.
Theoretically, all these scenarios could run together,
withdifferent impacts. Although the causes are different,
thepotential impact of scenario 2 (production and supply chain
disruption) is similar to scenario 3 (further economic downturn)
and overlaying it on the collective scenario would not make
amaterial difference to the results.
The legal and regulatory risk was not specifically modelled as it
could result in a significant financial penalty and related financial
pressure similar to scenario 1 (demand/operational shock).
Anaspect of climate change has been modelled in scenario 2
(production and supply chain disruption) but it should be noted
that the additional investments being made to realise our climate
targets are already included in the base financial projections.
1. This viability statement should be read in conjunction with the description of the Group’s strategy and business model, which are set out on pages 7 to 13.
49Kingfisher 2025/26 Annual Report and Accounts
Scenarios modelled Links to principalrisks
Scenario 1 – Demand/operational shock
The whole of Kingfisher’s operations become subject to a material and unexpected reduction in demand or
operational disruption resulting in reduced sales for a period of time (e.g. a failure ofourglobal IT infrastructure,
with operational and/or reputational damage).
Assumptions
Sales: Reduced sales during our peak period (a shock with an initial two-week sales impact of 75%, reducing
to25% thefollowing two weeks before normalising).
Margin: Margin rate reduced by 2% due to the loss of sales and impacts of fixed distribution costs during
disruption period.
Cost: Minimal cost savings due to the acute nature of the event.
Inventory: Limited adjustment opportunity given lead times.
Risk 3:
Reputation and trust.
Risk 6: Cyber
anddata security.
Risk 7: Geopolitical
instability creating
macroeconomic volatility.
Risk 8:
Technology resilience.
Scenario 2 – Production and supply chain disruption
Our suppliers and supply chain continue to be affected through 2026/27 and into 2027/28 by an event which
impacts production or supply. Stock availability is severely reduced in several key product categories and
logistics costs are significantly increased for others. Suppliers are not able to support the increased sales
volumeson key ranges.
Assumptions
Sales: Negative sales impact in years 1 and 2 of 2% for our larger stores and up to 4% for our smaller stores
(moreaffected due to limited range depth so fewer alternatives).
Margin: Margin rate reduced by 1% due to the loss of sales and increased shipping and transportation costs.
Risk 1: Supplychain
resilience.
Risk 4: Climatechange.
Risk 7: Geopolitical
instability creating
macroeconomic volatility.
Scenario 3 – Further economic downturn
Prolonged and further downturn in economic conditions across Europe with lower economic activity, higher
unemployment and higher inflation resulting in changing customer behaviours, reduced consumer confidence
andlower spending. Customers become more price sensitive, and price reductions impacting margins are
required tomanage overstocks. Suppliers of key ranges default on their supply commitments.
Assumptions
Sales: Year-on-year sales reduction of 5% for a 12-month period, followed by a 6-month period of stabilisation
before resumption of growth.
Margin: Margin rate reduced by 1% from lower sales and pricing pressure for a period of 24 months, followed
byrecovery in the third year.
Risk 7: Geopolitical
instability creating
macroeconomic volatility.
Scenario 4 – Failure to execute our strategy
We continue to implement our strategy, including planned investments, but this fails to deliver the expected
sales growth and margin enhancement. In addition, there is a failure to realise cost-reduction targets.
Assumptions
Sales: Non-delivery of planned sales growth from initiatives included in the three-year plan.
Margin: Non-delivery of margin increases linked to growth in OEB product sales.
Costs: Non-delivery of efficiency benefits.
Risk 2: Ourpeople.
Risk 9: Marketlandscape.
Scenario 5 – A combination of scenarios 1, 3 and 4
This represents a demand or operational shock, resulting in a short period of reduced revenue,
followedbyafurthereconomic downturn. At the same time, our strategy fails to deliver the planned benefits.
This is seen asaworst-case scenario and highly unlikely.
As indicated in the
above scenarios.
Recent events in the Middle East have disrupted global supply
chains and driven higher energy prices. While the duration and
impact of the conflict remain uncertain, learnings from recent
similar events, such as those in the Red Sea or during the
pandemic have been considered as part of our modelling and
mitigations in place. We believe any potential impacts are
reflected in our modelling, primarily through scenario 2
(Production and Supply Chain Disruption) and scenario 3
(Further Economic Downturn).
None of the scenarios modelled, including the more extreme and
unlikely aggregated scenario, were found to impact the long-term
viability of the Group over the assessment period. In assessing
each of the scenarios, we have considered the mitigating actions
available to us, including, but not limited to:
— reducing discretionary operating spend;
— reducing non-committed capital expenditure;
— renegotiating prices and payment terms with suppliers;
— freezing recruitment and reducing variable incentives; and
— temporary suspension of dividend payments or
share buybacks.
Having assessed our current position, principal risks and
prospects of the Group and considering the assumptions below,
the directors confirm they have a reasonable expectation
that the Group will be able to continue in operation and meet its
liabilities as they fall due over the three-year assessment period.
Viability statement continued
Other
Information
50 Kingfisher 2025/26 Annual Report and Accounts
Governance
Financial
Statements
Strategic
Report
The Group’s business activities, together with the factors likely
toaffect its future development, performance and position, are
set out in the Strategic report, including the principal risks of
theGroup set out on pages 44 to 48. The financial position
oftheGroup, its cash flows, liquidity position and borrowing
facilities are described in the Financial Review on pages 31 to 37.
In addition, note 25 of the Group financial statements includes
theGroup’s financial risk management objectives and exposures
to liquidity and other financial risks.
The directors have considered the above and how they may
impact going concern as well as the modelling of a remote
scenario which assesses the impact on the Group’s liquidity
headroom of a significant demand or supply shock preventing
usfrom realising a large part of our sales over the period of a
month followed by subdued demand for the remainder of the
year. Asaresult of this review, the directors have a reasonable
expectation that the company has adequate resources to
continue in operational existence for the foreseeable future,
aperiod of at least 12 months from the date on which the financial
statements are authorised for issue, and consider it appropriate
for the Group to continue to adopt the going concern basis
ofaccounting in preparing the annual financial statements.
Further details in relation to the use of the going concern
assumption and the scenario modelled by the directors are
detailed in note 2 of the Group financial statements.
Strategic Report approval
The Strategic report was approved by a duly authorised
Committee of the Board of Directors on 23 March 2026
andsigned on its behalf by:
Thierry Garnier
Chief Executive Officer
23 March 2026
Going concern
51Kingfisher 2025/26 Annual Report and Accounts
Chair’s statement
Dear Shareholder,
At Kingfisher, we believe that a better world starts with better
homes. Through our ‘Powered by Kingfisher’ strategy, we are
committed to making thisvision a reality for our customers,
colleagues, andcommunities by helping people to improve
theirhomes.
In 2025/26, we continued to build strong momentum, delivering
tangible progress against our strategic priorities. We have
delivered significant market share gains and made progress in
advancing our trade and e-commerce initiatives, with both
delivering double-digit sales growth. We completed the sale of
our Romanian business and progressed the restructuring and
modernisation of our Castorama stores in France, in line with our
plan to improve their performance and profitability.
By focusing on the biggest drivers of growth — while maintaining
strong cost discipline — we were able to increase both profit
andfree cash flow guidance during the year. This momentum,
supported by one-off cash inflows, led to the Board’s decision
toaccelerate the £300 million share buyback programme, which
completed in line with our policy to return surplus capital
toshareholders.
As we look ahead to 2026, we will continue to focus on the levers
that drive continued sustainable growth, acting with consistency
in the execution of our strategic priorities and remaining
disciplined on margin and costs.
Our governance framework
At the heart of our decision making is a robust governance
framework that ensures timely decisions are made using high-
quality information, discipline and sound judgement. We also
consider the outcomes of our prior decisions to understand their
wider impacts and to inform future choices. Protecting the
long-term health of the business is a core priority, and our
governance structure is designed to support sustainable growth,
resilience and competitive strength in an uncertain macro-
economic environment. The following pages set out how
Kingfisher is governed to serve our customers, support our
colleagues, contribute to our communities, and deliver value for
our shareholders and wider stakeholders.
Board composition andsuccessionplanning
During the year, we placed strong emphasis on evaluating and
strengthening the Board’s composition as part of our succession
planning. We reviewed the breadth and depth of skills across the
Board, identified areas where additional expertise would be
valuable, and further expanded the range of Board experience.
We were delighted to announce in February the appointment of
Stephen Daintith as a non-executive director, effective 1 April
2026. Stephen will also succeed Jeff Carr as Chair of the Audit
Committee at the conclusion of Jeff’s nine-year term in 2027.
We continue to remain focused on succession planning to ensure
the balance of skills and experience on the Board remains
appropriate in the context of our strategy. You can read more
about our work in this area in the Nomination Committee report
on page 63.
Culture, diversity and inclusion
As a result of changes to the Board’s composition during the
year, gender diversity is 37.5%, below the 40% target set by the
UK Listing Rules (at the date of this report). We continue to meet
or exceed the other targets set by the Listing Rules including
having two women in senior Board positions. We recognise that a
diverse, inclusive Board enhances representation and has a
positive effect on board performance and good quality decision-
making. We are proactively addressing this within our ongoing
succession planning. We remain committed to equality, diversity
and inclusion, recognising that a culture that reflects the diverse
communities in which we operate is in the company’s best
interests. This belief is embedded in Kingfisher’s purpose and
aligned to our strategy, and in our goal to create an agile, inclusive
culture led by trust, driving high performance.
Further information regarding the Board’s diversity and inclusion
policy can be found on page 65. Further information on how the
Board monitors and assesses culture can be found on pages 59
and 60.
Reviewing Board performance
The annual review of the Board’s performance plays a crucial role
in strengthening our governance, enabling us to reflect, improve
and enhance our effectiveness. This year, we engaged Lisa
Thomas of Independent Board Evaluation to conduct the
assessment. The review produced valuable insights, and more
detail on the outcomes and recommendations can be found on
pages 61 and 62.
Looking forward
Kingfisher is a great business with a unique combination of assets
and capabilities that differentiate us within the home
improvement sector. Our differentiated retail banners, OEB and
branded product ranges provide resilience and a clear
competitive advantage, enabling us to respond to changes in
customer behaviour and market conditions. Our growing digital
and data capabilities further enhance our ability to anticipate
market shifts, optimise our supply chains and deliver more
personalised customer experiences. Supported by a strong
balance sheet, these strengths give us a solid foundation to
invest confidently and sustainably for long-term growth.
The Board is confident in the future of the business, underpinned
by our clear strategy, the quality of our leadership and the
resilience of our retail banners. We remain committed to driving
sustainable shareholder returns through disciplined execution and
a continued focus on costs, margins and operational excellence.
Finally, on behalf of the Board, I would like to extend our sincere
thanks to our customers, suppliers, communities and investors
for their continued support and engagement. I would also like to
express my heartfelt appreciation to our colleagues across the
Group. Their hard work, passion and commitment to our values
are the bedrock of Kingfisher’s success, enabling us to serve our
customers every day.
Claudia Arney
Chair of the Board
23 March 2026
52 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Corporate governance
Principal Executive Committees
Board Committees
The Kingfisher plc Board
Responsible for the overall leadership of the Group, the Board defines our purpose, values, and strategy and aligns
themwithourculture.Considering the views of our key stakeholders, the Board promotes the Group’s long-term sustainable
successanditscontributionto wider society. It is also responsible for the Group’s performance and governance oversight.
Our governance structure
Our structured framework comprises the Board and its committees, and enables the company and our directors to work effectively.
Group Investment
Committee
Chaired by the Chief
Financial Officer, this
group approves all
capital and revenue
expenditure above the
threshold reserved for
approval at the banner
or Group Function level.
Authority for approval
for such matters also
resides with the Chief
Executive Officer.
Group Climate
Committee
Monitors and agrees our
emission reduction
commitments and net
zero roadmap.
Oversees our external
reporting on climate-
related matters, and
assesses and manages
our climate-related risks
and opportunities.
Nomination
Committee
Manages the composition
of the Board and its
committees, as well as
succession planning for
the Board and senior
management.
Report can befound
from page63.
Report can befound
from page73.
Remuneration
Committee
Ensures rewards are
linked to our strategy
and recognises success.
Report can befound on
page 67 with additional
reporting from page 24.
Responsible
Business Committee
Oversees the delivery of
our Responsible Business
activities, providing
collective advice
andsupport.
Audit Committee
Oversees the integrity of
our financial and narrative
reporting, the
effectiveness of our
internal controls, risk
management and audit,
and oversees compliance
matters.
Disclosure
Committee
Responsible for the
framework we use
to identify, manage,
and release
inside information.
Report can befound
from page68.
Group Executive
Comprises the Chief
Executive Officer and his
direct reports, including
the Chief Financial
Officer, banner CEOs, and
certain functional leads.
This group meets monthly,
excluding August, to
support and advise our
Chief Executive Officer to
develop and implement
the strategic direction of
the Group and its
constituent businesses, to
make andimplement
operational decisions, and,
where appropriate, make
Board recommendations.
53Kingfisher 2025/26 Annual Report and Accounts
Board attendance
Directors’ attendance at Board meetings during the year is set out
below. Directors are expected to attend all Board meetings,
except for in exceptional circumstances. Where directors are
unable to attend scheduled meetings, they are encouraged to
input in advance. Detail regarding information flows to the
directors can be found in the Corporate Governance Statement
on our website: www.kingfisher.com/corporategovernance.
Current directors Attendance
Claudia Arney 7/7
Jeff Carr 7/7
Thierry Garnier 7/7
Sophie Gasperment 7/7
Bill Lennie 7/7
Ian McLeod 7/7
Bhavesh Mistry 7/7
Lucinda Riches 7/7
Former directors who served during 2025/26
Catherine Bradley
1
2/2
Rakhi Goss-Custard
1
2/2
1. Catherine Bradley and Rakhi Goss-Custard stepped down from the Board at
the conclusion of the company’ s AGM held on 23 June 2025.
In addition to the scheduled meetings reflected in the table
above, three ad hoc Board meetings were held during the year.
Compliance with the UK Corporate
Governance Code
The company was subject to the Financial Reporting Council’s
2024 UK Corporate Governance Code (the ‘Code’) for the year
ended 31 January 2026. Kingfisher complied in full with the
provisions and consistently applied the principles of the Code
during the year. A copy of the Code is available at the FRC’s
website at www.frc.org.uk.
This report, together with the reports of the Nomination, Audit,
Remuneration and Responsible Business committees, the other
statutory disclosures and the Corporate Governance Statement
on our website, provide details of how the company has applied
the principles of the Code.
Provision 29 of the 2024 Code, which came into effect on
1 January 2026, will apply to the company for the financial year
ended 31 January 2027 and will be reported against in our
2026/27 Annual Report. During the year, we have reviewed our
readiness to comply with this provision. Further information
regarding readiness can be found in the Risk section on page 43
and in the Audit Committee report on page 71.
At the company’s 2025 AGM, the Board was pleased to see a high
level of engagement from shareholders with 87.5 per cent of
shares in issue being voted and all resolutions passed by poll by
the requisite majority. However, the Board also noted that there
were 20.5 per cent of votes cast against Resolution 16 (Authority
to allot shares). In accordance with the Code, the company has
consulted with its major shareholders and understands that
some, as a matter ofpolicy, do not support resolutions giving
companies a general authority to allot shares without further
approval from shareholders. The Board considers it in the best
interests of the company to renew this authority to retain the
flexibility to issue shares when appropriate. The company will
continue to take into account the views of its shareholders and
will keep the authorities it intends to seek under review.
The table below outlines how Kingfisher applied the principles
and complied with the provisions of the Code which may also
befound in the Corporate Governance Statement (CGS) at
www.kingfisher.com/corporategovernance. Our website also
hascopies of Matters Reserved for the Board, Terms of
Reference of the Committees and role profiles for the Chair,
Chief Executive Officer, Senior Independent Director, and other
relevant roles.
1. Board leadership
and company purpose
Page no.
or document
Effective and entrepreneurial Board 17, 28-30, 43–51, 53,
CGS, Matters Reserved
Purpose, values and strategy 7, 12–13, 59-60, CGS
Board decisions and outcomes 58, CGS
Engagement with stakeholders 17–22, 59-60, CGS
Workforce policies and practices 14-16, 26-27, 59, CGS
2. Division of responsibilities
Role of the Chair CGS, role profiles
Composition of the Board 55-57, 65-66, CGS
Role of the non-executive director CGS, role profiles
Board information, time and resource 53, 61-62, 64-66, CGS
3. Composition, succession andevaluation
Appointment to the Board 63-66, CGS
Board composition 55-57, 63-66, CGS
Board effectiveness 61-62, CGS
4. Audit, risk and internal control
Internal and external audit functions 70-72, CGS
Fair, balanced and understandable 49-51, 68, 102, CGS
Risk management 43-48, 71-72, CGS
5. Remuneration
Aligning remuneration to strategy 73-98, CGS
Policy for executive remuneration 76-83, CGS
Independent judgement 84, CGS
Corporate governance continued
54 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Board of Directors
Claudia Arney,
Chair of the Board
Appointed: Chair of the Board: June 2024
Non-Executive Director: November 2018
Skills and experience: Claudia brings a wealth of experience of
business transformation and building digital capabilities to the
Board having previously held multiple non-executive roles,
including Chair of Deliveroo plc, interim Chair of the Premier
League, Senior Independent Director of Telecity Group plc, Chair
of the Remuneration Committee at Halfords plc, Non-Executive
Director at Ocado Group plc, and Governance Committee Chair
at Aviva plc. Claudiabegan her career at McKinsey & Company,
before holding roles at Pearson, the Financial Times, Goldman
Sachs, and HM Treasury. She was alsoGroup Managing Director,
Digital at EMAP.
External appointments:
— Panel on Takeovers and Mergers – Member
— Department for Digital, Culture, Media and Sport – Lead
Non-Executive Board Member
Thierry Garnier,
Chief Executive Officer
Appointed: September 2019
Skills and experience: Thierry spent 20 years in senior roles
at Carrefour, the French multi-national retailer. Before joining
Kingfisher, he was a member of the Carrefour Group Executive
Committee and CEO of Carrefour Asia. From 2003 to 2008,
Thierry was the Managing Director of Supermarkets for
Carrefour France. Following his success in this role he became
CEO of Carrefour International and a member of the Group
Executive Committee in 2008, where he became responsible
for operations in Asia, Latin America and various European
countries. In 2016, Thierry was awarded the Chevalier de
l’Ordre National de la Légion d’Honneur (France).
External appointments:
— Tesco plc – Non-Executive Director
— EDRA/GHIN (the European DIY Retail Association and the
Global Home Improvement Network) – Member of the Board
Bhavesh Mistry,
Chief Financial Officer
Appointed: January 2025
Skills and experience: Bhavesh brings extensive finance and
retail experience gained in senior roles across a range of listed
businesses, most recently at British Land, where he served as
CFO from 2021. Prior to joining British Land, Bhavesh was Deputy
Chief Financial Officer at Tesco PLC. He has previously held
senior finance and strategy roles in a range of consumer-facing
businesses, including Whitbread Hotels and Restaurants,
Anheuser Busch InBev and Virgin Media. Bhavesh qualified as
a Chartered Accountant with KPMG and holds an MBA from
London Business School.
External appointments: None
Lucinda Riches,
Senior Independent Director
Appointed: January 2025
Skills and experience: Lucinda is a highly experienced non-
executive director, having served in several roles as board chair
and remuneration committee chair across multiple sectors. Prior
to becoming a non-executive director, Lucinda had an executive
career in investment banking at UBS where she was Global Head
of Equity Capital Markets and a member of the board of UBS
Investment Bank. Her previous non-executive director roles
include Ashtead Group plc, CRH plc, ICG Enterprise Trust plc,
theBritish Standards Institution, Diverse Income Trust plc and UK
Financial Investments Ltd.
External appointments:
— Greencoat UK Wind plc – Independent Non-Executive Chair
and Nomination Committee Chair
— Peel Hunt Limited – Independent Non-Executive Chair and
Nomination Committee Chair
Key: Chair Audit Committee Nomination Committee Remuneration Committee Responsible Business Committee
55Kingfisher 2025/26 Annual Report and Accounts
Jeff Carr,
Non-Executive Director
Appointed: June 2018
Skills and experience: Jeff brings substantial international finance
experience to the Board, particularly within the consumer and
retail sectors. Until the end of March 2024, Jeff served as CFO
ofReckitt Benckiser Group plc, a British multinational consumer
goods company with operations in over 60 countries and a large
number of globally trusted household brands and products. Jeff
also held an executive finance role with Reckitt earlier in his
career. Prior to joining Reckitt, Jeff was CFO of Koninklijke Ahold
Delhaize N.V. (Ahold Delhaize), one of the world’s largest retail
groups. Jeff was also previously Group Finance Director at both
FirstGroup plc and easyJet plc, and held a senior finance role at
Associated British Foods plc, as well as a non-executive director
role at McBride plc.
External appointments:
— Tate and Lyle plc – Independent Non-Executive Director and
Remuneration Committee Chair
Sophie Gasperment,
Non-Executive Director
Appointed: December 2018
Skills and experience: Sophie brings to the Board expertise
instrategy, brand and international retail markets as well as
substantial experience in business transformation and digital
capabilities, having held a number of senior leadership positions
at L’Oréal, including managing director of L’Oréal UK & Ireland,
and Executive Chair and Global Chief Executive Officer of
TheBody Shop, as well as 12 years as Non-Executive Director
atAccor where she chaired the Nominations, Remunerations
andCSR committees.
External appointments:
— GivaudanS.A – Lead Independent Director and Nomination and
Governance Committee Chair
— Cimpress plc – Independent Director and Nominating
Committee Chair
— Boston Consulting Group – Senior Advisor
Bill Lennie,
Non-Executive Director
Appointed: May 2022
Representative to the Kingfisher Colleague Forum: from June
2025
Skills and experience: Bill brings substantial industry experience
to the Board, having spent 26 years at The Home Depot, Inc.,
the largest home improvement company in the world, where
he had an outstanding track record of delivery, supporting the
company’s remarkable growth during this period. Bill was most
recently Executive Vice President, Outside Sales and Services at
Home Depot and retired in 2021. During his time there, he held
many senior leadership roles including President, Canada and
Senior Vice President, International Merchandising, Private
Brands, and Global Sourcing. Bill has a deep knowledge of
merchandising and global sourcing, and experience in developing
successful trade and services strategies. Before his time at
Home Depot, Billwas merchandising manager for Lowe’s
Companies Inc. andmillwork plant manager for Menards Inc.
External appointments: None
Ian McLeod,
Non-Executive Director
Appointed: January 2025
Skills and experience: lan has over 40 years’ retail experience,
including 20 years in CEO positions leading multi-billion dollar
publicly traded or private equity-owned companies around
the world, developing specialist expertise in leading business
transformation and change management programmes globally.
lan’s leadership and board experience includes businesses such
as Asda and Halfords in the UK, Walmart International as well as
Carrefour in the Middle East. His CEO roles include Coles Retail
Group in Australia, Southeastern Grocers in the United States and
more recently the DFI Retail Group based in Hong Kong with
stores across 13 Asian markets, including key market franchises
for IKEA, 7-Eleven and Starbucks. In 2010, lan was awarded an
Honorary Doctorate in his native Scotland for his contributions
tobusiness and retail.
External appointments:
— QuadriaCapital – Operating Partner
— Alvarez & Marsal, US – Consultant Advisor
Board of Directors continued
Key: Chair Audit Committee Nomination Committee Remuneration Committee Responsible Business Committee
56 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Board composition
Board independence Board nationality Board diversity
Independent non-executive directors
Executive directors
British
French
US
Board tenure
Current directors Tenure at 31 January 2026
Claudia Arney
7 years, 3 months
Jeff Carr
7 years, 8 months
Sophie Gasperment
7 years, 2 months
Thierry Garnier
6 years, 4 months
Bill Lennie
3 years, 9 months
Bhavesh Mistry
1 year, 1 month
Lucinda Riches
1 year, 1 month
Ian McLeod
1 year, 1 month
Board biographies are set out on pages 55 and 56.
Board diversity and ethnicity is set out on
pages 65 and 66.
75%
25%
5
1
2
Director sector experience
1
Retail
7
Home improvement
sector
3
Digital
7
International
markets
6
Former CEO
3
Brand/marketing
5
Listed market
experience
6
Remuneration/HR
6
Finance
3
Sustainability
4
Matrix-model
business
2
5
1. To be counted for each skill area, a director is either required to have
sustained executive or senior management experience, or meaningful
non-executive experience.
2. Experience of multi-divisional/business unit model with responsibilities
splitacross regions and the centre.
57Kingfisher 2025/26 Annual Report and Accounts
Board activities
The table below sets out the key matters considered, and key decisions and outcomes during the year to promote the long-term
success of the company. The Board recognises its responsibility to consider the needs and concerns of our stakeholders as part
ofitsdiscussion and decision-making processes and seeks to deliver value for all our stakeholders. The company’s Section 172
disclosure is available in the Strategic report on page 17.
Board activity Key decisions and outcomes Links to strategy
Strategy See page 7
- Held strategy discussions throughout the year, including a
two-day meeting dedicated to strategy in November.
- Enabled informed decision-making aligned with strategic
priorities and supporting the company’s long-term
success.
1-6
- Reviewed progress against the ‘Powered by Kingfisher’
strategic objectives and priorities and considered
performance against strategic KPIs.
- Reaffirmed strategic direction and agreed actions and
focus areas which included the performance of our
operations in France.
1-6
- Discussed longer-term strategic options and growth drivers,
including banner-specific strategies and multi-year planning.
- Endorsed our strategic priorities for 2026/27 for banners
and Group Functions.
1-6
- Reviewed opportunities, including operating model
efficiencies, new trade propositions, developments in OEB
ranges and store portfolios, AI developments, e-commerce,
data, marketplace and retail media, informed by trends
shaping the home improvement and retail sectors.
- Approved investments supporting delivery of the
‘Powered by Kingfisher’ strategy.
1-6
Finance and performance
- Reviewed Kingfisher’s performance, including market and
trading updates and guidance.
- Received updates from corporate brokers and advisors.
- Approved the full and half-year results and the Q1 and Q3
trading updates, including the upgraded adjusted profit
before tax and free cash flow guidance.
1-6
- Reviewed the Group’s capital and liquidity position, dividend
cover, and shareholder distributions.
- Recommended the final dividend payment and approved
the interim dividend payment; approved the acceleration
of the current share buybackprogramme.
1-6
- Reviewed performance against budget and forecasts, cash
flow, funding requirements, credit rating and leverage
targets.
- Approved the annual budget, endorsed the three-year
plan and capital allocation policy; approved the refinancing
of term loans.
1-6
People, culture, vision and values
- Discussed the new Responsible Business Strategy and
considered the level of ambition across the priorities, with
the Responsible Business Committee providing guidance on
the criteria underpinning the strategy.
- Endorsed the Responsible Business Strategy 2030.
5-6
- Maintained oversight of progress against our Responsible
Business Strategy.
- Approved the 2024/25 Responsible Business Report for
publication.
5-6
- Non-executive directors spent time with colleagues
instores and in banner offices (see page 60).
- Enhanced understanding and saw first-hand the culture
embedded across the Group.
5-6
- Reviewed progress against the People and Culture Plan,
with regular updates delivered through the culture
dashboard.
- Endorsed the key priorities for 2026/27 for the People
and Culture Plan.
5-6
- Received an update on community investments
made during 2024/25.
- Approved projected charitable donations to the B&Q
Foundation and Shelter for 2026/27.
5
Governance and risk
- Oversaw Board succession planning and the director search
processes (see pages 63 and 64).
- Approved appointments of Stephen Daintith as a
non-executive director and Lucinda Riches as Senior
Independent Director.
6
- Considered the updated principal risks, risk appetite and
material controls across the principal risks and focus areas.
- Maintained a regular focus on information security, including
receiving an annual update from the Chief Information
Security Officer.
- Approved the Group’s principal and emerging risks and
risk appetite statement.
1-6
- Maintained oversight of the ESG reporting readiness. - Approved the output from the Double Materiality
Assessment undertaken at Group level as part of the
company’s ESG reporting programme.
5
- Oversaw the approach to modern slavery and human rights,
including supply chain risk management.
- Considered reports received via the ‘Speak Up’ hotline.
- Approved the 2024/25 Modern Slavery Act Transparency
Statement.
5-6
58 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Assessing and monitoring culture
Culture
The Board approves the Group’s purpose, values and standards
and satisfies itself that these align with its culture. We believe an
agile, inclusive culture, led by trust, reflects our purpose and values
and enables us to drive progress against our strategic priorities.
This year’s focus was on further developing a high-performance
culture that is embedded in our purpose and strategy, while
strengthening trust, inclusion, and engagement across the Group.
We continue to take actions to build a positive and healthy
working environment, engaging colleagues across all parts
ofthebusiness.
How does the Board assess and
monitorculture?
The Board spends time throughout the year engaged in activities
that provide insight into Kingfisher’s culture and receives detailed
reports on a wide variety of topics to allow it to assess culture
and its alignment to the Group’s purpose, values and strategy.
Kingfisher Colleague Forum
Our workforce engagement mechanism is the Kingfisher
Colleague Forum (KCF), a joint forum of Kingfisher-nominated
management representatives and colleague representatives
from across all banners and Group Functions. The KCF engages
with representatives to help colleagues stay connected to,
andprovide feedback on, the direction of the Group
andbusinessdecisions in compliance with the European
WorksCouncil Directive.
A representative non-executive director, together with the Chief
Executive Officer and Chief People Officer, attend KCF meetings
to listen to and discuss colleague views on a range of topics and
colleague feedback is presented to the Board following each
meeting. During the year, the Board nominated Bill Lennie to
succeed Catherine Bradley as the representative non-executive
director to the KCF, ensuring that we continue our focus
onactive engagement and transparency.
Key topics discussed by the KCF and representative groups,
such as our colleague forums and works councils during the year
included trading and market context, AI and emerging
technologies, inclusion and diversity and OEB visibility.
Colleague engagement survey
The Board receives insights and actions arising from the
Group-wide colleague engagement survey twice a year and,
during the year, requested further detail on Group engagement
mechanisms to gain a deeper insight into the trends and drivers
of strong engagement at Kingfisher. See page 15 for how we
listen to our colleagues, including our engagement scores.
Culture dashboard
The Board regularly reviews key indicators of cultural health
through an analysis of quantitative and qualitative data, covering
colleague headcount, time to hire, colleague turnover, gender
representation and Speak Up reports and eNPS scores. This data
enables the Board to monitor progress against targets and the
actions in place to support a strong culture within Kingfisher.
58 eNPS
within the top 5% for retail versus
Peakon’s Retail benchmark
2024/25: 59
26.71% colleague turnover
rolling 12-month attrition rate
(permanent and fixed term employees)
2024/25: 24.9%
Speak Up: Group-wide volumes
increased by 6.81%
from 602 cases in 2024/25 to 643
cases in 2025/26. This remains within
European benchmarks and reflects a
strong awareness of the system and
trust in the Speak Up process
Strategic review
Culture is a key part of our three-year plan, and progress against
the plan is reviewed by the Board biannually. The Board considers
the company’s current and desired culture in the context of our
purpose, values and strategy to ensure they are aligned.
Workforce policies and practices
Our Code of Conduct sets out our personal and shared
responsibilities for meeting high ethical standards and helps to
promote a culture where transparency, honesty and fairness are
the norm. Mandatory training is issued to all directors and
colleagues on an annual basis to reinforce the importance of
these standards. Onbehalf of the Board, the Audit Committee
oversees compliance matters, including reports on
whistleblowing activity across Kingfisher.
The Remuneration Committee receives regular reports on the
wider workforce policies and practices. This includes embedding a
high-performance culture in the company. Readmore about how
we invest in and reward our people onpages15 and 73.
59Kingfisher 2025/26 Annual Report and Accounts
Case study:
Board offsite and
store visitsinFrance
In May 2025, the Board held oneofits offsites in Marseille,
and spent time with head office and store colleagues from
across the business inCastorama and Brico Dépôt France.
As part of its engagement programme, the Board spent
two days immersed in the French banners, focusing on
connecting with the customer and colleague experience
following the launch of their new strategies.
Directors had breakfast with a mixture of store and head
office high potential leaders, which gave directors the
opportunity to hear the experiences and views of
colleagues first hand. Colleagues welcomed the high level
of transparency and close interaction with the Board as it
facilitated effective sharing and alignment of brand and
Group strategies.
The Board also spent time with colleagues in stores at
Castorama Toulon la Seyne and Brico Dépôt Marseille
togain a deeper understanding of the day-to-day
operations, organisational make-up and colleague
sentiment. This provided an opportunity for direct
engagement with colleagues on the ground.
The Board had dinner with senior colleagues responsible for
delivering our strategic goals, enabling deeper discussions
and strategic alignment between colleagues and the Board.
May
Castorama and Brico Dépôt France stores: directors
explored the customer and colleague experiences
with store visits to both Castorama Toulon la Seyne
and Brico Dépôt Marseille.
Colleague breakfast, France: 15 colleagues attended
to share their experiences of working in store and
head office.
Local board dinner, France: 19 senior colleagues
attended to discuss strategy and performance.
June
KCF in London: Catherine Bradley attended her last
KCF, during which OEB initiatives and inclusion and
diversity were discussed.
September
Castorama Poland stores: Claudia Arney, Lucinda
Riches and Ian McLeod visited the Castorama Gdańsk
Osowa, Oliwa and Kowale stores, as well as a design
point in Bałtycka Shopping Mall in Gdańsk, to
experience the customer journey and hear from store
directors about categories and initiatives.
Castorama Polska Foundation: Claudia Arney, Lucinda
Riches and Ian McLeod went on a guided tour with
the European Solidarity Centre and representatives
of the Foundation Metapomoc to discuss social
support projects.
Management Committee dinner, Poland: 10 senior
colleagues attended to discuss the competitive
landscape and consumer trends.
B&Q stores: Jeff Carr and Bill Lennie visited the B&Q
Basingstoke and Farnborough stores to discuss
operational and strategic initiatives and trade
activities.
October
B&Q store: directors visited the Reading store tosee
first-hand how strategic and operational priorities
were landing in store.
O&S visit: Sophie Gasperment and Bill Lennie visited
our head office in Lille to hear about OEB projects and
sourcing initiatives, and spend time with the team.
November
Screwfix distribution centre: members of the
Responsible Business Committee visited Stafford to
see firsthand the sustainability initiatives at Screwfix,
including our leading refurbishment facility and fossil
fuel free fleet (further detail can be found on page 67).
December
KCF in France: Bill Lennie attended his first KCF,
during which current trends and our strategy in
e-commerce were discussed.
Board engagement activities
Each year, the Board holds at least one of its meetings offsite in a
different part of the business. In addition, non-executive directors
take time throughout the year to visit banner or Group Function
locations togain insights and understanding of different areas of
the business outside of a formal meeting setting. Following their
visits, directors provided feedback to the rest of the Board and
to management.
Assessing and monitoring culture continued
60 Kingfisher 2025/26 Annual Report and Accounts
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Governance
Financial
Statements
Strategic
Report
Board effectiveness
Board performance review process
In line with best practice, the performance and effectiveness of
the Board, its committees, and individual directors are assessed
annually. This process operates on a three-year cycle, with the
2025/26 review conducted externally in accordance with the UK
Corporate Governance Code (Code).
Several independent providers were invited to submit proposals
outlining their approach and, following a selection process,
Independent Board Evaluation (IBE) was appointed to conduct
this year’s review, and to support the Board and committee
reviews in 2026 and 2027. The review was led by Lisa Thomas,
who is a member of The International Register of Board
Reviewers. IBE do not have any other connection with the
company or its individual directors.
The review commenced in May 2025 following a detailed briefing
involving the Chair, Chief Executive Officer, and Company
Secretary. These sessions were designed to agree the scope of
the evaluation and identify key areas of focus, ensuring alignment
with the Group’s strategic priorities and governance framework.
To support the review, Ms Thomas undertook extensive
preparatory work, including a thorough examination of Board and
committee planners, prior performance review findings and
recommendations, meeting papers, and other governance
documentation; this provided valuable context and informed the
subsequent evaluation stages.
As part of the process, Ms Thomas attended scheduled Board
and committee meetings during September and October,
including participation in private sessions with Board and
committee members. These observations enabled her to assess
the dynamics, quality of debate, and decision-making processes
in practice. Following these meetings, Ms Thomas conducted
individual interviews with each director and with members of the
Group’s wider leadership team to gather qualitative insights on
Board composition, culture, and overall effectiveness.
Ms Thomas discussed the draft conclusions of her review with
the Chair and subsequently the final conclusions were discussed
with the Board in January 2026, with Ms Thomas present.
Following that Board meeting, Ms Thomas provided feedback to
the chairs of each of the committees and also discussed the
Board’s feedback for the Chair with the Senior Independent
Director. The Chair received a report with feedback on individual
directors’ performance as an input to the regular performance
review process.
Ms Thomas reviewed and approved this disclosure.
Review recommendations and actions
The evaluation concluded that the Board continues on a positive
upward trajectory, with strong composition, effective chairing,
and enhanced strategic focus. The review noted the impact of
recent and forthcoming Board changes and encouraged the
Board to harness the benefits of fresh perspectives while
continuing to develop a balanced collective presence and
maintaining its collegiate, supportive and open culture. It
highlighted that upcoming high-level agenda items will require
careful prioritisation to ensure the Board maintains an appropriate
strategic focus without compressing important discussions.
During the Board discussion of the evaluation findings, risk
appetite was also considered and the Board agreed to continue
to test and develop its approach in this area to ensure an
appropriate balance between caution and moving at pace on key
growth objectives. In terms of information flows, the evaluation
recognised the Board’s thorough approach to meeting materials
and processes, recommending further streamlining to enhance
clarity and reduce unnecessary detail.
The review considered that committee structures were broadly
sound, requiring some minor adjustments following the
appointment of a new Audit Committee Chair designate. The
Board agreed it was an opportune moment to review the remit of
the Responsible Business Committee, given the maturity of the
company’s programme in this area.
An action plan has been agreed to address the conclusions and
recommendations from the review, and progress will be
monitored throughout the coming year.
In accordance with the Code, Lucinda Riches, asSenior
Independent Director, led a review of Claudia Arney’s
performance as Chair of the Board, informed by the
recommendations from Ms Thomas’ review. The review also
included individual meetings with each director, followed by a
collective discussion, and concluded that Claudia continues to be
a strong and effective Chair.
61Kingfisher 2025/26 Annual Report and Accounts
Review process
Initiation of evaluation
Evaluation commissioned and briefing held between
theChair and the facilitator.
Observation phase
Facilitator observes the Board and committee meetings
andreviews meeting materials.
Interview phase
Interviews held with all board members, senior
management and certain advisors.
Assessment and analysis
Themes, insights and feedback compiled along
withrecommendations aligned to the Code.
Draft conclusions
Facilitator reviews draft findings with the Chair, the SID
andthe chair of each committee.
Board discussion
Review findings discussed at a dedicated meeting of the
Board with actions agreed for the forthcoming year.
Committee feedback
Feedback for each committee discussed at separate
meetings and action plans agreed as needed.
Director feedback
Chair receives individual director insights which arefed
back as appropriate. The SID also feeds back
ontheChair’s review.
Progress against 2024/25 actions
Following the output of the internal evaluation in the previous
financial year, the Board has continued to prioritise meeting time
for matters critical to business performance, value creation and
long-term strategy. Strategic discussions were deepened
through greater exposure to diverse perspectives, including
more frequent engagement with the Group Executive and
relevant external insights. Non-executive directors also continue
to benefit from expanded opportunities to engage outside the
boardroom, with a well-established programme of immersion
visits, comprehensive induction sessions and dedicated time for
post-meeting reflection. Enhanced visibility of the Group
Executive and a structured feedback loop between
non-executive directors and management has further supported
informed oversight and continual improvement.
Board effectiveness continued
62 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Nomination Committee report
Dear Shareholder,
I am pleased to present the Nomination Committee report for the
year ended 31 January 2026. Having a Board that has the right
balance of experience, skills and knowledge is crucial to
supporting delivery of the company’s strategic priorities and
ensuring we can adapt with agility to external trends and factors.
The Committee continues to be focused on succession planning,
ensuring that the Board remains well balanced, with a strong
pipeline of candidates with the appropriate skill sets, experience
and capabilities to maximise the opportunities for the company’s
long-term success.
Claudia Arney
Chair of the Nomination Committee
23 March 2026
Board composition and succession planning
During the year, the Committee undertook a comprehensive
review of the Board’s collective skills, experience and diversity,
taking into account both the tenure of individual directors and the
evolving strategic priorities of the company. This exercise was
designed to identify succession planning priorities for the coming
years, ensuring that the Board remains well positioned to provide
effective leadership as the company evolves and grows in a
dynamic retail environment. The review process was rigorous
and forward-looking, recognising the need to maintain a balance
between continuity and the introduction of new perspectives that
can contribute to the ongoing success of Kingfisher.
To assist the Committee in its evaluation and in succession
planning work, a detailed skills matrix ismaintained and is subject
to regular review (see page 57). It is updated alongside the
company’s priorities and as director tenures progress.
Thismatrix maps the current skills, experience and attributes of
the Board’s members against the company’s strategic objectives,
including expertise in areas such as digital transformation, finance,
international retail operations, sustainability, supply chain
management and customer experience. By systematically aligning
the Board’s competencies with Kingfisher’s long-term strategy
asan international, matrix-model retail business, the Committee
ensures that directors possess the appropriate breadth and depth
of knowledge to oversee the execution of the company’s plans.
The insights derived from the skills matrix are used toinform the
Committee’s ongoing assessment of the Board’s composition
and in considering future appointments. Any gaps orareas for
enhancement that are identified through this analysis are
incorporated into the succession planning process, helping
toensure that forthcoming appointments are targeted to
address specific needs. Thisapproach supports the development
ofaBoard with adiverse and complementary range of skills,
backgrounds andexperiences, driving robustdecision-making
andeffective oversight.
As part of this work, the Committee completed a search process
during the year for the appointment of a non-executive director.
The search was specifically targeted at identifying a candidate
with recent and relevant financial experience who would be able
to succeed Jeff Carr as Chair of the Audit Committee, given that
Jeff is currently serving his third term at Kingfisher and will step
down from the Board when that term ends in 2027. The
Committee placed particular emphasis on ensuring that
shortlisted candidates possessed both technical competence
and a track record of robust financial stewardship, reflecting the
evolving governance requirements and regulatory expectations
placed upon the Audit Committee Chair role.
To ensure a rigorous and inclusive appointment process, Russell
Reynolds Associates was engaged to facilitate the search.
Russell Reynolds worked closely with the Committee to agree
detailed specifications for the role, taking into account the
company’s strategic priorities, succession planning needs, and
the requirement to promote diversity and inclusion throughout
the search. The Committee reviewed and refined the role profile
to reflect both the current and anticipated future needs of the
Board, and was actively involved at each stage of the process,
from developing longlists and shortlists to challenging the search
firmon the breadth and diversity of the candidate pool.
Thisstructured and consultative approach aimed to ensure
thatthe appointment of a non-executive director would bring
relevant expertise, fresh perspectives, and complementary
skillsto the Board.
Membership
1
Meeting attendance
Claudia Arney
(Committee Chair) 2/2
Jeff Carr 2/2
Sophie Gasperment 2/2
Bill Lennie 2/2
Ian McLeod 2/2
Lucinda Riches 2/2
Catherine Bradley
2
0/0
Rakhi Goss-Custard
2
0/0
1. Stephen Daintith will be appointed a member of the Committee
witheffect from 1 April 2026.
2. Catherine Bradley and Rakhi Goss-Custard stepped down
asmembers of the Committee on 23 June 2025.
The Nomination Committee solely comprises independent
non-executive directors. Its terms of reference are
reviewed annually and are available on the company’s
website. The Chair ofthe Committee reports on the
Committee’s activities at each subsequent Board meeting.
At the invitation of the Committee, the Chief Executive
Officer, the Chief Financial Officer and the General Counsel
& Company Secretary attended meetings of the Committee.
During the year, an evaluation of the Committee’s
performance was undertaken as part of the broader
external evaluation of Board performance. The evaluation
concluded that the Committee continues to operate
effectively and raised no areas of concern. The Committee
considered the recommendations of the review that
related to the composition of the Board and its
Committees, and succession planning. It concluded that
theBoard has the necessary mix of skills, knowledge
andexpertise and most aspects of diversity, while
acknowledging that there is more to do on gender diversity.
In terms of succession, it agreed it should monitor the
impact of ongoing succession activities throughout the
year to maintain its collegiate, supportive and open culture.
Further detail on the evaluation process can be found
on pages 61 and 62.
63Kingfisher 2025/26 Annual Report and Accounts
Nomination Committee report continued
Following this search and selection process, the Committee
recommended Stephen Daintith’s appointment to the Board as a
non-executive director and Audit Committee Chair designate
effective 1 April 2026. As an experienced FTSE 100 CFO and
audit committee chair, hebrings a wealth of financial and
commercial expertise totheBoard along with a deep
understanding of UK-listed andinternational businesses.
Stephen’s depth of experience, including in consumer and retail,
will provide valuable insights aswe continue to execute
Kingfisher’s strategic priorities, andwelook forward to his
contribution to the work of the Boardand the Audit Committee.
An outline of the process followed by the Committee when
conducting a search for a new director role is set out below.
Aspart of the new director search process, the Committee
considers thesearch pool to ensure it is sufficiently wide and
diverse. Appointments to the Board and succession plans are
based on merit and seek to promote diversity, inclusion and equal
opportunity while having due regard to the context of the
business and its needs. Briefs for non-executive roles have
specifically highlighted the importance of diverse longlists and
the external search firms have been challenged on this by the
Committee during the year.
The Committee also continues to keep under review succession
plans for other directors, in particular for Claudia Arney as Chair
of the Board and Sophie Gasperment as Chair of the Responsible
Business Committee, as they begin to approach their nine-year
tenures in the coming years. In line with the Provisions of the
Code, the Senior Independent Director will lead the succession
process for the Chair of the Board and will determine the
appropriate manner and timing to initiate the process.
Senior management talent planning
Senior management succession and the development of a strong
pipeline for Group Executive level and senior leadership roles
remains an area of ongoing focus for the Committee.
The Committee and the Board as a whole continue to dedicate
significant attention to this area. Regular updates from the Chief
Executive Officer and Chief People Officer have been provided
to both the Committee and the Board, detailing succession plans
for Group Executive level and senior leadership positions.
In its review, the Committee has acknowledged the importance
of developing internal talent and equipping individuals with the
skills and experience necessary to step into senior roles when
required. Ongoing efforts have been made to strengthen
in-house talent development programmes, with a view to
creating clear and transparent pathways for high-performing
individuals to advance into leadership positions. This approach is
intended not only to foster a culture of meritocracy and inclusion,
but also to minimise dependence on external recruitment and
search processes for senior appointments. By prioritising internal
development, the Committee seeks to build a robust leadership
pipeline that reflects the diversity and breadth of skills needed
for the Group’s continued growth and success.
In addition to reviewing succession plans, the Committee
monitors the effectiveness of talent management initiatives and
ensures that there are mechanisms in place to identify, nurture
and retain key individuals within the organisation and appropriate
emphasis on the promotion of diversity. This includes regular
assessment of leadership potential, targeted development
opportunities and active consideration of diversity and inclusion
at every stage of the succession process. The Committee will
continue to work closely with the Board and the Chief People
Officer to support the evolution of succession and talent planning
in alignment with the business’s strategic priorities and changing
requirements.
The skills of our directors are summarised on page 57.
Overview of our search process
1. Board composition review
The Committee evaluates the skills, knowledge, experience and
diversity on the Board, and the future challenges affecting the
business, and, in the light of this evaluation, agree the search
criteria andengage with a search consultant to support.
2. Role brief development
A comprehensive role and capabilities brief is prepared,
including the timecommitment expected, for a particular
appointment. All role briefs should be free from bias.
3. Shortlisting
The company’s retained search consultants prepare an initial
diverse longlist of candidates for discussion with the
Committee. The Chair and Company Secretary then coordinate
with the search consultants to refine this into a shortlist. The
Committee agrees candidates forinterview based on merit and
against objective criteria, values and expected behaviours, while
considering diversity and the time available to devote to the
position.
4. Interview
Through a multi-stage interview process, every effort is made
toensure that prospective candidates meet with all directors,
by Committee where appropriate. Initial interviews will include
the Chair, CEO and SID and will be flexed as appropriate for the
role in question. After the first round of interviews, it is agreed
which candidates should be invited to participate in subsequent
interview rounds.
5. Recommendation to, and approval by, the Board
Upon completion of the preceding stages, the Committee will
determine to conclude the search in favour of the preferred
candidate and new appointments will be approved by the Board.
Russell Reynolds are an accredited firm under the UK
Government’s Enhanced Code ofConduct for Executive Search
Firms, and signatories to the latest Standard Voluntary Code of
Conduct for Executive Search Firms (the Voluntary Code),
supporting gender andethnic diversity oncorporate boards.
Russell Reynolds do not have anyother relationship with the
company or its directors.
Induction
Following their appointments in January 2025, Ian McLeod
andLucinda Riches received a tailored induction programme
tomeet their needs as new directors. The induction process
encompassed a comprehensive range of activities designed to
facilitate a thorough understanding of the company’s operations,
governance, and culture.
64 Kingfisher 2025/26 Annual Report and Accounts
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New directors are given the opportunity to hold individual
one-to-one meetings with all existing Board members, as well
aswith the General Counsel & Company Secretary, ensuring
apersonal introduction to the leadership team and providing
aplatform for open dialogue and relationship-building from the
outset. The induction also includes meetings with members of the
Group Executive, senior colleagues from Group Functions and
various banners, as well as, where appropriate, external parties
such as the company’s auditors, brokers, legal advisers, and
selected investors. These interactions help to provide valuable
insights into the company’s wider operating environment and
stakeholder relationships.
Furthermore, new directors receive detailed briefings on the
work and responsibilities of each of the Board’s committees,
enabling them to quickly understand the scope of committee
activities and the key issues under consideration. Directors
arealso introduced to the Board’s dedicated online resources
centre, which offer ongoing access to materials such as meeting
minutes, key governance documents, reference materials,
andtimely briefings on market trends and competitive
developments. To complement this learning, support is provided
to facilitate visits to the Group’s stores, office locations, and
other key sites across the business, ensuring that new directors
are able to experience first-hand the company’s operations and
culture in action (see pages 59 and 60). This holistic approach to
induction is designed to equip new directors with the knowledge,
context and relationships they need to make an effective
contribution from the very beginning of their tenure.
Board inclusion and diversity
The Board and the Committee are committed to supporting
equality, inclusion and diversity across the Group, recognising
that a culture that reflects the diverse communities inwhich we
operate is in the company’s best interests. An inclusive, diverse
Board enhances representation and has a positive effect
onboard performance and good quality decision-making.
The Board’s Inclusion and Diversity Policy (the ‘Policy’),
whichextends to its Committees, sets out our objectives,
whichare aligned with the UK Listing Rules, the FTSE Women
Leaders Review, and the Parker Review, and help support the
development of a diverse pipeline. The Committee reviews the
Policy annually and monitors progress against its objectives to
ensure that we are able to maintain an inclusive and diverse
leadership structure that is aligned with our strategic priorities.
The Policy, which includes details of its objectives, is available on
our website. Progress against the Policy’s objectives are set out
in this report and in our People and Culture Plan on pages 14 to 16;
this includes the gender diversity of senior management and
colleagues and progress against the initiatives in place to drive
performance through diversity and representation.
The Committee supports the work undertaken bymanagement
to support inclusion and diversity in leadership and monitors
progress on building an inclusive culture which continues to be
apriority for the company.
Statement on Board diversity targets
The Policy’s objectives align with the targets set out in UK Listing
Rule 6.6.6(9)R. A summary of progress against these targets as at
31 January 2026 is set out below.
— Maintain at least 40% female directors on the Kingfisher plc
Board. As disclosed in the FY2024/25 Annual Report, as a
result of retirements and reduction in overall Board size,
37.5% of Board directors were female. The Committee has
kept this target firmly in mind in its consideration of Board
composition and succession plans in2025 and will continue
to do so in 2026, and for future appointments to the Board.
— Maintain at least one woman in a senior Board position
(Chair,Chief Executive Officer, Senior Independent Director,
or Chief Financial Officer). Target met; the Chair of the Board
and Senior Independent Director are women.
— Maintain at least one Board director from an ethnic minority
background. Target met; one Board director is from an
ethnicminority background.
In accordance with the UK Listing Rules, numerical data on
thegender
1
and ethnic diversity of the Board and executive
management
2
is set out below.
Gender and ethnicity data reported below was collected directly
from Board and executive management members via a secure
questionnaire using the categories listed in the tables below as
at31 January 2026. The data was processed and retained in
accordance with the Group’s Data Protection Policy.
Data protection laws in certain jurisdictions have prevented the
collection of data on ethnicity for certain Board and executive
management members who are resident in those jurisdictions.
Those individuals have been recorded in the ‘not specified’
category for the disclosure on ethnic background.
1. The data reported is on the basis of sex.
2. Per the definition within the UK Listing Rules, executive management comprises members of the Group Executive.
65Kingfisher 2025/26 Annual Report and Accounts
Gender (sex) as at 31 January 2026
Number ofBoard members Percentage of the board Number ofsenior positions
on the Board (CEO, CFO,
SID and Chair)
Number in executive
management
Percentage of executive
management
Men 5 62.5 2 7 58.3
Women 3 37.5 2 3 25.0
Not specified/prefer
not tosay
– – – 2 16.7
Ethnic background as at 31 January 2026
Number ofBoard members Percentage of the board Number ofsenior positions
on the Board (CEO, CFO,
SID and Chair)
Number in executive
management
Percentage of executive
management
White British or other
White (including
minority-white
groups)
6 75.0 3 4 33.3
Mixed/Multiple
Ethnic groups
– – – – –
Asian/Asian British 1 12.5 1 3 25.0
Black/African/
Caribbean/
Black British
– – – – –
Other ethnic group – – – – –
Not specified/
prefer not tosay
1 12.5 – 5 41.7
Our approach to collecting data more broadly for colleagues,
including senior leadership across the Group, is set out in the
People and Culture section on page 16.
The Committee continues to support and aims to adhere to the
recommendations of the Parker Review and FTSE Women Leaders
Review. Since 2016, the Board has adhered to the Parker Review
targets on ethnic diversity (as required for the relevant year),
andthis year Kingfisher has ranked 28 out of the FTSE 100
inthe2025 FTSE Women Leaders Review.
In alignment with the Parker Review, we have set a milestone
target of 12.5% ethnic diversity for the Group Executive and their
direct reports based in the UK (and on UK contracts) by 2027.
Asreported to the Parker Review as at 31 December 2025,
thisgroup is 4.2% ethnically diverse, based on self-identification
against UK ONS categories.
Independence, time commitment,
andre-appointment to the Board
New directors are advised upon appointment of the time
commitment expected from them. Non-executive directors’
independence and time commitments are reviewed annually,
taking into account therecommended guidance from investor
bodies and our largershareholders, as well as their attendance
atBoard andrelevant committee meetings. Having due regard
totheir performance and ability, contribution to the company’s
long-term sustainable success and the need for progressive
refreshing of the Board, the Committee also considered and
recommended to the Board the re-appointment of directors
byshareholders at the 2026 AGM. This is supported by each
director’s individual assessment undertaken as part of the Board
performance review and the Committee’s assessment that each
non-executive director remains independent and continues
todedicate sufficient time to fulfil their duties.
In line with directors’ appointment terms, the Board considers
existing time commitments before approving new appointments,
and directors give careful and ongoing consideration to their
external time commitments to ensure that they can devote
anappropriate amount of time to their role at Kingfisher.
All directors are subject to annual re-appointment by
shareholders, as required by the company’s Articles of
Association. Kingfisher’s policy allows executive directors
toholdone external non-executive directorship.
Our areas of focus in 2026/27
— Continue to work closely with the Board and the Chief People
Officer to support the evolution of succession and talent
planning in alignment with the business’s strategic priorities
andevolving requirements.
— Continue to focus on Board-level inclusion and diversity in
itsconsideration of Board composition and succession plans,
keeping inmind the UK Listing Rule Board diversity targets,
andthe FTSE Women Leaders and Parker review
recommendations.
Nomination Committee report continued
66 Kingfisher 2025/26 Annual Report and Accounts
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Responsible Business Committee report
Dear Shareholder,
The Responsible Business Committee oversees the delivery
ofthe Group’s Responsible Business strategy, an integral part
of‘Powered by Kingfisher’. Further detail on our Responsible
Business strategy is set out on pages 24 to 27 and in the
Responsible Business Report available on the company’s website.
The Committee guides Kingfisher in its ambition to lead the
industry in Responsible Business practices and energy efficiency,
ensuring that our strategy is robust and fully integrated into our
governance. Its remit includes monitoring performance against
the Responsible Business priorities and providing advice and
support to the Group Executive and the Board on all Responsible
Business matters.
During the past year, the Committee continued its oversight of
Kingfisher’s commitments to be a responsible business, drive
positive change, and engage our colleagues and customers.
Membership
1, 2
Meeting attendance
3
Sophie Gasperment (Committee Chair) 3/3
Thierry Garnier 3/3
John Mewett 3/3
Lucinda Riches 3/3
Kate Seljeflot 3/3
Henri Solère
3
2/2
Rakhi Goss-Custard
3
1/1
1. Bill Lennie was appointed a member of the Committee with effect
from 1 March 2026.
2. Due to diary conflicts one of the scheduled meetings was held
on18 February 2026.
3. Rakhi Goss-Custard and Henri Solère stepped down as a members of
the Committee on 23 June 2025 and 31 January 2026 respectively.
The Responsible Business Committee comprises two
independent non-executive directors, our CEO and other
members of the Group Executive. The Committee’s terms
ofreference are reviewed annually andare available on the
company’s website. The Chair of theCommittee reports
onitsactivities at each subsequent Board meeting.
At the invitation of the Committee, the Chair of the Board,
Director of Responsible Business and other
representatives from management attended meetings
ofthe Committee,
During the year, an evaluation of the Committee’s
performance was undertaken as part of the broader external
evaluation of Board performance. The evaluation concluded
that the Committee continues to operate effectively, and
that the maturity and embedding of the Responsible
Business strategy presented an opportunity to adjust
theCommittee composition to both continue to support
andextend oversight of key Responsible Business topics.
Further detail on the evaluation process can be found
on pages 61 and 62.
TheCommittee considered the changes in ESG reporting and in
the external landscape, and supported Kingfisher in its continued
commitment to the Responsible Business agenda.
As the 2025 strategy was in its final year, the Committee
playedan active role in shaping the next phase of our journey.
The strategy for 2030 builds on the progress achieved over
thepast five years and the strong foundations we have built
inthepast decades. Discussions at the Committee informed
theambition for 2030, ensuring that our Responsible Business
strategy continues to meet the needs of the business, remains
firmly anchored in our purpose, and reflects what is distinctive
toKingfisher.
Sophie Gasperment
Chair of the Responsible Business Committee
23 March 2026
Key activities during the year
In 2025/26, the Committee discussed the progress made on the
2025 Responsible Business strategy pillars and guided the
development of the 2030 Responsible Business strategy, building
on the work done to date and remaining aligned with the Group’s
strategic objectives. The Committee also received quarterly
updates on progress against the current strategy, helping it to
maintain meaningful focus on the Responsible Business priorities.
Other key areas of focus included investor engagement and ESG
ratings, and through reports on the meetings of the Group
Climate Committee, the Committee was kept informed
oftheactions and decisions taken by executive leadership
todrive the Group’s climate agenda. The Committee was also
updated on Kingfisher’s approach to ESG regulation and the
measures being taken by the business in response.
In November 2025, the Committee visited the Screwfix
Distribution Centre in Stafford, where it heard first-hand about
Screwfix’s social mobility initiatives, including its tailored
apprenticeship programme, which the Committee recognised
asa vital contributor to the Group’s colleague development
commitment. Committee members welcomed the opportunity
tomeet teams delivering this work and explored how these
initiatives are helping to create more accessible career
pathwaysacross the business.
The Committee also received a presentation on circularity,
enabling members to assess the innovative sustainability
initiatives launched during the year and to review progress on key
programmes, such as the transition towards a fossil fuel free
fleet. The visit concluded with a tour of the refurbishment facility,
giving the Committee direct insight into how circularity initiatives
are being embedded operationally and the impact they are
having across the Group.
Our areas of focus in 2026/27
In 2026/27, the Committee will support and guide the business
inthe activation and delivery of the new Responsible Business
strategy to enable the team to deliver at scale and pace.
67Kingfisher 2025/26 Annual Report and Accounts
Dear Shareholder,
The Audit Committee’s primary function is to offer independent
challenge and oversight, on behalf of the Board, in matters
related to accounting, financial reporting, risk management,
andthe Group’s internal control environment. It also supervises
the Internal Audit function and manages Kingfisher’s relationship
with our external auditor, Deloitte LLP (Deloitte). The Committee
maintains an evolving annual forward agenda that adapts to
theshifting risks and priorities of the business.
Throughout the year, as part of an ongoing programme of
scheduled risk and control updates, the Committee received
presentations from banners, Group Functions, and leaders of
relevant projects regarding their control environments and the
mitigating actions employed to manage key risks. The topics
considered by the Committee included:
— The control environments for various functions, including
Poland, Brico Dépôt France & Iberia and Group Technology.
— The Group’s readiness for changes to the UK Corporate
Governance Code (the Code) concerning the effectiveness of
internal controls and the mechanisms in place to monitorthem.
— An evaluation of changes to ESG reporting landscape and,
specifically, the postponement of the application of the
Corporate Sustainability Reporting Directive.
Audit Committee report
Membership
1
Meeting attendance
Jeff Carr
(Committee Chair) 4/4
Bill Lennie 4/4
Lucinda Riches 4/4
Catherine Bradley
2
1/1
Rakhi Goss-Custard
2
1/1
1. Ian McLeod was appointed a member of the Committee with effect
from 1 March 2026 and Stephen Daintith will be appointed a member
with effect from 1 April 2026.
2. Catherine Bradley and Rakhi Goss-Custard stepped down as
members of the Committee on 23 June 2025.
Jeff Carr is a qualified chartered accountant and former
Chief Financial Officer with substantial financial experience
in both the retail sector and UK-listed companies and is
considered to have recent and relevant financial
experience as required by the Code. The Committee as a
whole has financial and commercial competence relevant
to the retail sector and each member satisfies the relevant
independence requirements of the Code.
At the invitation of the Committee, the Chair of the Board,
ChiefExecutive Officer, Chief Financial Officer, Group
Finance Director, General Counsel & Company Secretary,
Director ofInternal Audit & Risk and other representatives
from management and the external auditor also attended
meetings of the Committee.
During the year, an internal evaluation of the Committee’s
effectiveness was undertaken as part of the broader
evaluation of Board performance. The evaluation
concluded that the Committee operates effectively
andraised no areas of concern.
Further detail on the evaluation process can be found
on pages 61 and 62.
Additionally, the Committee devoted substantial attention
toits core responsibilities related to monitoring the integrity
ofthe financial and narrative statements in the Group’s annual
and half-year reports. This included monitoring significant
reporting matters, judgements and estimates, and disclosures
included within those reports. The work entailed reviewing
theassumptions underlying store, goodwill and other asset
impairment reviews, inventory provisioning and thepresentation
of adjusting items. Further details regarding the Committee’s
activities in these and other areas, including the work
undertakento meet the Minimum Standard for
Audit Committees,are provided on the following pages.
As mentioned in the Chair’s statement and Nomination
Committee report, Stephen Daintith will join the Board and the
Committee, effective 1 April 2026. His extensive experience as a
FTSE 100 CFO and audit committee chair will be particularly
valuable as we undertake a statutory audit tender in 2026/27.
Stephen will succeed me as Chair of the Committee when I step
down from the Board in 2027 at the end of my nine-year term,
and I look forward to working with him over the next year to
ensure an orderly transition.
Jeff Carr
Chair of the Audit Committee
23 March 2026
Financial statements and reporting
The Committee reviews the Group’s financial statements and
results announcements, and is supported by the Disclosure
Committee, whose membership consists of the Chief Financial
Officer, General Counsel & Company Secretary, and the Group
Investor Relations Director. It is the Committee’s responsibility
toconsider and challenge management regarding accounting
principles, policies, and practices applied, as well as any financial
reporting matters and significant judgments made. The
Committee’s work in this regard also extends to the use of
alternative performance measures (‘APMs’) in order to ensure
that good quality disclosures are included for APMs that support
users ofthe financial statements in gaining an understanding
ofthe ongoing business performance.
Following our review of the draft 2025/26 Annual Report
and Accounts and the full-year results announcement, we
recommended to the Board that the disclosures, along with
the processes and controls underlying their production, met
the legal and regulatory requirements for a UK-listed company.
We believe that, taken as a whole, the Annual Report and
Accounts and the announcement of full-year results are fair,
balanced, and understandable. Our review extended to the
publication of these documents in a structured XHTML format
and the electronic tagging of the financial statements, ensuring
that the necessary procedures had been completed by all
parties, including our technical accounting team and a specialist
IT provider. No external assurance was deemed necessary
forthe XHTML structured report.
Significant financial reporting matters
We assess all issues that may affect the integrity of the Group’s
published financial statements to ensure that each is treated
appropriately. For 2025/26, we monitored the following
significant financial reporting matters and took appropriate
actions. The Committee discussed these matters with Deloitte
and, where appropriate, they have been addressed as key audit
matters in the independent auditor’s report from page 115.
68 Kingfisher 2025/26 Annual Report and Accounts
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Matter
considered Role of the Committee Conclusion
Does the
carrying value of
store-based
assets,
Castorama
France goodwill
or other assets
require any
impairment
charges or
reversals?
We examined the results of management’s year-end impairment
reviews and assessed the validity of cash flow projections
based on the company’s three-year strategic plans and the
financial assumptions used. These assumptions included
forecast sales growth, margin and operating profit percentages.
Our review included consideration of actual trading during the
year, expectations for the future market environment, and the
impact of Kingfisher’s strategy. For store-based assets, we
assessed management’s approach to identifying impaired
stores, including how strategic plan assumptions are applied at a
store level. For Castorama France goodwill, we reviewed the
appropriateness of strategic plan assumptions, including
external market growth expectations and internal operational
efficiencies. We also reviewed the long-term growth rates,
based on inflation expectations, and the discount rates, which
take into account the cost of equity and debt. Sensitivity
analyses were reviewed for the impact of changes in operating
cash flows and discount rates on both store-based assets and
Castorama France impairment charges.
The Committee endorsed the recognition of net
store-based asset impairment charges of £38 million
(recorded as adjusting items), principally in France and
the UK, and a £73 million impairment of goodwill, relating
to Castorama France, and the associated disclosures.
Refer to notes 3, 6, 13, 15, 16 and 17 to the consolidated
financial statements.
Are adjusting
items
appropriately
presented and
disclosed in the
financial
statements?
The Committee reviewed the appropriateness and
completeness of all items which were presented within adjusting
items in the financial statements. This review included
consideration of the appropriateness of the Group’s policy for
adjusting items, as well as the consistency of the application of
the policy. We also reviewed the appropriateness of disclosures
relating to adjusting items included within the financial
statements.
The Committee endorsed management’s judgements
relating to the recognition of a net post-tax charge of
£171 million within adjusting items. Refer to note 6 to
the consolidated financial statements.
What are the
principal
judgements
relating to
inventory
provisioning?
We closely monitored the levels of inventory in each banner as
well as the estimated impacts on future selling prices from range
review and clearance activities. This included consideration
ofour trading performance, in particular in France, stock
availability, price indices, new ranges and the impact of inflation
on cost and selling prices, as well as the impact of the Group’s
stock optimisation initiatives which have successfully reduced
the level of slow-moving stock, particularly in the UK and France.
The key consideration was the appropriateness of the Group’s
inventory provisions and policy, which considers factors
including stock turn, range or delisted status, shrinkage, damage,
and obsolescence when assessing net realisable value. This
included an assessment of any significant judgemental
provisions or exclusions from thestandard mechanical provision
calculations.
The Committee endorsed management’s accounting
estimates relating to inventory valuation (£2.8 billion),
and that the provisions recorded were appropriate
considering the quality and profile of inventories held by
the Group at the reporting date. Refer to note 19 to the
consolidated financial statements.
Are appropriate
actuarial
assumptions
being used in
respect ofthe
valuation ofthe
pension schemes?
The Committee reviewed the principal financial and
demographic assumptions used to value the Group’s defined
benefit pension schemes, inparticular for the significant UK
scheme. This included the assumptions used for discount
rate, pension increases and mortality.
The Committee endorsed management’s accounting
estimates relating to defined benefit pensions and the
recognition in other comprehensive income of £7 million
ofnet remeasurement losses. Refer to note 28 to
theconsolidated financial statements.
69Kingfisher 2025/26 Annual Report and Accounts
Audit Committee report continued
Viability statement and going concern
The Committee also reviewed and agreed the scenarios
underpinning the viability statement and going concern
statement. This assessment included the modelling of a remote
downside scenario which estimated the impact of a demand or
supply shock preventing the Group from realising a large part of
its sales during the peak trading period. As part of this
assessment, the Committee also considered the period covered
by the viability statement and concluded that a three-year
assessment period remains appropriate given the alignment with
the Group’s three-year planning process under the ‘Powered by
Kingfisher’ strategy. Having considered the various downside
scenarios and possible mitigation actions, the Committee is of
the view that the company would have sufficient headroom under
its key financial covenants, and therefore both statements were
recommended to the Board for approval.
The viability and going concern statements are set out onpages49 to 51.
The Committee also reviewed the relevant disclosures in
relation to climate change, including compliance with the
Task Force onClimate-related Financial Disclosures (TCFD)
and the Companies (Strategic Report) (Climate-related
Financial Disclosure) Regulations 2022 (CFD) requirements, and
considered whether the impact of climate change represented
akey source of estimation uncertainty or a critical accounting
judgement in the financial statements. The Committee endorsed
management’s disclosures and itsassessment that climate
change does not represent a key source of estimation
uncertainty or a critical accounting judgement, given the limited
financial impacts expected in the time horizons used in forecasts
such as for going concern or impairment testing purposes, and
the mitigations and opportunities available to the Group in the
longer term.
External audit
Audit quality
The Committee’s oversight of our relationship with Deloitte
includes making recommendations to the Boardregarding
its appointment, reappointment, and removal, as well as
continuously assessing its independence and negotiating
the audit fee. The Committee recognises the importance of
encouraging challenge by the auditor and satisfying itself that the
quality of the audit is of a high standard. Both the full-year audit
and half-year review process were conducted with a culture of
challenge, openness and collaboration at their core, which we
believe has been essential in ensuring audit quality.
Throughout each audit and review process, the Committee
reviewed the findings issued by the Financial Reporting Council
(FRC) in relation to audit quality and was pleased to note
Deloitte’s continued strong performance across its Tier 1 audits.
The Committee also welcomed Deloitte’s ongoing investment in
and use of technology in the audit process to enhance both
quality and effectiveness. This includes the deployment of data
analytics tools and the integration of artificial intelligence (AI)
throughout the process. Through the use of AI, Deloitte has
provided deeper insights and more comprehensive assurance
for the Committee, supporting more rigorous scrutiny of key
audit areas. In addition, the use of these technologies streamlines
data requests, making the process more efficient and less
burdensome for both the audit team and management.
TheCommittee believes that such innovation not only
strengthens audit quality but also fosters a proactive approach to
identifying and addressing potential risks, ensuring that the Group
continues to meet the highest standards of financial reporting
and governance.
A key part of the Committee’s role in the audit process is
to review the audit plan set by Deloitte and ensure that the
approach is tailored to the company’s business and its control
environment. At its June meeting, the Committee reviewed
Deloitte’s audit plan for 2025/26, including the key risks and areas
of focus that had been identified for the audit, the planned audit
procedures, including substantive procedures and assessment of
the Group’s internal controls and the team structure proposed.
In September and January, the Committee reviewed the
progress against the priorities as the audit progressed and noted
the efforts of both the Deloitte team and management to meet
the stated objectives. This included a review of key risks and
areas of focus, the resources allocated by Deloitte to meet the
plan and the audit timeline. In March 2026, the Committee
assessed the outcomes of the audit against the priorities.
Independence
A key part of the Committee’s role in overseeing the external
audit is ensuring that the auditor remains independent, thereby
allowing the audit process to be conducted objectively and with
appropriate levels of challenge. At each meeting, the Committee
assesses Deloitte’s independence and the safeguards in place
with regards to the provision of non-audit services in order to
ensure that there are no engagements that might inhibit the
audit team from forming an impartial view.
In addition to Deloitte’s safeguards, the company operates its
own policy on the provision of non-audit services to ensure
compliance with the FRC’s Revised Ethical Standard 2024. This
policy, which is reviewed annually and is available on our website,
sets out the parameters for engaging the auditor for services
outside of the statutory audit and seeks to strike an appropriate
balance between maintaining independence and not depriving
the company of Deloitte’s expertise where it might be
appropriate to engage it. In line with the Ethical Standard, our
policy caps the level of non-audit fees at 70 per cent of the
average audit fee for the last three years. In 2025/26, non-audit
fees were 7 per cent of the audit fee, with the bulk of these
fees being in relation to the interim review process where it
is standard practice for the external auditor to be engaged.
Fees for non-audit services are also set out in note 8 to the consolidated
financial statements.
70 Kingfisher 2025/26 Annual Report and Accounts
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Statements
Strategic
Report
Effectiveness and reappointment
The Committee also considered the effectiveness of the
external audit process based on the outcome of the annual
evaluation. This process captures feedback on the audit and the
performance of the audit team from both the Committee and
members of senior management from across the business.
Topics surveyed include:
— Quality of service.
— Capability and resourcing of the audit team.
— Communication and interaction.
— Independence, objectivity and professional scepticism.
Overall, the survey concluded that Deloitte is meeting or
exceeding the Committee’s and management’s expectations,
with Deloitte providing a good level of challenge during the
process, with clear communication of findings on key judgement
areas. Following the outcome of this evaluation process and,
taking into account the requirements of the Minimum Standard
for Audit Committees, the Committee concluded that Deloitte
conducted an effective audit, and therefore recommended their
reappointment for the financial year ending 2025/26, which was
approved at the 2025 AGM. The Board also expects to propose
Deloitte’s reappointment at the 2026 AGM.
In addition, taking into account the output of the survey
and separate debrief sessions with Group Finance, Deloitte
presented its proposals to address actions from the survey in the
design of the 2025/26 audit. These proposals were reviewed and
endorsed by the Committee at its June meeting and included
actions in relation to process, store-based impairment reviews
and testing of controls.
In terms of fees paid to Deloitte for audit services in 2025/26,
these are set out in note 8 to the consolidated financial statements.
Kingfisher continues to comply with the Statutory Audit Services
Order 2014 which sets out the provisions for listed companies
regarding regular tendering and accountability of statutory audit
services. Deloitte was appointed as auditor in 2009/10 and
subsequently reappointed in 2019/20 after a comprehensive and
competitive audit tender process. As the company is required to
conduct an audit tender process every 10 years, the Committee
initiated a tender process during the year which is expected to
complete in the 2026/27 financial year. Given Deloitte’s
understanding of the Group’s business, their continued
effectiveness as external auditor and the need to ensure an
orderly transition to a new auditor, the Committee believes that
itis in shareholders’ best interests to continue to recommend
Deloitte as auditor. The Committee’s recommendation is free
from third-party influence and there are no contractual
obligations that restrict the Committee’s ability to make such
arecommendation.
Accountability, risk management
andinternalcontrol
On behalf of the Board, the Committee oversees the Group’s
system of internal control, including its risk management
framework and the work of the Internal Audit function.
Internal Audit reports directly to the Committee and has authority
to review any part of the organisation and to oversee the audit
and risk committees of the banners. Internal Audit provides
updates on its audit schedule and findings at every meeting of
the Committee so that our leadership always has objective
assurance on the control environment across the Group.
The Group’s approach in this regard complies with the
requirements of the Code and was developed with reference
to the FRC’s Guidance on Risk Management, Internal Control
and Related Financial and Business Reporting. The Committee
provides an independent overview of internal control matters
while Deloitte’s reports to the Committee include key audit
risk and control findings relevant to the audit process.
Internal control
In response to the updates to the UK Corporate Governance
Code regarding internal control, the company is actively
preparing to meet the requirements of Provision 29 ahead of
thedeclaration on the effectiveness of material controls due
in2026/27. The Group Risk team kept the Audit Committee
informed of the project throughout the year. In September,
theCommittee evaluated a list of material controls and their
effectiveness, designed to mitigate the principal risks to a level
aligned with the company’s risk appetite. These were reviewed
and approved by the Board in September. Internal Audit
performed a ‘dry run’ exercise over the controls and the results
were presented to both the Committee and the Board in
March2026, along with an assessment of the effectiveness
of the agreed material controls. The Board is well placed to
make the first declaration under the new Code in its
2026/27Annual Report.
Compliance
In addition to internal controls, the Committee receives
regularupdates on litigation and compliance matters, including
reports on the Group’s ‘Speak Up’ whistleblowing hotline.
Operating as a responsible business is a key element of the
‘Powered by Kingfisher’ strategy and the Committee plays a
fundamental role in overseeing the process to ensure thehighest
ethical standards are maintained across Kingfisher’sbusiness.
During the year, the Committee endorsed the compliance
priorities for the Group. This included ensuring continued
compliance of the Group’s operations against a backdrop of
evolving regulatory requirements, and ongoing engagement with
stakeholders on core compliance processes.
More information on the company’s Code of Conduct and the role of
theGroup Ethics and Compliance Committee can be found on page 27.
71Kingfisher 2025/26 Annual Report and Accounts
Risk management
The risk assessment process in place across the Group directly
impacts the way in which significant business risks are identified,
measured, and managed. The Committee’s consideration of
risk management and internal control is driven primarily by the
Group’s assessment of its principal and emerging risks and
uncertainties, discussed on pages 44 to 48. During the year, the
Committee received briefings from the Internal Audit and Risk
Director, as well as from banner CEOs and Group Function
directors, on operational risks and associated controls,
including on risk mitigation and control improvements.
The Board is responsible for establishing a framework of effective
controls for assessing and managing risk. Our internal control
environment is codified in a suite of policies, procedures, operating
standards, and delegated authorities to ensure the right actions
are approved and taken quickly. We aim to manage rather than
eliminate the risk of failure to achieve our business objectives, as
it is not possible to provide absolute assurance against material
misstatement or loss.
Management is responsible for applying judgement when
evaluating and managing the risks the Group faces as part
ofitsoperations.
The company’s approach to risk management is also discussed
onpage43.
There are clear processes for controlling and monitoring
thesystem of internal control and reporting any significant
control failings or weaknesses. These include:
— The annual planning process and regular financial reporting to
compare our results with those set out in our strategic plan and
against previous performance.
— Quarterly updates on financial risks and the Internal Controls
over Reporting Programme are made against the global
controls framework prescribed by the Group and detailed
control design assessments updated by all banners and Group
Functions for each reporting period.
— Reports from the CEO and CFO at each Board meeting.
— Periodic reports from banner CEOs and Group Function
directors on the control environment in their businesses.
— Reports and presentations to the Board on certain specialist
risks, including treasury, insurance, tax, governance, cyber
threats, and pensions.
In addition, banner finance directors certify compliance with the
Group’s policies and procedures, and that the relevant internal
controls were in operation during the period. Any weaknesses are
highlighted, and the results are reviewed by the Internal Audit and
Risk Director, the CFO and the Committee, and made available to
the Board. Furthermore, full substantive testing of financial
reporting controls is now in place across the Group to support
the updated global controls framework.
Group Internal Audit
Each year, the Internal Audit function’s reviews are aligned to the
Group’s principal risks. The function works with the banners and
Group Functions to develop, improve, and further embed risk
management activities into their operations.
Detailed outputs of internal audits are conducted in several areas,
including:
— Strategic: reviews of our material controls, CastoPro
Programme, Services Programme, Retail Media France
andassurance over various strategic programmes.
— Financial risks: rebates negotiations and agreements
acrossmultiple banners.
— Operational risks: customer relations centres in Castorama
France, our joiners, movers and leavers process, our property
lease and maintenance cost management process at
Castorama Poland, aswell as technology risks such aswebsite
security andcloudcontrols.
— Compliance risks: controls over third party quality
assessmentsand GFR ethical sourcing governance.
The remit, organisation, and resources of the Internal Audit
function were reviewed as part of the internal effectiveness
evaluation that was conducted internally by Group Secretariat
and captured the views of Committee members, executive
directors, and senior management including banner CEOs and
Group Function directors. The Committee andmanagement
continued to rate the Internal Audit function highly and, in doing
so, agreed a number of actions to continue to enhance the work
of the function and its role within the business.
Audit Committee report continued
72 Kingfisher 2025/26 Annual Report and Accounts
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Strategic
Report
Directors’ remuneration report
Dear Shareholder,
I am pleased to present the Directors’ remuneration report
for2025/26, my first as Committee Chair. In this statement,
Idescribe the key items considered by the Committee during the
financial year, more detail of which can be found within our Annual
Report on Remuneration. This Report, along with this statement,
will be put to an advisory vote at the 2026 AGM.
Also included in this report is our Directors’ Remuneration
Policywhich was approved by the majorityof ourshareholders at
the 2025 AGM.
Performance during the year
We continue to make tangible progress against our strategic
priorities, delivering shareholder returns whilst maintaining cost
discipline. We have delivered adjusted pre-tax profit of £560m,
up 6% from the prior year. We have made significant progress in
expanding our trade proposition, with trade sales reaching £3.9bn,
a 23% growth (excluding Screwfix) since last year. In France, we
continue to focus on our plan to drive performance and
profitability with an improvement in our retail profit margin
despite continued subdued consumer sentiment.
We remain committed to leading our industry in Responsible
Business, as shown in the Responsible Business section on pages
24 to 27. Our Scope 1 and 2 carbon emissions have reduced by
68.7% since 2016/17, far exceeding our 2025/26 science based
target of 37.8%, and 99.4% of our wood and paper products are
now responsibly sourced. As evidenced in our People and
Culture section on pages 14 to 16, further progress is also being
made on gender representation with now 33.3% of our senior
leaders being women.
Our wider workforce
At Kingfisher, we believe that everyone should have equal
opportunities and as such are committed to investing in
ourcolleagues.
During the year, the Committee is regularly updated on reward
topics for our colleagues across Kingfisher. This includes but is
not limited to the following:
— updates on pay reviews across all our banners for colleagues in
stores and banners;
— gender pay gap reporting where continued improvement is
being made;
— update on our preparation for the upcoming EU Pay
Transparency Directive; and
— progress made on embedding a high performance culture.
Thisincludes a new individual component in the senior leader
bonus plan to strengthen the link between performance,
reward and accountability.
More details can be found in our People and Culture section on pages 14
to 16.
In this report
73 Remuneration Committee Chair’s Annual Statement
75 Remuneration at a glance
76 Directors’ Remuneration Policy
84 Annual Report on Remuneration
97 Statement on the Implementation of the
Remuneration Policy for 2026/27
Membership
Meeting attendance
Lucinda Riches (Committee Chair) 3/3
Jeff Carr 3/3
Sophie Gasperment 3/3
Catherine Bradley
1
1/1
Rakhi Goss-Custard
1
1/1
1. Catherine Bradley and Rakhi Goss-Custard stepped down as
members and Rakhi as Chair of the Committee on 23 June 2025.
At the invitation of the Committee, the Chair of the Board,
Chief Executive Officer, Chief Financial Officer, Chief
People Officer, General Counsel & Company Secretary,
Group Reward Director, Head of Executive Reward
andtheCommittee’s remuneration advisers attended
meetings and provided advice to the Committee held
during the year. No individual was present when their
ownremuneration or benefits were discussed.
During the year, an evaluation of the Committee’s
performance was undertaken as part of the broader
evaluation of Board performance. The evaluation
concluded that the Committee continues to operate
effectively and raised no areas of concern. Further detail
on the evaluation process can be found on pages 61 and 62.
73Kingfisher 2025/26 Annual Report and Accounts
Directors’ remuneration report continued
Our Remuneration Policy
At the 2025 AGM, the Committee submitted a new Remuneration
Policy for shareholders’ approval which was well received with a
vote of over 99%. The Committee and Iwould like to thank
shareholders for their strong level of support.
Decisions made by the Committee
during the year
Taking into account the performance during the year and
our continuing commitment to ensuring that executives are
focused on outcomes and strategic priorities, the Committee
implemented the current Policy as follows:
2025/26 Annual Bonus outturn
The 2025/26 Annual Bonus for the executive directors
wasassessed against adjusted pre-tax profit (40% weighting),
like-for-like (LFL) sales growth (40% weighting) and individual
measures (20% weighting).
Adjusted pre-tax profit is £553.4m (on a constant currency basis),
which on a formulaic basis is between target and stretch.
During the year, the Company accelerated the implementation of
next-generation technology and the write-down of legacy
systems. This decision impacted profit which was not anticipated
when the adjusted pre-tax profit targets were set at the start of
the financial year. Therefore, in light of the overall strong
underlying profit growth delivered and other broader market
factors, the Committee adjusted the profit outcome by 17.8 ppts
which better reflected the quality of the underlying year-on-year
profit growth. Between threshold and target performance was
achieved for LFL sales growth.
A review of the achievements against their individual measures
resulted in an outturn of 82.5% of maximum for the CEO and CFO
for this element. Collectively, this resulted in a formulaic outturn
of 73.83% of total bonus opportunity for both the CEO and CFO.
The Committee determined this overall level of outturn was
appropriate given the performance over the year, the value
delivered to shareholders and the treatment of the wider
workforce.
Full details on the performance against each of the 2025/26 measures
can be found on page 86.
Vesting of the 2023 Performance Share Plan
The 2023 Performance Share Plan (PSP) award is dependent
on performance against targets for EPS, ROCE, Relative TSR
and a basket of ESG measures, all equally weighted at 25%.
Performance was measured over a three-year performance
period, between 1 February 2023 and 31 January 2026. In March,
the Committee reviewed the performance during the period
ahead of the award vesting in April 2026, resulting in a formulaic
outturn of 42.6% of maximum. The Committee determined this
level of outturn was appropriate given the performance over the
period, the value delivered to shareholders and the treatment
ofthe wider workforce and therefore no discretion was applied
to the formulaic outturn.
Full details on the performance against each of the measures can be
found on page 87.
Key remuneration decisions for 2026/27
The Committee also made a number of decisions relevant
for2026/27 which are as follows:
Salary increases
Salary increases of 2.5% will be awarded to Thierry Garnier and
Bhavesh Mistry effective from 1 April 2026. These increases are
in line with the standard increase proposed for the UK head office
workforce and lower than that offered for UK store colleagues.
2026/27 Annual Bonus
The 2026/27 Annual Bonus will continue to be assessed against
adjusted pre-tax profit, LFL sales growth and individual measures.
2026 PSP measures and targets
The 2026 PSP measures will continue to be EPS, Cumulative
FCF,Relative TSR and a basket of ESG measures with a 25%
weighting each.
Full details of measures and targets are set out on pages 94 and 95.
Changes to non-executive directors’ and Chair’s fees
The Board reviewed the non-executive directors’ fees and
agreed, effective 1 February 2026, that the base fee, Senior
Independent Director, and committees’ chair and member
fees will be increased by up to 2.5%.
Separately, in respect of the Chair fee, a 2.5% increase
effective1 February 2026 was agreed by the Committee.
Committee changes
I succeeded Rakhi Goss-Custard as Chair of the Committee
following her stepping down from the Committee and the Board
at the conclusion of the 2025 AGM. Catherine Bradley also
stepped down from the Committee, and the Board at this time.
Iam grateful for the support they provided to the Committee
andKingfisher.
Looking ahead
The Committee and I remain committed to ensuring that we
havean open and transparent dialogue with shareholders and
sowelcome any questions you may have on the Policy and its
implementation as well as other reward topics. I look forward
toreceiving your support for our Annual Report on Remuneration
at the 2026 AGM.
Lucinda Riches
Chair of the Remuneration Committee
23 March 2026
74 Kingfisher 2025/26 Annual Report and Accounts
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Remuneration at a glance
The following page provides our Remuneration principles, a summary of the Remuneration Policy, anditsproposed implementation in
2026/27.
Remuneration principles
Simple, transparent
and relevant
Supports long-term
value creation
Fully supports Kingfisher’s
purpose and values
Rewards for strategy delivery
and performance
Summary of Policy and implementation for 2026/27
Summary Measures Alignment to strategy
Base salary For 2026:
CEO: £959,600 (2.5% increase)
CFO: £661,130 (2.5% increase)
Reflects the individual’s role, experience and
contribution to the company and is set at levels
that support the recruitment and retention of
executive directors of the calibre required by
thecompany.
Annual Bonus Maximum opportunity
CEO: 200% of salary
CFO: 190% of salary
Performance is assessed over one year.
Any bonus earned over 100% of salary will
be deferred into shares for three years
subject to the shareholding requirement
being met.
40% Adjusted pre-tax profit
40% LFL sales growth
20% Individual measures
Incentivises executive directors to achieve or
exceed annual financial and individual objectives
set by the Committee at the start of each financial
year. Long-term shareholder alignment provided
through bonus deferral or shareholding guidelines.
Performance
Share Plan
Maximum opportunity
CEO: 275% of salary
CFO: 260% of salary
Awards vest subject to performance
over three financial years and are subject
to a further two-year holding period.
25% EPS
25% Cumulative FCF
25% Relative TSR
25% on a basket of ESG
measures
EPS, Cumulative FCF and ESG are aligned to the
strategy while Relative TSR ensures that payout
for participants is aligned to value creation
for shareholders.
ESG reflects the importance of our Responsible
Business agenda and recognises our long-term
goals and commitments.
Share
ownership
requirements
CEO: 350% of salary
CFO: 270% of salary
Executives are additionally required to
hold 100% of the shareholding
requirement for a period of two years
post-employment.
To ensure the alignment of the interests
ofexecutives and shareholders over the long
term, executive directors are required to build
asignificant shareholding.
Our FY 25/26 performance highlights
Adjusted
pre-tax profit
LFL sales
growth
Adjusted
EPS
ROCE Reduction in
Scope 1 and 2
carbon emissions
Wood and
paper responsibly
sourced
Percentage of
women in senior
leadership
£560m 1.1% 23.8p 8.2% 68.7% 99.4% 33.3%
Remuneration in 2025/26
Fixed pay Annual Bonus outcome Performance Share Plan outcome
Total
single figure
£’000 % of max % of salary £’000 % of max £’000 £’000
CEO 1,145.5 73.8% 147.7% 1,377.9 42.6% 1,413.2 3,936.6
CFO 755.5 73.8% 140.3% 904.8 42.6% 734.3 2,394.6
75Kingfisher 2025/26 Annual Report and Accounts
Directors’ remuneration report continued
Directors’ Remuneration Policy (approved at the 2025 AGM)
Our Remuneration Policy (the Policy) is set out in this section. The Policy was approved by 99.19% of our shareholders at the AGM held
on 23 June 2025.
The Policy is presented unchanged from that approved by shareholders other than minor wording changes to reflect, for example,
thatthe Policy has been approved by shareholders, the legacy awards have now vested, an update on selection of performance
measures to reflect rationale for 2026/27 bonus measures and the 2026 PSP and updated scenario charts. In addition, the Policy
presented here excludes the paragraph on Section 40 disclosures which is no longer required by the UK Corporate Governance
Code.This can be found in the full version of the approved Policy in the 2024/25 Annual Report.
Policy table
Base salary
Element and purpose
Base salary reflects the individual’s role, experience and contribution
to the company and is set at levels that support the recruitment and
retention of executive directors of the calibre required by the company.
Operation
In setting base salaries, the Committee also has regard to salaries for
similar roles in comparator companies including those in FTSE retailers
and companies of a similar size and complexity.
Maximum opportunity
Salary increases will typically be in line with the wider
workforce. The Committee has the flexibility to award
higher salary increases in exceptional circumstances.
Increases awarded each year will normally be set out
inthe statement of implementation of the Policy.
Assessment of performance
Individual performance is an important factor considered
by the Committee when reviewing base salary each year.
Benefits
Element and purpose
Benefits are provided to assist executive directors in the performance
of their roles and are designed to be competitive and cost-effective.
Operation
The company may provide pension benefits (set out in the following
section), a company car or cash alternative, medical insurance, and life
assurance cover.
Other benefits may be provided from time to time if considered
reasonable and appropriate by the Committee, such as relocation
allowances, and would be explained in the subsequent Annual Report
onRemuneration.
The company pays the cost of providing benefits on a monthly basis
oras required for one-off events such as financial planning advice.
Store discounts may be offered to all executive directors on the same
basis as offered to other company employees.
Maximum opportunity
Maximum levels of benefit provision are:
— Car allowance of £25,000 per annum.
— Private medical insurance on a family basis.
— Life assurance cover of four times base salary.
— Store discount of up to 20%.
The cost of providing insurance benefits varies according
to premium rates so there is no formal maximum
monetary value.
Any relocation allowance will be limited to 50%
ofbasesalary (inclusive of any tax payable
onexpensesreimbursed).
Assessment of performance
None.
Pension
Element and purpose
To provide retirement benefits, support retirement planning, and provide
a competitive fixed pay package.
Operation
Pension provision for executive directors is by way of contributions
toadefined contribution scheme or cash allowance.
Maximum opportunity
Employer contribution into a defined contribution scheme
or a cash alternative. Maximum in line with arrangements
for other UK colleagues.
This is currently a maximum employer contribution of 14%
of base salary or cash alternative of 12.5% of base salary.
Assessment of performance
None.
76 Kingfisher 2025/26 Annual Report and Accounts
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Annual Bonus
Element and purpose
To incentivise executive directors to achieve or exceed annual strategic
objectives set by the Committee at the start of each financial year.
Operation
Annual bonuses are earned over the year, based on performance against
targets over the financial year.
The Annual Bonus will be delivered as follows:
— bonus earned up to 100% of salary in cash; and
— bonus earned above 100% of salary in shares which are deferred
for three years and subject to continued employment in line with
plan rules. The level of deferral may be scaled down, including the
option to take down to nil if the shareholding requirement has been
suitably satisfied.
Dividend equivalents are payable in respect of any deferred shares
that vest.
The Committee has the discretion to adjust the bonus outcome in light
of overall underlying performance.
Any adjustment made using discretion will be explained in the following
Annual Report on Remuneration.
Malus and clawback apply under circumstances as set out in the notes
to the Policy table.
Change of control provisions apply as set out in the notes to the
Policy table.
Maximum opportunity
The maximum Annual Bonus award is 200% of salary for
the CEO and 190% of salary for the CFO (and any other
executive directors).
The level of payment at threshold is set on an annual basis
but will not exceed 25% of maximum.
Assessment of performance
The Annual Bonus measures may be based on a mixture of
financial, operational, strategic and individual performance
measures dependent on the company’s goals and
strategic priorities over the year under review.
At least 70% of the bonus will be dependent on
financialmeasures.
Performance Share Plan (PSP)
Element and purpose
To incentivise executive directors to deliver on Kingfisher’s
long-term strategic aims and create sustainable shareholder
value, aligning the interests of participants with those of
shareholders.
To retain executive directors and provide market competitive
total reward.
Operation
Awards are granted annually, and vest after three years subject
to performance achieved against performance targets set over
no less than a three-year period. All vested shares will normally
be subject to a further two-year holding period.
Dividend equivalents are payable in respect of the shares
thatvest.
The Committee has discretion to adjust the vesting outcome
if the formulaic outcome is not felt to produce an appropriate
result in light of overall underlying company performance. Any
adjustment made using this discretion will be explained in the
following Annual Report on Remuneration.
Malus and clawback apply under circumstances as set out in the
notes to the Policy table.
Change of control provisions apply as set out in the notes to the
Policy table.
Maximum opportunity
The maximum annual award that can be granted each year under
the PSP is 275% of salary for the CEO and 260% of salary for the
CFO (and any other executive directors) respectively.
For threshold performance on any measure, at most 25% of the
maximum award available for that measure may vest.
Assessment of performance
Awards granted will vest based on performance over not less
than three years against performance measures determined by
the Committee and aligned to the company’s strategic priorities.
At least 50% of the measures will be based on financial measures.
The performance measures selected for the 2026 grant are:
— 25% Earnings per Share (EPS);
— 25% Cumulative Free Cash Flow (FCF);
— 25% Relative Total Shareholder Return (TSR); and
— 25% on a basket of Environmental, Social and Governance
(ESG) measures.
Any substantial or significant changes to the measures will be
subject to shareholder consultation.
The performance outcomes will be assessed at the end of the
three-year period to ensure they are appropriate within the
context of the wider business performance.
The performance measures have been chosen to balance growth
and returns and ensure sustainable delivery of performance.
77Kingfisher 2025/26 Annual Report and Accounts
Directors’ remuneration report continued
Chair and non-executive director fees
Element and purpose
To attract and retain a Chair and non-executive directors of the
highestcalibre.
Operation
The fees paid to the Chair are determined by the Committee, while
the fees of the non-executive directors are determined by the Board
with affected persons absenting themselves from the discussions,
as appropriate.
The Committee reviews the Chair’s fees annually.
The Chair’s fees are determined with reference to time commitment and
relevant benchmark market data. Contributions are made towards the
cost of running the Chair’s office.
The Board determines non-executive directors’ fees under a policy that
seeks to recognise the time commitment, responsibility and technical
skills required to make a valuable contribution to an effective Board.
A base fee is paid to all non-executive directors and additional fees are
also paid to the Senior Independent Director, the chairs and members of
each of the Audit, Remuneration and Responsible Business Committees.
Chair and membership fees may be introduced for current and
new committees.
Appropriate benefits, including the reimbursement of appropriate
expenses, may be provided from time to time, as required.
The Board may annually review fees paid to non-executive directors
against those in similar companies and take into account the time
commitment expected of them.
Fees are paid monthly, wholly in cash.
The Chair and the non-executive directors do not participate in any of
the company’s performance-related pay programmes and do not
receive pension benefits.
Maximum opportunity
Aggregate annual fees paid to the Chair and non-executive
directors are limited by the company’s Articles of
Association, which may be varied by special resolution
of the shareholders.
The current limit contained within the Articles of
Association is £1.75 million as approved at the 2014 AGM.
Contributions towards the cost of running the Chair’s
office will not exceed £60,000 per annum and are
included within the aggregate fees set out above.
Assessment of performance
None.
All-employee share plans
Element and purpose
Executive directors may participate in Kingfisher’s all-employee share
plans on similar terms to other employees.
Operation
In particular, UK-based executive directors may participate in the
Sharesave Plan (Sharesave), a tax-approved all-employee scheme under
which they make monthly savings over a period of three or five years,
which may be used to buy Kingfisher shares at a discounted price when
the scheme matures. They may also choose to withdraw their savings at
the end of the savings period or at any time during the savings contract.
UK-based executive directors may also participate in the Share Incentive
Plan (SIP). Designed to promote employee share ownership, the SIP
enables employees to make monthly investments in Kingfisher shares.
Maximum opportunity
The maximum limit for the Sharesave is currently £500
per month. The maximum amount an individual may invest
in partnership shares under the SIP is currently £150 per
month. The SIP also allows the award of free and matching
shares up to the limits set by the UK Government. The
company may increase the amounts that can be saved or
invested under the Sharesave and SIP plans in line with
any increases authorised by the UK Government for
approved plans.
Assessment of performance
None.
78 Kingfisher 2025/26 Annual Report and Accounts
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Report
Shareholding requirements
To ensure the alignment of the interests of executives
and shareholders over the long term, executive directors are
required to build a significant shareholding. The shareholding
requirement is 350% of salary for the CEO and 270% for the
CFO, and any other executive director.
All shares owned beneficially and nil-cost awards that have
vested but that the executive has yet to exercise are considered
to count towards the shareholding on a notional post-tax basis.
Until the shareholding requirement is met, executive directors are
required to retain 100% of vested post-tax PSP, Deferred Bonus
and historical Alignment Share awards, and retain 50% of
historical vested post-tax Delivering Value Incentive (DVI) shares.
The full shareholding requirement will apply for two years
post-employment. The Committee has established mechanisms
to enforce the post-employment shareholding guidelines once
an executive director has left the company.
Notes to the Policy table
Selection of performance measures
The measures for the Annual Bonus and the Performance Share
Plan will be chosen each year for their alignment to the company’s
goals and strategic priorities and may vary according to the
priorities over the relevant performance periods.
The measures for the 2026/27 Annual Bonus are adjusted
pre-tax profit, like-for-like (LFL) sales growth and individual
measures. Adjusted pre-tax profit and LFL sales growth ensure
that executives are focused on delivering both growth and
profitability for our shareholders. Individual measures directly
support the achievement of key in-year objectives.
For the 2026 PSP, the measures chosen are EPS, Cumulative
FCF, Relative TSR and ESG. EPS was chosen to ensure
sustainable, long-term delivery of profit for our shareholders. The
inclusion of FCF signifies it as a key metric in Kingfisher’s financial
priorities and commitment to the market. Relative TSR is
measured against the constituents of the FTSE 350 Retailers,
FTSE 350 Drug and Grocery Stores as well as the STOXX 600
Drug and Grocery Stores. The Group ensures that we deliver
strong shareholder returns within the context of an appropriate
group of peers.
ESG measures provide a direct link to our Responsible Business
agenda and recognise our long-term goals and commitments.
For the 2026 PSP, the ESG bucket of measures includes
(1) a measure addressing climate change, (2) a measure on
Sustainable Home Products and (3) an inclusion-based measure
(gender diversity). These measures reflect the importance of
Kingfisher’s long-term goals in respect of the planet, supporting
our customers to create more sustainable homes and our
commitment to improve the representation of our women
in senior roles.
The targets are set each year to ensure they are appropriately
stretching, taking into account short and long term internal
forecasts and ambitions as well as external forecasts and views.
The specific measures, targets and weightings may vary from
year to year to align with the company’s strategy.
Malus and clawback
Malus and clawback apply in respect of the Annual Bonus and
Deferred Bonus Shares and PSP awards granted under the
Kingfisher Performance Share Plan (KPSP) as well as legacy
Alignment Shares and DVI awards granted under the Kingfisher
Alignment Share and Transformation Incentive Plan (KASTIP).
These provisions enable the company to reduce (including, if
appropriate, to nil) the payout and vesting levels or to recover
the relevant value following the cash bonus payout or vesting of
shares. These provisions will apply to the cash bonus for a period
of three years following payment, to the Deferred Bonus Awards
during the three-year deferral period and for a period of two
years following vesting of the PSP and legacy Alignment Share
and DVI grants. These provisions could take effect in the event of
financial misstatement, miscalculation due to an error, serious
reputational damage, or material misconduct in individual cases.
The malus and clawback periods are purposefully designed
to align with respective deferral, vesting and holding periods.
These are considered appropriate timeframes to review
whether any trigger events have occurred under the malus
and clawback provisions.
Change of control
In the event of a change of control, share awards will normally
vest subject to performance conditions. PSP awards will normally
be reduced on a time pro-rated basis in line with the treatment
for good leavers, which is set out in the Policy on payment for
loss of office section of this Directors’ Remuneration Policy.
Deferred Bonus share awards will normally vest on change of
control. The Committee retains discretion to replace awards with
an equivalent share award in the acquiring company.
The Committee may alternatively consider that such a reduction
is inappropriate, e.g. if it is agreed with an acquirer to roll over
outstanding awards. Other awards may be reduced at the
Committee’s discretion.
Discretions
The Committee retains certain discretions in relation to the
Annual Bonus Plan, which are set out in full in the plan rules,
and which include but are not limited to:
— The determination, and timing, of any bonus payment.
— The impact of a change of control or restructuring.
— Overriding formulaic outcomes in line with the provisions of the
UK Corporate Governance Code.
— Adjustments for accounting or equivalent changes for the
Annual Bonus.
— Any adjustments required as a result of a corporate event
(such as a transaction, corporate restructuring event, special
dividend, share buyback or rights issue).
79Kingfisher 2025/26 Annual Report and Accounts
Directors’ remuneration report continued
Discretions set out as part of this Policy provide the Committee
with discretion in certain matters regarding the administration
and operation of Deferred Bonus and KPSP awards (as set out
in the corresponding plan rules approved by shareholders),
including, but not limited to, the following:
— The assessment of good leaver status.
— Overriding formulaic outcomes in line with the provisions of the
UK Corporate Governance Code.
— Adjustments for accounting or equivalent changes for
the KPSP.
— Minor administrative matters to improve the efficiency of the
operation of the plans or to comply with local tax law
or regulation.
— Any adjustments to performance conditions or awards
required as a result of a corporate event (such as a transaction,
corporate restructuring event, special dividend, share buyback
or rights issue).
In relation to the Annual Bonus Plan and KPSP awards, and in line
with the plan rules, the Committee retains the ability to amend the
performance conditions and/or measures in respect of any
award or payment if one or more event(s) occur that would lead
the Committee to consider that it would be appropriate to do so,
provided that such an amendment would not be materially less
difficult to satisfy than the original performance condition would
have been but for the event in question.
Should the Committee use any of the discretions set out above,
these would, where relevant, be disclosed in the following Annual
Report on Remuneration. The views of major shareholders
may also be sought. Discretion in relation to the company’s
All-Employee Share Plans (Sharesave and SIP) would be
exercised within the parameters of the HMRC-approved plan
status and the FCA’s UK Listing Rules.
Legacy awards
In-flight awards made before the adoption of this Policy will
continue in line with the approved Policy under which they were
granted. Further details of these awards can be found within the
Remuneration Policy approved at the 9 July 2019 and 22 June
2022 AGMs and included within relevant Annual Report
and Accounts.
Differences in Remuneration Policy for all employees
The remuneration structure for members of the Group Executive
follows a similar approach as for the executive directors but with
a lower maximum opportunity as appropriate under the Annual
Bonus and KPSP. The performance measures attached to the
Annual Bonus are a combination of Group financial and strategic
measures, banner-specific financial and strategic measures and/
or individual measures, depending on the Group Executive
member’s role and responsibilities. Like the executive directors,
bonus earned over 100% of salary is paid into deferred shares
with the Committee having the flexibility to scale down deferral if
any applicable shareholding requirement has been met. KPSP
awards for the Group Executive have the same performance
conditions as the executive directors.
For the next two levels of management below the Group
Executive, the remuneration structure consists of base salary,
benefits, pension, Annual Bonus and KPSP awards. Performance
measures attached to the Annual Bonus are tailored to reflect the
position of the individual and the part of the business in which
they operate, and as such are a combination of Group financial
and strategic measures, banner-specific financial and strategic
measures and/or individual measures. Vesting of the KPSP
awards for these colleagues will be primarily based on the same
measures as the executive directors and Group Executive,
however there is also an element based on time in employment
only for these colleagues.
All other employees are entitled to base salary and benefits and
may also receive bonus, pension, profit share and share awards,
which vary according to local jurisdiction and market practice.
The maximum provision and incentive opportunity available are
determined by the seniority and responsibility of the role.
Statement of consideration of employment conditions
elsewhere in the company
The CPO is invited to present to the Committee the proposals
for salary increases for the employee population generally and
on any other remuneration changes. The CPO consults with the
Committee on the performance conditions for the executive
directors’ bonuses and the extent to which these should be
cascaded to other employees. The Committee has oversight
of all long-term incentive awards across the Group.
The Committee is provided with data on the remuneration
structure for all individuals in Kingfisher’s leadership team,
which includes retail banner CEOs and Group Function directors.
The Committee approves the policy on share award levels for
all employees and uses this information to ensure that there
is consistency of approach across Kingfisher.
As part of a Kingfisher Colleague Forum, colleagues are
advised on a periodic basis on the remuneration arrangements of
executive directors and how these align with the arrangements
offered elsewhere in the organisation.
Statement of consideration of shareholder views
When determining the Remuneration Policy and its
implementation, the Committee engaged with the company’s
largest shareholders and also reviewed best practice guidelines
issued by institutional investor bodies. The Committee took on
board the feedback received when finalising the Policy.
The Committee continues to always be open to feedback from
shareholders on our Remuneration Policy and remuneration
arrangements and commits to ensuring consultation with our
largest shareholders in advance of any significant changes to the
Remuneration Policy or structure. The Committee continues to
monitor trends and developments in corporate governance and
market practice to ensure the structure of executive
remuneration remains appropriate.
80 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Approach for recruitment remuneration
Area Policy and operation
Overall
When hiring a new executive director, or making internal promotions to the Board, the Committee will apply the
Remuneration Policy.
The rationale for the package offered will be explained in the following Annual Report on Remuneration.
For internal promotions, any commitments made prior to appointment may continue to be honoured as the
executive is transitioned to the new remuneration arrangements. Where an individual is promoted after the annual
KPSP award has been granted, an award may be made to bring the executive on to the in-flight cycle at an
opportunity level reflecting their new role, subject to the limits set out in the Policy. Awards may be pro-rated to
reflect the remaining portion of the vesting period. Any award will take into consideration awards granted prior
topromotion.
Base salary
Base salary would be set at an appropriate level to recruit the best candidate based on their skills, experience and
current remuneration.
Benefits
Benefits provision would be in line with the normal Policy.
Where appropriate, the executive may also receive relocation benefits or other benefits reflective of normal
market practice in the territory in which the executive director is employed.
Pension
Pension provision would be in line with the normal Policy.
Incentive awards
Incentive awards would be made under the Annual Bonus and KPSP in line with the normal Policy, which determines
the maximum incentive awards that can be made.
Where an individual joins after the annual KPSP has been granted, an award may be made to bring the executive
on to the in-flight cycle subject to the limits set out in the Policy. Awards may be pro-rated to reflect the
remaining portion of the vesting period.
Buyout awards
In addition to normal incentive awards, buyout awards may be made to reflect value forfeited through an individual
leaving their previous employer.
If a buyout award is required, the Committee would aim to reflect the nature, timing and value of awards foregone
in any replacement awards. Awards may be made in cash, as KPSP awards, shares with vesting based on time only
or by any other method deemed appropriate by the Committee. Where possible, share awards will be replaced
with share awards.
Where performance conditions applied to the forfeited awards, performance conditions will be applied to the
replacement award or the award size will be discounted accordingly.
In establishing the appropriate value of any buyout, the Committee would also take into account the value of the
other elements of the new remuneration package.
The Committee would aim to minimise the cost to the company; however, buyout awards are not subject to a
formal maximum. Any awards would be broadly no more valuable than those being replaced.
81Kingfisher 2025/26 Annual Report and Accounts
Directors’ remuneration report continued
Policy for payment for loss of office
Area Policy
Notice period
12 months’ notice by either the director or the company.
Non-compete
During employment and for 12 months after cessation of active employment.
Executive
directors’
contractual
termination
payment
Resignation
No payments on departure will be made on termination, even if by mutual agreement the notice period is cut short.
Departure not in the case of resignation
For the period of notice served, the executive director may continue to receive their monthly base salary, benefits and
pension. During this time, at the discretion of the company, they may continue their duties or be assigned garden leave.
For the period of notice not served, the executive director may receive a payment in lieu of notice.
No other payments should be due on departure.
Settlement agreement
The Committee may agree payments it considers reasonable in settlement of legal claims.
This may include an entitlement to compensation in respect of a director’s statutory rights under employment
protection legislation in the UK or in other jurisdictions.
The Committee may also include in such payments reasonable reimbursement of professional fees in connection
with such agreements.
Treatment of
incentives for
bad leavers
Any outstanding awards under any incentive plans will lapse in the event of the Committee determining the departing
individual to be a bad leaver as defined by the plan rules.
Leaver
provisions for
Annual Bonus
for good
leavers
Bonus payments may be receivable at the normal date, pro-rated for time, and taking into account performance
achieved. Bonus deferral would normally continue to apply.
Deferred Bonus awards vest on the normal date in full.
Where the participant ceases to be employed as a result of death, the Deferred Bonus award will vest in full shortly
after the company is notified.
The Committee retains the ultimate discretion to make bonus payments and determine the basis upon which
they are made (including if bonus deferral still applies) and their vehicle and value, taking into account the individual
circumstances of the departure. The Committee may, in its discretion, accelerate vesting of the Deferred Bonus
award up to the point of departure.
Performance
Share Plan for
good leavers
Awards will vest on the normal date, pro-rated for time, and will take into account performance achieved.
The Committee retains discretion to further reduce the awards granted to reflect any personal performance issues
or accelerate vesting.
Where the participant ceases to be employed as a result of death, the award will vest shortly after the company is
notified, pro-rated for time, and taking into account the Committee’s assessment of performance achieved to that date.
The Committee may decide, acting fairly and reasonably, that any adjustment set out above to reduce the vesting
ofthe award would be inappropriate.
Shareholding
requirements
Upon leaving the company, the shareholding requirement will continue to apply for two years.
The shareholding requirement will be 100% of the shareholding requirement for two years after departure.
Shareholding requirements will no longer apply in the case of death. At its discretion, the Committee may apply
thesame treatment in cases of ill health.
Chair and
non-executive
directors’
contractual
termination
payment
Non-executive directors are appointed under letters of engagement.
Appointments have historically been for an initial period of three years and invitations to act for subsequent three-year
terms are subject to a review of performance and take into account the need to progressively refresh the Board.
The appointment may be terminated by either party giving the other not less than three months’ prior written notice,
unless terminated earlier in accordance with the company’s Articles of Association.
The company has no obligation to pay compensation when the appointment terminates.
Leavers will be treated for all-employee share plans in line with the plan rules of the relevant share plan. Good leaver is defined under
the plan rules, and relates to individuals who leave as a result of ill health, injury or disability, death, redundancy, transfer of employer
oremploying business out of Group, retirement, and any other reason that the Committee decides. A bad leaver is any leaver not
defined as a good leaver.
82 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Illustration of the application of the Remuneration Policy
The tables and charts below provide estimates of the potential total future remuneration for each executive director based on the
remuneration opportunity expected to be granted in 2026/27. Potential outcomes for each executive director, based on three
different performance scenarios, are shown.
Bhavesh Mistry
Base salary Pension Benefits Annual Bonus Performance Share Plan (PSP)
Thierry Garnier
Value of
package (£’000)
Maximum
Target
Below
threshold
Maximum
Target
Below
threshold
2%
17% 33% 46%
2%
3%
3%
10%
8%
£1,175
28% 28% 38%
82%
£3,749
2%
1%
1%
4%
£2,261
18% 33% 46%
11%
4%
£774
29% 28% 38%
85%
£3,454
£5,733
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 6,0005,500
Below threshold On-target Maximum
Only the fixed pay elements (base
salary, benefits and pension) of the
package are received.
Minimum performance targets for the
Annual Bonus and PSP are not achieved,
therefore no payments are made, and
awards will lapse.
Fixed pay elements plus target Annual
Bonus are received and target PSP vest.
Annual Bonus on-target performance is
achieved, 50% of the bonus paying out
(100% of salary for CEO, 95% of salary
forCFO).
PSP vesting at 50% of maximum (137.5% of
salary for CEO, 130% of salary for CFO).
Fixed pay elements plus maximum Annual
Bonus are received and full vesting under
the PSP.
Annual Bonus maximum performance
achieved, resulting in a bonus of 200%
and 190% of salary for the CEO and
CFOrespectively.
Full vesting under the PSP (275% of salary
for CEO, 260% of salary for CFO).
Notes
Base salary: reflects the salary effective from 1 April 2026.
Benefits: estimate based upon benefits received during 2025/26 as recorded in the single total figure of remuneration table.
Pension: shown as a percentage of salary in line with Policy.
Fixed remuneration: comprises base salary, benefits and pension.
Short-term variable compensation comprises the Annual Bonus including the deferred element. Long-term variable compensation comprises the Performance
Share Plan (PSP).
The Committee has also calculated the implied maximum remuneration scenario with the overlay of 50% share price increase on any vested PSP awards. This would
equate to a total value of £7,053k for Thierry Garnier’s package and £4,608k for Bhavesh Mistry’s package.
83Kingfisher 2025/26 Annual Report and Accounts
Directors’ remuneration report continued
Annual Report on Remuneration
This section of the report outlines how the Committee implemented the Directors’ Remuneration Policy (the Policy) in the financial
year. This report, together with the Annual Statement from the Chair of the Remuneration Committee, will be put to shareholders for
approval at the 2026 AGM. Shareholder approval in respect of the Annual Report on Remuneration is on an advisory basis only.
The Remuneration Committee
The Committee has delegated authority from the Board over the company’s remuneration framework and Policy. The role of the
Committee is set out in the terms of reference, which is reviewed annually and is available on our website. The Chair of the Committee
reports on the Committee’s activities at each subsequent Board meeting.
Key activities of the Remuneration Committee during the year
The significant matters considered by the Committee during the year are set out below:
Areas of Committee focus Items discussed
Salary review and
remuneration decisions
Reviewed and approved the salary and fee proposals in respect of the executive directors, Group
Executive and Chair of the Board.
Reviewed and approved remuneration arrangements of the executive directors and Group Executive.
Annual Bonus
Assessed performance against the 2024/25 strategic measures and approved the 2024/25 Annual
Bonus outturn and final level of payment for the members of the Group Executive and executive
directors.
Approved target ranges for the 2025/26 Annual Bonus.
Assessed performance against the 2025/26 Annual Bonus measures and reviewed the year-end forecast.
Agreed the framework for the 2026/27 Annual Bonus.
Performance Share Plan
Determined the vesting outcome of the 2022 PSP awards.
Approved the target ranges for the 2025 PSP and the subsequent grant of awards.
Assessed performance to date of the 2023, 2024 and 2025 PSP awards which will vest in 2026, 2027
and 2028 respectively.
Approved the measures and framework for the 2026 PSP.
Governance and other
areas of focus
Kept under review the company’s approach to wider workforce remuneration. This includes the
embedding of a high performance culture at the company.
Monitored developments in corporate governance and market practice in respect of executive
remuneration.
Reviewed the output of the annual evaluation of the Committee.
Reviewed and recommended the 2024/25 Directors’ remuneration report to the Board for approval.
Received updates on Kingfisher’s gender pay gap reporting and preparedness for the EU Pay
Transparency Directive.
Reviewed the advisers to the Remuneration Committee and approved a new adviser commencing in
2026/27.
Advisers to the Committee
During the financial year ended 31 January 2026, PricewaterhouseCoopers LLP (PwC) provided services to the Committee. During the
year, the Committee undertook a review of its advisers and after considering proposals from a number of relevant firms, agreed to
appoint Ellason LLP which will be effective during 2026/27.
Both PwC and Ellason LLP are a member of, and adhere to, the Code of Conduct for Remuneration Consultants (which can be found at
www.remunerationconsultantsgroup.com). The Committee is satisfied that the PwC and Ellason teams, who provide or will provide
remuneration advice to the Committee, do not have connections with the Group or individual directors that may impair their objectivity
and independence.
The executive remuneration advice received by the Committee from PwC was considered, and it was determined that the advice
provided was objective and independent.
PwC also provides Kingfisher with reward advice for below-Board staff, tax, accounting and legal advice during the year. For services
provided to the Committee, the fees paid to PwC were £121,325. These fees were incurred through a retainer, and on a time and
expenses basis.
84 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Voting at the 2025 Annual General Meeting (AGM)
The following table shows the results of the advisory vote on the Annual Report on Remuneration and the binding vote on the
Remuneration Policy at the 2025 AGM.
Resolution
Votes for
(and % of votes cast)
Votes against
(and % of votes cast)
Proportion of
shares voted
Shares on which
votes were withheld
Annual Report on Remuneration (2025 AGM)
1,537,294,447
(99.54%)
7,118,273
(0.46%) 87.46% 1,351,942
Directors’ Remuneration Policy (2025 AGM)
1,528,169,549
(99.19%)
12,420,785
(0.81%) 87.25% 5,174,328
Single total figure of remuneration for the executive directors (audited information)
The table below sets out the remuneration of each of the executive directors for the financial year ended 31 January 2026 and the
comparative figures for the financial year ended 31 January 2025. The Committee did not exercise any discretion in determining the
incentive outcomes for the year being reported on. In addition, no malus or clawback provisions were applied in the year.
Name
Base
salary
£’000
Taxable
benefits
£’000
Annual
Bonus
£’000
Performance
Share Plan
£’000
1,2
Buyout
awards
£’000
3
Pension
£’000
Total
Fixed pay
£’000
Total Variable
pay
£’000
Total
pay
£’000
Thierry Garnier 2025/26 933.1 95.8 1,377.9 1,413.2 — 116.6 1,145.5 2,791.1 3,936.6
2024/25 911.9 49.9 804.9 431.6 — 114.0 1,075.8 1,236.5 2,312.3
Bhavesh Mistry 2025/26 645.0 29.9 904.8 734.3 – 80.6 755.5 1,639.1 2,394.6
2024/25 35.1 1.7 29.4 — 2,009.5 4.4 41.2 2,038.9 2,080.1
Total 2025/26 1,578.1 125.7 2,282.7 2,147.5 – 197.2 1,901.0 4,430.2 6,331.2
2024/25 947.0 51.6 834.3 431.6 2,009.5 118.4 1,117.0 3,275.4 4,392.4
1. The value of the 2022 Performance Share Plan award included in 2024/25 for Thierry Garnier has been updated using the share price at the date of vesting
(24 June 2025) of 275.9p and includes values of dividend equivalents accrued from the date of grant to the date of vesting. The difference between the share
price at the date of grant of the 2022 Performance Share Plan shares (of 243.3p) and the share price on vest is 32.6p which means £51.0k is attributable to share
price growth. No discretion has been exercised as a result of the share price change.
2. 42.6% of the 2023 Performance Share Plan award for Thierry Garnier and Bhavesh Mistry will vest on 20 April 2026. The awards in the table above have been
valued based on the average share price during the three-month period to 31 January 2026 of 311.6p. Values include dividends accrued since the date of grant.
The difference between the share price at the date of grant of the 2023 KPSP shares (of 257.2p for Thierry and 267.1p for Bhavesh ) and the three-month
average share price (of 311.6p) is 54.4p for Thierry and 44.5p for Bhavesh, which means £246.7k and £104.9k is attributable to share price growth. No discretion
has been exercised as a result of the share price change.
3. Bhavesh Mistry received a number of buyout awards to compensate for those forfeited at his previous employer. The elements of the buyout not subject to
further Kingfisher performance conditions are included in the total shown in the table above. The values for buyout awards have been restated using actual final
amounts awarded. The movement in the buyout award values reflect changes in previous employer’s share price between the three-day average share price to
31 January 2025 (used for the estimate in last year’s Directors’ Remuneration Report) and the respective award grant dates, as well as the final outcomes of
awards at previous employer as disclosed in the British Land 2024/25 annual report. The final values for all share-based elements are disclosed on page 94. For
the 2024/25 annual bonus, the estimate in last year’s Directors’ Remuneration Report assumed a 50% of maximum totalling £284,063 with £189,375 assumed to
be paid in cash, the actual performance outcome was 80.84% of maximum and the total payout was £458,999, two thirds of which was paid in cash, and one third
in shares.
Notes to the single total figure of remuneration table
Base salary (audited information)
A 2% salary increase was awarded to Thierry Garnier for the 2025/26 financial year which was in line with the increase awarded to the
wider UK workforce based in head offices.
Name
As at 1 April 2025
£’000
As at 1 April 2024
£’000 % increase
Thierry Garnier 936.2 917.8 2%
Bhavesh Mistry 645.0 645.0
1
N/A
1. Bhavesh Mistry’s base salary is shown at the date of appointment (13 January 2025).
Taxable benefits (audited information)
The benefits provided to executive directors for 2025/26 and 2024/25 included car benefit (or cash allowance), private medical
insurance, life assurance, tax support.
Name
Car benefit
1
£’000
Medical
£’000
Life assurance
£’000
Other support
2
£’000
Total
2025/26
£’000
Total
2024/25
£’000
Thierry Garnier 25.0 11.8 7.4 51.6 95.8 49.9
Bhavesh Mistry 25.0 1.8 3.2 0.0 30.0 1.7
1. All directors opt for a cash allowance.
2. This benefit relates to tax return assistance provided to the CEO during the year and is considered reasonable and appropriate by the Committee.
85Kingfisher 2025/26 Annual Report and Accounts
Directors’ remuneration report continued
Annual Bonus (audited information)
The purpose of the Annual Bonus is to focus executives on the achievement of measures that are critical to the Kingfisher strategy.
The 2025/26 Annual Bonus for the executive directors was based on the following measures:
— 40% Adjusted pre-tax profit
— 40% Like-for-like (LFL) sales growth
— 20% Individual measures
The following table sets out the targets that were set in respect of the two financial measures, the corresponding achievement against
those targets during the year ending 31 January 2026, and the applicable outturn.
Financial Measures (80%)
Targets
Measure
Threshold
(10% of max)
Target
(50% of max)
Stretch
(100% of max) Achievement Outturn
Adjusted pre-tax profit (40%) £468m £520m £572m 100%
LFL sales growth (40%) (1.4)% 1.6% 4.6% 1.1% 43.33%
Adjusted pre-tax profit is £553.4m (on a constant currency basis), which on a formulaic basis results in a 82.2% level of payout.
During the year, the company determined that accelerating the implementation of next-generation technology was in the best
interests of the business. This decision impacted profit, due to the write-down of legacy systems, which was not anticipated when the
adjusted pre-tax profit targets were set at the start of the financial year. Therefore, in light of the strong underlying profit growth
delivered, the Committee adjusted the profit outcome by 17.8ppts which better reflects the quality of the underlying year on year profit
growth and other broader market factors. This impacted the overall bonus outturn by 7ppts.
For consistency, this adjustment will be applied to all colleagues with an adjusted pre-tax profit measure.
The following table sets out achievement of the objectives set for the executive directors under the individual measures element
oftheir bonus, the corresponding achievement against these for 2025/26 and resulting outturn.
Individual Measures (20%)
Thierry Garnier
Objectives Achievements Resulting Outturn
Focus on Trade/Pro
- FY 25/26 trade penetration of 18.0% (excluding Screwfix)
- Trade sales growth of 23% (excluding Screwfix)
- Now have 279 trade sales partners in role vs. 105 in FY 24/25
- Have a trade loyalty proposition across all geographies with an increase in total
membership of +18%
82.5%
Focus on France
- Market share gains in both French banners
- Overall improvement in retail profit by +1.0%
- Delivery of savings under a number of cost-efficiency and transformation initiatives
Bhavesh Mistry
Objectives Achievements Resulting Outturn
Focus on Cost and Working
CapitalReduction
- Delivery of Group savings under a number of cost-efficiency and transformation
initiatives
- Improvement of trade working capital by +3 days versus last year
- Establishment of a Group working capital steering committee
82.5%
Focus on France
- Market share gains in both French banners
- Overall improvement in retail profit by +1.0%
- Delivery of savings under a number of cost-efficiency and transformation initiatives
As well as the achievement vs. objectives, the Committee also reviewed the overall achievement in these areas taking into account the
external environment. It concluded that the outturn of 82.5% of maximum for this element was appropriate for both executive directors.
This means that the total outturn under the 2025/26 Annual Bonus for executive directors is 73.83% of maximum for both Thierry
Garnier and Bhavesh Mistry. The final payout equates to 147.66% of earned salary for Thierry Garnier and 140.28% of earned salary
forBhavesh Mistry, which are £1,377.9k and £904.8k respectively.
86 Kingfisher 2025/26 Annual Report and Accounts
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As the bonus outturn has exceeded 100% of salary for the executive directors, both will have a proportion of their bonus deferred into
shares for three years. The Remuneration Policy allows for the level of deferral to be scaled down if an executive director has suitably
met their shareholding requirement. Thierry Garnier has met his shareholding requirement and the Committee have concluded it was
appropriate to scale down his bonus deferral by 50% for FY 25/26 so that only 50% of any bonus earned over 100% of salary is
deferred into shares for three years. This means that £222.4k of Thierry Garnier’s 2025/26 bonus will be deferred into shares. Bhavesh
Mistry has not yet met his shareholding requirement. This means he will defer all of his bonus earned over 100% of salary into shares for
three years. This equates to £259.8k.
These share awards will be made at the next grant date (expected to be late April 2026).
Performance Share Plan (audited information)
The Kingfisher Performance Share Plan was approved by shareholders at the 2022 AGM, with the 2023 PSP award granted on 20 April
2023 to Thierry Garnier. As disclosed in last year’s Directors’ Remuneration Report, Bhavesh Mistry was granted an award under this
plan to replace the 2023 LTIP award forfeited at his previous employer, aligning with the existing measures/targets and vesting date.
This award was granted on 24 April 2025. The performance period for the 2023 PSP grant ended on 31 January 2026.
The 2023 PSP award is dependent on 2025/26 EPS, 2025/26 ROCE, Relative TSR and ESG performance. The targets, performance
and resulting formulaic outturn is detailed in the following tables:
Target
2025/26 EPS
(25% weighting)
2025/26 ROCE
(25% weighting)
TSR Percentile vs.
relative TSR peer group
(25% weighting)
Threshold (25% vesting) 29.7p 9.70% 50th
Stretch (100% vesting) 37.7p 11.95% 75th
Outturn 21.7p* 8.2% 72.4th
Formulaic outturn (% of maximum) 0.0% 0.0% 92.2%
* The EPS used to assess the 2023 PSP differs from the rest of the annual report due to removal of impact of any share buyback programmes which were
unknown and thus not factored in when the targets were set.
ESG (25% weighting, equally split between the measures)
Target
Climate Change
(reduction in Scope
1 and 2 emissions)
Forest Positive
(% of wood and paper
responsibly sourced as a
% of SKUs purchased)
Gender Diversity
(% of women in
senior leadership)
Threshold (25% vesting) 45.0% 98.0% 31%
Target (50% vesting) 46.0% 99.0% 34%
Stretch (100% vesting) 47.0% 99.5% 36%
Outturn 68.7% 99.4% 33.3%
Formulaic outturn (% of maximum) 100% 90.0% 44.2%
The Committee reviewed the impact of the sale of Kingfisher’s operations in Romania in the formulaic outturns. It concluded that the
formulaic outturns for Climate Change and Forest Positive remain representative. For Gender Diversity, the outturn was adjusted to
include Kingfisher’s operations in Romania as the above target ranges were set to include Kingfisher’s operations in Romania which is
reflected elsewhere in the Annual Report.
For the EPS, ROCE and Relative TSR measures, there is straight line vesting between Threshold and Stretch. For the ESG measures,
there is straight-line vesting between Threshold and Target and Target and Stretch.
TSR was measured against the combined group of the constituents of the FTSE 350 Retailers, FTSE 350 Drug and Grocery Stores as
well as the STOXX 600 Drug and Grocery Stores as at 1 February 2023.
The total formulaic outturn (% of maximum) was therefore 42.6%. The 2023 PSP will vest on 20 April 2026, following which Thierry
Garnier and Bhavesh Mistry will receive 453,538 and 235,668 shares respectively. The Committee believes this outturn is appropriate
and is reflective of performance over the performance period. The PSP values in the single figure table therefore reflect these
number of shares, using Kingfisher’s share price of 311.6p which is the average share price during the three-month period to
31 January2026.
87Kingfisher 2025/26 Annual Report and Accounts
Directors’ remuneration report continued
The number and value of shares vested for Thierry Garnier and Bhavesh Mistry are therefore as follows:
Name
Number of
shares vested
1
Number of dividend
equivalents
2
Value of shares vested
£’000
3
Thierry Garnier 396,526 57,012 1,413.2
Bhavesh Mistry 226.123 9,545 734.3
1. The number of shares shown represents the proportion of the 2023 PSP which is expected to vest on 20 April 2026.
2. Based on dividend equivalent shares accrued to date of publication of the report.
3. Calculated using the three-month average share price to 31 January 2026 of 311.6p. The difference between the share price at the date of grant of the 2023
KPSP shares (of 257.2p and 267.1p for Thierry Garnier and Bhavesh Mistry respectively) and the three-month average share price is 54.4p and 44.5p
respectively, which means for Thierry Garnier and Bhavesh Mistry £246.7k and £104.9k is attributable to share price growth respectively. No discretion has been
exercised as a result of the share price change.
The vested awards are subject to a two-year holding period.
Pensions (audited information)
Executive directors based in the UK are eligible to join the UK defined contribution pension plan (the DC Scheme). No executive
director has a prospective right to a defined benefit pension.
The company operates a policy for all employees to limit the combined employer and member pension contributions during a tax year
to the annual allowance, with the excess employer contribution being directed into a taxable monthly cash allowance. In addition,
employees may opt out of the scheme completely. The executive directors have opted to receive a cash allowance of 12.5% of salary
in lieu of pension employer contribution. This is aligned to the offering to the wider UK workforce as detailed in the Remuneration Policy
on page 76.
A summary of the arrangements for the executive directors is set out below.
Name
National employer
contribution rate into
defined contribution pension
scheme for which the
individual is eligible
Member of the UK DC
Scheme
Cash allowance in lieu of
employer contributions
into DC Scheme
Cash allowance rate
as % of salary
Thierry Garnier 14% No Yes, in full 12.5%
Bhavesh Mistry 14% No Yes, in full 12.5%
Pension benefits paid during the year
Name
Employer contributions into
DC Scheme
£’000
Cash alternative
£’000
Total 2025/26
£’000
Total
pension benefit as
a % of base salary
Thierry Garnier n/a 116.6 116.6 12.5%
Bhavesh Mistry n/a 80.6 80.6 12.5%
Payments to past directors (audited information)
Bernard Bot
Bernard Bot retired as CFO and as a director of the company on 13 January 2025. Bernard remained with the company in a below
Board role to support an orderly transition until the end of February 2025.
As disclosed last year, Bernard continued to receive his base salary, pension and benefits on the same terms as his CFO package up to
28 February 2025, when his employment ceased. As agreed by the Committee, Bernard was eligible for a 2025/26 Annual Bonus in
respect of the time he would serve as an employee between 1 February and 28 February 2025, measured against a mixture of financial
and individual performance measures. The assessed outcome was 73.83% of maximum, and the full value of £75.8k will be paid in cash.
The 2022 KPSP award vested on 24 June 2025. An estimated value of £241.6k was disclosed in the single figure table for Bernard in the
2024/25 Directors’ Remuneration Report. The actual value at the date of vesting of £257.9k. The vested awards are subject to a
two-year holding period. Malus and clawback provisions continue to apply.
His 2023 PSP award will vest in 20 April 2026, with the performance period having ended on 31 January 2026. As detailed on page 87,
the outturn for this award was 42.6% of maximum. The actual value at vesting for Bernard will be provided in next year’s annual report.
Payments for loss of office (audited information)
There were no payments made for loss of office to past directors.
88 Kingfisher 2025/26 Annual Report and Accounts
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Performance graph
The graph below shows Kingfisher’s total shareholder return for the 10 years to 31 January 2026, which assumes that £100 was
invested in Kingfisher on 1 February 2016. The company chose the FTSE 100 Index as an appropriate comparator for this graph,
as Kingfisher has been a constituent of that index for the majority of the period.
FTSE 100 Kingfisher
Value (£)
1 Feb 2016 31 Jan 2017 31 Jan 2018 31 Jan 2019 31 Jan 2020 31 Jan 2024
31 Jan 2026
31 Jan 202531 Jan 202331 Jan 202231 Jan 2021
50
100
150
200
250
89Kingfisher 2025/26 Annual Report and Accounts
Directors’ remuneration report continued
CEO’s remuneration over the last 10 years
The table below sets out the total remuneration of the holder of the office of CEO for the period from 1 February 2016 to 31 January
2026.
Year CEO
Bonus % of
maximum
awarded
1
Value of
bonus
awarded
£’000
Alignment
Share grant
as a % of
salary
2
Alignment
Share
% of maximum
vesting
2
Value of
shares
vested
£’000
LTIP/DVI/PSP
grant level
as a % of
salary
3
LTIP/DVI/PSP
% of maximum
vesting
Value of
vested
shares
£’000
CEO’s
single figure
£’000
2016/17 Véronique Laury 90.0 537.0 20
4
100 151.1 200 24.5 100.1 1,715.1
2017/18 Véronique Laury 87.0 534.2 20
4
100 156.9 200 0.0 0.0 1,582.6
2018/19 Véronique Laury 82.0 522.0 50
5
62.5 323.8 n/a n/a n/a 1,761.3
2019/20
Véronique Laury/
Thierry Garnier
6
0 0 20
5
/n/a
7
25.0/n/a 136.2/n/a n/a n/a n/a 1,178.7
2020/21 Thierry Garnier 79.8 510.7 n/a
7
n/a n/a n/a n/a n/a 1,656.2
2021/22 Thierry Garnier 97.5 634.4 80
8
100 816.1 n/a n/a n/a 2,408.9
2022/23 Thierry Garnier 15.9 265.2 80
8
100 706.2 n/a n/a n/a 1,964.4
2023/24 Thierry Garnier 20.8 364.9 80
8
100 511.8 840
9
39.8 3,982.3 5,907.2
2024/25 Thierry Garnier 44.1 804.9 n/a n/a n/a 275 14.6 431.6
10
2,312.2
2025/26 Thierry Garnier 73.8 1,377.9 n/a n/a n/a 275 42.6 1,413.2 3,936.6
1. The maximum bonus opportunity from 2016/17 to 2021/22 was 80% of salary. The maximum bonus opportunity from 2022/23 onwards is 200% of salary.
2. Element of reward introduced under the Remuneration Policy approved by shareholders at the 2016 AGM.
3. The LTIP and PSP grants show the award level at the point of grant, three years prior to the date the vesting percentage was determined. The DVI grant shows
the award level at the point of grant, five years prior to the date the vesting percentage was determined.
4. This represents 25% of the total Alignment Share award (equivalent to 80% of salary) granted in 2016 and 2017 respectively. This portion vested upon grant. The
remaining 75% of this award (equivalent to 60% of salary) may vest three years after the date of grant, subject to performance against the underpin measures
set out in the corresponding remuneration report.
5. This represents 25% of the total Alignment Share award (equivalent to 80% of salary) granted in 2018 or 2019 (that vested upon grant) and 75% of the total
Alignment Share award granted in 2016 (that partially vested in June 2019) and in 2017 (which lapsed in full) for Véronique Laury and which were subject to
performance against the underpin measures set out in the corresponding remuneration report.
6. Véronique Laury stepped down as CEO on 24 September 2019, at which point Thierry Garnier took over the position. Véronique Laury’s remuneration in the table
is from the start of the financial year up until 24 September 2019, and Thierry Garnier’s is from 25 September 2019 to the end of the financial year. The single total
figure in the table above shows the combined total remuneration for both Véronique Laury and Thierry Garnier.
7. 100% of the Alignment Share award granted to Thierry Garnier (equivalent to 80% of salary) in 2019 and 2020 is subject to performance against the underpin
measures set out in the corresponding remuneration report.
8. The figures for 2021/22, 2022/23 and 2023/24 represent 100% of the 2019, 2020 or 2021 Alignment Share Award granted to Thierry Garnier vesting based on
performance against the underpins as detailed in the corresponding Remuneration report.
9. The figure for 2023/24 represents 100% of the main DVI Award and Recruitment Award (760% and 80% respectively) granted to Thierry Garnier vesting based
on performance against the measures as detailed in the 2023/24 Remuneration report.
10. This represents the final vesting value of the 2022 PSP award. The values have been updated using the share price at date of vesting (24 June 2025) of 275.9p
and includes values of dividend equivalents accrued from date of grant to vesting.
90 Kingfisher 2025/26 Annual Report and Accounts
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Change in the remuneration of the directors
The table below shows how the percentage change in each director’s (including the non-executive directors’) salary, fees, taxable
benefits and bonus between 2021/22 and 2025/26 compared with the average percentage change of each of those components for
all full-time equivalent employees based in Kingfisher plc (as required by regulations). In line with prior years, the percentage change for
each director has also been compared to the UK employee workforce (the UK entities, including B&Q, Screwfix and Screwfix Spares).
The UK employee workforce is deemed to be a suitable comparator group as the executive directors are based in the UK (albeit with
global roles and responsibilities) and pay changes across Kingfisher vary widely depending on local market conditions.
Base salary/fees
1
Taxable benefits Bonus
2025/26 2024/25 2023/24 2022/23 2021/22 2025/26 2024/25 2023/24 2022/23 2021/22 2025/26 2024/25 2023/24 2022/23 2021/22
Executive directors
Thierry Garnier 2.3% 4.2% 4.7% 2.8% 8.9% 92.2% (21.2)% 21.6%
20.1%/
1.2%
2
(85.8%)/
(10.9%)
2
71.2% 120.6% 37.6% (58.2%) 24.2%
Bhavesh
Mistry
3
0.0% n/a n/a n/a n/a (4.3)% n/a n/a n/a n/a 67.3% n/a n/a n/a n/a
Non-executive directors
Claudia Arney
4
50.4% 297.2% 3.1% 0.0% 12.8% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Jeff Carr 1.9% 2.9% 2.8% 11.6%
5
12.8% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Sophie
Gasperment
6
1.9% 7.5% 9.8% 0.0% 47.5% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Bill Lennie
7
1.9% 2.9% 3.5% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Lucinda Riches
8
20.7% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Ian McLeod
9
2.0% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Former non-executive directors
Catherine
Bradley
10
1.9% 2.9% 2.5% 23.2%
5
47.3% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Rakhi Goss-
Custard
10
5.7% 9.3% 2.8% 45.2%
5
13.3% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
All Kingfisher
plc employees 12.7% 3.7% 8.2% 7.4% (2.6%) 25.4% (0.5)% 4.6% 27.4% (31.8%)
11
72.3% (12.0)% 58.6% (60.8%) 70.1%
All UK
employees
12
9.4% 6.0% 5.7% 11.0% 7.1% 15.4% 3.2% 4.1% 12.5% (6.3%) 41.8% 0.0% 98.1% (55.6%) 3.4%
1. Percentages reflect cuts in salary and fees made between April 2020 and July 2020 for executive directors and between April 2020 and September 2020 for
non-executive directors.
2. First figure includes relocation paid during 2022/23, 2021/22 and 2020/21, the second excludes it.
3. Joined on 13 January 2025. The percentage change for 2025/26 is calculated using full time equivalent salary, taxable benefits and bonus for 2024/25.
4. Became Chair and stepped down as Remuneration Committee Chair on 20 June 2024. These changes in role are reflected in the percentage changes between
2023/24 and 2024/25, and between 2024/25 and 2025/26.
5. The percentage change between 2021/22 and 2022/23 for the non-executive directors reflect that members of the Audit, Remuneration and Responsible
Business Committees receive a fee of £10,000 from 1 February 2022.
6. Started to receive a fee of £20,000 for Chair of Responsible Business Committee from 1 February 2021. Became a member of the Remuneration Committee in
June 2023.
7. Joined on 1 May 2022. The percentage change for 2023/24 is calculated using full time equivalent fees for 2022/23.
8. Joined on 1 January 2025. The percentage change for 2025/26 is calculated using full time equivalent fees for 2024/25. Became the Senior Independent
Director and Remuneration Committee Chair on 22 June 2025.
9. Joined on 20 January 2025. The percentage change for 2025/26 is calculated using full time equivalent fees for 2024/25.
10. Stepped down from the Board at the AGM on 22 June 2025. Percentage for 2025/26 has been calculated using full time basis.
11. The % change in the taxable benefits for employee population is related to the impact Covid-19 had on expenses and benefits claimed during the year.
12. Includes all UK employees including those in B&Q, Screwfix and Screwfix Spares.
91Kingfisher 2025/26 Annual Report and Accounts
Directors’ remuneration report continued
Relative importance of spend on pay
The table below shows the relative importance of spend on employee remuneration when compared with distributions to shareholders.
2025/26
£m
2024/25
£m
Percentage
change
Overall expenditure on pay 2,213 2,125 4.1%
Share buybacks undertaken during the year
1
256 225 13.8%
Total dividends paid in the year 218 228 (4.4)%
1. During the year, the Group purchased 88 million of the company’s own shares for cancellation at a cost of £256 million as part of its capital returns programme.
Pay ratio analysis
Year Method
25
th
percentile
pay ratio
Median
pay ratio
75
th
percentile
pay ratio
2025/26
Option B (i.e. 25
th
percentile, median and 75
th
percentile individual
identified from our April 2025 gender pay gap analysis) 151:1 138:1 132:1
2024/25 Option B
1
99:1 93:1 83:1
2023/24 Option B 258:1 247:1 221:1
2022/23 Option B 93:1 86:1 80:1
2021/22 Option B 127:1 116:1 113:1
2020/21 Option B 95:1 93:1 71:1
2019/20 Option B 71:1 64:1 56:1
2018/19 Option B 106:1 97:1 81:1
1. Ratios for 2024/25 have been restated using actual share price at vesting of 2022 PSP awards of 275.9p.
We have used Option B in the legislation to leverage the analysis completed as part of our UK gender pay gap reporting exercise.
We have determined our 25
th
percentile, median and 75
th
percentile individual using data from the respective 5 April snapshots. While
gender pay gap legislation and CEO pay ratio legislation employ different calculations, the three identified UK employees receive
similar remuneration structures, and therefore we are confident that they also represent broadly the same respective percentiles
when calculated using the single figure of total remuneration methodology required in the CEO pay ratio calculation. Where relevant,
each colleague’s pay and benefits were calculated on a full-time equivalent basis, and no further adjustments were made. The values
for total remuneration for the 25
th
percentile, median and 75
th
percentile were £26.1k, £28.5k and £29.9k respectively, comprising salary
and employer contribution to pension. The salaries for these employees were £24.8k, £27.2k and £28.4k respectively.
The majority of the Group’s workforce are store based. Given this workforce profile, the pay and benefits data used to calculate the
CEO pay ratio are from colleagues who are store based. These colleagues’ reward structure comprises primarily fixed components
while the CEO’s total remuneration is strongly linked to performance with a significant variable component. The year-on-year change
at median can be attributed to the outturns of variable pay elements of the CEO in any given year, including most recently in respect of
the outcomes in the annual bonus and PSP awards. The remuneration structures for our colleagues are aligned to the market and to
our remuneration principles. It is, therefore, the Committee’s view that the ratios remain consistent with pay and progression policies
for UK employees.
92 Kingfisher 2025/26 Annual Report and Accounts
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Executive directors’ shareholdings and share interests (audited information)
Executive directors are required to build a significant shareholding in the company. Unvested awards subject to performance
conditions are not included when assessing holding requirements. Vested awards are included when assessing holdings but are
adjusted to take into account the tax liability arising on exercise.
The table below sets out the beneficial interests of the executive directors (or any connected persons) in the ordinary shares of the
company and a summary of the outstanding share awards as at 31 January 2026. Calculations are based on a share price of 337.5p per
share (being the closing price of a Kingfisher share on 31 January 2026).
Shares held Awards over nil-cost options
Name
Number of shares
held outright
Vested but not
exercised
1
Unvested and
subject to
continued
employment
Unvested and subject
to performance
conditions
and continued
employment
2
Shareholding
requirement
(% of base salary)
3
Shareholding
as of 31 Jan 26
(% of base salary)
4
31 Jan 26 31 Jan 25
Thierry Garnier
5
503,738 487,357 1,060,627 – 3,166,193 350% 384.3%
Bhavesh Mistry
5
– – 308,416 – 1,688,141 270% 85.5%
1. Nil-cost options and awards that have vested but have yet to be exercised are considered to count towards the shareholding requirement, other than any such
shares that correspond to the estimated income tax and national insurance contributions that would arise on their exercise (estimated at 47% of the award). For
Thierry Garnier these awards include the awards which vested in 2022, 2023, 2024 and 2025. For Bhavesh Mistry, it includes awards which vested in 2025 upon
or shortly after grant.
2. These awards include nil-cost options to Thierry Garnier and Bhavesh Mistry in respect of the 2023, 2024 and 2025 Performance Share Plan awards.
3. Shareholding requirement as of 31 January 2026.
4. Between 1 February 2026 and the date of this report, there were no changes in the beneficial interests of the executive directors’ shareholdings.
5. As potential beneficiaries of the Kingfisher Employee Benefit Trust (the Trust), Thierry Garnier and Bhavesh Mistry are deemed to have an interest in the
company’s ordinary shares held by the Trust. The Trust held 13,014,304 ordinary shares at 31 January 2026.
Share awards made during the financial year (audited information)
Options and awards over shares were made during the year ended 31 January 2026 under the Kingfisher Performance Share Plan rules
(KPSP) in respect of both the 2025 Performance Share Plan (PSP) award and buyout awards relating to awards forfeited by Bhavesh
Mistry at his previous employer.
1. 2025 Performance Share Award
Name
Date of grant
1
Number
of shares
Face value
of award
2
£’000
End of
performance
period
3
Final exercise
date
4
Thierry Garner 24 Apr 25 953,997 2,548 31 Jan 28 24 Mar 35
Bhavesh Mistry 24 Apr 25 621,417 1,660 31 Jan 28 24 Mar 35
1. Vesting date of 24 April 2028.
2. The number of shares, at the time of grant, was based on 275% and 260% of base salary for the CEO and CFO respectively and the three-day average closing
share price preceding the date of grant. The awards were made under the KPSP and the value above is based on the closing share price as at the date of grant,
of 267.1p per share, for 24 April 2025.
3. The shares will vest subject to performance against the performance conditions over the period to the end of the 2027/28 financial year.
4. The awards are structured as nil-cost options and have an exercise period of seven years less one month.
The performance conditions attached to the 2025 Performance Share Award are as follows:
Target 2027/28 EPS (25% weighting) Cumulative FCF (25% weighting)
TSR percentile vs. relative
TSR peer group (25% weighting)
Threshold (25% vesting) 23.0p £1,135m 50
th
Stretch (100% vesting) 30.8p £1,535m 75
th
ESG
(25% weighting)
Target
Climate change
(reduction in Scope 1 and 2 emissions)
Sustainable Home Products
(% of total Group sales)
Gender diversity
(% of women in senior leadership)
Threshold (25% vesting) 57.0% 53.0% 31.0%
Target (50% vesting) 62.0% 58.0% 34.0%
Stretch (100% vesting) 66.0% 61.0% 37.0%
93Kingfisher 2025/26 Annual Report and Accounts
Directors’ remuneration report continued
For the EPS, ROCE and Relative TSR measures, there will be straight-line vesting between Threshold and Stretch. For the ESG
measures, there will be straight-line vesting between Threshold and Target, and Target and Stretch.
TSR will be measured against the combined group of the constituents of the FTSE 350 Retailers and FTSE 350 Drug and Grocery
Stores, as well as the STOXX 600 Drug and Grocery Stores as at 1 February 2025.
Any vested awards will be subject to a two-year holding period.
2. Buyout awards for Bhavesh Mistry
As disclosed in last year’s Directors’ Remuneration Report on page 108, Bhavesh Mistry received a series of buyout awards during
2025/26. The tables below detail the awards made.
Performance based awards
Award Date of grant Date of vest Number of shares
Face value of
award
1
£’000
End of
performance
period
Final exercise
date
2
2023 PSP (to compensate for 2023 LTIP) 24 Apr 25 20 Apr 26 530,806 1,418 31 Jan 26 20 Mar 33
2024 PSP (to compensate for 2024 LTIP) 24 Apr 25 25 Apr 27 467,545 1,249 31 Jan 27 25 Mar 34
1. The number of shares, at the time of grant, was based on the number of shares forfeited from British Land and the three-day average closing share price
preceding the date of grant for both British Land shares and Kingfisher shares. The awards were made under the KPSP and the value above is based on the
closing Kingfisher share price as at the date of grant of 267.1p per share, for 24 April 2025.
2. The awards are structured as nil-cost options.
The performance conditions and final vesting outcomes can be found on pages 87 and 88 of this report for the 2023 PSP. The
performance conditions for the 2024 PSP can be found on pages 105 and 106 in the 2023/24 Annual Report. Any vested awards will be
subject to a two-year holding period.
Other Buyout Awards
Award Date of grant Date of vest Holding date Number of shares
Face value of award
1
£’000
Final exercise
date
2
Annual Bonus – 2023/24 shares 24 Apr 25 24 Apr 25 28 Jun 27 77,924 208 13 Dec 34
2021 previous employer buyout 24 Apr 25 26 May 25 26 May 27 13,370 36 13 Dec 34
Annual Bonus – 2024/25 shares 23 Oct 25 23 Oct 25 27 Jun 28 50,478 157 23 Sep 35
2022 LTIP 23 Oct 25 23 Oct 25 21 Jul 27 160,131 498 23 Sep 35
1. The awards were made under the KPSP and the value above is based on the closing share price as at the date of grant of 267.1p and 311.1p per share, for 24 April
and 23 October 2025 respectively.
2. The awards are structured as nil-cost options.
2026 Performance Share Plan Award
In line with the approved Remuneration Policy, the Committee intends to grant Thierry Garnier and Bhavesh Mistry a PSP award with
a maximum opportunity of 275% and 260% of base salary respectively at the next grant date (expected to be late April 2026). These
grants will be in line with the Remuneration Policy.
The measures for the 2026 grant will be consistent with those adopted for the 2025 award. However, the population used to assess
gender diversity has been revised. The population has been expanded to include senior managers who would be part of the talent
pipeline for the senior leadership population. This is in addition to the senior leadership and the population is collectively known as
senior management group. This new population ensures a focus on building internal talent pipelines for our senior colleagues, assessing
and driving its gender diversity.
The measures and targets attached to the vesting of the 2026 award are as follows:
Target 2028/29 EPS (25% weighting) Cumulative FCF (25% weighting)
TSR Percentile vs. relative
TSR peer group (25% weighting)
Threshold (25% vesting) 26.0p £1,190m 50
th
Stretch (100% vesting) 36.0p £1,610m 75
th
ESG
(25% weighting)
Target
Climate change
(reduction in Scope 1 and 2 emissions)
Sustainable Home Products
(% of total Group sales)
Gender diversity
(% of women in senior management group)
Threshold (25% vesting) 61.0% 55.0% 36.5%
Target (50% vesting) 64.0% 58.0% 37.0%
Stretch (100% vesting) 67.0% 61.0% 37.5%
94 Kingfisher 2025/26 Annual Report and Accounts
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Statements
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Report
For the EPS, FCF and Relative TSR measures, there will be straight-line vesting between Threshold and Stretch. For the ESG measures,
there will be straight-line vesting between Threshold and Target and Target and Stretch. These measures have been chosen for the
PSP as EPS, FCF and ESG are aligned to the strategy, while Relative TSR ensures that payouts for participants are aligned to long-term
value creation for shareholders. ESG in particular was chosen to reflect the importance of our Responsible Business agenda and to
recognise our long-term goals and commitments. The chosen ESG measures are all core elements of our agenda.
All three ESG measures will be weighted equally within the ESG basket of measures.
One of the key reference points for setting the EPS and FCF targets is the Group’s internal three-year plan. The Committee also
reviewed the target ranges taking into account external consensus, and concluded that the ranges for EPS and FCF appropriately
balance being achievable yet stretching. EPS will be based on ‘pence’ in line with prior years. Cumulative FCF is a sum of the FCF in
2026/27, 2027/28 and 2028/29.
For ESG measures, targets have been set using our long-term public commitments and internal targets as well as 2025/26 outturns.
— For climate change (reduction in Scope 1 and 2 carbon emissions from a 2017/18 baseline), the target took into account our
significant progress to date and anticipated progress, as well as future SBTi targets aligned with our net zero commitments.
— Improving the percentage of women in senior roles remains an important and ongoing area of focus which is detailed further on
page16.
— The SHP range has been developed taking into account current and anticipated progress and our targets.
The Relative TSR measure remains unchanged. Kingfisher’s TSR will be measured against the combined group of the constituents of
the FTSE 350 Retailers, FTSE 350 Drug and Grocery Stores and the STOXX 600 Drug and Grocery Stores as at 1 February 2026.
Any vested awards will be subject to a further two-year holding period.
Scheme interests exercised during the financial year (audited information)
No awards were exercised by executive directors during the year.
Dilution limits
The terms of the company’s current share plans set limits on the number of newly issued shares that may be issued to satisfy awards.
In accordance with guidance from the Investment Association at the time of drafting, these limits restrict overall dilution under all plans
to under 10% of the issued share capital over a 10-year period, with a further limitation of 5% in any 10-year period on executive plans.
Only those awards granted under the Kingfisher Sharesave plan are satisfied by newly issued shares.
Any awards that are satisfied by market-purchased shares are excluded from these calculations, including all awards made under the
Kingfisher Alignment Share and Transformation Incentive Plan (KASTIP), Kingfisher Performance Share Plan (KPSP) and Kingfisher
Share Award Plan (KSAP).
No treasury shares were held or utilised in the year ended 31 January 2026.
95Kingfisher 2025/26 Annual Report and Accounts
Directors’ remuneration report continued
Single total figure of remuneration for the non-executive directors (audited information)
Fees payable to non-executive directors
The table below sets out the remuneration of each non-executive director during the financial year ended 31 January 2026 and the
comparative figures for the year ended 31 January 2025. During the year, no payments were made to non-executive directors for
expenses other than those incurred in the ordinary course of their appointments.
Name Additional responsibilities
Committee
membership
1
Fees
2025/26
£’000
Fees
2024/25
£’000
Total
2025/26
£’000
Total
2024/25
£’000
Claudia Arney
2
Chair, Nomination Committee Chair N 531.7 353.5 531.7 353.5
Jeff Carr Audit Committee Chair A, R, N 103.9 101.9 103.9 101.9
Sophie Gasperment Responsible Business Committee Chair R, N, RB 103.9 101.9 103.9 101.9
Bill Lennie A, N 82.9 81.3 82.9 81.3
Lucinda Riches
3
Remuneration Committee Chair, Senior
Independent Director A, R, N, RB 123.0 8.5 123.0 8.5
Ian McLeod N 72.4 2.6 72.4 2.6
Former directors
Rakhi Goss-Custard
4
Former Remuneration Committee Chair 45.4 108.2 45.4 108.2
Catherine Bradley
5
Former Senior Independent Director 45.4 112.2 45.4 112.2
Total 1,108.6 870.1 1,108.6 870.1
1. Indicates which directors served on each committee on 31 January 2026: Audit Committee = A; Nomination Committee = N; Remuneration Committee = R;
Responsible Business Committee = RB.
2. Claudia Arney became Chair at the AGM in June 2024.
3. Lucinda Riches became Remuneration Committee Chair and Senior Independent Director at the AGM in June 2025.
4. Rakhi Goss-Custard stepped down from the Board and her role as Remuneration Committee Chair at the AGM in June 2025.
5. Catherine Bradley stepped down from the Board and her role as Senior Independent Director at the AGM in June 2025.
Notes to the single total figure of remuneration for the non-executive directors (audited information)
Fees
Fees paid to the Chair and non-executive directors for 2025/26 and 2024/25 are shown below. No benefits are provided except for a
store discount card of up to 20%.
Fees
£’000
As at
1 February 2025
As at
1 February 2024 % increase
2
Chair
1
531.7 521.3 2%
Non-executive director fee 72.4 71.0 2%
Senior Independent Director 21.0 20.6 2%
Audit Committee Chair 21.0 20.6 2%
Remuneration Committee Chair 21.0 20.6 2%
Responsible Business Committee Chair 21.0 20.6 2%
Audit Committee member 10.5 10.3 2%
Remuneration Committee member 10.5 10.3 2%
Responsible Business Committee member 10.5 10.3 2%
1. The Committee reviewed the fee for the company Chair in 2025 and agreed to increase the fee by 2%. Claudia Arney was appointed to the role from 20 June
2024, receiving a fee of £496,500, and a contribution of up to £24,830 for administrative support.
2. The Board reviewed the non-executive fees in 2025 and agreed to increase the fee by 2%.
96 Kingfisher 2025/26 Annual Report and Accounts
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Non-executive directors’ shareholdings (audited information)
The table below sets out the current shareholdings of the non-executive directors (including beneficial interests and interests of
persons closely associated) as at 31 January 2026. The company does not operate a share ownership policy for the non-executive
directors but encourages non-executive directors to acquire shares on their own account.
Number of shares held outright as at
31 January 2026
1
Number of shares held outright as at
31 January 2025
Claudia Arney 27,762 27,762
Jeff Carr 210,000 210,000
Sophie Gasperment 10,403 10,110
Bill Lennie 220,000 170,000
Lucinda Riches 15,000 0
Ian McLeod 0 0
Catherine Bradley 20,000 20,000
Rakhi Goss-Custard 6,124 6,124
1
The shareholdings set out above for Catherine Bradley and Rakhi Goss-Custard are as at 23 June 2025 when both stepped down as directors.
There have been no changes to the beneficial interests of the non-executive directors between 31 January 2026 and 23 March 2026.
Statement on the implementation of the Remuneration Policy for 2026/27
Implementation of the Policy for executive directors for the year ahead
Base salary A 2.5% salary increase will be awarded to Thierry Garnier and Bhavesh Mistry effective from 1 April 2026. Their
new salaries will therefore be £959,600 and £661,130 respectively. The salaries are in line with the Policy and the
increase is in line with that offered to the wider UK head office workforce and lower than what is offered to
store colleagues.
Benefits Will be implemented in line with the Policy.
Pension 12.5% of salary cash allowance in lieu of pension contributions, which is in line with the offering to the wider UK
workforce. This is in line with the Policy.
Annual Bonus Will be awarded in line with the Policy.
The 2026/27 Annual Bonus will have a maximum opportunity of 200% of salary for the CEO and 190% of salary
for the CFO and will be judged based on the achievement of financial and individual measures, as set out below:
- 40% LFL sales growth
- 40% Adjusted pre-tax profit
- 20% Individual measures
A holistic assessment of Group performance will also be taken into consideration.
Any bonus earned over 100% of salary will be deferred into shares for three years subject to the shareholding
requirement being met.
In the opinion of the Committee, the details of the Annual Bonus measures and targets for 2026/27 are
commercially sensitive as they closely align with annual business priorities and accordingly are not disclosed.
These will be disclosed in the 2026/27 Annual Report and Accounts.
Performance Share Plan Will be awarded in line with the Policy.
The 2026 Performance Share Plan awards will be granted at the next available grant date. The CEO will be
granted an award of the value of 275% of salary at date of grant with the CFO receiving a grant of 260%
ofsalary. The performance conditions attached to the vesting of awards are as follows:
- 25% EPS
- 25% Cumulative FCF
- 25% Relative TSR
- 25% ESG measures (Climate change, Sustainable Home Products, Gender diversity)
Details of the target ranges for the 2026 PSP are detailed on pages 94 and 95.
Performance will be measured over three years, with awards vesting three years after the grant date.
Anyvested awards will be subject to an additional two-year holding period.
97Kingfisher 2025/26 Annual Report and Accounts
Implementation of the Remuneration Policy for non-executive directors for the year ahead
Fees
£’000
As at
1 February 2026
As at
1 February 2025 % increase
Chair
1
544.9 531.7 2.5%
Non-executive director fee 74.2 72.4 2.5%
Senior Independent Director fee 21.5 21.0 2.4%
Audit Committee Chair 21.5 21.0 2.4%
Remuneration Committee Chair 21.5 21.0 2.4%
Responsible Business Committee Chair 21.5 21.0 2.4%
Audit Committee member 10.7 10.5 1.9%
Remuneration Committee member 10.7 10.5 1.9%
Responsible Business Committee member 10.7 10.5 1.9%
1. Part of the Chair’s fee relates to a contribution to the cost of her assistant per annum.
The Board reviewed the non-executive directors’ fees in 2025/26 and agreed, effective 1 February 2026, that the base fee
will increase by 2.5% to £74,200. It was also agreed that the Senior Independent Director, Committee Chair and member fees would
increase to £21,500, £21,500 and £10,700 respectively.
Separately, in respect of the company Chair’s fee, the Committee has agreed to award a 2.5% increase to the total current combined
fee of £531,700 (comprising a core £506,400 fee plus up to £25,300 towards the cost of an assistant). This increases the combined fee
to £544,900 (core fee of £519,000 plus up to £25,900 towards an assistant).
The increases for non-executive directors and Chair are in line with the increase being implemented for the wider UK head
officeworkforce.
Service contracts/letters of appointment
Date of service
contract/letter of appointment
Expiry of
current term
Claudia Arney 20 June 24 31 October 27
Bhavesh Mistry 13 January 25 12 months rolling
Jeff Carr 1 June 18 31 May 27
Thierry Garnier 25 September 19 12 months rolling
Sophie Gasperment 1 December 18 30 November 27
Bill Lennie 1 May 22 30 April 28
Lucinda Riches 1 January 25 31 December 27
Ian McLeod 20 January 25 19 January 28
Copies of the executive directors’ service contracts and the non-executive directors’ letters of appointment are held at the
company’s registered office address and are available to shareholders for inspection on request. Requests should be sent by email
toshareholderenquiries@kingfisher.com.
The Remuneration Report has been approved by the Board of Directors and signed on its behalf by:
Lucinda Riches
Chair of the Remuneration Committee
23 March 2026
Directors’ remuneration report continued
98 Kingfisher 2025/26 Annual Report and Accounts
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Governance
Financial
Statements
Strategic
Report
Directors’ report
This report sets out the information the company and the
Groupare required to disclose in the Directors’ report in
compliance with the Companies Act 2006 (the Act), the Financial
Conduct Authority’s UK Listing Rules (UK Listing Rules or UKLR),
the Disclosure Guidance and Transparency Rules (DTRs), and the
UK Corporate Governance Code 2024 (the Code). This report
should be read in conjunction with the Strategic report on pages
2 to 51 and theCorporate Governance report on pages 52 to 114.
In accordance with Section 414C(11) of the Act,the company has
decided to include certain matters in itsStrategic report that
would otherwise be required to be disclosed in this Directors’
report. Together, the Strategic report, this Directors’ report,
andother sections of the Corporate Governance report
incorporated by reference, whentaken as a whole, form the
Management report as requiredunder DTR 4.1.5R .
The table below sets out the location of applicable disclosures
incorporated into the Directors’ report, by reference. The
majority of the disclosures required under UKLR 6.6.1R are not
applicable to the Group except for those referenced in the
tablebelow or included in the disclosure on page 101.
Disclosure Page
Allotment of equity securities (UKLR 6.6.1R) 99
Annual General Meeting (AGM) 192
Corporate Governance report, including
reports from Board committees
52 - 114
Directors’ interests 84 - 98
Directors’ statement of responsibility 102
Diversity and inclusion 14 - 16, 65 - 66
Details of the directors who served during
theyear
54
Employee share schemes and long-term
incentive schemes (UKLR 6.6.1R)
note 31, 77
Equal opportunities including
disabled employees
16
Financial instruments and financial
risk management
note 24, note 25
Financial review 31 - 37
Future developments 2 – 51
Viability statement and going concern 49 – 51
Governance and risk management
for climatechange
103 - 114
Important events since the end
ofthefinancialyear
note 38
Key performance indicators 10 - 11
People and development 14 - 16
Risk management and internal control 43 - 48, 71 - 72
Statement on engagement with employees 14 - 16, 19, 59 - 60
Statement on engagement with external
stakeholders
19 - 22
Streamlined Energy and Carbon Reporting 28 - 30
Waiver of dividends (UKLR 6.6.1R) 100
Articles of Association (Articles)
The Articles of the company may be amended by special
resolution of the shareholders. The Articles are available on the
company’s website.
Branches
The Kingfisher Group, through various subsidiaries, has
established branches in a number of countries in which
thebusiness operates.
Directors
The Board and their biographical details are set out on pages
55and 56. Details of the directors’ interests in the shares of
thecompany can be found in the Directors’ remuneration report
on pages 93 and 97. Directors are appointed and replaced
inaccordance with the Articles, the Act, and the Code. Under
theArticles, all directors will retire from office at the next AGM
where they will stand for election or re-election by shareholders.
Directors’ indemnity arrangements
The directors who served on the Board during the year have
been granted a qualifying third-party indemnity, under the Act,
which remains in force. The Group also maintains Directors’
and Officers’ liability insurance in respect of its directors and
officers, and the directors of the Group’s subsidiary companies.
Neither the company’s indemnity nor insurance provide cover
ifan indemnified individual is proved to have acted fraudulently
ordishonestly.
Directors’ powers
Subject to provisions of the Act, the Articles, and to any
directions given by special resolution, the business of the
company shall be managed by the Board, which may exercise
allthe powers ofthe company.
Borrowing powers
The directors may exercise all the powers of the company
toborrow money.
Issue of ordinary shares
The directors were authorised by shareholders at the 2025 AGM
to allot shares, as permitted by the company’s Articles. During the
year, 4,995,089 shares were issued under the terms of the
Sharesave Plan at prices between 159.0 pence and 275.0 pence
per share.
This resolution was in line with guidance issued by the Investment
Association and remains in force until the conclusion of the 2026
AGM, or if earlier, until close of business on 22 September 2026.
The company will seek to renew this standard authority at the
2026 AGM.
99Kingfisher 2025/26 Annual Report and Accounts
Directors’ report continued
Purchase of own shares
The Group’s objectives in managing capital are to: invest in
attractive growth opportunities; deliver sustainable dividend
growth; provide capital returns to shareholders; and maintain
financial resilience and an efficient balance sheet. If surplus
capital remains after having achieved all these objectives, the
Board will return surplus capital to shareholders primarily via
share buyback programmes.
In March 2025, the company announced the return of £300m of
surplus capital via a share buyback programme (theProgramme).
This Programme is carried out under the authority granted by
shareholders for the company to purchaseits own shares.
Shareholders approved a resolution at the 2025 AGM for the
company to make purchases of its own shares up to a maximum
of 10% of its issued share capital.
During the year, a total of 88,298,427 ordinary shares, with
anominal value of 15
5/7
pence per share, were repurchased
underthe Programme at an average price of £2.89 per share,
fora total consideration of £255m (excluding stamp duty).
Thisrepresents 5.2% of the company’s issued share capitalat
31 January 2026.
The Programme completed on 5 March 2026. Between
1 February 2026 and 5 March 2026, 20,206,052 ordinary shares
of 15
5/7
pence per share were purchased, bringing the total shares
purchased to 98,363,711 as at 5 March 2026, at an average price
of £3.05 per share, and for a total consideration of £300 million
(excluding stamp duty). The total shares purchased between
1 February 2026 and 5 March 2026 represent 1.2% of the
company’s issued share capital.
All shares purchased under this authority have been cancelled.
This resolution is in line with guidance issued by the Investment
Association and remains in force until the conclusion of the 2026
AGM, or if earlier, until close of business on 22 September 2026.
The company will seek to renew this standard authority at the
2026 AGM.
Conflicts of interest
The company has robust procedures in place to identify,
authorise and manage potential or actual conflicts of interest,
andthese procedures have operated effectively during the year.
Where potential conflicts arise, they are reviewed, and if
appropriate, approved by the Board. Processes for managing
such conflicts are put in place to ensure no conflicted director
is involved in any decision related to their conflict.
Directors’ other key appointments are set out in the directors’
biographies on pages 55 and 56.
Dividends
The interim dividend of 3.80p per ordinary share was paidon
14 November 2025. The Board is recommending a finaldividend
of 8.60p per ordinary share, making a total ordinary dividend for
the year of 12.40p per ordinary share. The total final dividend
forthe year ended 31 January 2026, based on the issued share
capital as at 31 January 2026, is expected to be c. £147 million.
The final amount may vary depending on share movements
between the balance sheet and payment date. Subject to the
approval of shareholders at the 2026 AGM, the final dividend
willbe paid on 3 July 2026 to shareholders on the register
on29 May 2026.
The Kingfisher Employee Benefit Trust, Wealth Nominees Limited
(the Trust), waived the following dividends payable bythe
company in respect of the ordinary shares it held. TheTrustee
has agreed to waive its rights to all dividends payable on the
ordinary shares held in the Trust:
Dividend
Number of shares
waived(% of holding)
Total value
ofdividendswaived
Final 2024/25
(paid June 2025)
17,147,972
100% £1,474,725.59
Interim 2025/26
(paid November 2025)
14,173,977
100% £538,611.13
Total for year to
31 January 2026 £2,013,336.72
Major shareholdings
As at 31 January 2026, the company had been notified under
Rule5 of the DTRs of the following interests in voting rights
initsshares. The information below wascalculated at the date
onwhich the relevant disclosures were made in accordance with
the DTRs; however, the percentage of total voting rights held
byeach may have changed since the company was notified.
% of total voting rights
Silchester International Investors LLP 10.97
BlackRock, Inc. 7.67
T. Rowe Price Associates, Inc. 4.95
Norges Bank 3.54
The following notifications were received after 31 January 2026
up to 23 March 2026:
% of total voting rights
Silchester International Investors LLP 9.97
Political donations
The company made no political donations during the year
(2024/25: £nil) and does not intend to make any political
donations in the future.
As is our policy and practice, the company will continue to seek
shareholder approval annually to enable us to make donations
orincur expenditure in relation to political parties, other political
organisations, or independent election candidates. This authority
is sought on aprecautionary basis to avoid any unintentional
breach of therelevant provisions set out in the Act.
Research and development
The company undertakes research and development activities to
develop its digital capability. In addition, the company undertakes
product development activities using learnings gained by
understanding our customers’ challenges living and working at
home and engaging with home improvement projects.
More information is available on pages 2 to 51 of the Strategic Report.
100 Kingfisher 2025/26 Annual Report and Accounts
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Financial
Statements
Strategic
Report
Share capital
The share capital of the company comprises ordinary shares
of15
5/7
pence per share. All the company’s issued shares are fully
paid up and each share carries the right to one vote at general
meetings of the company. The issued share capital of the
company, together with movements in the company’s issued
share capital during the year, are shown in note 29 tothe
consolidated financial statements. The Articles contain provisions
governing the ownership and transfer of shares.
The holders of ordinary shares are entitled to receive the
company’s Annual Report and Accounts, to attend and ask
questions at general meetings, to appoint proxies and to exercise
voting rights. There are no restrictions on the transfer of ordinary
shares or on the exercise of voting rights attached to them,
except (i) where the company has exercised its right tosuspend
voting rights or to prohibit their transfer following the omission of
their holder or any person interested in them toprovide the
company with information requested by it in accordance with
Part 22 of the Act, or (ii) where their holder isprecluded from
transferring or otherwise dealing with the shares or exercising
voting rights by the UK Listing Rules, the City Code on Takeovers
and Mergers, or applicable Government sanctions. No person has
any special rights of control over thecompany’s share capital
and all issued shares are fully paid.
The company has a Sponsored Level 1 American Depositary
Receipt programme in the United States.
Significant agreements – change of control
There are a number of agreements that take effect, alter or
terminate upon a change of control of the company following
atakeover bid. These are deemed to be significant in terms of
their potential impact on the business of Kingfisher as a whole.
These are:
— The £650 million revolving credit facility dated 28 May 2021, as
amended and restated on 31 May 2024, between the company,
National Westminster Bank plc (as the facility agent) and the
banks named therein as lenders, which provides that, subject to
certain exceptions, in the event ofa change of control of the
company, a lender willnot beobliged to fund a utilisation
request and may notify the agent that they wish to cancel their
commitment resulting inthe commitment of that lender being
cancelled and alloutstanding loans, together with accrued
interest, becomingimmediately due and payable to that lender.
— The £50 million loan facility dated 23 December 2022 between
the company and National Westminster Bank plc, as amended
and restated on 18 June 2025, which contains a provision such
that in the event of a change of control, the bank will not be
obliged to fund autilisation request and may cancel its
commitment whereupon all outstanding loans together with
accrued interest will become immediately due and payable.
— The £50 million loan facility dated 16 January 2023 between the
company and Caixabank, S.A., United Kingdom Branch, as
amended and restated on 28 July 2025, which contains a
provision such that in the event of a change of control, the
bank will not be obliged to fund autilisation request and may
cancel its commitment whereupon all outstanding loans
together with accrued interest will become immediately due
and payable.
There are no agreements in place with any director or
officerthat would provide compensation for loss of office or
employment resulting from a takeover, except that provisions
ofthe company’s share incentive schemes may cause options
and awards granted under such schemes to vest on a takeover.
Information required by UKLR 6.2.23R
In its Q3 Trading Update to 31 October 2025, the company
provided the following guidance for the financial year ending
31 January 2026:
— Adjusted Profit Before Tax of c. £540m to £570m
(previously c. £480m to £540m); and
— Free Cash Flow guidance of c. £480m to £520m.
For the purpose of UKLR 6.2.23R, the company confirms
that2025/26 Adjusted Profit Before Tax was £560 million
andFree Cash Flow was £512 million, both in line with previously
announced guidance.
Disclosure of information to auditor
Each person who is a director at the date of approval of this
report confirms that:
— So far as he or she is aware, there is no relevant audit
information of which the company’s auditor is unaware.
— Each director has taken all the steps that he or she ought
tohave taken as a director to make himself or herself aware
ofany relevant audit information and to establish that the
company’s auditor is aware of that information.
This confirmation is given and should be interpreted in
accordance with the provisions of Section 418 of the Act.
Directors’ report approval
The Directors’ report was approved by a duly authorised
committee of the Board of Directors on 23 March 2026
andsigned on its behalf by
Sapna Dutta
General Counsel & Company Secretary
23 March 2026
101Kingfisher 2025/26 Annual Report and Accounts
Responsibility for preparing the financial
statements
The directors are responsible for preparing the Annual Report
and the financial statements in accordance with applicable law
and regulations.
Company law requires the directors to prepare financial
statements for each financial year. Under that law, the directors
are required to prepare the Group financial statements in
accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006 (the ‘Act’).
Thefinancial statements also comply with International Financial
Reporting Standards (IFRSs) as issued by the IASB. The directors
have elected to prepare the parent company financial statements
in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards and
applicable law) including FRS 101 ‘Reduced Disclosure Framework’.
Under company law, the directors must not approve the financial
statements unless they are satisfied that they give a true and fair
view of the state of affairs of the company and of the profit or
loss of the company for that period.
In preparing the parent company financial statements, the
directors are required to:
— Select suitable accounting policies and then apply them
consistently.
— Make judgements and accounting estimates that are
reasonable and prudent.
— State whether applicable UK Accounting Standards have been
followed, subject to any material departures disclosed and
explained in the financial statements.
— Prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the company will
continue in business.
In preparing the Group financial statements in accordance with
IAS 1, ‘Presentation of financial statements’, the directors are
required to:
— Select suitable accounting policies and then apply them
consistently.
— Present information, including accounting policies, in a manner
that provides relevant, reliable, comparable and understandable
information.
— Provide additional disclosures when compliance with the
specific requirements of the financial reporting framework are
insufficient to enable users to understand the impact of
particular transactions, other events and conditions on the
entity’s financial position and financial performance.
— Make an assessment of the company’s ability to continue as a
going concern.
The directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the company’s
transactions and disclose with reasonable accuracy at any time
the financial position of the company and enable them to ensure
that the financial statements comply with the Act. They are
responsible for safeguarding the assets of the company and for
taking reasonable steps for the prevention and detection of fraud
and other irregularities.
The directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
company’s website. Legislation, regulation and practice in the
United Kingdom governing the preparation and dissemination of
financial statements may differ from legislation, regulation and
practice in other jurisdictions.
Responsibility statement
The directors confirm that to the best of their knowledge:
— The financial statements, prepared in accordance with the
relevant financial reporting framework, give a true and fair view
of the assets, liabilities, financial position and profit or loss of
the parent company and the undertakings included in the
consolidation taken as a whole.
— The Strategic Report includes a fair review of the development
and performance of the business and the position of the
company and the undertakings included in the consolidation
taken as a whole, together with a description of the principal
risks and uncertainties they face.
— The Annual Report and Accounts, taken as a whole, are fair,
balanced, and understandable, and provide the information
necessary for shareholders to assess the company’s position,
performance, business model and strategy.
Approval of the statement of directors’
responsibilities
The statement of directors’ responsibilities was approved by a
duly authorised committee of the Board of Directors on
23 March 2026 and signed on its behalf by
Sapna Dutta
General Counsel & Company Secretary
23 March 2026
Statement of directors’ responsibilities
102 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Governance
Board-level oversight of climate-related risks and
opportunities [TCFD Governance (a)]
The governance of climate-related risks and opportunities
is integrated into our overarching Kingfisher governance
framework. A visual representation of our governance framework
is provided in the corporate governance statement on page 53.
Our Board of Directors is our highest governing body and
assesses the management of principal risks and opportunities,
including climate change, and reviews our Responsible Business
key performance indicators (KPIs) and our external climate
change targets on a quarterly basis. The Board reviews our
Responsible Business long-term plan twice a year, which includes
updates on our net zero delivery plans. The Board also reviews
and approves our annual Responsible Business Report which
includes detail on our progress to date for climate-related
metrics and targets.
Our CEO is accountable for overseeing the delivery of our
energy and climate change commitments across the Group,
withclimate-related responsibilities sitting within various Board
and management committees as follows:
— Our Group Executive is responsible for identifying, assessing
and managing the principal risks, including climate change, and
for reviewing and recommending to the Board on an ongoing
basis key climate-related commitments and transition plans
proposed by management. This includes our Scope 1, 2 and 3
net zero commitments and investment plans. The Group
Executive also receives a net zero reporting dashboard three
times a year which contains updates on net zero delivery
milestones and KPIs.
— Our Responsible Business Committee is a committee of the
Board and provides collective support and advice to the Group
Executive and Board on all matters relating to responsible
business practices (including climate change). The Responsible
Business Committee met three times in 2025/26 and its report
is on page 67.
— Our Group Climate Committee, chaired by our
ChiefExecutive Officer, meets three times a year to monitor
the company’s approach to setting and meeting its climate
commitments and assessing climate-related risks and
opportunities. It has oversight of the company’s approach
todeveloping and delivering its net zero roadmap and related
supporting targets. It provides anupdate to the Group
Executive and Responsible Business Committee on key
decisions and actions. In 2025, this included reviewing the
delivery plans for our Scope 1, 2 and 3 2030 targets detailed
onpage 114 and reviewing external factors that influence plan
delivery such as logistics technology innovations and
renewable energy markets.
— Our Group Investment Committee, chaired by our Chief
Financial Officer, is directly accountable for all capital and
revenue expenditure above the threshold reserved for
approval at the banner or Group Function level. Energy-related
capital investments, which are fully aligned with our Scope 1 and
2 emissions reduction targets, are included in the Committee’s
remit if investment needed exceeds the required threshold
levels for review.
— Our Audit Committee is a committee of the Board and
reviewsupdates on Kingfisher’s compliance with changing
sustainability-related mandatory reporting requirements,
including our TCFD disclosures. Internal audit undertakes
auditsof the ESG landscape as part of its annual plan.
Additionally, banner boards oversee their responsible business
strategies and climate programmes. They are responsible for
implementing the energy-related capital investments approved
by the Group Investment Committee, for delivering progress
against our Scope 1, 2 and 3 emissions reduction targets, and for
approving the commercial considerations behind net zero
transition plan delivery. In FY 25/26, banners continued to report
on their net zero roadmap development (across all Scopes)
andannual progress on target delivery through the net zero
dashboard which is reported to the Group Climate Committee
and Group Executive.
Information on how our Board engages with stakeholders,
including in relation to climate change, is included in our
stakeholder engagement section on pages 19 to 22.
Management’s role in assessing and managing
climate-related risks and opportunities [TCFD
Governance (b)]
The day-to-day assessment and management of climate-related
risks and opportunities is conducted through several senior
management positions and operational teams. Climate-related
decisions and actions from the Board and Committees noted
above are cascaded to these teams where relevant:
— Our Responsible Business team, led by our Director
ofResponsible Business, is accountable for developing the
Group-wide climate change strategy, climate-related risk and
opportunity identification and assessment, and for external
andinternal reporting and communication on climate-related
matters to the Board and Board committees. The Responsible
Business team agrees the agendas for the Responsible
Business Committee and Group Climate Committee with the
respective committee chairs, prioritising updates or decisions
on key areas of Kingfisher’s climate strategy as necessary.
Thisensures that management communicates to relevant
governing bodies on an ongoing basis.
— Within the Group Offer & Sourcing function, a
Sustainability team is responsible for driving our Scope 3
roadmap and Sustainable Home Products (SHPs) strategy,
ensuring our product sustainability requirements are
embedded into our own exclusive brand (OEB) and non-OEB
product ranges, and collaborating with OEB suppliers to reduce
their own emissions. The sustainability team reports its
progress on actions, including progress on Scope 3 emissions
reduction planning and supplier engagement, to the Group
Climate Committee. It also runs a regular Sustainability Forum
with banner sustainability directors and representatives to help
co-ordinate sustainability activity across the Group, including
Scope 3 product-related emissions reductions.
Our response to the Task Force
on Climate-related Financial Disclosures
103Kingfisher 2025/26 Annual Report and Accounts
Our response to the Task Force on Climate-related Financial Disclosures
continued
— Each banner is responsible for delivering Scope 1, 2 and 3
emissions reductions in line with Group-wide Scope 1, 2 and 3
science-based targets, and reporting on progress. Banners
have their own Responsible Business committees and forums
with relevant director representatives (from banner teams
andpartnering Group Functions such as Responsible Business)
that are used to update and grant approval where required
onbanner climate transition plans.
— The ESG and Climate Disclosure Steering Group is
chaired byour Director of Responsible Business. It meets
a minimum of four times a year and includes participation
fromdifferent Group Function directors and representatives
(including Finance, Legal, Internal Audit and Risk, Responsible
Business, andthe banners). The Steering Group provides
guidance ontransition planning and reporting and helps
to ensure that these activities are fully integrated into
Kingfisher’s strategic and financial planning processes.
The Steering Group also inputs on relevant updates taken
to the Group Climate Committee.
— The Corporate Reporting Oversight Group meets at least
twice annually and monitors compliance with Kingfisher’s
mandatory corporate reporting obligations and the regulatory
landscape for upcoming changes or amendments to these
obligations, which include but are not limited to the Group’s
climate-related compliance and disclosure requirements.
— The Climate Transition Plan Working Group meets on
a fortnightly basis and brings together the climate leads from
our banners and relevant Group Functions (such as finance,
property, logistics and risk). The objective of the working
groupis to act as a central point of co-ordination for
thedevelopment of Kingfisher’s climate transition plan,
ensuring consistency in transition plan development
andrisk management across all our banners.
— The Logistics Net Zero Forum is chaired by a Group Logistics
Sponsor through quarterly meetings with banner logistics
directors or sustainability representatives to share best
practices and industry benchmarking, discuss new
technologies, connect with external sustainability experts,
andshare banner logistics carbon reduction activities,
challenges and successes.
— The Energy Forum is chaired by the Group Head of Energy
and meets quarterly with banner energy and property
managers to share best practice across banners, review
net zero Scope 1 and 2 activity plans and report on progress
against targets.
Enhancing our governance of climate-related risks
and opportunities
We are committed to building climate-related capabilities across
the Group and continue to monitor where further knowledge and
expertise on climate change-related matters is required across
the Group. We have reviewed competencies at the Board level
using a detailed skills matrix which is subject to regular review
(see page 57 for more details) and conclude that the Board
consists of members who bring the necessary climate-related
expertise. Our Group Climate Committee is chaired by our CEO
who is updated regularly on climate-related activities across the
Group in addition to external factors such as climate technology
updates and trends (see page 103). OurCEO was President of the
European DIY Retail Association/the Global Home Improvement
Network (EDRA/GHIN) until the end of 2025 and has been
engaged in launching the Global Retail Scope 3 Taskforce (called
Make it Zero), founded in 2023 by EDRA/GHIN to drive
collaboration and innovation across the industry in reducing
Scope 3 emissions.
104 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
1. Kingfisher employs a number of mechanisms to monitor and prepare for compliance with its mandatory corporate reporting obligations, including climate-related
compliance and wider disclosure requirements (note that only climate-focused groups are shown in the governance structure above).
Strategy
Our strategy for identifying climate-related risks and
opportunities is informed by our risk management process
(seeRisk management on page 43, of which our use of
climate-related scenario modelling and analysis is a key
component. Where material, we consider climate-related
risks and opportunities within our strategy development and
financial planning. As part of our commitment to responsible
business practices, all our retail banners have their own net
zero roadmaps and associated cost estimates in place and
are required to integrate climate transition plan costs into
theannual long-term financial planning process. Climate change
and its associated targets (see Metrics and targets section see
page 112) isan integral part of our Responsible Business strategy
which inturn is a pillar of our commercial strategy.
Our scenario modelling approach is consistent with last year,
ensuring alignment with our internal risk management processes
and financial reporting. Percentage impact on revenue (based on
impact to sales or costs from climate risks and opportunities) has
been used as the materiality metric for risk assessment. We also
continue to assess net risk, where appropriate to do so, to reflect
mitigating actions included within our climate transition plan
programme and supporting our science-based targets.
Audit Committee
Our Board
committees
Operational
committees
Responsible Business Committee
Group Climate Committee
ESG & Climate
Disclosure
Steering
Group
Logistics
Net Zero
Forum
Energy
Forum
Banner
Responsible
Business
forums
Sustainability
Forum
Climate Transition Plan Working Group
Group Executive
Working Group representation is made up of members from the above forums
Implementation
and compliance
1
Strategic
oversight
Climate governance structure
The Kingfisher plc Board
105Kingfisher 2025/26 Annual Report and Accounts
1. Risks can be associated with the physical impacts of climate change (i.e. extreme weather events or long-term shifts in precipitation and temperatures),
orwiththe transition to a lower-carbon global economy (e.g. policy and legal actions, technology change, market responses, and reputational considerations).
Our response to the Task Force on Climate-related Financial Disclosures
continued
Our climate-related risks and opportunities [TCFD Strategy (a, b)]
We have defined risk time horizons of near term (0–3 years), medium term (3–9 years), and long term (10+ years). This reflects the
long-term nature of climate-related risks. These time horizons apply solely to our TCFD disclosures and should not be interpreted or
relied upon for any other commercial, strategic or financial purposes. We currently model risks to 2040 through our climate-related
scenario modelling, as described below.
The timelines considered and rationale for selecting them have been provided in the table below.
Time horizon Description Rationale for selection
Near term 0-3 years (2025 – 2028) Our near-term risk horizons consider the chance of events creating risk exposure
over the next three years which is consistent with the Group’s strategic planning
period and the period over which the principal risks are considered.
Medium term 3-9 years (2028 – 2034) This time horizon was selected to capture emerging transition risks and opportunities,
such as carbon taxes and emerging regulations in the geographies we operate in.
Long term 10+ years (2035 onwards) Our long-term horizon is influenced by our strategies and targets related to climate
change such as our net zero targets (net zero by 2040 for Scope 1 and 2 and net zero
by 2050 for Scope 3).
As many climate-related physical and transition risks are likely to materialise over
alonger term than usual business planning-related risks, selecting this time horizon
enables us to consider and discuss the potential climate risks and opportunities
relevant for us (and capture the range of uncertainties related to such risks in the long
term), while also aligning with relevant long-term global standards and targets. This
also covers the long-term investment needed for our climate transition planning.
To guide our disclosure of climate-related risks and opportunities, we define materiality based on risk severity levels according
totheresults of our scenario analysis (see Table 1 on pages 108 to 111).
Additional impacts of climate-related risks and
opportunities on our strategy and financial planning
[TCFD Strategy (b)]
Leading the industry in responsible business and energy
efficiency is a key component of our ‘Powered by Kingfisher’
strategy, and we work to integrate responsible business, including
climate change-related impacts, into all aspects of ourbusiness.
Our ‘Powered by Kingfisher’ strategy sets out four priority areas
for responsible business where we can maximise our positive
impact on the lives of our customers, colleagues, communities,
and the planet (see page 24). Climate change sits within our
‘planet’ pillar and is closely linked to our ‘customer’ pillar which
aims to help millions of customers have a greener, healthier
homethrough increasing sales of our Sustainable Home
Products(SHP).
Our climate transition plan is built to deliver our science-based
emissions reduction targets which include achieving net zero
Scope 1 and 2 emissions by FY 40/41, and net zero for our
Scope3 emissions by FY 50/51 (see Metrics and targets section
page 112 for more details and how we are performing against
targets). We have also set ambitious targets for our Sustainable
Home Products (SHP) that help create greener, healthier homes,
andhave now reached 58.2% of Group sales.
We consider the implications of climate-related risks in our
financial planning processes. This includes reviews of climate
capital allocation budgets such as costs to deliver on zero-carbon
energy and logistics decarbonisation trials and programmes
being reviewed by our banners as part of our annual strategic
planning process. Climate-related targets are also built into our
executive remuneration approach (see Metrics and targets
section for details on page 112).
We have a £650m three-year revolving credit facility with a
group of our relationship banks. The facility expires in May 2028
and includes targets linked to sustainability metrics, including
ourScope 1 and 2 targets, and Sustainable Home Products
(SHP)sales targets, which would enable us to access lower
borrowing rates.
Please refer to the Governance section (page 103) on how we
work to build and maintain our strategic resilience to climate
change through effective governance processes.
Our approach to climate scenario analysis
[TCFDStrategy (a, c)]
We continue to expand our capabilities and understanding
of climate-related risks and opportunities that impact or can
potentially impact our business. We do this through a scenario
modelling and analysis process, which has been an important tool
to assess the Group’s strategic and financial resilience to a range
of alternative climate futures.
Our scenario modelling capabilities allow us to better understand
the exposure of our business to various climate-related risks
1
andimpacts across the value chain. This enables us to identify
appropriate mitigation measures and regularly review and assess
the resilience of our business and strategy against these risks
and overall net-zero plans.
Our scenario modelling approach considers climate-related
risks globally across our value chain. We assessed operational
risks to our value chain at a country geographic level, aligned to
our key markets. We determined that some regions were more
exposed to physical phenomena from heatwaves and flooding,
and certain regions were more exposed to transition risks due to
having more stringent public policies covering carbon emissions.
106 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
We continue to monitor these risks on an ongoing basis to
identify any further mitigation actions required in the future.
Table1 onpages108 to 111 outlines the key modelling assumptions
and where net risk
1
has been applied to calculate risks and
opportunities. Avariety of sources were used to conduct the
climate scenario analysis, including Network for Greening the
Financial System (NGFS)V5.0, International Energy Agency (IEA)
World Energy Outlook 2024, World Bank 2024 Carbon Pricing
Dashboard, and Intergovernmental Panel on Climate Change’s
(IPCC) Sixth Assessment Report (AR6) – ModelIntercomparison
Project Phase 6 (CMIP6) dataset. Weassessed the shortlist of
1. Net risk reflects the delivery of mitigation actions included within our climate transition plan programme and supporting our science-based targets.
Climate-warming scenario pathways
Global temperature increase
*
Scenario description
1.5°C Paris Ambition: The net-zero scenario aims to limit global warming to 1.5°C by 2100 through stringent,
immediate climate policies and innovations, achieving net zero CO
2
emissions by 2050. Linked to
RCP1.9-2.6 and SSP1-1.9-2.6, it involves significant early transition risks but minimises physical risks.
Thisurgent global policy response aligns with the Paris Agreement’s ambition, leading to rapid changes
inenergy generation, consumer behaviours, and technological innovation. While physical risk increases
arelimited, transition risks remain high.
2.5°C Stated Policy: This scenario follows historical social, economic, and technological trends, with the world
taking action to limit emission growth but failing to cut emissions in the short term, thus missing the Paris
goals. It is linked to SSP2-4.5 and would result in approximately 2.5°C or greater warming by 2050, mitigated
by carbon sequestration and storage (CSS). This scenario involves several physical risks and transition risks
after 2030. It reflects the implementation of stated climate policies and commitments without further action,
leading to medium levels of physical and transition risks in the short term, with increasing physical risks over
time. This is considered an intermediate scenario according to the IPCC Sixth Assessment (AR6)report.
>4°C No further policy action: This scenario assumes that only currently implemented policies are maintained,
with no further global action on climate change. Emissions continue to grow, leading to 2.5°C of warming
by2050 and over 4°C by 2100, causing irreversible changes. Linked to SSP5-8.5, it involves minimal early
transition risks but results in severe and globally disruptive physical risks. Physical risks increase significantly
over time, while transition risks remain low.
* Average global surface temperature increase above pre-industrial levels by 2100.
material risks and opportunities against the following scenarios
over short-, medium-, andlong-term time horizons, as defined
above.
While not designed to provide precise forecasts, the chosen
scenarios deliver scientific projections of possible future
macroeconomic and environmental states by analysing key
global trends and data inputs, such as regulatory impacts
andconsumer behaviour. Consistent with last year, for FY 25/26,
we modelled three climate-warming scenario pathways
asexplained below.
We have used a revenue or cost percentage to quantify
theimpact of risks and opportunities in our scenario modelling
approach, which aligns with our risk management framework.
Consistent with last year, we have modelled the impacts of the
eight most material risks and opportunities for our business over
three, five and 10 plus year periods. The risks considered in our
scenario analysis are modelled independently, reflecting the
complexity and uncertainty associated with measuring the
interconnectivity of risks.
The impacts have been rated as ‘limited’, ‘minor’, ‘moderate’,
‘major’ or ‘severe’ to reflect the relative financial materiality of
each risk under each scenario. The impact thresholds are aligned
with the risk management thresholds in our risk management
framework. Forthe purposes of modelling, we have not applied
any pass-through assumptions (e.g. passing risk-based costs
onto the customer viamark-ups).
The results of our analysis are reported to our ESG & Climate
Disclosure Steering Group and members of the Group Climate
Committee, to ensure cross-functional and Executive-level
decision making on the management of climate-related risks
andopportunities. Further information around the governance
onclimate-related risks and opportunities has been provided
inthe TCFDGovernance section on page 103.
Scenario analysis results [TCFD Strategy (c)]
The financial impacts identified in Table 1 (see page 108) reflect
the estimated impact from climate change across our defined
time horizons. This allows comparison of different risks, whether
physical or transition, within a standard framework. A qualitative
strategic response and mitigation actions implemented across
the business for each risk and opportunity have been included
inthe scenario results below. These measures are intended to
build the operational, regulatory, and supply chain resilience of
our business to climate change impacts. Changes in the modelling
results between this year and last year can largely be attributed
to updates to external input data, and any further changes to the
methodology or assumptions that have materially affected the
models are stated in the ‘Climate related risk/ opportunity
modelled’ column of Table 1. Note that for all risks
andopportunities, the Brico Dépôt Romania businesshas been
removed from modelling data for FY 2025/26 following its sale
inMay 2025.
107Kingfisher 2025/26 Annual Report and Accounts
Our response to the Task Force on Climate-related Financial Disclosures
continued
Table 1: Results of scenario analysis
The table below outlines the key modelling assumptions used to calculate risks and opportunities. Net risk, which assumes we deliver
our climate transition plan actions and targets, has been applied where relevant. This is indicated in the ‘key modelling assumptions’
column and is consistent with the approach used in 2024/25.
Key: potential materiality impact on Kingfisher based on revenue or cost as a percentage of total revenue.
Type of risk/
opportunity Limited Minor Moderate Major Severe
Impact on
revenue
<2.5% of revenue 2.5%-5.0% of revenue 5.0%-7.5% of revenue 7.5%-10.0% of revenue >10% of revenue
Impact on cost <0.25% of revenue 0.25%-0.50% of
revenue
0.50%-0.75% of
revenue
0.75%-1.0% of revenue >1.0% of revenue
Note: For the time horizons in Table 1, 3 years = near term, 5 years = medium term, 10 years = long term, as described in the timeline
descriptions on page 106.
Climate-related
risk/opportunity
modelled Key modelling assumptions Impact on sales/cost (see key above formateriality impact)
1. Transition risk:
Liability risk
Increased costs
of compliance
with a growth in
climate-related
regulations and
frameworks.
Results vs 2024/25
Key modelling
assumptions and
impact of sales/
costs are similar
tolast year.
i. Reviewed as a net risk with
costs calculated based on
assumed compliance with
climate related regulation.
ii. Kingfisher long-term projected
growth rates used as a proxy to
extrapolate current legal spend
out to 2040.
iii. Carbon price growth rate
used as a proxy to extrapolate
ESG compliance-related legal
spend out to 2040 as this is
viewed as the most mature
regulation-based climate metric.
iv. Rate of decarbonisation
measured using the rate
at which UK/EU emissions
intensity reduces used as
a proxy to extrapolate out
responsible business spend out
to 2040. Thiswas utilised as a
proxy as it is expected that the
market and Kingfisher will need
to spend more in order to align
with and contribute to the
decarbonisation in
these economies.
1.5°C 2.5°C >4°C
3-year impact Limited No impact No impact
5-year impact Limited Limited Limited
10-year impact Limited Limited Limited
Implications for resilience and strategic response/mitigation actions
Potential financial implications:
- Increased costs of compliance with a growth in climate-related regulations
andframeworks. This calculation assumes Kingfisher will be compliant with
regulations and would not incur any penalties or financial losses arising from
non-compliance.
Strategic response/mitigationactions:
- We will continue to monitor the regulatory landscape and ensure that new
legislative requirements are identified and flagged with sufficient time to plan
compliance-related work, which will enable effective management of the
required mitigation actions within our business.
- Through the ESG and Climate Change Disclosure Steering Group, we have
strong governance and robust planning processes in place to meet regulatory
requirements in a timely manner.
108 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Climate-related
risk/opportunity
modelled Key modelling assumptions Impact on sales/cost (see key above formateriality impact)
2. Transition risk:
Carbon pricing
Increased cost
of carbon driven
bypolicies/
regulations.
Results vs 2024/25
Key modelling
assumptions and
impact of sales/
costs are similar to
last year.
i. Reviewed as a net risk with
costs calculated based on
assumed carbon reduction
in line with Kingfisher’s climate
transition plan.
ii. Assume the 2024/25 emissions
mix and markets remains static
over the reporting period.
iii. Scope 1, 2 and 3 emissions
areassumed to decrease
inlinewith Kingfisher’s climate
transition plan targets.
iv. Model focuses on the
compliance carbon market
i.e.carbon taxes and emissions
trading systems (ETS), including
geographical coverage. Carbon
Border Adjustment Mechanism
(CBAM)
1
impact is also included.
v. Scope 1, 2 and upstream Scope
3 category 1 have been
considered. For these
emissions, the industry
carbon price byoperating
country has beenapplied.
vi. Scope 3 downstream emissions
(which relate largely to
customer product use) have not
been included due to
incomplete datato assess
carbon pricing onthis emission
type and the impact this would
have on customer purchasing.
1.5°C 2.5°C >4°C
3-year impact Minor Minor Limited
5-year impact Moderate Moderate Limited
10-year impact Moderate Moderate Limited
Implications for resilience and strategic response/mitigation actions
Potential financial implications:
- Increased costs of raw materials as suppliers may potentially pass through
carbon costs of raw materials-related emissions (upstream Scope 3 emissions)
to the buyer.
- Potential increased operational costs (Scope 1 and 2) due to carbon costs
ofdirect emissions.
Strategic response/mitigationactions:
- A key element of our strategic response to reduce and/or manage any carbon
pricing-related policy risks is through continued monitoring of regulatory
andmarket developments that further inform our Responsible Business strategy
and financial planning.
- We have a strong track record in reducing our own emissions and are
collaborating closely with our suppliers to ensure we are driving positive change.
For example, through commitment to generating 60% of Group sales from SHPs
by end of FY 25/26, a co-benefit will be reduction of carbon emissions embodied
within certain SHP ranges (e.g. through selecting more sustainable materials) and/
or emitted when our customers use and dispose of our products (e.g. through
providing more energy efficient products).
- A key pillar of our Responsible Business strategy is our commitment to reducing
our emissions in line with the UN’s goal to limit global warming to 1.5 degrees
(seeMetrics and targets on page 112).
- We would expect policy risk to increase if we included downstream Scope 3
elements. Further analysis will be needed to assess the impact of this risk.
3. Transition risk:
Reputation risk
Decreased
revenue if
consumers move
to competitors
they perceive
to bemore
sustainable.
Results vs 2024/25
Key modelling
assumptions and
impact of sales/
costs are similar
tolast year.
i. Reviewed as a gross risk based
on Kingfisher not implementing
climate transition plans or
meeting climate-related targets
which then shifts customer
perception to perceive
competitor retailers to
be moresustainable.
ii. % of climate conscious
customers who purchase
products from more
environmentally sustainable
companies. The climate
conscious customers’ demand
isdetermined by emissions
intensity between Kingfisher’s
banners and their peers.
1.5°C 2.5°C >4°C
3-year impact Limited Limited Limited
5-year impact Limited Limited Limited
10-year impact Limited Limited Limited
Implications for resilience and strategic response/mitigation actions
Potential financial implications:
- Reduced revenue if consumers switch to competitors, perceiving our business
as less sustainable than our peers.
- Risk will tend to be higher in the net zero scenario if peers are decarbonising
atafaster rate than Kingfisher, as customers may boycott more carbon
intensivebusinesses.
- On a gross risk basis, reputation risk is anticipated to have limited impact
onKingfisher. With successful implementation of our transition plan and
attainment of our emissions targets, we would anticipate an opportunity.
Strategic response/mitigationactions:
- A key pillar of our Responsible Business strategy is our commitment to reducing
our emissions in line with the UN’s goal to limit global warming to 1.5 degrees
(seeMetrics and targets below).
- We actively manage our climate transition plan and arecontinuing to disclose
ourprogress against plan (including through voluntary disclosure such as CDP).
- We will continue to enhance communication ofenergy and water saving products
to customers viasustainability customer communications underpinned byour
green star programme.
1. The Carbon Border Adjustment Mechanism (CBAM) is an EU regulation impacting the import of high carbon products into the European Union.
109Kingfisher 2025/26 Annual Report and Accounts
Our response to the Task Force on Climate-related Financial Disclosures
continued
Climate-related
risk / opportunity
modelled Key modelling assumptions Impact on sales/cost (see key above formateriality impact)
4. Physical risk:
Key facility
disruption risk
Increased cost
dueto frequency
and intensity of
extreme weather
events, which may
cause damage
to facilities.
Results vs 2024/25
Key modelling
assumptions and
impact of sales/
costs are similar
tolast year.
i. Reviewed as a gross risk as any
local adaption measures such
asflood protection across our
estate have not been accounted
for (this is something we will look
to review next year).
ii. Kingfisher-owned and leased
stores and distribution centres
are included in the analysis,
otherfacilities such as offices
are excluded.
iii. Assumes that damage to
facilities and operational
disruption will be covered
by insurance.
iv. Insurance premiums are
expected to increase over time,
in line with the financial damage
forecasted without insurance
coverage.
1.5°C 2.5°C >4°C
3-year impact Limited Limited Limited
5-year impact Limited Limited Limited
10-year impact Limited Limited Limited
Implications for resilience and strategic response/mitigation actions
Potential financial implications:
- The most material impact is expected due to fluvial flooding at high-risk stores
across banners where higher risks areexpected to be reflected through higher
insurance premiums.
Strategic response/mitigationactions:
- We maintain robust continuity planning and insurance programmes.
- We incorporate climate change factors into the planning anddesign of new
stores, refurbishment projects and preventative maintenance programmes.
Werun preventative maintenance programmes for stores and facilities
previously impacted byextreme weather events.
5. Physical risk:
Raw material
supply risk: Timber
supply chain
Increased costs
due to changes in
the global climate
which impact the
availability of raw
materials, such as
wood and paper.
Results vs 2024/25
Key modelling
assumptions and
impact of sales/
costs are similar
tolast year.
i. Reviewed as a gross risk where
the impact of wildfire in a given
region has been used to directly
correlate to an increase in raw
material price.
ii. The scope of raw materials
covers 60+ species of wood,
increasing the scope of last
year’s report which was limited
to three species.
iii. The baseline price of timber
increases with the fraction of
theforest area that is exposed
to wildfires, i.e. there is a direct
correlation between wildfire
exposure and timber price.
1.5°C 2.5°C >4°C
3-year impact Limited Limited Limited
5-year impact Limited Limited Limited
10-year impact Limited Limited Limited
Implications for resilience and strategic response/mitigation actions
Potential financial implications:
- Changes in the global climate leading to wildfires will likely impact the availability
of high-quality supplies of certain wood species. This may affect wood and paper
prices and increase costs for Kingfisher.
Strategic response/mitigationactions:
- We will continually review key suppliers by category to establish capacity and
volumes and assess the impact of an interruption in supply. Our supplier strategy
includes guidance on when to use more than one supplier to increase resilience.
Risk is monitored via meetings with banners which cover updates on wood and
paper related regulations and compliance.
6. Physical risk:
seasonal products
Decreased
revenue due to
fluctuations in
seasonal weather
patterns, which
affect the demand
for seasonal
products.
Results vs 2024/25
Key modelling
assumptions and
impact of sales/
costs are similar
tolast year.
i. Reviewed as a gross risk as
climate transition plans are
not directly related to
seasonal products.
ii. Quantify the footfall and the
impact of seasonal products
revenue loss due to increased
precipitation during the summer
and warmer winter weather.
iii. Seasonal products are
categorised by Kingfisher’s
product category framework.
1.5°C 2.5°C >4°C
3-year impact Limited Limited Limited
5-year impact Limited Limited Limited
10-year impact Limited Limited Limited
Implications for resilience and strategic response/mitigation actions
Potential financial implications:
- Revenue loss increases over time, with the highest impact occurring
inthe‘NoFurther Policy Action’ scenario (>4°C), however the risk across
allofthese remains ‘limited.’
Strategic response/mitigationactions:
- Focusing on driving online sales through marketing can combat reduced footfall.
- Review adapting seasonal product ranges to reflect changing climate patterns
andto support customers improving the climate resilience of their homes.
110 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Climate-related
risk / opportunity
modelled Key modelling assumptions Impact on sales/cost (see key above formateriality impact)
7. Transition
opportunity/risk:
Resource
efficiency
Decreased/
increased cost due
to moving away
from carbon
intensive sources.
Results vs 2024/25
Savings have
decreased vs last
year due to higher
forecasted
electricity costs
per kwh compared
to prior year
estimations
resulting in a higher
overall energy cost
forecast.
i. Reviewed as a net opportunity
where reduction in gas
consumption aligns with
Kingfisher’s net zero delivery
plan across banners.
ii. The energy costs for Kingfisher
in the year 2024 are projected
forwards using factors that
predict how much energy prices
will increase by due to various
climate-related scenarios.
iii. Carbon tax has not been
included in calculations as
this isincluded in carbon
policy risk.
1.5°C 2.5°C >4°C
3-year impact Limited Limited Limited
5-year impact Limited Limited Limited
10-year impact Limited Limited Limited
Implications for resilience and strategic response/mitigation actions
Potential financial implications:
- Increased costs linked to higher electricity costs compared to gas per kwh
insome markets could result in a higher overall energy costs.
- Cost savings associated with moving away from and reducing the volume
ofmore expensive and carbon-intensive sources of energy (e.g. lowering
emissions intensity within operations, moving to more energy efficient
buildings,and heating electrification).
Strategic response/mitigationactions:
- Continued transition to renewable energy sources and work on implementing
energy efficiency measures within stores and distribution centres.
- Considering more on-site energy generation where feasible.
8. Transition
opportunity:
Consumer
preference
Increased revenue
due to consumers’
purchasing
behaviours shifting
towards more
sustainable
products.
i. Reviewed as a net opportunity
based on the continued sale
of SHP and Green-Star
rated products.
ii. Assumes the 2024/25 product
mix and markets remain static
and Kingfisher growth rate was
used to grow the sales. Scope
of review included Green
Star-rated products and
products scoring A+ and A in our
Sustainable Home Product
(SHP) guidelines as these
products have the highest
sustainability criteria andare
potentially more likely
tohave customer focus.
iii. Modelling assumes different
consumer uptake in sustainable
products based on product
type(e.g. energy saving
orwatersaving).
iv. The model assumes there
isapotential opportunity for the
growth of sustainable products
to offset the lost sales of less
sustainable products.
1.5°C 2.5°C >4°C
3-year impact Limited Limited Limited
5-year impact Limited Limited Limited
10-year impact Limited Limited Limited
Implications for resilience and strategic response/mitigation actions
Potential financial implications:
- Consumers’ purchasing behaviours are shifting towards more sustainable
products, which creates a risk of decreased sales for products on the SHP
watchlist. Conversely, there is an opportunity for increased sales of Green
Starproducts and other sustainable products (categorised as SHP A and A+).
Strategic response/mitigationactions:
- We have established a headline target to achieve 60% of Group sales from SHP
products by the end of FY 25/26 (and 70% from our SHP OEB products and
services) – see page 46 for our progress against these targets. Our Green Star
products help to make greener, healthier homes more affordable and can support
the delivery of national net zero targets. We are also taking action to reduce the
embodied carbon in our product ranges, in line with our Scope 3 carbon targets.
- Continue to expand our energy saving product ranges across our banners
tosupport customers in reducing household energy costs and emissions
(e.g.schemes such as the B&Q Energy Saving Service in the UK (launched in
2022), and the Clean Air Programme in Castorama Poland (launched in 2023)
which aims to improve thermal insulation and reduce energy consumption
andsources of air pollution in houses aged 10 years or more.
- Enhance communications ofenergy and water saving initiatives/performance
ofourproducts to customers.
Our scenario analysis results remain broadly consistent with last year and do not identify any significant impacts on our business
modelover the three-year time horizon assessed, and therefore no changes in strategy are required beyond those already being
implemented to decarbonise our business in line with limiting global temperature increases to 1.5°C. The risk associated with policy
(carbon pricing) has a greater impact on costs (through suppliers passing on carbon costs linked to materials, and taxes on direct
emissions) compared to other risks and this is the only risk which sees ‘moderate’ risk level over five and 10 year time horizons.
Thisincrease in carbon pricing risk is due to the costs of carbon driven by policy and regulation increasing under 1.5°C and 2.5°C
warming scenarios. We will continue to expand our use of scenario analysis to test our resilience to climate-related risk, and to inform
our strategic and financial planning, in line with the TCFD recommendations. Based on our assessment, we believe that ourcurrent
strategy is resilient to the impacts of climate change, however we are continuing to monitor this over the medium andlong term
andwill take appropriate actions.
The alignment of the scenarios discussed above, and the assumptions and sensitivities identified in Table 1 with our financial
statements, is described on page 144.
111Kingfisher 2025/26 Annual Report and Accounts
Our response to the Task Force on Climate-related Financial Disclosures
continued
Risk management
The process and steps we follow to identify, assess and manage
climate-related risks are integrated into Kingfisher’s overall risk
management framework to ensure consistency of approach.
Wealso recognise that climate change presents opportunities
for us to create value for our stakeholders and differentiate
ourselves in the market. Further disclosure relating to our
consideration of any climate-related opportunities is included
inthe strategy section on page 105.
Processes for identifying and assessing
climate-related risks [TCFD Risk Management (a, c)]
To identify our risks and opportunities, we conduct climate
scenario modelling testing on an annual basis. This enables
usto identify any new or emerging risks that we need
toincludewithin our risk management process. All climate-
related risks areassessed annually and included inourGroup
Responsible Business risk register managed bytheResponsible
Business team.
We also use the annual scenario modelling exercise to assess
ourrisks. The risks modelled through the scenario analysis are
incorporated into our Group Responsible Business risk register
and assessed according to their likelihood of occurrence and
their potential financial, legal, business continuity and/or
reputational impacts. Using five different impact levels, and five
different likelihoods, enables us to plot each risk on a 5 x 5 matrix.
The location of arisk on this matrix determines the risk severity
level. This issimilar to the process followed for other Group
business risksand enables us to prioritise climate-related risks.
Italso helps us determine their relative strategic significance
when compared to the other Responsible Business risks
andGroup risks.
The risk process at Kingfisher uses a three-year outlook,
however recognising the long-term nature of climate-related
risk, we have developed a climate-specific risk matrix within
the Responsible Business risk register which reviews risk on
near-term (0-3 years), medium-term (3-9 years) and long-term
(>10 years) time horizons. Our Group-level climate-related risks,
including existing and emerging regulatory requirements related
to climate change, are identified and assessed as part of our
annual review of our Group Responsible Business risk register.
Scrutiny on the validity and reliability of our response to climate-
related risks continues to increase each year. This means that
weneed to constantly focus on ensuring that our approach
andefforts to reduce our greenhouse gas emissions inline with
climate science are robust and stand up to changing external
expectations. Climate change continued to be a principal risk in
FY 25/26. A full description of our principal risks, setting out their
link to Kingfisher’s strategic priorities and how these risks are
assessed, can be found on pages 43 to 48. Our analysis does not
currently identify any significant impacts on our activities over
our three-year planning horizon. However, if we fail to monitor,
understand and act upon the opportunities and risks ofclimate
change, this could impact our long-term profitability.
Kingfisher’s processes for managing climate-related
risks [TCFD Risk Management (b, c)]
To manage and monitor our risks, we review every risk across
allseverity levels (‘limited’, ‘minor’, ‘moderate’, ‘major’ or ‘severe’),
including existing and emerging regulatory requirements related
to climate change (e.g. carbon pricing risk within our scenario
analysis), within the Group Responsible Business climate risk
register, and develop mitigation management plans as required.
This approach reflects the inherent uncertainty in how climate-
related risks and opportunities may impact our business in the
future. Our approach to managing each identified climate-related
risk and opportunity (as identified from our scenario modelling
process) is included in Table 1 on pages 108 to 111. Our climate
risks and opportunities linked to scenario analysis are also
reviewed annually by our ESG and Climate Disclosure
SteeringGroup.
As climate change is considered a principal risk, we have
procedures in place and follow a similar process as for other
business principal risks. The Group Climate Committee monitors
and assesses the company’s approach to assessing climate-
related risks and opportunities and the Group Executive and
Board review the nature, likelihood and impact of the Group
principal risks annually along with any changes since the previous
review. This includes reviewing the mitigating actions to ensure
that these risks are proactively managed.
Within the business, each banner and Group Function is
responsible for implementing appropriate actions and having
controls and procedures in place to manage and monitor their
identified risks and to verify that the controls operate effectively.
For example, climate-related risks in relation to raw materials for
our OEB products in the supply chain are managed by our Offer
&Sourcing team responsible for buying goods for resale.
Metrics and targets
We continually review our climate change metrics and targets
toensure that we are providing the information the business
andourstakeholders need to effectively monitor our
performance against our climate-related commitments, and our
progress inbuilding resilience against different climate-related
risks identified.
Metrics for assessing climate-related risks and
opportunities [TCFD Metrics and targets (a, b)]
We have identified and established specific metrics, as indicated
in Table 2 (see page 113), to assess and monitor the most
significant risks andopportunities arising from climate change.
Detailed performance data for these metrics and progress
achieved against the targets, along with historical data for
comparative purposes, has been provided under Streamlined
Energy and Carbon Reporting on pages 28 to 30.
112 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Table 2: Kingfisher metrics and targets for identified climate-related impacts [TCFD Metrics and targets (a, c)]
Climate risk
identified Target Metrics
Methodology, any key estimates/assumptions
orchanges from previous year
1
Transition risks
Liability - N/A - Increased costs. - Reviews increased costs of compliance with
agrowth in climate-related regulations and
frameworks. Methodology outlined on page 108.
- We remain committed to disclosing against our
climate-related targets and building on our
disclosure for net zero transition planning.
Carbon-pricing - Deliver our science-based targets
forFY25/26 to reduce Scope 1 and 2
emissions by37.8% inabsolute terms
(from a FY 16/17 baseline).
- Reduce Scope 3 emissions by 40% per
£mofturnover (from a FY 17/18 baseline)
1
.
- Deliver on our new near-term science-
based targets for FY 30/31 to reduce
absolute Scope 1 and 2 emissions by 70.2%
and Scope 3 emissions by 46% (from
aFY17/18 baseline).
- GHG emissions
– Scope 1, 2
and3.
- Absolute, market-based, Scope 1 and 2 GHG
emissions in the calendar year for Kingfisher
Group. Follows the GHG protocol. Limited
Assurance onScope 1 and 2 emissions by
a third-party.
- Scope 3 includes emissions from purchased
goods, upstream distribution and our customers’
use andconsumption of products sold by us.
Thisfollows GHG protocol. Further details onwww.
kingfisher.com/datamethodology.
Notedownstream customer emissions were
notmodelled in the scenario analysis due to
incomplete data to assess carbon pricing
onthisemission type (see page 109). Limited
Assurance on Scope 3 emissions (categories 1.1,
11.1 and 11.2) by a third-party.
Reputational - N/A - Reduced
revenue.
- We also monitor performance on climate change
through external disclosure benchmarks, including
CDP Climate Change Initiative. In 2025 our CDP
disclosure scorewas A (2024: A-).
Physical risks
Key facility
disruption
- N/A - Increased costs. - Methodology outlined on page 110.
Raw material
supply
- 100% responsibly sourced wood and
paperfor our products and catalogues
by FY 25/26.
- Quantity of
responsibly
sourced wood
and paper
products
(number and
percentage of
SKUs purchased).
- Details on our methodology for calculating these
targets (responsibly sourced wood andpaper)
canbe found in our Responsible Business
DataCollection Methodology (www.kingfisher.
com/datamethodology).
Seasonal
weather
- N/A - Reduced
revenue.
- Methodology outlined on page 110.
Opportunities
Consumer
preference
- 60% of Group sales to be from our
Sustainable Home Products (SHP) that help
create greener, healthier homes, including
70% ofsales for ourOwn Exclusive Brand
(OEB) products byFY25/26.
- % of total Group
sales from SHP.
- % of total Group
sales from OEB
products.
- Details on our methodology for calculating
thesetargets (sales from our Sustainable
HomeProducts) can be found in our
ResponsibleBusiness Data Collection Methodology
(www.kingfisher.com/datamethodology).
Resource
efficiency
(also a risk in
some scenarios
- see page 111)
- Deliver our science-based targets for FY 25/26
to reduce Scope 1 and 2 emissions by37.8%
inabsolute terms (from a FY16/17 baseline).
- Deliver on our new near-term science-based
targets for FY 30/31 to reduce absolute
Scope 1 and 2 emissions by 70.2% and Scope
3 emissions by 46% (from a FY 17/18 baseline).
- GHG emissions
– Scope 1 and 2.
- Absolute, market-based, Scope 1 and 2 GHG
emissions in the calendar year for Kingfisher
Group. Follows the GHG protocol. Limited
assurance on Scope 1 and 2 emissions verified
bya third-party.
1. Our current science-based targets run to FY 25/26. We have set new interim 2030 targets (see page 114)
Our metrics have been developed with consideration to the cross-industry, climate-related metric categories described in the TCFD
implementation guidance table A2.1. We will continue to review this guidance. We currently only calculate the TCFD-recommended
metrics most relevant to our business and the climate-related risks and opportunities identified in Table 1 on pages 108 to 111.
Wedonotcurrently use an internal carbon price, but this continues to be an area that we review annually.
113Kingfisher 2025/26 Annual Report and Accounts
In addition to the metrics for the climate-related risks indicated above, we are also aware of the climate-related implications associated
with aspects such as energy, water and waste, and have put corresponding metrics in place for managing and monitoring our performance
in these areas. Further information on these topics and our performance in FY 24/25, as well as comparative data for previous years,
has been provided as part of the Responsible Business Performance Data Appendix at www.kingfisher.com/dataappendix.
Executive remuneration [TCFD Metrics and targets (a)]
Our latest Remuneration Policy applicable for the executive directors (as approved at the 2025 AGM), includes the Kingfisher
Performance Share Plan which is also used for our senior leadership population (approximately 320 roles). The performance conditions
currently attached to awards made under this plan include a basket of threeESG measures, aligned to our Responsible Business
agenda. One of these measures is ‘Climate Change’, specifically ‘reductions in Scope 1 and Scope 2 carbon emissions’. Thetarget
range attached to awards has been developed taking into account our science-based targets detailed below. Currently,the basket
ofESG measures accounts for vesting of up to 25% of awards made under the plan, with each ESG measureweighted equally within
the basket. For more detail see pages 76 to 83.
Targets for managing climate-related risks and opportunities [TCFD Metrics and targets (c)]
We use several climate-related targets for managing climate-related risks and opportunities, identified below in Table 3.
Our targets have been developed with consideration to the cross-industry, climate-related metric categories described in the TCFD
implementation guidance table A2.1. The targets described below have been established as they are most relevant to our business
andthe management of our material climate-related risks and opportunities.
Additional information, including performance summary and progress against our targets, will be disclosed in our Responsible Business
Performance Data Appendix for FY 25/26.
Table 3: Progress on climate-related targets
Target Performance Variance in current year vs. target
Reach net zero emissions for our
operations (Scope 1 and 2) by the end
ofFY 40/41
Performance: On track
We have reduced absolute Scope 1 and 2 emissions
by 68.7% since 2016/17. We are currently exceeding our
FY 25/26 target and are on track to reduce emissions
by 90% by FY 40/41.
30.9 ppts higher performance
for Scope 1 and 2 compared
tointerim target.
Reduce Scope 1 and 2 market-based
emissions by37.8% in absolute terms
byFY 25/26, compared toFY 16/17
(science-based targets).
Performance: Achieved
We have reduced absolute Scope 1 and 2 emissions
by 68.7% since FY 16/17.
30.9 ppts higher performance
for Scope 1 and 2 compared
totarget.
Reduce Scope 3 emissions by 40% per
£million turnover by FY 25/26, compared
to FY 17/18.
Performance: Achieved
We have reduced our Scope 3 emissions intensity
from the supply chain and customer use of products
by 45.9% since FY 17/18.
5.9 ppts greater intensity reduction
than interim target.
100% responsibly sourced wood and
paper for our products and catalogues
byFY 25/26.
Performance: Partially achieved
99.4% of wood and paper in our products was responsibly
sourced (FY 24/25: 97.9%) and 100% of catalogue paper.
1
Products: 0.6 ppts performance
against target.
Catalogues: targetmet.
60% of Group sales to be from our
Sustainable HomeProducts by FY 25/26,
including 70% of salesfor Own Exclusive
Brand (OEB) products.
Performance: Partially achieved
58.2% of our total Group sales came from SHP in
FY25/26 (FY 24/25: 53.4%). For our OEB ranges,
we achieved 70.1% (FY 24/25: 63.3%).
Group: 1.8 ppts lower
performancethan target.
OEB: 0.1 ppts higher performance
than target.
1. 99.1% is responsibly sourced in line with the criteria outlined in our policy. The remaining 0.3% relates to products sourced from a small number of companies,
which we have assessed based on alternative, externally validated criteria.
Our science-based emissions reduction targets
We are currently delivering on our near-term targets across Scope 1, 2 and 3 (for FY 25/26), which are aligned with the methodologies
ofthe Science Based Target initiative (SBTi). We have also set new science-based near-term targets for 2030 and net zero targets
which have been approved by the SBTi. These include:
— By 2030, Kingfisher aims to reduce absolute Scope 1 and 2 emissions by 70.2% (from a 2017/18 baseline), and absolute Scope 3
emissions by 46% (from a 2017/18 baseline).
— Kingfisher aims to reach net zero emissions across Scope 1 and 2 by 2040 and across Scope 3 by 2050.
Each of our targets has been developed in line with our operational control reporting boundary, meaning that we assess 100%
ofemissions from Kingfisher’s banners where we have the full authority to introduce and implement operating policies. We continue
tobe on track to meet our emissions reduction targets, and our priority remains to maintain this progress to meet our new targets
andlong-term net zero transition. Our progress against these targets for FY 25/26, and whether we are on track with our expected
performance, has been outlined inTable 3 above. Detailed information on the work that has been done this year to develop and deliver
our climate transition plan will be will be published in our FY 25/26 Responsible Business Report. We do not currently use carbon offsets
to claim progress against any of our emissions-reduction targets. In line with the SBTi’s definition of net zero, once we have reduced
emissions by at least 90%, we will neutralise the remaining emissions through the removal of carbon from the atmosphere following
SBTi guidance on the use of carbon credits. We continue to closely monitor guidance on the use of carbon offsets.
Our response to the Task Force on Climate-related Financial Disclosures
continued
114 Kingfisher 2025/26 Annual Report and Accounts
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Independent auditor’s report to the
Membersof Kingfisher PLC
Report on the audit of the financial statements
1. Opinion
In our opinion:
— the financial statements of Kingfisher plc (the ‘parent
company’) and its subsidiaries (the ‘group’) give a true and
fair view of the state of the group’s and of the parent
company’s affairs as at 31 January 2026 and of the group’s
profit for the year then ended;
— the group financial statements have been properly
prepared in accordance with United Kingdom adopted
international accounting standards and IFRS Accounting
Standards as issued by the International Accounting
Standards Board (IASB);
— the parent company financial statements have been
properly prepared in accordance with United Kingdom
Generally Accepted Accounting Practice, including
Financial Reporting Standard 101 “Reduced Disclosure
Framework”; and
— the financial statements have been prepared in accordance
with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
— the consolidated income statement;
— the consolidated statement of comprehensive income;
— the consolidated and parent company statements of changes
in equity;
— the consolidated and parent company balance sheets;
— the consolidated cash flow statement; and
— the related notes 1 to 38 to the group financial statements and 1
to 13 to the parent company financial statements.
The financial reporting framework that has been applied in the
preparation of the group financial statements is applicable law,
United Kingdom adopted international accounting standards and
IFRS Accounting Standards as issued by the IASB. The financial
reporting framework that has been applied in the preparation of
the parent company financial statements is applicable law and
United Kingdom Accounting Standards, including FRS 101
“Reduced Disclosure Framework” (United Kingdom Generally
Accepted Accounting Practice).
2. Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in
the auditor’s responsibilities for the audit of the financial
statements section of our report.
We are independent of the group and the parent company in
accordance with the ethical requirements that are relevant to our
audit of the financial statements in the UK, including the Financial
Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to
listed public interest entities, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
The non-audit services provided to the group and parent
company for the year are disclosed in note 8 to the financial
statements. We confirm that we have not provided any non-audit
services prohibited by the FRC’s Ethical Standard to the group or
the parent company.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
3. Summary of our audit approach
Key audit
matters
The key audit matters that we identified in the
current year were:
- Impairment of store-based assets and goodwill
(Castorama France); and
- Accuracy and cut-off of supplier income.
Materiality The materiality that we used for the group financial
statements was £28 million which was determined
on the basis of 5% of adjusted profit before tax.
Scoping We focused our group audit scope on all significant
trading entities and the group’s head office and
support functions. These accounted for 94% of the
group’s revenue, 96% of the group’s profit before
tax and 94% of the group’s net assets.
Significant
changes in our
approach
Store-based asset and goodwill Impairment: Our
current year risk assessment procedures continue
to identify the impairment of goodwill and
store-based assets relating to the Castorama
France banner as a key audit matter. This is
primarily attributable to the ongoing challenges
within the French home improvement retail market
and the significant sensitivity of the impairment
models to changes in assumptions, particularly
concerning short-term cash flows and the discount
rate. These assumptions are inherently subjective
and require estimation by management.
Conversely, for certain other banners,
improvements in discount rates and a lower level
of partially impaired stores have resulted in the
store-based asset impairment models
being less sensitive to changes in assumptions.
Consequently, the impairment of storebased
assets for such banners is no longer considered a
key audit matter in the current year.
115Kingfisher 2025/26 Annual Report and Accounts
Independent auditor’s report continued
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the
directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
Our evaluation of the directors’ assessment of the group’s and
parent company’s ability to continue to adopt the going concern
basis of accounting included:
— assessing the group’s financing facilities including the nature of
facilities, repayment terms, financial and non-financial
covenants and available undrawn committed facilities;
— assessing the key assumptions used in the group’s forecasts
by evaluating past performance, the group’s strategic
initiatives to grow revenues and reduce costs, external
benchmarks and market analysis, and management’s rationale
for future assumptions;
— assessing the impact of reasonably possible downside
scenarios linked to the group’s identified principal risks on the
group’s funding position, including forecast financial covenants
and their compliance over the going concern period;
— assessing under which circumstances the group would require
additional funding and determining whether such a scenario
was likely to occur;
— recalculating the amount of liquidity and covenant headroom in
the forecasts;
— evaluating the integrity of the model used to prepare the
forecasts, which includes testing of clerical accuracy of those
forecasts;
— assessing the historical accuracy of forecasts prepared by
management; and
— assessing whether the disclosures in relation to going concern
are appropriate.
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the
group’s and parent company’s ability to continue as a going
concern for a period of at least twelve months from when the
financial statements are authorised for issue.
In relation to the reporting on how the group has applied the UK
Corporate Governance Code, we have nothing material to add or
draw attention to in relation to the directors’ statement in the
financial statements about whether the directors considered it
appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with
respect to going concern are described in the relevant sections
of this report.
5. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud)
that we identified. These matters included those which had the greatest effect on: the overall audit strategy; the allocation of
resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
5.1. Impairment of store-based assets and goodwill (Castorama France)
Key audit matter description Background and relevant account balances
At the end of the current year, the Group held property, plant and equipment which totalled £3,206 million
(2024/25: £3,105 million) and right-of-use assets totalled £1,830 million (2024/25: £1,771 million) for which a
subset relate to the Castorama France banner.
In the current year, the group recorded a net store-based asset impairment charge of £38 million (2024/25:
net charge of £94 million) across store-level CGUs which was principally driven by impairment to store
property and equipment assets in Castorama France. Of this total net charge, £80 million
(2024/25: £118 million) represented an impairment charge and £42 million (2024/25: £24 million) related to
reversals of previously recorded impairments principally driven by an increase in the fair value of freehold
properties.
In addition, the group recorded an impairment charge of £73 million (2024/25: £84 million) against goodwill
associated with the Castorama France CGU, leaving £67 million (2024/25: £138 million) of goodwill allocated
to Castorama France, as disclosed in note 13 to the financial statements.
116 Kingfisher 2025/26 Annual Report and Accounts
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5.1. Impairment of store-based assets and goodwill (Castorama France) continued
Key audit matter description
continued
Overview of key audit matter
In the prior year, the Group recorded total impairments of £131 million relating to store-based assets and
allocated goodwill for the Castorama France banner. For Castorama France, the banner has continued to
face difficult market conditions, which have impacted current year performance and have been considered
by management in the preparation of the forecast cashflows used in the impairment assessment. Lower
short-term cash flow forecasts for Castorama France, despite a reduction in the discount rate, resulted in a
goodwill impairment charge of £73 million. This also served as a principal contributor to the group’s net
store-based asset impairment charge of £38 million.
IAS 36 requires the assets to be carried as the lower of the carrying amount or the recoverable amount.
Recoverable amount is defined as the higher of an asset’s fair value less costs of disposal and its value in
use. Judgment and estimation are involved in assessing value-in-use, increasing the inherent risk of material
misstatement in determining the recorded impairment charge (or net impairment charge for store-based
assets). Cash flow forecasting is inherently judgemental, and we have determined that there is a significant
risk in Castorama France associated with the cash flow forecast assumptions used in the impairment model.
The two key assumptions applied by management in determining the value in use of store-based assets and
in respect of the group of cash generating units relating to the goodwill impairment assessment are:
- forecast short term cash flows, which include the sales assumptions and trading profit margins. This
includes the expected improvement in market conditions and the ability to realise profit growth through
internal strategic initiatives, which management have initiated in the current period; and
- the determination of country-specific discount rates.
Other assumptions assessed as part of our audit procedures relating to determining the recoverable
amount include:
- long-term growth rates; and
- for store-based assets, the vacant possession value of freehold properties, for which management
appoint third-party experts to undertake property valuations.
Further details are included within the Audit Committee Report on pages 68 to 72, key sources of
estimation uncertainty disclosures in Note 3, and Notes 13, 15, 16 and 17 to the financial statements.
How the scope of our audit
responded to the key audit
matter
Our audit focused on whether storebased asset impairment charges and goodwill impairment in Castorama
France have been appropriately determined in accordance with the requirements of IAS 36,
Impairment of
Assets
. In doing so, we carried out the following procedures which apply to both the store-based assets
and goodwill impairment tests unless otherwise stated:
- obtained an understanding of the relevant controls in respect of the impairment reviews, including review
controls associated with the group’s budgeting process and impairment models, and the determination
of country-specific discount rates to be used in the models;
- assessed the mechanical accuracy of the impairment models;
- in addressing the risk associated with these cash flow forecasts, our audit procedures included
challenging the key inputs into the value in use model. Specifically, we evaluated forecast sales growth
and profit margins by assessing past performance and understanding the Group’s strategic initiatives
aimed at revenue growth and cost reduction;
- in challenging the external factors and market growth assumptions, we performed benchmarking against
competitors in the French market, reviewed various market indices from external independent sources,
and held discussions with an internal retail market expert in France;
- in assessing historical performance and conducting trend analysis, we utilised over 20 years of historical
data to evaluate the banner’s past performance within the context of the broader French market and
macroeconomic data;
- assessed whether store-level assumptions applied were appropriate by evaluating recent store-level
trading performance compared to prior years and the average trading results across the store estate;
- assessed management’s approach to allocating the board approved three-year plan to individual stores;
- evaluated the discount rates with the involvement of internal valuation specialists to calculate
independently-derived ranges;
- evaluated long-term growth rates applied by benchmarking against external economic forecasts;
- assessed the structure of the banner to evaluate the identification and allocation of central overheads
into the respective impairment models;
- for freehold properties, agreed the vacant possession value of freehold property to third party valuation
reports, evaluated the competence, capability and objectivity of management’s appointed valuation
experts and, with the involvement of our internal real estate specialists, assessed and challenged the
inputs and valuation methodology applied; and
- assessed the appropriateness of the financial statements disclosures made
Key observations We are satisfied that the net impairment charge recorded in the year and the carrying value of store-based
assets and goodwill at the year-end associated with Castorama France, including related disclosures,
areappropriate.
117Kingfisher 2025/26 Annual Report and Accounts
Independent auditor’s report continued
5.2. Accuracy and cut-off of income from suppliers
Key audit matter description As outlined in Note 2(e), the Group receives income from suppliers, which is recognised as a deduction
from the cost of sales. This income primarily consists of volume-related rebates related to the purchase of
inventory under agreements that typically follow a calendar year. Additionally, supplier income includes
other volume-related and non-volume-related rebates based on ad-hoc agreements that do not follow the
calendar year, as well as amounts linked to funding promotional sales activities, advertising, and marketing
contributions. Given its material impact, supplier income is a significant component of the Group’s overall
profitability and financial performance.
The complexity of accounting for rebates arises from several factors, including the interpretation of
contractual terms, as agreements often include tiered structures and variable incentive components.
Furthermore, rebate calculations require transactional data related to inventory purchases or sales made
by the Group to customers, increasing the risk of misstatement.
Based on our risk assessment and aligned with the prior period, we have identified a potential fraud risk
associated with the accuracy of vendor based rebates for a number of the Group’s components where
rebates of this type make up a significant proportion of the total rebate income. In addition, for one
component, we have assessed the potential fraud risk to be associated with cut-off of other types of
rebates, including those linked to ad-hoc agreements and promotional funding, due to the quantitative
significance of these types of rebate income.
Due to the significance of supplier income, its impact on overall profitability, and the potential for material
misstatement, all of which are further heightened by current market challenges, we have identified the
accuracy and cut-off of supplier income to be a key audit matter.
How the scope of our audit
responded to the key audit
matter
Our audit focused on addressing the risk that supplier income has not been appropriately and accurately
recorded. In doing so, we carried out the following procedures:
- obtained an understanding of relevant controls over income from suppliers;
- obtained direct confirmations, across the trading banners of the Group, from a sample of suppliers to
corroborate the amounts recorded as supplier income;
- made independent enquiries with members of the commercial finance teams across banners, to
understand the rationale for any variances in confirmation responses;
- where confirmations were not received, performed alternative audit procedures, including reviewing
contractual agreements, understanding the terms, and independently recalculating the amounts recognised;
- verified that, for a sample of suppliers, the debit notes received were subsequently paid by tracing them
to a settlement invoice or to cash received; and
- performed analytical procedures, including a review of supplier income recognised for key suppliers in
the current year compared to prior years, to identify any unusual trends or variances. Additionally, we
assessed the accuracy of rebates by comparing the current year rebate listings with prior-year records
to identify any significant changes.
Key observations We are satisfied that supplier income was appropriately recognised during the period.
118 Kingfisher 2025/26 Annual Report and Accounts
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6. Our application of materiality
6.1. Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisions
of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of our audit work
and in evaluating the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Group financial statements Parent company financial statements
Materiality £28 million (2024/25: £24 million) £22 million (2024/25: £20 million)
Basis for determining
materiality
5% of adjusted profit before tax (2024/25: c.5%). Adjusting items are
defined in Note 2a with analysis included in Note 6.
0.5% of net assets (2024/25: 0.3% of net
assets) which has been capped at 80%
(2024/25: 83%) of group materiality.
Rationale for the
benchmark applied
We have determined materiality on a consistent basis with 2024/25.
Adjusted profit before tax was selected as the basis of materiality because
this is the primary measure by which stakeholders and the market assess
performance of the group.
We excluded adjusting items when determining the basis for materiality
because these items introduce significant volatility to the group’s results.
These are primarily the goodwill and store-based asset impairment
charges principally relating to the Castorama France banner.
The company is non-trading and
contains investments in all the trading
components of the group.
Group materiality £28m
Component performance
materiality range £9.6m to £15.4m
Audit Committee reporting threshold £1.4m
Adjusted PBT
Group materiality
Group materiality
Component performance materiality range max
Component performance materiality range min
Audit Committee reporting threshold
Adjusted PBT
of £560m
119Kingfisher 2025/26 Annual Report and Accounts
Independent auditor’s report continued
6.2. Performance materiality
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and
undetected misstatements exceed the materiality for the financial statements as a whole.
Group financial statements Parent company financial statements
Performance
materiality
70% (2024/25: 70%) of group materiality 70% (2024/25: 70%) of parent company materiality
Basis and rationale for
determining
performance
materiality
In determining performance materiality for both group and the parent company, we considered the following factors:
- our risk assessment, including our assessment of the group’s overall control environment; and
- the nature, volume and size of misstatements (corrected and uncorrected) in the previous audit, which have not
been significant.
6.3. Error reporting threshold
We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of £1.4 million
(2024/25: £1.2 million), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also
report to the Audit Committee on disclosure matters that we identified when assessing the overall presentation of the financial
statements.
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7. An overview of the scope of our audit
7.1. Identification and scoping of components
Our approach to scoping the group audit was to understand the
group and its environment, including groupwide controls,
implementing a risk-based approach by developing an
appropriate audit plan for each significant account balance and
assess the risks of material misstatement at the group level. The
group operates over 1,700 stores in seven countries across
Europe. We have focused our group audit scope primarily on
significant trading entities and Kingfisher PLC head office.
We have reviewed our audit scope in the current year with due
consideration of the risk profile, control environment, the
changes in the group structure and how much coverage we will
obtain. As such, we performed audits of the entire financial
information for B&Q UK, Screwfix UK, Castorama France, Brico
Dépôt France, Castorama Poland and the parent company.
Kingfisher Information Technology Services UK and property
companies associated with the above trading companies were
subject to specified audit procedures on one or more classes of
transactions, account balances or disclosures associated with
defined audit risks. For all other financial information not covered
under the above, we performed analytical procedures at the
group level. All financial reporting is managed by local finance
functions with group oversight from the head office in London.
For the parent company component, we applied a component
performance materiality equal to £15.4 million
(2024/25: £14.3 million). For the other components, we used
individual component performance materiality levels determined
on the basis of their individual financial information, which ranged
from £9.6 million to £14.4 million (2024/25: £8.4 million to
£14.3 million). The components that were scoped in for audits of
entire financial information or specified audit procedures
represented 94% (2024/25: 93%) of the group’s revenue, 96%
(2024/25: 98%) of the group’s profit before tax and 94%
(2024/25: 88%) of the group’s net assets.
7.2. Our consideration of the control environment
7.2.1. IT environment
We identified the main finance systems (SAP, CODA, HFM) and
certain other systems, including in-store transaction processing
systems, as the key IT systems relevant to our audit. SAP and
CODA are enterprise resource planning systems used for
day-to-day financial management at the banner level. HFM is a
financial reporting system used internally to facilitate the
reporting of financial information between the local and group
finance teams. IT systems are primarily managed from the
centralised Kingfisher IT Services function and therefore, we
involved a central IT audit team to evaluate the IT systems to
support our audit.
We planned to rely on IT controls associated with SAP and CODA
across certain components. We identified general IT controls
relevant to the audit as well as specific IT controls that supported
our controls reliance approach for certain business processes.
Across the in-scope trading entities, IT controls were relied on to
support audit work on the revenue, expenditure and inventory
processes as detailed in Section 7.2.2.
In order to evaluate the operating effectiveness of IT controls,
we performed walkthrough procedures to understand whether
the purpose of the control was effectively designed to address
the IT related risk and then performed testing of the control
across the audit period, to determine whether the control had
been consistently applied.
Our procedures enabled us to place reliance on IT controls, as
planned, in the audit approach.
Revenue Profit before tax Net assets
Audit of the entire financial information
Specified audit procedures
Review at group level
Audit of the entire financial information
Specified audit procedures
Review at group level
Audit of the entire financial information
Specified audit procedures
Review at group level
94%
6%
96%
4%
51%43%
6%
121Kingfisher 2025/26 Annual Report and Accounts
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7.2.2. Controls reliance
For all in-scope components, we obtained an understanding of
the relevant controls over key business processes, including
impairment of store-based assets, impairment of goodwill,
income from suppliers, revenue, expenditure and inventory.
Where components determined that reliance on controls was
appropriate, procedures were designed and performed to
test the operating effectiveness of those controls at the
componentlevel.
Our ability to adopt a controls reliance approach relied on the
evaluation of the results of testing the relevant controls in these
business processes throughout the year.
For other business processes, we either determined that a
controls reliance approach was not feasible or elected not to
adopt it after considering the components risk and control
profile. This did not impact our ability to conclude on these areas
at either the component or group level.
We understand the steps that the Group are taking in response to
the updated UK Corporate Governance Code and the
requirements of Provision 29 as set out in the Audit Committee
Report on page 68.
7.2.3 Use of audit technology
We embed technology throughout our audit to improve quality
and effectiveness, including in the areas of planning, project
management, risks and controls assessment, substantive
testing and reporting our findings to management and the
AuditCommittee.
Our data analytic tools allow us to scrutinise large transactional
data sets for unusual trends, characteristics, outliers or
transaction flows to support our identification of audit risks. We
continue to expand the use of data analytics tools in our audit to
enhance our ability to identify and assess risks. Specifically, we
have implemented analytical tools in the current year focusing on
the below key areas:
Store-Based Asset Impairment: Our enhanced analytics allowed
us to analyse store-level performance data (e.g. sales trends and
profitability) and market conditions, across the entire store
portfolio. This enabled us to identify stores that may be at higher
risk of impairment and focus our audit procedures in response.
By incorporating factors such as local economic indicators and
competitor analysis, we gained a comprehensive view of the
potential for impairment, facilitating more targeted and efficient
audit procedures.
Supplier Rebate Income: We further leveraged our data analytic
tools to analyse the completeness and accuracy of supplier
rebate income. Our procedures allowed us to assess the risk of
unrecorded rebates or errors in rebate calculations, and
therefore the completeness of such income. By comparing
current year data with prior years and industry benchmarks, we
evaluated the reasonableness of rebate income and identified
potential areas requiring further investigation.
Revenue process analytic: We have continued to leverage
process analytics to perform substantive procedures on revenue
at each banner level by automatically matching key revenue data
points across sales orders, invoices and shipping documents
generated during the revenue process.
Revenue cash analytic: We deployed a cash-to-revenue
matching test, which involved tracing 100% of independently
obtained cash receipts and tender settlements from third-party
sources to the Group’s recorded revenue. In doing so, for the
B&Q banner, we used open banking technology, which facilitated
the automated transfer of financial data from third party banks to
our audit software, which allowed us to directly match cash
inflows to the company’s accounting records.
7.3. Our consideration of climate-related risks
As part of our audit, we made enquiries of management to
understand the process they have adopted to assess the
potential impact of climate change on the financial statements.
Climate change is included in the Group’s principal risks (as set
out on page 45). The group currently considers climate to have
limited impact over its three-year planning horizon (as stated on
page 45 and note 3 to the financial statements) but has assessed
that, without effective mitigation and adaptation, climate change
solutions could have longer-term negative consequences for the
group’s strategy and trading operations.
Our procedures have also included the following:
— assessing management’s risk assessment associated with
climate change;
— assessing whether the risks identified by the group are
complete and consistent with our understanding of the group;
— evaluating whether the impact of climate has been
appropriately considered in the group’s cash flow forecasts
used for the group’s store-based asset impairment
assessment, goodwill impairment assessment and going
concern assessment;
— involving an Environmental, Social and Governance (“ESG”)
specialist to assist in evaluating whether appropriate
disclosures have been made in the financial statements with
reference to the Task Force on Climate-Related Financial
Disclosures (“TCFD”) requirements and climate related
disclosures in the notes to the financial statements;
— evaluated the appropriateness of the climate related
disclosures included in note 3 to the financial statements; and
— reading the disclosures in the strategic report on page 45 to
consider whether they are materially consistent with the
financial statements and our knowledge obtained in the audit.
122 Kingfisher 2025/26 Annual Report and Accounts
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7.4. Working with other auditors
We worked closely with the Deloitte component auditors to
involve them in our planning procedures and also to maintain
oversight throughout the audit process. We communicated our
requirements of the component auditors regularly throughout
the year and issued referral instructions formalising our
requirements of the component teams. We held a group-wide
team meeting to discuss the planned audit approach and the risks
within each component.
A senior member of the group audit team maintained regular
contact with the component audit teams and discussed
significant audit matters arising from the performance of local
audit procedures. Periodic meetings with group and component
management were held throughout the year to build on the
understanding of the significant audit matters within components
to inform our group audit approach.
The main components of the group subject to audits of entire
financial information are its retail businesses in the UK, France and
Poland. As such, there was a high level of communication
between these teams to ensure an appropriate level of group
audit team involvement in the component audit work. Further,
senior members of the group audit team (including the group
engagement partner) completed in-person visits to the
component audit teams and engaged with the component audit
teams regarding matters affecting their audits, as well as
engagement and dialogue with local management teams.
For each of these components, a senior member of the group
audit team reviewed the component working papers, including key
planning and reporting documents, the procedures performed to
address group significant risks and the procedures performed to
respond to other areas of focus and local significant risks, in order
to satisfy ourselves that we had obtained sufficient appropriate
audit evidence in response to the identified risks.
The lead audit partner and other senior members of the group
audit team attended the audit close meeting of each component
subject to an audit of the entire financial information. In
performing the procedures detailed above, the group audit team
reviewed, considered, and challenged the key matters relevant to
our conclusion in relation to the group audit and assessed the
impact on our group audit.
8. Other information
The other information comprises the information included in
the annual report other than the financial statements and our
auditor’s report thereon. The directors are responsible for the
other information contained within the annual report.
Our opinion on the financial statements does not cover the other
information and, except to the extent otherwise explicitly stated
in our report, we do not express any form of assurance
conclusion thereon.
Our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial statements, or our knowledge obtained in the
course of the audit, or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether this gives
rise to a material misstatement in the financial statements
themselves. If, based on the work we have performed, we
conclude that there is a material misstatement of this other
information, we are required to report that fact.
We have nothing to report in this regard.
9. Responsibilities of directors
As explained more fully in the directors’ responsibilities
statement, the directors are responsible for the preparation of
the financial statements and for being satisfied that they give a
true and fair view, and for such internal control as the directors
determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the directors are
responsible for assessing the group’s and the parent company’s
ability to continue as a going concern, disclosing as applicable,
matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate
the group or the parent company or to cease operations, or have
no realistic alternative but to do so.
123Kingfisher 2025/26 Annual Report and Accounts
Independent auditor’s report continued
10. Auditor’s responsibilities for the audit of
the financial statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK) will always
detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on
the basis of these financial statements.
A further description of our responsibilities for the audit of
thefinancial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description
formspart of our auditor’s report.
11. Extent to which the audit was considered
capable of detecting irregularities, including
fraud
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements
in respect of irregularities, including fraud. The extent to which
our procedures are capable of detecting irregularities, including
fraud is detailed below.
11.1. Identifying and assessing potential risks related
toirregularities
In identifying and assessing risks of material misstatement in
respect of irregularities, including fraud and noncompliance with
laws and regulations, we considered the following:
— the nature of the industry and sector, control environment and
business performance including the design of the group’s
remuneration policies, key drivers for directors’ remuneration,
bonus levels and performance targets;
— results of our enquiries of management, internal audit, the
directors and the audit committee about their own
identification and assessment of the risks of irregularities,
including those that are specific to the group’s industry;
— any matters we identified having obtained and reviewed the
group’s documentation of their policies and procedures
relating to:
— identifying, evaluating and complying with laws and
regulations and whether they were aware of any instances of
non-compliance;
— detecting and responding to the risks of fraud and whether
they have knowledge of any actual, suspected or alleged fraud;
— the internal controls established to mitigate risks of fraud or
non-compliance with laws and regulations; and
— the matters discussed among the audit engagement team
including component audit teams and relevant internal
specialists, including tax, valuations, financial instruments,
pensions, ESG and IT specialists regarding how and where
fraud might occur in the financial statements and any potential
indicators of fraud.
As a result of these procedures, we considered the opportunities
and incentives that may exist within the organisation for fraud and
identified the greatest potential for fraud in the following area: the
accuracy of supplier income. In common with all audits under
ISAs (UK), we are also required to perform specific procedures to
respond to the risk of management override of controls.
We also obtained an understanding of the legal and regulatory
frameworks that the group operates in, focusing on provisions of
those laws and regulations that had a direct effect on the
determination of material amounts and disclosures in the financial
statements. The key laws and regulations we considered in this
context included the UK Companies Act, Listing Rules, pensions
legislation, and UK and overseas tax legislation.
In addition, we considered provisions of other laws and
regulations that do not have a direct effect on the financial
statements but compliance with which may be fundamental to
the group’s ability to operate or to avoid a material penalty. These
included UK General Data Protection Regulations and Energy and
Carbon regulations.
11.2. Audit response to risks identified
As a result of performing the above, we identified the accuracy
of supplier income as a key audit matter related to the potential
risk of fraud. The key audit matters section of our report explains
the matters in more detail and also describes the specific
procedures we performed in response to that key audit matter.
In addition to the above, our procedures to respond to risks
identified included the following:
— reviewing the financial statement disclosures and testing to
supporting documentation to assess compliance with
provisions of relevant laws and regulations described as having
a direct effect on the financial statements;
— enquiring of management, the audit committee, and in-house
legal counsel concerning actual and potential litigation and claims;
— performing analytical procedures to identify any unusual or
unexpected relationships that may indicate risks of material
misstatement due to fraud;
— reading minutes of meetings of those charged with
governance, reviewing internal audit reports and reviewing
correspondence with HMRC and other tax authorities;
— in addressing the risk of fraud through management override of
controls, testing the appropriateness of journal entries and other
adjustments; assessing whether the judgements made in making
accounting estimates are indicative of a potential bias; and
— evaluating the business rationale of any significant transactions
that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations
and potential fraud risks to all engagement team members
including internal specialists and component audit teams, and
remained alert to any indications of fraud or non-compliance with
laws and regulations throughout the audit.
124 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Report on other legal and regulatory
requirements
12. Opinions on other matters prescribed by
the Companies Act2006
In our opinion the part of the directors’ remuneration report to
be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of
the audit:
— the information given in the strategic report and the
directors’ report for the financial year for which the financial
statements are prepared is consistent with the financial
statements; and
— the strategic report and the directors’ report have been
prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group
and the parent company and their environment obtained in the
course of the audit, we have not identified any material
misstatements in the strategic report or the directors’ report.
13. Corporate Governance Statement
The Listing Rules require us to review the directors’ statement in
relation to going concern, longer-term viability and that part of
the Corporate Governance Statement relating to the group’s
compliance with the provisions of the UK Corporate Governance
Code specified for our review.
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the
Corporate Governance Statement is materially consistent
with the financial statements and our knowledge obtained
during the audit:
— the directors’ statement with regards to the
appropriateness of adopting the going concern basis of
accounting and any material uncertainties identified set out
on page 51;
— the directors’ explanation as to its assessment of the
group’s prospects, the period this assessment covers and
why the period is appropriate set out on pages 49 and 50;
— the directors’ statement on fair, balanced and
understandable set out on page 102;
— the board’s confirmation that it has carried out a robust
assessment of the emerging and principal risks set out on
pages 43 to 48;
— the section of the annual report that describes the review of
effectiveness of risk management and internal control
systems set out on pages 71 and 72; and
— the section describing the work of the audit committee set
out on pages 68 to 72.
14. Matters on which we are required to
report by exception
14.1. Adequacy of explanations received and
accounting records
Under the Companies Act 2006 we are required to report to you
if, in our opinion:
— we have not received all the information and explanations we
require for our audit; or
— adequate accounting records have not been kept by the
parent company, or returns adequate for our audit have not
been received from branches not visited by us; or
— the parent company financial statements are not in agreement
with the accounting records and returns.
We have nothing to report in respect of these matters.
14.2. Directors’ remuneration
Under the Companies Act 2006, we are also required to report if
in our opinion certain disclosures of directors’ remuneration have
not been made or the part of the directors’ remuneration report
to be audited is not in agreement with the accounting records
and returns.
We have nothing to report in respect of these matters.
15. Other matters which we are required to
address
15.1. Auditor tenure
Following the recommendation of the audit committee, we were
appointed by the Board of Directors on 5 October 2009 to audit
the financial statements for the year ending 31 January 2010 and
subsequent financial periods. The period of total uninterrupted
engagement including previous renewals and reappointments of
the firm is 17 years, covering the years ending 31 January 2010 to
31 January 2026.
15.2. Consistency of the audit report with the
additional report to the Audit Committee
Our audit opinion is consistent with the additional report to the
Audit Committee we are required to provide in accordance
withISAs (UK).
125Kingfisher 2025/26 Annual Report and Accounts
Independent auditor’s report continued
16. Use of our report
This report is made solely to the company’s members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might state
to the company’s members those matters we are required to
state to them in an auditor’s report and for no other purpose. To
the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company and the
company’s members as a body, for our audit work, for this report,
or for the opinions we have formed.
As required by the Financial Conduct Authority (FCA) Disclosure
Guidance and Transparency Rule (DTR) 4.1.15R – DTR 4.1.18R,
these financial statements will form part of the Electronic Format
Annual Financial Report filed on the National Storage Mechanism
of the FCA in accordance with DTR 4.1.15R – DTR 4.1.18R. This
auditor’s report provides no assurance over whether the
Electronic Format Annual Financial Report has been prepared in
compliance with DTR 4.1.15R – DTR 4.1.18R.
David Griffin FCA (Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
23 March 2026
126 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Consolidated income statement
Year ended 31 January 2026
£ millions
2025/26
2024/25
Before adjusting Adjusting items Before adjusting Adjusting items
Notes items (note 6) Total items (note 6) Total
Sales
4
1 2,945
–
12,945
12,784
–
12,784
Cost of sales
(8,015)
–
(8,015)
(8,021)
–
(8,021)
Gross profit
4,93 0
–
4,93 0
4,763
–
4,763
Selling and distribution expenses
(3,212)
(61)
(3,273)
(3,122)
(99)
(3,221)
Administrative expenses
 (1,082)(73)(1,155)(1,018)(97)(1,115)
Other income
24
2
26
20
–
20
Other expenses
–
(31)
(31)
–
(25)
(25)
Share of results from equity accounted
investments
18
(9)
(19)(28)(15)
–
(15)
Operating profit
5
651
(182)
469
628
(221)
407
Finance costs
(124)
–
(124)
(132)
–
(132)
Finance income
33
–
33
32
–
32
Net finance costs
7
(91)
–
(91)
(100)
–
(100)
Profit before taxation
8
560
(182)
378
528
(221)
307
Income tax expense
10
(144)
11
(133)
(147)
25
(122)
Profit for the year
416
(171)
245
381
(196)
185
Earnings per share
11
Basic
14.0p
10.1p
Diluted
13.8p
9.9p
Adjusted basic
23.8p
20.7p
Adjusted diluted
23.4p
20.4p
The proposed dividend for the year ended 31 January 2026, subject to approval by shareholders at the Annual General Meeting,
is 12.40p per share, comprising an interim dividend of 3.80p in respect of the six months ended 31 July 2025, and a final dividend
of 8.60p.
127Kingfisher 2025/26 Annual Report and Accounts
Consolidated statement of comprehensive
income
Year ended 31 January 2026
£ millions
Notes
2025/26
2024/25
Profit for the year
245
185
Remeasurements of post-employment benefits
28
(7)
(11)
Inventory cash flow hedges
– fair value (losses)/gains
(74)
22
Tax on items that will not be reclassified
21
28
Total items that will not be reclassified subsequently to profit or loss
 (60)39
Currency translation differences
Subsidiaries
97
(25)
Equity accounted investments
(1)
6
Transferred to income statement
34
14
–
Inventory cash flow hedges – losses transferred to income statement
–
1
Total items that may be reclassified subsequently to profit or loss
110
(18)
Other comprehensive income for the year
50
21
Total
comprehensive income for the year
295
206
128 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Consolidated statement of changes in equity
Year ended 31 January 2026
2025/26
Capital Other
Share capital Share Own shares Retained redemption reserves
£ millions
 Notes (note 29) premium held earnings reserve (note 30) Total equity
At 1 February 2025
282
2,228
(34)
3,475
94
299
6,344
Profit for the year
–
–
–
245
–
–
245
Other comprehensive (expense)/income for the
year
–
–
–
(4)
–
54
50
Total comprehensive income for the year
–
–
–
241
–
54
295
Inventory cash flow hedges
– losses transferred to
inventories
–
–
–
–
–
36
36
Share
-based compensation
31
–
–
–
27
–
–
27
New shares issued under share schemes
29
1
–
–
8
–
–
9
Own shares issued under share schemes
–
–
21
(21)
–
–
–
Purchase of own shares for cancellation
29
(14)
–
–
(301)
14
–
(301)
Purchase of own shares for ESOP trust
–
–
(25)
–
–
–
(25)
Dividends
12
–
–
–
(218)
–
–
(218)
Tax on equity items
–
–
–
1
–
(10)
(9)
At 31 January 2026
269
2,228
(38)
3,212
108
379
6,158
2024/25
Capital Other
Share capital Share Own shares Retained redemption reserves
£ millions
 Notes (note 29) premium held earnings reserve
(note 30)
Total equity
At 1 February 2024
294
2,228
(31)
3,741
82
290
6,604
Profit for the year
–
–
–
185
–
–
185
Other comprehensive
income/(expense) for the
year
–
–
–
23
–
(2)
21
Total comprehensive income
/(expense) for
the year
–
–
–
208
–
(2)
206
Inventory cash flow hedges
– losses transferred to
inventories
–
–
–
–
–
15
15
Share
-based compensation
31
–
–
–
20
–
–
20
New shares issued under share schemes
29
–
–
–
2
–
–
2
Own shares issued under share schemes
–
–
23
(23)
–
–
–
Purchase of own shares for cancellation
29
(12)
–
–
(251)
12
–
(251)
Purchase of own shares for ESOP trust
–
–
(26)
–
–
–
(26)
Dividends
12
–
–
–
(228)
–
–
(228)
Tax on equity items
–
–
–
6
–
(4)
2
At 31 January 202
5
282
2,228
(34)
3,475
94
2 99
6,344
Consolidated statement of comprehensive
income
Year ended 31 January 2026
£ millions
Notes 2025/26 2024/25
Profit for the year
245
185
Remeasurements of post-employment benefits
28
(7)
(11)
Inventory cash flow hedges – fair value (losses)/gains
(74)
22
Tax on items that will not be reclassified
21
28
Total items that will not be reclassified subsequently to profit or loss
(60) 39
Currency translation differences
Subsidiaries
97
(25)
Equity accounted investments
(1)
6
Transferred to income statement
34
14
–
Inventory cash flow hedges – losses transferred to income statement
–
1
Total items that may be reclassified subsequently to profit or loss
110
(18)
Other comprehensive income for the year
50
21
Total
comprehensive income for the year 295 206
129Kingfisher 2025/26 Annual Report and Accounts
Consolidated balance sheet
At 31 January 2026
£ millions
Notes
2025/26
2024/25
Non-current assets
Goodwill
13
2,239
2 ,312
Other intangible assets
14
261
312
Property, plant
and equipment
15
3,206
3,10 5
Investment property
16
88
34
Right
-of-use assets
17
1,830
1,771
Equity accounted investments
18
–
29
Post
-employment benefits
28
181
2 02
Deferred tax assets
26
6
7
Derivative assets
24
–
2
Other receivables
20
13
11
7,824
7,785
Current assets
Inventories
19
2,768
2,719
Trade and other receivables
20
289
276
Derivative assets
24
1
22
Current tax assets
47
78
Other tax authority asset
36
–
69
Cash and cash equivalents
21
465
336
Assets held for sale
4
158
3,574
3,658
Total assets
11,398
11,443
Current liabilities
Trade and other payables
22
(2,524)
(2,355)
Borrowings
23
(3)
(108)
Lease liabilities
33
(351)
(345)
Derivative liabilities
24
(22)
(5)
Current tax liabilities
(13)
(6)
Provisions
27
(29)
(16)
Liabilities directly associated with assets held for sale
–
(92)
(2,942)
(2,927)
Non-current liabilities
Other payables
22
(2)
(2)
Borrowings
23
(100)
(1)
Lease liabilities
33
(1,887)
(1,866)
Derivative liabilities
24
(1)
–
Deferred tax liabilities
26
(207)
(193)
Provisions
27
(3)
(9)
Post-employment benefits
28
(98)
(101)
(2,298)(2,172)
Total liabilities
(5,240)
(5,099)
Net assets
5
6,158
6,344
Equity
Share capital
29
269
282
Share premium
2,228
2,228
Own shares held in ESOP trust
(38)
(34)
Retained earnings
3,212
3,475
Capital redemption reserve
108
94
Other reserves
30
379
299
Total equity
6,158
6,344
The financial statements were approved and authorised by the Board of Directors on 23 March 2026 and signed on its behalf by:
Thierry Garnier Bhavesh Mistry
Chief Executive Officer Chief Financial Officer
130 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Consolidated cash flow statement
Year ended 31 January 2026
£ millions
Notes
2025/26
2024/25
Operating activities
Cash generated
from operations
32
1,434
1,411
Income tax paid
(65)
(109)
Other tax authority receipt
36
64
–
Net cash flows from operating activities
1,433
1,302
Investing activities
Purchase of property, plant and equipment
and investment property
(303)
(241)
Purchase of intangible assets
(85)
(76)
Proceeds from d
isposals of property, plant and equipment and investment property
2
–
Proceeds from disposals of property assets held for sale
2
2
Joint venture capital contributions
–
(19)
Disposal of subsidiaries, net of cash disposed
34
33
(3)
Investment
s in short-term deposits
(227)
–
Maturity of short-term deposits
227
–
Interest received
31
23
Interest element of sublease rental receipts
–
1
Principal element of
sublease rental receipts
2
2
Advance payments on right-of-use assets
(13)
(5)
Net cash flows used in investing activities
(331)
(316)
Financing activities
Interest paid
 (8)(8)
Interest element of lease rental payments
(118)
(123)
Principal element of lease rental payments
 (379)(387)
Arrangement fees paid
(1)
(2)
New shares issued under share schemes
9
2
Purchase of own shares for cancellation
(256)
(225)
Purchase of own shares for ESOP trust
 (25)(26)
Ordinary dividends paid to equity shareholders of the Company
12
(218)
(228)
Net cash flows used in financing activities
(996)
(997)
Net increase/(decrease) in cash and cash equivalents and bank overdrafts
106
(11)
Cash and cash equivalents and bank overdrafts at beginning of year
336
353
Exchange differences
20
(6)
Cash and cash equivalents and bank overdrafts at end of year
33
462
336
Cash and cash equivalents and bank overdrafts at the end of the year include £nil of cash included within assets held for sale on the
balance sheet (2024/25: £9m).
Consolidated balance sheet
At 31 January 2026
£ millions
Notes 2025/26 2024/25
Non-current assets
Goodwill
13 2,239 2,312
Other intangible assets
14
261
312
Property, plant
and equipment 15 3,206 3,105
Investment property
16
88
34
Right
-of-use assets 17 1,830 1,771
Equity accounted investments
18
–
29
Post
-employment benefits 28 181 202
Deferred tax assets
26
6
7
Derivative assets
24 – 2
Other receivables
20
13
11
7,824
7,785
Current assets
Inventories
19
2,768
2,719
Trade and other receivables
20
289
276
Derivative assets
24
1
22
Current tax assets
47
78
Other tax authority asset
36
–
69
Cash and cash equivalents
21
465
336
Assets held for sale
4
158
3,574 3,658
Total assets
11,398 11,443
Current liabilities
Trade and other payables
22
(2,524)
(2,355)
Borrowings
23 (3)
(108)
Lease liabilities
33
(351)
(345)
Derivative liabilities
24 (22)
(5)
Current tax liabilities
(13)
(6)
Provisions
27 (29)
(16)
Liabilities directly associated with assets held for sale
–
(92)
(2,942)
(2,927)
Non-current liabilities
Other payables
22
(2)
(2)
Borrowings
23
(100)
(1)
Lease liabilities
33
(1,887)
(1,866)
Derivative liabilities
24
(1)
–
Deferred tax liabilities
26
(207)
(193)
Provisions
27
(3)
(9)
Post-employment benefits
28
(98)
(101)
(2,298)
(2,172)
Total liabilities
(5,240)
(5,099)
Net assets
5 6,158 6,344
Equity
Share capital
29
269
282
Share premium
2,228 2,228
Own shares held in ESOP trust
(38)
(34)
Retained earnings
3,212 3,475
Capital redemption reserve
108
94
Other reserves
30 379 299
Total equity
6,158
6,344
The financial statements were approved and authorised by the Board of Directors on 23 March 2026 and signed on its behalf by:
Thierry Garnier Bhavesh Mistry
Chief Executive Officer Chief Financial Officer
131Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements
1 General information
Kingfisher plc (‘the Company’), its subsidiaries and joint ventures
(together ‘the Group’) supply home improvement products and
services through a network of retail stores and other channels,
located mainly in the United Kingdom and continental Europe.
The nature of the Group’s operations and its principal activities
are set out in the Strategic Report on pages 2 to 51.
The Company is incorporated in England and Wales, United
Kingdom, and is listed on the London Stock Exchange. The
address of its registered office is 1 Paddington Square, London,
W2 1GG . A full list of related undertakings of the Company and
their registered offices is given in note 12 of the Company’s
separate financial statements.
These consolidated financial statements have been approved for
issue by the Board of Directors on 23 March 2026.
2 Material accounting policies
The material accounting policies applied in the preparation of
these consolidated financial statements are set out below. These
policies have been consistently applied to the years presented.
a. Basis of preparation
The consolidated financial statements of the Group are made
up to 31 January. The current financial year is the year ended
31 January 2026 (‘the year’ or ‘2025/26’). The comparative
financial year is the year ended 31 January 2025 (‘the prior year’
or ‘2024/25’). The consolidated income statement and related
notes represent results from continuing operations, there being
no discontinued operations in the years presented.
The consolidated financial statements have been prepared in
accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006 and
International Financial Reporting Standards (IFRS Standards)
as issued by the IASB.
The consolidated financial statements have been prepared
under the historical cost convention, as modified by the use
of valuations for certain financial instruments, share-based
payments and post-employment benefits. A summary of the
Group’s material accounting policies is set out below.
The preparation of financial statements in accordance with
IFRS requires the use of certain accounting estimates and
assumptions. It also requires management to exercise its
judgement in the process of applying the Group’s accounting
policies. The areas involving critical accounting judgements and
key estimation uncertainties, which are significant to the
consolidated financial statements, are outlined in note 3.
Going concern
Based on the Group’s liquidity position and cash flow projections,
including a forward-looking remote downside scenario, the
Directors have a reasonable expectation that the Company and
the Group have adequate resources to continue in operational
existence for the foreseeable future, a period of at least 12
months from the date on which the financial statements are
authorised for issue, and they continue to adopt the going
concern basis of accounting in preparing the consolidated
financial statements for the year ended 31 January 2026.
The Group’s business activities, together with the factors likely to
affect its future development, performance and position, are set
out in the Strategic Report on pages 2 to 51. The financial position
of the Group, its cash flows, liquidity position and borrowing
facilities are described in the financial review on pages 31 to 37.
The principal risks and viability statement of the Group are set
out on pages 43 to 50. In addition, note 25 includes the Group’s
financial risk management objectives and exposures to liquidity
and other financial risks. The Directors have considered these
areas alongside the principal risks and how they may impact the
going concern assessment.
As of 31 January 2026, Kingfisher had access to £1,112m of liquidity,
comprising cash and cash equivalents (net of bank overdrafts) of
£462m and access to an undrawn Revolving Credit Facility (RCF)
of £650m (which expires at the end of May 2028). The ratio of net
debt to Adjusted EBITDA was 1.4 as of 31 January 2026.
The terms of the RCF require that the ratio of Group operating
profit (excluding adjusting items) to net interest payable
(excluding interest on lease liabilities) must be no less than 3:1 for
the preceding 12 months as at the half- and full-year ends. As of
31 January 2026, Kingfisher was compliant with this requirement.
In forming their outlook on the future financial performance, the
Directors considered the risk of higher business volatility and the
potential negative impact of the general economic environment
on household and trade spend.
The Directors’ review also included consideration of a remote
scenario that models the impact of a significant demand or supply
shock preventing the Group from realising a large part of its sales
over the period of a month, followed by subdued demand for the
remainder of the year. The total loss of sales in this scenario is
c.£1.8bn (13% over the impacted period). The scenario assumes
the impact of lost sales is partially offset by a limited set of
mitigating actions on variable and discretionary costs, capital
expenditure and the suspension of capital returns to
shareholders. Even under this remote scenario, which would
require temporarily drawing on the RCF, the Group retains
adequate headroom on its credit facilities.
Given current trading and expectations for the business, the
Directors believe that this scenario reflects a remote outcome
for the Group. Should a more extreme scenario occur than
currently modelled by the Directors under this remote scenario,
the Group would need to implement additional operational or
financial measures.
132 Kingfisher 2025/26 Annual Report and Accounts
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Changes to accounting policies as a result of new
standards issued and effective
The following new or amended accounting standards are in issue
and effective for the current reporting period:
— Amendments to IAS 21 – Amendments for currencies lacking
exchangeability
The above amended accounting standard did not have a material
impact on the consolidated financial statements.
Standards issued but not yet effective
As of the date these financial statements were approved, the
following new standards and amendments had been issued but
were not yet effective and have therefore not been applied in
these financial statements:
— Amendments to IFRS 9 and IFRS 7 – Amendments to
classification and Measurement of Financial Instruments, and
Contracts Referencing Nature-dependent Electricity
(effective from 1 January 2026)
— Annual Improvements to IFRS Accounting Standards – Volume
11 (effective from 1 January 2026)
— IFRS 18 – Presentation and Disclosure in Financial Statements
(effective from 1 January 2027)
— IFRS 19 – Subsidiaries without Public Accountability:
Disclosures (effective from 1 January 2027)
IFRS 18 – Presentation and Disclosure in Financial Statements,
will replace IAS 1 and is effective for annual reporting periods
beginning on or after 1 January 2027. The Group will apply the
standard from its mandatory effective date and does not intend
to adopt early. The adoption of IFRS 18 will primarily impact the
presentation of the consolidated income statement and related
disclosures, as well as disclosure of management-defined
performance measures (MPMs) in a separate note to the accounts.
Based on the Group’s current assessment, the most significant
presentation changes are expected to include:
— Share of results from equity accounted investments being
presented within the investing category, rather than within
operating profit as currently presented;
— Rental income and expenses from investment properties will
be presented within the investing category (currently
presented within operating profit); and
— Net finance income or expenses, as well as foreign exchange
differences, will be reallocated to the appropriate income
statement category in line with the requirements of the
new standard.
Certain Alternative Performance Measures (APMs) that meet the
definition of management-defined performance measures
(MPMs) under IFRS 18 will be disclosed in a single note to the
accounts, including reconciliations to the most directly
comparable IFRS subtotal.
IFRS 18 requires retrospective application. Accordingly,
comparative information for the financial year ending 31 January
2027 will be restated in the Group’s 2027/28 financial statements.
The Group continues to assess the full impact of the new standard.
The other new standards and amendments are not expected to
have a material impact on the consolidated financial statements.
Risks and uncertainties
The principal risks and uncertainties to which the Group is
exposed are set out in the Strategic Report on pages 2 to 51.
Use of non-GAAP measures
In the reporting of financial information, the Group uses certain
measures that are not required under IFRS – the generally
accepted accounting principles (‘GAAP’) under which the Group
reports. The Group believes that retail profit, adjusted pre-tax
profit, adjusted effective tax rate, and adjusted earnings per
share provide additional useful information on performance and
trends to shareholders. These and other non-GAAP measures
(also known as ‘Alternative Performance Measures’), such as net
debt, are used for internal performance analysis and incentive
compensation arrangements for employees. The terms ‘retail
profit’, ‘adjusting items’, ‘adjusted’, ‘adjusted effective tax rate’,
‘net cash flow’ and ‘net debt’ are not defined terms under IFRS
and may therefore not be comparable with similarly titled
measures reported by other companies. They are not intended
to be a substitute for, or superior to, GAAP measures.
Retail profit is defined as continuing profit before tax, before central
costs, the Group’s share of interest and tax from equity accounted
investments, adjusting items and net finance costs. Central costs
principally comprise the costs of the Group’s head office before
adjusting items. This is the Group’s operating profit measure used to
report the performance of the Group’s retail businesses.
Adjusting items, which are presented separately within their
relevant income statement category, include items which by
virtue of their size and/or nature, do not reflect the Group’s
ongoing trading performance. Adjusting items may include, but
are not limited to:
— non-trading items included in operating profit such as profits
and losses on the disposal, closure, exit or impairment of
subsidiaries, joint ventures, associates and investments which
do not form part of the Group’s ongoing trading activities;
— the costs of significant restructuring and incremental
acquisition integration costs;
— profits and losses on the disposal/exit of properties
1
,
impairments of goodwill and significant impairments (or
impairment reversals) of other non-current assets, which the
Group identifies as adjusting due to volatility which can arise
year-on-year based on future forecasts and assumptions;
— prior year tax items (including the impact of changes in tax
rates on deferred tax), significant one-off tax settlements and
provision charges/releases, and the tax effects of other adjusting
items; and
— financing fair value remeasurements i.e. changes in the fair
value of financing derivatives, excluding interest accruals,
offset by fair value adjustments to the carrying amount
of borrowings and other hedged items under fair value (or
non-designated) hedge relationships. Financing derivatives are
those that relate to hedged items of a financing nature.
The term ‘adjusted’ refers to the relevant measure being
reported for continuing operations excluding adjusting items.
1. The Group does not routinely dispose of or exit properties (i.e. other than on
expiry of a lease) and does not consider property disposals to form part of
its trading operations as a result. This includes profits or losses on disposals
of freehold properties, or lease gains or losses arising from the exit of leased
properties before the lease expiry date.
Notes to the consolidated financial statements
1 General information
Kingfisher plc (‘the Company’), its subsidiaries and joint ventures
(together ‘the Group’) supply home improvement products and
services through a network of retail stores and other channels,
located mainly in the United Kingdom and continental Europe.
The nature of the Group’s operations and its principal activities
are set out in the Strategic Report on pages 2 to 51.
The Company is incorporated in England and Wales, United
Kingdom, and is listed on the London Stock Exchange. The
address of its registered office is 1 Paddington Square, London,
W2 1GG. A full list of related undertakings of the Company and
their registered offices is given in note 12 of the Company’s
separate financial statements.
These consolidated financial statements have been approved for
issue by the Board of Directors on 23 March 2026.
2 Material accounting policies
The material accounting policies applied in the preparation of
these consolidated financial statements are set out below. These
policies have been consistently applied to the years presented.
a. Basis of preparation
The consolidated financial statements of the Group are made
up to 31 January. The current financial year is the year ended
31 January 2026 (‘the year’ or ‘2025/26’). The comparative
financial year is the year ended 31 January 2025 (‘the prior year’
or ‘2024/25’). The consolidated income statement and related
notes represent results from continuing operations, there being
no discontinued operations in the years presented.
The consolidated financial statements have been prepared in
accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006 and
International Financial Reporting Standards (IFRS Standards)
as issued by the IASB.
The consolidated financial statements have been prepared
under the historical cost convention, as modified by the use
of valuations for certain financial instruments, share-based
payments and post-employment benefits. A summary of the
Group’s material accounting policies is set out below.
The preparation of financial statements in accordance with
IFRS requires the use of certain accounting estimates and
assumptions. It also requires management to exercise its
judgement in the process of applying the Group’s accounting
policies. The areas involving critical accounting judgements and
key estimation uncertainties, which are significant to the
consolidated financial statements, are outlined in note 3.
Going concern
Based on the Group’s liquidity position and cash flow projections,
including a forward-looking remote downside scenario, the
Directors have a reasonable expectation that the Company and
the Group have adequate resources to continue in operational
existence for the foreseeable future, a period of at least 12
months from the date on which the financial statements are
authorised for issue, and they continue to adopt the going
concern basis of accounting in preparing the consolidated
financial statements for the year ended 31 January 2026.
The Group’s business activities, together with the factors likely to
affect its future development, performance and position, are set
out in the Strategic Report on pages 2 to 51. The financial position
of the Group, its cash flows, liquidity position and borrowing
facilities are described in the financial review on pages 31 to 37.
The principal risks and viability statement of the Group are set
out on pages 43 to 50. In addition, note 25 includes the Group’s
financial risk management objectives and exposures to liquidity
and other financial risks. The Directors have considered these
areas alongside the principal risks and how they may impact the
going concern assessment.
As of 31 January 2026, Kingfisher had access to £1,112m of liquidity,
comprising cash and cash equivalents (net of bank overdrafts) of
£462m and access to an undrawn Revolving Credit Facility (RCF)
of £650m (which expires at the end of May 2028). The ratio of net
debt to Adjusted EBITDA was 1.4 as of 31 January 2026.
The terms of the RCF require that the ratio of Group operating
profit (excluding adjusting items) to net interest payable
(excluding interest on lease liabilities) must be no less than 3:1 for
the preceding 12 months as at the half- and full-year ends. As of
31 January 2026, Kingfisher was compliant with this requirement.
In forming their outlook on the future financial performance, the
Directors considered the risk of higher business volatility and the
potential negative impact of the general economic environment
on household and trade spend.
The Directors’ review also included consideration of a remote
scenario that models the impact of a significant demand or supply
shock preventing the Group from realising a large part of its sales
over the period of a month, followed by subdued demand for the
remainder of the year. The total loss of sales in this scenario is
c.£1.8bn (13% over the impacted period). The scenario assumes
the impact of lost sales is partially offset by a limited set of
mitigating actions on variable and discretionary costs, capital
expenditure and the suspension of capital returns to
shareholders. Even under this remote scenario, which would
require temporarily drawing on the RCF, the Group retains
adequate headroom on its credit facilities.
Given current trading and expectations for the business, the
Directors believe that this scenario reflects a remote outcome
for the Group. Should a more extreme scenario occur than
currently modelled by the Directors under this remote scenario,
the Group would need to implement additional operational or
financial measures.
133Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
2 Material accounting policies continued
The adjusted effective tax rate is calculated as continuing income
tax expense excluding prior year tax items (including the impact
of changes in tax rates on deferred tax), significant one-off tax
settlements and provision charges/releases and the tax effects
of other adjusting items, divided by continuing profit before
taxation excluding adjusting items. Prior year tax items represent
income statement tax relating to underlying items originally
arising in prior years, including the impact of changes in tax rates
on deferred tax. The exclusion of items relating to prior years,
and those not in the ordinary course of business, helps provide an
indication of the Group’s ongoing rate of tax.
Net debt comprises lease liabilities, borrowings and financing
derivatives (excluding accrued interest) less cash and cash
equivalents and short-term deposits, including such balances
classified as held for sale.
Refer to the Glossary for definitions of all of the Group’s
Alternative Performance Measures, including further information
on why they are used and details of where reconciliations to
statutory measures can be found where applicable.
b. Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company, its subsidiaries, joint ventures and
associates.
(i) Subsidiaries
Subsidiaries are entities (including structured entities) over which
the Group has control. The Group controls an entity when the
Group is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those
returns through its power over the entity.
Subsidiaries acquired are recorded under the acquisition
method of accounting and their results included from the date
of acquisition.
The results of subsidiaries which have been disposed are
included up to the effective date of disposal.
The consideration transferred for the acquisition of a subsidiary
is the fair value of the assets transferred, the liabilities incurred
and the equity interests issued by the Group. The consideration
transferred includes the fair value of any asset or liability resulting
from a contingent consideration arrangement. Acquisition-
related costs are expensed as incurred. Identifiable assets
acquired and liabilities and contingent liabilities assumed in a
business combination are measured initially at their fair values at
the acquisition date. On an acquisition-by-acquisition basis, the
Group recognises any non-controlling interest in the acquiree
either at fair value or at the non-controlling interest’s
proportionate share of the acquiree’s net assets. Subsequent to
acquisition, the carrying amount of non-controlling interests is the
amount of those interests at initial recognition plus the non-
controlling interests’ share of subsequent changes in equity.
Total comprehensive income is attributed to non-controlling
interests even if this results in the non-controlling interests
having a deficit balance.
The excess of the consideration transferred, the amount of any
non-controlling interests in the acquiree and the acquisition-date
fair value of any previous equity interests in the acquiree over
the fair value of the identifiable net assets acquired is recorded
as goodwill. If this is less than the fair value of the net assets of
the subsidiary acquired in the case of a bargain purchase, the
difference is recognised directly in the income statement.
Intercompany transactions, balances and unrealised gains on
transactions between Group companies are eliminated on
consolidation. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of the asset
transferred. Accounting policies of acquired subsidiaries have
been changed where necessary to ensure consistency with the
policies adopted by the Group.
(ii) Joint ventures and associates
Joint ventures are entities over which the Group has joint control.
Joint control is the contractually agreed sharing of control of an
arrangement, which exists only when decisions about the relevant
activities require the unanimous consent of the parties sharing
control. The equity method is used to account for the Group’s
investments in joint ventures.
Associates are entities over which the Group has the ability to
exercise significant influence but not control or joint control,
generally accompanied by a shareholding of between 20% and
50% of the voting rights. The equity method is used to account
for the Group’s investments in associates.
An investment in an associate or a joint venture is accounted for
using the equity method from the date on which the investee
becomes an associate or a joint venture. On acquisition of the
investment in an associate or a joint venture, any excess of the
cost of the investment over the Group’s share of the net fair
value of the identifiable assets and liabilities of the investee is
recognised as goodwill, which is included within the carrying
amount of the investment. Any excess of the Group’s share of
the net fair value of the identifiable assets and liabilities over the
cost of the investment, after reassessment, is recognised
immediately in profit or loss in the period in which the investment
is acquired.
The Group’s share of post-acquisition profits or losses is
recognised in the income statement within operating profit, and
its share of post-acquisition movements in other comprehensive
income is recognised in other comprehensive income. The
cumulative post-acquisition movements are adjusted against the
carrying amount of the investment. When the Group’s share of
losses equals or exceeds its interest, including any other long-
term receivables, the Group does not recognise any further
losses, unless it has incurred obligations or made payments on
behalf of the joint venture or associate.
134 Kingfisher 2025/26 Annual Report and Accounts
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Financial
Statements
Strategic
Report
Unrealised gains on transactions between the Group and its
joint ventures and associates are eliminated to the extent of
the Group’s interest. Unrealised losses are also eliminated unless
the transaction provides evidence of an impairment of the
asset transferred.
Accounting policies of joint ventures and associates have been
changed where necessary to ensure consistency with the
policies adopted by the Group.
Equity accounted investments are reviewed for impairment
where there is an indication of impairment.
The equity method of accounting is discontinued from the date
an investment ceases to be a joint venture or associate, that is
the date on which the Group ceases to have joint control or
significant influence over the investee or on the date it is
classified as held for sale.
In March 2022, the three-year cumulative inflation in Turkey
exceeded 100% and as a result, hyperinflationary accounting
under IAS 29 has been applied for reporting periods since that
date in respect of the Group’s joint venture in Turkey (Koçtaş).
The equity accounted results and financial position of Koçtaş are
restated to the current purchasing power as at the year-end
date, with hyperinflationary gains and losses in respect of
monetary items being reported in operating profit. Equity
adjustments in relation to application of IAS 29 are recorded
within exchange differences on consolidation. Both the equity
accounted investment and results are translated at the rate of
exchange at the balance sheet date.
c. Foreign currencies
(i) Presentation and functional currencies
The consolidated financial statements are presented in Sterling,
which is the Group’s presentation currency. Items included in the
financial statements of each of the Group’s entities are measured
using the currency of the primary economic environment in
which the entity operates (i.e. its functional currency).
(ii) Transactions and balances
Transactions denominated in foreign currencies are translated
into the functional currency at the exchange rates prevailing
on the date of the transaction or, for practical reasons, at
average monthly rates where exchange rates do not
fluctuate significantly.
Monetary assets and liabilities denominated in foreign currencies
are translated into Sterling at the rates of exchange at the
balance sheet date. Exchange differences on monetary items are
recorded in the income statement. Exceptions to this are where
the monetary items form part of the net investment in a foreign
operation or are designated and effective net investment
hedges. Such exchange differences are initially deferred
in equity.
(iii) Group companies
The balance sheets of overseas subsidiaries are expressed in
Sterling at the rates of exchange at the balance sheet date.
Profits and losses of overseas subsidiaries are expressed in
Sterling at average exchange rates for the period. Exchange
differences arising on the retranslation of foreign operations,
including joint ventures and associates, are recognised in a
separate component of equity.
On consolidation, exchange differences arising from the
retranslation of the net investment in foreign entities, and of
borrowings, lease liabilities and other currency instruments
designated as hedges of such investments, are taken to equity.
When a foreign operation is sold, such exchange differences
recorded since 1 February 2004 (being the date of transition to
IFRS) are recognised in the income statement as part of the gain
or loss on disposal.
Goodwill and fair value adjustments arising on the acquisition of a
foreign entity are treated as assets and liabilities of the foreign
entity and translated at the rates of exchange at the balance
sheet date. Goodwill arising prior to 1 February 2004 is
denominated in Sterling, and not subsequently retranslated.
(iv) Principal rates of exchange against Sterling
2025/26
2024/25
Average rate
Year end rate
Average rate
Year end rate
Euro
1.16
1.15
1.18
1.20
US Dollar
1.33
1.37
1.28
1.24
Polish Zloty
4.93
4.86
5.08
5.04
Romanian Leu
5.88
5.88
5.89
5.95
Turkish Lira
1
59.58
59.58
44.38
44.38
1. The Turkish Lira average exchange rates represent the closing rates for the
year, due to the application of hyperinflation accounting in Turkey.
d. Revenue recognition
Sales represent the supply of home improvement products and
services, including commission from sales of third-party products
through Kingfisher websites (i.e. marketplace arrangements) and
income from franchise arrangements. Sales exclude transactions
made between companies within the Group, Value Added Tax or
other sales-related taxes and are net of returns, customer, trade
and staff discounts.
Revenue is recognised when control of the goods or services is
transferred to the customer at an amount that reflects the
consideration to which the Group expects to be entitled in
exchange for those goods or services.
Revenue from in-store product sales is recognised when the
customer takes possession of the products (i.e. on payment).
Revenue from online ‘click & collect’ product sales is recognised
on collection of the products. Where customers have a right to
return purchased goods in exchange for a refund, a liability for
returns is recognised based on historic trends and offset against
revenue in the period in which the sale was made. An asset (with a
corresponding adjustment to cost of sales) is also recognised for
goods expected to be returned from customers. Where award
credits such as vouchers or loyalty points are provided as part of
the sales transaction, the amount allocated to the credits is
deferred and recognised when the credits are redeemed and the
Group fulfils its obligations to supply the awards. Liabilities for
returns and award credits are measured using the expected
value method.
Notes to the consolidated financial statements continued
2 Material accounting policies continued
The adjusted effective tax rate is calculated as continuing income
tax expense excluding prior year tax items (including the impact
of changes in tax rates on deferred tax), significant one-off tax
settlements and provision charges/releases and the tax effects
of other adjusting items, divided by continuing profit before
taxation excluding adjusting items. Prior year tax items represent
income statement tax relating to underlying items originally
arising in prior years, including the impact of changes in tax rates
on deferred tax. The exclusion of items relating to prior years,
and those not in the ordinary course of business, helps provide an
indication of the Group’s ongoing rate of tax.
Net debt comprises lease liabilities, borrowings and financing
derivatives (excluding accrued interest) less cash and cash
equivalents and short-term deposits, including such balances
classified as held for sale.
Refer to the Glossary for definitions of all of the Group’s
Alternative Performance Measures, including further information
on why they are used and details of where reconciliations to
statutory measures can be found where applicable.
b. Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company, its subsidiaries, joint ventures and
associates.
(i) Subsidiaries
Subsidiaries are entities (including structured entities) over which
the Group has control. The Group controls an entity when the
Group is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those
returns through its power over the entity.
Subsidiaries acquired are recorded under the acquisition
method of accounting and their results included from the date
of acquisition.
The results of subsidiaries which have been disposed are
included up to the effective date of disposal.
The consideration transferred for the acquisition of a subsidiary
is the fair value of the assets transferred, the liabilities incurred
and the equity interests issued by the Group. The consideration
transferred includes the fair value of any asset or liability resulting
from a contingent consideration arrangement. Acquisition-
related costs are expensed as incurred. Identifiable assets
acquired and liabilities and contingent liabilities assumed in a
business combination are measured initially at their fair values at
the acquisition date. On an acquisition-by-acquisition basis, the
Group recognises any non-controlling interest in the acquiree
either at fair value or at the non-controlling interest’s
proportionate share of the acquiree’s net assets. Subsequent to
acquisition, the carrying amount of non-controlling interests is the
amount of those interests at initial recognition plus the non-
controlling interests’ share of subsequent changes in equity.
Total comprehensive income is attributed to non-controlling
interests even if this results in the non-controlling interests
having a deficit balance.
The excess of the consideration transferred, the amount of any
non-controlling interests in the acquiree and the acquisition-date
fair value of any previous equity interests in the acquiree over
the fair value of the identifiable net assets acquired is recorded
as goodwill. If this is less than the fair value of the net assets of
the subsidiary acquired in the case of a bargain purchase, the
difference is recognised directly in the income statement.
Intercompany transactions, balances and unrealised gains on
transactions between Group companies are eliminated on
consolidation. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of the asset
transferred. Accounting policies of acquired subsidiaries have
been changed where necessary to ensure consistency with the
policies adopted by the Group.
(ii) Joint ventures and associates
Joint ventures are entities over which the Group has joint control.
Joint control is the contractually agreed sharing of control of an
arrangement, which exists only when decisions about the relevant
activities require the unanimous consent of the parties sharing
control. The equity method is used to account for the Group’s
investments in joint ventures.
Associates are entities over which the Group has the ability to
exercise significant influence but not control or joint control,
generally accompanied by a shareholding of between 20% and
50% of the voting rights. The equity method is used to account
for the Group’s investments in associates.
An investment in an associate or a joint venture is accounted for
using the equity method from the date on which the investee
becomes an associate or a joint venture. On acquisition of the
investment in an associate or a joint venture, any excess of the
cost of the investment over the Group’s share of the net fair
value of the identifiable assets and liabilities of the investee is
recognised as goodwill, which is included within the carrying
amount of the investment. Any excess of the Group’s share of
the net fair value of the identifiable assets and liabilities over the
cost of the investment, after reassessment, is recognised
immediately in profit or loss in the period in which the investment
is acquired.
The Group’s share of post-acquisition profits or losses is
recognised in the income statement within operating profit, and
its share of post-acquisition movements in other comprehensive
income is recognised in other comprehensive income. The
cumulative post-acquisition movements are adjusted against the
carrying amount of the investment. When the Group’s share of
losses equals or exceeds its interest, including any other long-
term receivables, the Group does not recognise any further
losses, unless it has incurred obligations or made payments on
behalf of the joint venture or associate.
135Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
2 Material accounting policies continued
Revenue from sales of delivered products is recognised on
delivery. Supply of delivered products is judged to be one single
performance obligation.
Service sales typically comprise kitchen and bathroom
installations. Revenue from these installation services is
recognised on completion of the relevant installation. Where
consideration is received from customers before the installation
service has been completed, this amount is recorded as deferred
income within trade and other payables and is only recognised as
revenue once the installation service has been completed.
Commission revenue is earned from the sale of third-party
products through Kingfisher websites. This is referred to as a
marketplace arrangement. The Group acts as an agent in such
arrangements and recognises the net commission receivable
within sales, generally when an order is placed.
The Group enters into franchise arrangements which entitle
other parties to operate under Kingfisher brand names for the
operation of stores. Under these arrangements, revenue is
recognised from the sale of products to franchisees, in addition
to franchise and royalty fee income. Revenue from the sale of
products is recognised when the franchisee takes control of the
products (i.e. on delivery to the franchisee). Franchise and royalty
fee income is recognised as the franchisee’s sales occur, at the
rates specified in the franchise agreement, and once the Group
has performed its obligations to the franchisee.
Sales from delivered products, installation services, marketplace
and franchise arrangements represent only a small proportion of
the Group’s total sales as the majority relates to in-store and
online ‘click & collect’ purchases of products.
Other income includes external rental income and gains on
disposal of assets. Rental income from operating leases is
recognised on a straight-line basis over the term of the
relevant lease.
e. Rebates
The majority of rebates received from suppliers comprise
volume-related rebates on the purchase of inventories.
Contractual volume-related rebates are accrued as units are
purchased, based on the percentage rebate applicable to
forecast total purchases over the rebate period, where receipt
of rebates is probable and the amounts can be estimated reliably.
The majority of volume-related rebate arrangements are
coterminous with the calendar year; as a result, there is little
uncertainty over volume rebate income at 31 January, with the
majority finalised and requiring no estimation. Discretionary
rebates are not anticipated and are recognised only when
earned. Rebates relating to inventories purchased but still held at
the balance sheet date are deducted from the carrying value of
inventories, such that the cost of inventory is recorded net of
applicable rebates. These rebates are credited to cost of sales
in the income statement when the related goods are sold.
Rebate arrangements may include the right to net settle against
supplier payments; where this right exists, rebate receivables
are offset against the associated payable balance on the balance
sheet. Where this right does not exist, or where amounts have
not yet been invoiced, rebates are recorded in trade and
other receivables.
Other rebates, such as those related to advertising and
marketing, including retail media income from suppliers, are
credited to cost of sales in the income statement when the
relevant conditions have been fulfilled and there is an agreement
for the income in place.
f. Dividends
Interim dividends are recognised when they are paid to the
Company’s shareholders. Final dividends are recognised when
they are approved by the Company’s shareholders.
g. Intangible assets
(i) Goodwill
Goodwill represents the future economic benefits arising from
assets acquired in a business combination that are not individually
identified and separately recognised. Such benefits include
future synergies expected from the combination and intangible
assets not meeting the criteria for separate recognition.
Goodwill is carried at cost less accumulated impairment losses.
Profits or losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold. Goodwill is not
amortised and is tested annually for impairment at the retail
banner level, representing the lowest level at which it is
monitored for internal management purposes. See note 2(k) for
the accounting policy on impairment, including goodwill.
(ii) Other intangible assets
Other intangible assets principally comprise computer software.
Where software is not an integral part of a related item of
computer hardware, it is classified as an intangible asset. Costs
that are directly associated with the acquisition or production of
identifiable software products controlled by the Group, which are
expected to generate economic benefits exceeding costs
beyond one year, are recognised as intangible assets.
Capitalised costs include those of software licences and
development, including costs of employees, consultants and an
appropriate portion of relevant overheads.
Costs related to the configuration and customisation in cloud
computing arrangements, where they do not give the Group
power to control the future economic benefits and to restrict
access of others to those benefits, are not capitalised as they do
not meet the definition of intangible assets under IAS 38; the
Group does not control the computer software being configured
or customised and the configuration or customisation activities
do not create a resource controlled by the Group that is
separate from the software. Such costs are expensed as
incurred. Configuration and customisation in cloud computing
arrangements are only capitalised where a separate asset is
created and capitalisable under IAS 38.
Costs associated with identifying, sourcing, evaluating or
maintaining computer software are recognised as an expense
as incurred.
Software under development is held at cost less any provisions
for impairment, with impairment reviews being performed
annually, or when there is an indication of impairment.
Amortisation commences when the software assets are available
for use and are over their estimated useful lives of 2 to 10 years.
Intangible assets are derecognised on disposal or when no future
economic benefits are expected from its use or disposal.
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h. Property, plant and equipment
(i) Cost
Property, plant and equipment held for use in the business are
carried at cost less accumulated depreciation and any provisions
for impairment.
Properties that were held at 1 February 2004 are carried at
deemed cost, being the fair value of land and buildings as at the
transition date to IFRS. All property acquired after 1 February
2004 is carried at cost less accumulated depreciation.
(ii) Depreciation
Depreciation is provided to reflect a straight-line reduction from
cost to estimated residual value over the estimated useful life of
the asset as follows:
Freehold land
— not depreciated
Freehold buildings
—
over remaining useful life
Leasehold improvements
— over remaining lease
period
Fixtures and fittings
— between 4 and 20 years
Computers and electronic equipment
—
between 3 and 5 years
(iii) Disposals
The gain or loss arising on the disposal or retirement of an asset
is determined as the difference between the net sales proceeds
and the carrying amount of the asset and is recognised in the
income statement. Sales of land and buildings are accounted for
when there is an unconditional exchange of contracts.
(iv) Subsequent costs
Subsequent costs are included in the related asset’s carrying
amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with
the item will flow to the Group and the cost of the item can be
measured reliably.
See note 2(k) for the accounting policy on impairment, including
property, plant and equipment.
Repairs and maintenance costs are charged to the income
statement in the period in which they are incurred.
i. Leased assets
(i) Lessee accounting
The Group assesses whether a contract is or contains a lease at
inception of the contract. Typically, lease contracts relate to
properties such as stores and distribution centres, and
equipment leases such as mechanical handling equipment and
vehicles. The Group recognises a right-of-use asset and a
corresponding lease liability with respect to all lease
arrangements in which it is the lessee, except for short-term
leases (defined as leases with a lease term of 12 months or less)
and leases for low value assets. For these leases, the Group
recognises the lease payments as an operating expense on a
straight-line basis over the term of the lease unless another
systematic basis is more representative of the time pattern in
which economic benefits from the leased assets are consumed.
The liability is initially measured as the present value of the
lease payments not yet paid at the commencement date,
discounted at an appropriate discount rate. Where the implicit
rate in the lease is not readily determinable, an incremental
borrowing rate is calculated and applied. The calculation
methodology is based upon applying a financing spread to a
risk-free rate, with the resulting rate including the effect of the
creditworthiness of the operating company in which the lease is
contracted, as well as the underlying term, currency and start
date of the lease agreement.
Lease payments used in the measurement of the lease liability
principally comprise fixed lease payments (subject to
indexation/rent reviews) less any incentives. The lease liability
is subsequently measured using an effective interest method
whereby the carrying amount of the lease liability is measured on
an amortised cost basis, and the interest expense is allocated
over the lease term. The lease term comprises the non-
cancellable lease term, in addition to break or extension options
when these additional periods are reasonably certain to arise at
the commencement of a lease. Typically, it is not considered to
be reasonably certain at the commencement of a lease that such
extension options will be exercised or that break options will not
be exercised, and these additional periods are only recognised
after they have been approved.
The Group remeasures the lease liability and makes a
corresponding adjustment to the related right-of-use asset
whenever an event occurs that changes the term or payment
profile of a lease, such as the renewal of an existing lease, the
exercise of lease term options, market rent reviews and
indexation. A lease liability which is denominated in a currency
that is not the functional currency of the relevant Group entity
(e.g. a euro-denominated lease in Castorama Poland) is translated
into that entity’s functional currency with foreign exchange
gains and losses recorded in the income statement, unless the
lease liability is designated as a net investment hedge with
foreign exchange gains and losses recorded in other
comprehensive income.
The right-of-use assets are initially measured at the amount
equal to the lease liability, adjusted by any upfront lease
payments or lease incentives and any initial direct costs incurred.
Subsequently, the assets are measured at cost less accumulated
depreciation and impairment losses. Right-of-use assets are
depreciated on a straight-line basis over the remaining lease
term, which is deemed to be the useful life. See note 2(k) for the
accounting policy on impairment, including right-of-use assets.
(ii) Lessor accounting
Leases for which the Group is a lessor are classified as finance
or operating leases. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee,
the contract is classified as a finance lease. All other leases are
classified as operating leases.
When the Group is an intermediate lessor, it accounts for
the head lease and the sub-lease as two separate contracts.
The sub-lease is classified as a finance or operating lease by
reference to the right-of-use asset arising from the head lease.
Rental income from operating leases is recognised on a straight-
line basis over the term of the relevant lease.
Notes to the consolidated financial statements continued
2 Material accounting policies continued
Revenue from sales of delivered products is recognised on
delivery. Supply of delivered products is judged to be one single
performance obligation.
Service sales typically comprise kitchen and bathroom
installations. Revenue from these installation services is
recognised on completion of the relevant installation. Where
consideration is received from customers before the installation
service has been completed, this amount is recorded as deferred
income within trade and other payables and is only recognised as
revenue once the installation service has been completed.
Commission revenue is earned from the sale of third-party
products through Kingfisher websites. This is referred to as a
marketplace arrangement. The Group acts as an agent in such
arrangements and recognises the net commission receivable
within sales, generally when an order is placed.
The Group enters into franchise arrangements which entitle
other parties to operate under Kingfisher brand names for the
operation of stores. Under these arrangements, revenue is
recognised from the sale of products to franchisees, in addition
to franchise and royalty fee income. Revenue from the sale of
products is recognised when the franchisee takes control of the
products (i.e. on delivery to the franchisee). Franchise and royalty
fee income is recognised as the franchisee’s sales occur, at the
rates specified in the franchise agreement, and once the Group
has performed its obligations to the franchisee.
Sales from delivered products, installation services, marketplace
and franchise arrangements represent only a small proportion of
the Group’s total sales as the majority relates to in-store and
online ‘click & collect’ purchases of products.
Other income includes external rental income and gains on
disposal of assets. Rental income from operating leases is
recognised on a straight-line basis over the term of the
relevant lease.
e. Rebates
The majority of rebates received from suppliers comprise
volume-related rebates on the purchase of inventories.
Contractual volume-related rebates are accrued as units are
purchased, based on the percentage rebate applicable to
forecast total purchases over the rebate period, where receipt
of rebates is probable and the amounts can be estimated reliably.
The majority of volume-related rebate arrangements are
coterminous with the calendar year; as a result, there is little
uncertainty over volume rebate income at 31 January, with the
majority finalised and requiring no estimation. Discretionary
rebates are not anticipated and are recognised only when
earned. Rebates relating to inventories purchased but still held at
the balance sheet date are deducted from the carrying value of
inventories, such that the cost of inventory is recorded net of
applicable rebates. These rebates are credited to cost of sales
in the income statement when the related goods are sold.
Rebate arrangements may include the right to net settle against
supplier payments; where this right exists, rebate receivables
are offset against the associated payable balance on the balance
sheet. Where this right does not exist, or where amounts have
not yet been invoiced, rebates are recorded in trade and
other receivables.
Other rebates, such as those related to advertising and
marketing, including retail media income from suppliers, are
credited to cost of sales in the income statement when the
relevant conditions have been fulfilled and there is an agreement
for the income in place.
f. Dividends
Interim dividends are recognised when they are paid to the
Company’s shareholders. Final dividends are recognised when
they are approved by the Company’s shareholders.
g. Intangible assets
(i) Goodwill
Goodwill represents the future economic benefits arising from
assets acquired in a business combination that are not individually
identified and separately recognised. Such benefits include
future synergies expected from the combination and intangible
assets not meeting the criteria for separate recognition.
Goodwill is carried at cost less accumulated impairment losses.
Profits or losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold. Goodwill is not
amortised and is tested annually for impairment at the retail
banner level, representing the lowest level at which it is
monitored for internal management purposes. See note 2(k) for
the accounting policy on impairment, including goodwill.
(ii) Other intangible assets
Other intangible assets principally comprise computer software.
Where software is not an integral part of a related item of
computer hardware, it is classified as an intangible asset. Costs
that are directly associated with the acquisition or production of
identifiable software products controlled by the Group, which are
expected to generate economic benefits exceeding costs
beyond one year, are recognised as intangible assets.
Capitalised costs include those of software licences and
development, including costs of employees, consultants and an
appropriate portion of relevant overheads.
Costs related to the configuration and customisation in cloud
computing arrangements, where they do not give the Group
power to control the future economic benefits and to restrict
access of others to those benefits, are not capitalised as they do
not meet the definition of intangible assets under IAS 38; the
Group does not control the computer software being configured
or customised and the configuration or customisation activities
do not create a resource controlled by the Group that is
separate from the software. Such costs are expensed as
incurred. Configuration and customisation in cloud computing
arrangements are only capitalised where a separate asset is
created and capitalisable under IAS 38.
Costs associated with identifying, sourcing, evaluating or
maintaining computer software are recognised as an expense
as incurred.
Software under development is held at cost less any provisions
for impairment, with impairment reviews being performed
annually, or when there is an indication of impairment.
Amortisation commences when the software assets are available
for use and are over their estimated useful lives of 2 to 10 years.
Intangible assets are derecognised on disposal or when no future
economic benefits are expected from its use or disposal.
137Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
2 Material accounting policies continued
Amounts due from lessees under finance leases are recognised
as sublease receivables within trade and other receivables at the
amount of the Group’s net investment in the leases. Finance lease
income is allocated to accounting periods so as to reflect a
constant periodic rate of return on the Group’s net investment
outstanding in respect of the leases.
j. Investment property
Investment property is property held by the Group to earn rental
income or for capital appreciation. Investment properties are
carried at cost less depreciation and provision for impairment.
Depreciation is provided on a consistent basis with that applied to
property, plant and equipment.
k. Impairment
At each reporting date an assessment is performed as to
whether there are any indicators that property, plant and
equipment, right-of-use assets, and other intangible assets,
including the Group’s store-based assets, may be impaired or
whether there is any indication that an impairment loss
recognised in a previous period either no longer exists or has
decreased. Goodwill is reviewed annually for impairment or
earlier if there is an indication of impairment.
For store-based assets, should such indicators of impairment or
impairment reversal exist, the assets’ recoverable amounts are
subsequently estimated. Each individual store is determined to be
a cash generating unit. The recoverable amount is assessed by
reference to the net present value of expected future pre-tax
cash flows (‘value-in-use’) of the relevant cash generating unit or
fair value less costs to sell if higher. A vacant possession valuation
basis is used to approximate the fair value less costs to sell.
Cash flows used for the purposes of determining value-in-use
are based on the Group’s most recent Board-approved plans.
The Group has fully attributed to stores all e-commerce
revenues (and related costs) relating to sales where stores are
involved in the fulfilment of those sales. This includes online
click-and-collect sales and online sales fulfilled by store-to-home
delivery. Other e-commerce-related cash flows, including
direct-to-home delivery and marketplace sales (where there is
no store involvement) are not allocated to stores for impairment
testing purposes.
The pre-tax discount rates are derived from the Group’s
weighted average cost of capital, taking into account the cost of
equity and debt, to which specific market-related premium
adjustments are made for each country. Cash flows beyond the
period of the strategic plans are calculated using a long-term
growth rate derived from external long-term inflation forecasts
and which do not exceed the long-term average growth rate for
the countries in which the Group’s CGUs operate.
Where a store’s recoverable amount is less than its carrying
value, it is impaired down to its recoverable amount. Where a
store has been previously impaired and its recoverable amount
is higher than its carrying value, the previous impairment is
reversed to an amount in which its carrying amount cannot
exceed its recoverable amount, with reversals capped at
the amount of previous accumulated impairments, adjusted
for depreciation.
For the purposes of goodwill impairment testing, goodwill has
been allocated to each retail banner group of CGUs, representing
the lowest level at which goodwill is monitored for internal
management purposes. The recoverable amount is assessed by
reference to the present value of expected future cash flows
(‘value-in-use’). Cash flows used for the purposes of determining
value-in-use are based on the Group’s most recent Board-
approved plans. The pre-tax discount rates are derived from the
Group’s weighted average cost of capital, taking into account the
cost of equity and debt, to which specific market-related
premium adjustments are made for each country. Long-term
growth rates are derived from external long-term inflation
forecasts for the territories in which the businesses operate.
Where the recoverable amount is less than the net assets of the
group of CGUs and related goodwill, an impairment loss is
immediately recognised in the income statement. An impairment
loss is allocated first to reduce the carrying amount of any
goodwill and then to the other assets in the group of CGUs on a
pro-rata basis, on the basis of the carrying amount of each asset
in the group of CGUs. A goodwill impairment cannot be reversed.
Other intangibles are reviewed annually for impairment, or earlier
where there is an indication of impairment.
l. Inventories
Inventories are carried at the lower of cost and net realisable
value, on a weighted average cost basis.
Trade discounts and rebates received are deducted in
determining the cost of purchase of inventories. Cost includes
appropriate attributable overheads and direct expenditure
incurred in the normal course of business in bringing goods to
their present location and condition. Costs of inventories include
the transfer from equity of any gains or losses on qualifying cash
flow hedges relating to inventory purchases.
Net realisable value represents the estimated selling price in
the ordinary course of business less the estimated costs
necessary to make the sale. Provisions to net realisable value
are made for slow-moving, display, damaged or obsolete items
and other events or conditions resulting in expected selling
prices being lower than cost. The carrying value of inventories
reflects known and expected losses of product in the ordinary
course of business.
m. Employee benefits
(i) Post-employment benefits
The Group operates various defined benefit and defined
contribution pension schemes for its employees, some of which
are required by local legislation. A defined benefit scheme is a
pension scheme which defines an amount of pension benefit
which an employee will receive on retirement. A defined
contribution scheme is a pension scheme under which the Group
usually pays fixed contributions into a separate entity. In all cases
other than some of the legally required schemes, a separate fund
is being accumulated to meet the accruing liabilities. The assets
of each of these funds are either held under trusts or managed
by insurance companies and are entirely separate from the
Group’s assets.
138 Kingfisher 2025/26 Annual Report and Accounts
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The asset or liability recognised in the balance sheet in respect of
defined benefit pension schemes is the fair value of scheme
assets less the present value of the defined benefit obligation at
the balance sheet date. Any surplus resulting from this calculation
is limited to the present value of any economic benefits available
in the form of refunds from the plans or reductions in future
contributions to the plans. The defined benefit obligation is
calculated annually by independent actuaries using the projected
unit credit method. The present value of the defined benefit
obligation is determined by discounting the estimated future cash
outflows using interest rates of high-quality corporate bonds
which are denominated in the currency in which the benefits will
be paid and which have terms to maturity approximating to the
terms of the related pension liability.
Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are credited or
charged to the statement of comprehensive income as
they arise.
For defined contribution schemes, the Group has no further
payment obligations once the contributions have been paid.
The contributions are recognised as an employee benefit
expense when they are due.
(ii) Share-based compensation
The Group operates several equity-settled, share-based
compensation schemes. The fair value of the employee services
received in exchange for the grant of options or deferred shares
is recognised as an expense and is calculated using Black-
Scholes and stochastic models. The total amount to be expensed
over the vesting period is determined by reference to the fair
value of the options or deferred shares granted. The value of the
charge is adjusted to reflect expected and actual levels of
options vesting due to non-market vesting conditions.
iii) Employee Share Ownership Plan trust (‘ESOP trust’)
The ESOP trust is a separately administered discretionary trust.
Liabilities of the ESOP trust are guaranteed by the Parent
Company, and the assets of the ESOP trust mainly comprise
shares in the Parent Company.
Own shares held by the ESOP trust are deducted from equity and
the shares are held at historical cost until they are sold or issued
to employees. The assets, liabilities, income and costs of the
ESOP trust are included in both the Company’s and the
consolidated financial statements.
n. Taxation
The income tax expense represents the sum of the tax currently
payable and deferred tax. The tax currently payable is based on
taxable profit for the year.
The Group is subject to income taxes in numerous jurisdictions
and there are many transactions for which the ultimate tax
determination is uncertain during the ordinary course of business.
For uncertain tax positions, on the basis that tax authorities have
full knowledge of the relevant information, it is determined
whether it is probable that, in aggregate, an outflow of economic
resources will occur following investigation. The potential impact
of the relevant tax authority’s examination of the uncertain tax
positions is measured to make the best estimate of the amount
of the tax benefit that may be lost, for which liabilities are then
recorded. Where the final outcome of these matters is different
from the amounts which were initially recorded, such differences
will impact the income tax and deferred tax liabilities in the period
in which such determination is made. These adjustments in
respect of prior years are recorded in the income statement,
or directly in equity, as appropriate. Receivables for amounts
previously paid to tax authorities are recognised to the extent
that it is considered probable that the Group will recover
these amounts.
Taxable profit differs from profit before taxation as reported in
the income statement because it excludes items of income or
expense which are taxable or deductible in other years or which
are never taxable or deductible.
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used
in the computation of taxable profit and is accounted for using
the balance sheet liability method.
Deferred tax liabilities are generally recognised for all taxable
temporary differences. Deferred tax assets are recognised to
the extent that it is probable that taxable profits will be available
against which deductible temporary differences or unused tax
losses can be utilised. Deferred tax liabilities are not recognised if
the temporary difference arises from the initial recognition of
goodwill in a business combination. Deferred tax assets and
liabilities are not recognised if the temporary difference arises
from the initial recognition (other than in a business combination)
of other assets and liabilities in a transaction which affects neither
the taxable profit nor the accounting profit. Deferred tax liabilities
are recognised for taxable temporary differences arising on
investments in subsidiaries, joint ventures and associates, except
where the Group is able to control the reversal of the temporary
difference and it is probable that the temporary difference will
not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all
or part of the asset to be recovered.
Current and deferred tax are calculated using tax rates which
have been enacted or substantively enacted by the balance
sheet date and are expected to apply in the period when the
liability is settled or the asset is realised.
Current and deferred tax are charged or credited to the income
statement, except when they relate to items charged or credited
to other comprehensive income or directly to equity, in which
case the current or deferred tax is also recognised in other
comprehensive income or directly in equity.
Deferred tax assets and liabilities are offset against each other
when there is a legally enforceable right to offset current tax
assets against current tax liabilities and when they relate to
income taxes levied by the same tax jurisdiction and when the
Group intends to settle its current tax assets and liabilities on a
net basis.
Operating levies, such as certain revenue, property and payroll-
based taxes, are not treated as income tax and are included
within operating profit. The timing of recognition of a liability to
pay an operating levy is determined by the event identified under
the relevant legislation that triggers the obligation to pay the levy.
Notes to the consolidated financial statements continued
2 Material accounting policies continued
Amounts due from lessees under finance leases are recognised
as sublease receivables within trade and other receivables at the
amount of the Group’s net investment in the leases. Finance lease
income is allocated to accounting periods so as to reflect a
constant periodic rate of return on the Group’s net investment
outstanding in respect of the leases.
j. Investment property
Investment property is property held by the Group to earn rental
income or for capital appreciation. Investment properties are
carried at cost less depreciation and provision for impairment.
Depreciation is provided on a consistent basis with that applied to
property, plant and equipment.
k. Impairment
At each reporting date an assessment is performed as to
whether there are any indicators that property, plant and
equipment, right-of-use assets, and other intangible assets,
including the Group’s store-based assets, may be impaired or
whether there is any indication that an impairment loss
recognised in a previous period either no longer exists or has
decreased. Goodwill is reviewed annually for impairment or
earlier if there is an indication of impairment.
For store-based assets, should such indicators of impairment or
impairment reversal exist, the assets’ recoverable amounts are
subsequently estimated. Each individual store is determined to be
a cash generating unit. The recoverable amount is assessed by
reference to the net present value of expected future pre-tax
cash flows (‘value-in-use’) of the relevant cash generating unit or
fair value less costs to sell if higher. A vacant possession valuation
basis is used to approximate the fair value less costs to sell.
Cash flows used for the purposes of determining value-in-use
are based on the Group’s most recent Board-approved plans.
The Group has fully attributed to stores all e-commerce
revenues (and related costs) relating to sales where stores are
involved in the fulfilment of those sales. This includes online
click-and-collect sales and online sales fulfilled by store-to-home
delivery. Other e-commerce-related cash flows, including
direct-to-home delivery and marketplace sales (where there is
no store involvement) are not allocated to stores for impairment
testing purposes.
The pre-tax discount rates are derived from the Group’s
weighted average cost of capital, taking into account the cost of
equity and debt, to which specific market-related premium
adjustments are made for each country. Cash flows beyond the
period of the strategic plans are calculated using a long-term
growth rate derived from external long-term inflation forecasts
and which do not exceed the long-term average growth rate for
the countries in which the Group’s CGUs operate.
Where a store’s recoverable amount is less than its carrying
value, it is impaired down to its recoverable amount. Where a
store has been previously impaired and its recoverable amount
is higher than its carrying value, the previous impairment is
reversed to an amount in which its carrying amount cannot
exceed its recoverable amount, with reversals capped at
the amount of previous accumulated impairments, adjusted
for depreciation.
For the purposes of goodwill impairment testing, goodwill has
been allocated to each retail banner group of CGUs, representing
the lowest level at which goodwill is monitored for internal
management purposes. The recoverable amount is assessed by
reference to the present value of expected future cash flows
(‘value-in-use’). Cash flows used for the purposes of determining
value-in-use are based on the Group’s most recent Board-
approved plans. The pre-tax discount rates are derived from the
Group’s weighted average cost of capital, taking into account the
cost of equity and debt, to which specific market-related
premium adjustments are made for each country. Long-term
growth rates are derived from external long-term inflation
forecasts for the territories in which the businesses operate.
Where the recoverable amount is less than the net assets of the
group of CGUs and related goodwill, an impairment loss is
immediately recognised in the income statement. An impairment
loss is allocated first to reduce the carrying amount of any
goodwill and then to the other assets in the group of CGUs on a
pro-rata basis, on the basis of the carrying amount of each asset
in the group of CGUs. A goodwill impairment cannot be reversed.
Other intangibles are reviewed annually for impairment, or earlier
where there is an indication of impairment.
l. Inventories
Inventories are carried at the lower of cost and net realisable
value, on a weighted average cost basis.
Trade discounts and rebates received are deducted in
determining the cost of purchase of inventories. Cost includes
appropriate attributable overheads and direct expenditure
incurred in the normal course of business in bringing goods to
their present location and condition. Costs of inventories include
the transfer from equity of any gains or losses on qualifying cash
flow hedges relating to inventory purchases.
Net realisable value represents the estimated selling price in
the ordinary course of business less the estimated costs
necessary to make the sale. Provisions to net realisable value
are made for slow-moving, display, damaged or obsolete items
and other events or conditions resulting in expected selling
prices being lower than cost. The carrying value of inventories
reflects known and expected losses of product in the ordinary
course of business.
m. Employee benefits
(i) Post-employment benefits
The Group operates various defined benefit and defined
contribution pension schemes for its employees, some of which
are required by local legislation. A defined benefit scheme is a
pension scheme which defines an amount of pension benefit
which an employee will receive on retirement. A defined
contribution scheme is a pension scheme under which the Group
usually pays fixed contributions into a separate entity. In all cases
other than some of the legally required schemes, a separate fund
is being accumulated to meet the accruing liabilities. The assets
of each of these funds are either held under trusts or managed
by insurance companies and are entirely separate from the
Group’s assets.
139Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
2 Material accounting policies continued
o. Provisions and contingent liabilities
Provisions are recognised when the Group has a present legal or
constructive obligation as a result of past events, it is more likely
than not that an outflow of resources will be required to settle the
obligation, and the amount can be reliably estimated.
A provision is recorded if the unavoidable costs of meeting the
obligations under a contract exceed the economic benefits
expected to be received under it. The unavoidable costs reflect
the net cost of exiting the contract.
If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a
pre-tax rate which reflects current market assessments of the
time value of money and, where appropriate, the risks specific to
the liability. Credits or charges arising from changes in the rate
used to discount the provisions are recognised within net
finance costs.
Contingent liabilities are possible obligations arising from past
events whose existence will only be confirmed by future
uncertain events that are not wholly within the Group’s control, or
present obligations where it is not probable that an outflow of
resources will be required or the amount of the obligation cannot
be reliably measured. If the outflow of economic resources is not
considered remote, contingent liabilities are disclosed but not
recognised in the financial statements.
p. Financial instruments
Financial assets and financial liabilities are recognised on the
balance sheet when the Group becomes a party to the
contractual provisions of the financial instrument. Financial assets
are derecognised when the contractual rights to the cash flows
from the financial asset expire or the Group has substantially
transferred the risks and rewards of ownership. Financial liabilities
(or a part of a financial liability) are derecognised when the
obligation specified in the contract is discharged, cancelled,
expires or is substantially modified.
Financial assets and liabilities are offset only when the Group has
a currently enforceable legal right to set-off the respective
recognised amounts and intends either to settle on a net basis,
or to realise the asset and settle the liability simultaneously.
(i) Cash and cash equivalents
Cash and cash equivalents include cash in hand, uncleared credit
card receipts, deposits held on call with banks and other short-
term highly liquid investments that are readily convertible to a
known amount of cash, are subject to insignificant risk of changes
in value and which have original maturities of three months or
less. Cash equivalents are held for the purpose of meeting short-
term cash commitments rather than for investment or other
purposes. For cash flow statement reporting purposes, the
Group considers bank overdrafts as part of cash and cash
equivalents because they are repayable on demand and form
part of the Group’s cash management.
(ii) Borrowings
Interest bearing borrowings are recorded at fair value (which is
typically equivalent to the proceeds received) net of direct issue
costs and subsequently measured at amortised cost. Where
borrowings are in designated and effective fair value hedge
relationships, adjustments are made to their carrying amounts to
reflect the hedged risks. Finance charges, including premiums
payable on settlement or redemption and direct issue costs,
are amortised to the income statement using the effective
interest method.
(iii) Trade receivables
Trade receivables are initially recognised at their transaction
price and are subsequently measured at amortised cost less any
allowance for expected credit losses. To measure the expected
credit losses, trade receivables are grouped based on the days
past due. Trade receivables are written off when there is no
reasonable expectation of recovery.
(iv) Trade payables
Trade payables are initially recognised at fair value and are
subsequently measured at amortised cost.
(v) Derivatives and hedge accounting
Derivatives are initially recorded at fair value on the date a
derivative contract is entered into and are subsequently carried
at fair value.
Derivatives embedded in other financial instruments or other
host contracts are treated as separate derivatives when their
risks and characteristics are not closely related to those of host
contracts, and the host contracts are not carried at fair value with
unrealised gains or losses reported in the income statement.
Where hedge accounting is not applied, or to the extent to which
it is not effective, changes in the fair value of derivatives are
recognised in the income statement as they arise. Changes in the
fair value of derivatives transacted as hedges of operating items
and financing items are recognised in operating profit and net
finance costs respectively.
The accounting treatment of derivatives and other financial
instruments classified as hedges depends on their designation,
which occurs at the start of the hedge relationship. The Group
designates certain financial instruments as:
— a hedge of the fair value of an asset or liability or unrecognised
firm commitment (‘fair value hedge’);
— a hedge of a highly probable forecast transaction or firm
commitment if foreign currency risk is hedged (‘cash flow
hedge’); or
— a hedge of a net investment in a foreign operation (‘net
investment hedge’).
Fair value hedges
For an effective hedge of an exposure to changes in fair value,
the hedged item is adjusted for changes in fair value attributable
to the risk being hedged with the corresponding entry being
recorded in the income statement. Gains or losses from
remeasuring the corresponding hedging instrument are
recognised in the same line of the income statement.
140 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Cash flow hedges
Changes in the effective portion of the fair value of derivatives
that are designated as hedges of future cash flows are
recognised directly in other comprehensive income, with any
ineffective portion being recognised immediately in the income
statement where relevant. If the cash flow hedge of a firm
commitment or forecast transaction results in the recognition of
a non-financial asset or liability, then, at the time it is recognised,
the associated gains or losses on the derivative that had
previously been deferred in equity are included in the initial
measurement of the non-financial asset or liability. For all other
hedges, amounts deferred in equity are recognised in the income
statement in the same period in which the hedged item affects
net profit or loss.
Net investment hedges
Where the Group hedges net investments in foreign operations
through foreign currency borrowings or lease liabilities, the gains
or losses on retranslation are recognised in other comprehensive
income. If the Group uses derivatives as the hedging instrument,
the effective portion of the hedge is recognised in other
comprehensive income, with any ineffective portion being
recognised immediately in the income statement. Gains and
losses accumulated in equity are recycled through the income
statement on disposal of the foreign operation.
In order to qualify for hedge accounting, the Group documents in
advance the risk management objective and strategy for
undertaking the hedge and the relationship between the item
being hedged and the hedging instrument. The Group also
documents and demonstrates an assessment of the relationship
between the hedged item and the hedging instrument, which
shows that the hedge will be highly effective on an ongoing basis
and provides an analysis of the sources of hedge ineffectiveness.
The effectiveness testing is performed at half year and year end
or upon a significant change in circumstances affecting the
hedge effectiveness requirements.
Hedge accounting is discontinued when the hedging instrument
expires or is sold, terminated or exercised, or no longer qualifies
for hedge accounting. At that time, any cumulative gain or loss on
the hedging instrument is retained in equity until the highly
probable forecast transaction occurs. If a hedged transaction is
no longer expected to occur, the net cumulative gain or loss
deferred in equity is transferred to the income statement.
q. Assets and liabilities held for sale
Non-current assets and disposal groups are classified as held for
sale if their carrying amounts will be recovered through a sale
transaction rather than through continuing use. This condition is
regarded as met only when the sale is highly probable and the
asset or disposal group is available for immediate sale in its
present condition subject only to terms that are usual and
customary for sales of such assets.
Management must be committed to the sale, which should be
expected to qualify for recognition as a completed sale within
one year from the date of classification as held for sale.
Non-current assets and disposal groups classified as held for sale
are measured at the lower of carrying amount and fair value less
costs to sell. This excludes financial assets, deferred tax assets
and assets arising from employee benefits, which are measured
according to the relevant accounting policy.
Property, plant and equipment, right-of-use assets and intangible
assets are not depreciated once classified as held for sale. The
Group ceases to use the equity method of accounting from the
date on which an interest in a joint venture or an interest in an
associate becomes classified as held for sale.
r. Share repurchases
Shares purchased for cancellation are deducted from retained
earnings. The Group uses irrevocable closed period buyback
programmes. A liability to purchase shares is recognised at
inception of the programme with any subsequent reduction in the
obligation credited back to retained earnings at the end of the
programme. Share capital is reduced and credited to the capital
redemption reserve once shares are cancelled, maintaining non-
distributable reserves.
s. Reserves
The following describes the nature and purpose of each reserve
within equity:
(i) Share capital
The nominal value of proceeds received for shares issued.
(ii) Share premium
Proceeds received in excess of the nominal value of shares
issued, net of any transaction costs.
(iii) Own shares held
Shares held by The Employee Share Ownership Plan Trust.
(iv) Capital redemption reserve
Amounts transferred from share capital on repurchase of issued
shares which are subsequently cancelled.
(v) Other reserves, comprising:
—
Translation reserve – Gains or losses arising on retranslating
the net assets of overseas operations into the Group’s
presentation currency, including gains or losses on net
investment hedges.
— Cash flow hedge reserve – Cumulative gains and losses on
‘effective’ hedging instruments.
— Other – Represents the premium on the issue of convertible
loan stock in 1993 and the merger reserve relating to the
acquisition of Darty in 1993.
(vi) Retained earnings
All other net gains and losses and transactions with owners that
are not recognised elsewhere.
Notes to the consolidated financial statements continued
2 Material accounting policies continued
o. Provisions and contingent liabilities
Provisions are recognised when the Group has a present legal or
constructive obligation as a result of past events, it is more likely
than not that an outflow of resources will be required to settle the
obligation, and the amount can be reliably estimated.
A provision is recorded if the unavoidable costs of meeting the
obligations under a contract exceed the economic benefits
expected to be received under it. The unavoidable costs reflect
the net cost of exiting the contract.
If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a
pre-tax rate which reflects current market assessments of the
time value of money and, where appropriate, the risks specific to
the liability. Credits or charges arising from changes in the rate
used to discount the provisions are recognised within net
finance costs.
Contingent liabilities are possible obligations arising from past
events whose existence will only be confirmed by future
uncertain events that are not wholly within the Group’s control, or
present obligations where it is not probable that an outflow of
resources will be required or the amount of the obligation cannot
be reliably measured. If the outflow of economic resources is not
considered remote, contingent liabilities are disclosed but not
recognised in the financial statements.
p. Financial instruments
Financial assets and financial liabilities are recognised on the
balance sheet when the Group becomes a party to the
contractual provisions of the financial instrument. Financial assets
are derecognised when the contractual rights to the cash flows
from the financial asset expire or the Group has substantially
transferred the risks and rewards of ownership. Financial liabilities
(or a part of a financial liability) are derecognised when the
obligation specified in the contract is discharged, cancelled,
expires or is substantially modified.
Financial assets and liabilities are offset only when the Group has
a currently enforceable legal right to set-off the respective
recognised amounts and intends either to settle on a net basis,
or to realise the asset and settle the liability simultaneously.
(i) Cash and cash equivalents
Cash and cash equivalents include cash in hand, uncleared credit
card receipts, deposits held on call with banks and other short-
term highly liquid investments that are readily convertible to a
known amount of cash, are subject to insignificant risk of changes
in value and which have original maturities of three months or
less. Cash equivalents are held for the purpose of meeting short-
term cash commitments rather than for investment or other
purposes. For cash flow statement reporting purposes, the
Group considers bank overdrafts as part of cash and cash
equivalents because they are repayable on demand and form
part of the Group’s cash management.
(ii) Borrowings
Interest bearing borrowings are recorded at fair value (which is
typically equivalent to the proceeds received) net of direct issue
costs and subsequently measured at amortised cost. Where
borrowings are in designated and effective fair value hedge
relationships, adjustments are made to their carrying amounts to
reflect the hedged risks. Finance charges, including premiums
payable on settlement or redemption and direct issue costs,
are amortised to the income statement using the effective
interest method.
(iii) Trade receivables
Trade receivables are initially recognised at their transaction
price and are subsequently measured at amortised cost less any
allowance for expected credit losses. To measure the expected
credit losses, trade receivables are grouped based on the days
past due. Trade receivables are written off when there is no
reasonable expectation of recovery.
(iv) Trade payables
Trade payables are initially recognised at fair value and are
subsequently measured at amortised cost.
(v) Derivatives and hedge accounting
Derivatives are initially recorded at fair value on the date a
derivative contract is entered into and are subsequently carried
at fair value.
Derivatives embedded in other financial instruments or other
host contracts are treated as separate derivatives when their
risks and characteristics are not closely related to those of host
contracts, and the host contracts are not carried at fair value with
unrealised gains or losses reported in the income statement.
Where hedge accounting is not applied, or to the extent to which
it is not effective, changes in the fair value of derivatives are
recognised in the income statement as they arise. Changes in the
fair value of derivatives transacted as hedges of operating items
and financing items are recognised in operating profit and net
finance costs respectively.
The accounting treatment of derivatives and other financial
instruments classified as hedges depends on their designation,
which occurs at the start of the hedge relationship. The Group
designates certain financial instruments as:
— a hedge of the fair value of an asset or liability or unrecognised
firm commitment (‘fair value hedge’);
— a hedge of a highly probable forecast transaction or firm
commitment if foreign currency risk is hedged (‘cash flow
hedge’); or
— a hedge of a net investment in a foreign operation (‘net
investment hedge’).
Fair value hedges
For an effective hedge of an exposure to changes in fair value,
the hedged item is adjusted for changes in fair value attributable
to the risk being hedged with the corresponding entry being
recorded in the income statement. Gains or losses from
remeasuring the corresponding hedging instrument are
recognised in the same line of the income statement.
141Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
3 Critical accounting judgements and key
sources of estimation uncertainty
The preparation of consolidated financial statements under IFRS
requires the Group to make estimates and assumptions that
affect the application of policies and reported amounts.
Estimates and judgements are continually evaluated and are
based on historical experience and other factors including
expectations of future events that are believed to be reasonable
under the circumstances. Actual results may differ from these
estimates. The significant judgements applied in the preparation
of the financial statements, along with estimates and assumptions
which have a significant risk of causing a material adjustment to
the carrying amount of assets and liabilities within the next
financial year, are discussed below.
Key sources of estimation uncertainty
Inventories
The carrying amount of inventories recognised on the balance
sheet, which are carried at the lower of cost and net realisable
value, are subject to estimates around rates of provision applied
to certain inventory items. The level of provisions recorded are
subject to estimation uncertainty in determining the eventual
sales price of goods to customers in the future, as well as
assessing which items may be slow-moving or obsolete. This is
impacted by factors such as stock turn, range or delisted status,
shrinkage, damage, obsolescence and range review activity.
Range reviews and resulting clearance activity add additional
complexity to assessing the level of inventory that may become
obsolete and the expected net realisable value of inventory
which will be sold.
The carrying amount of inventories subject to estimation
uncertainty is £2,768m (2024/25: £2,719m). A 1% increase in the
provision as a percentage of gross inventory (before provisions
and a deduction for rebates) which, based on management’s
judgement, represents a reasonably possible change, would
result in a £30m decrease in the carrying amount of inventories
(2024/25: £30m).
The quantity, age and condition of inventories is regularly
measured and assessed as part of range reviews and inventory
counts undertaken throughout the year and across the Group.
Impairment of store-based assets and Castorama France goodwill
Impairment of store-based assets
The Group applies procedures to ensure that its assets are
carried at no more than their recoverable amount. These
procedures, by their nature, require estimates and assumptions
to be made. The most significant are set out below.
Store assets are reviewed for impairment if events or changes in
circumstances indicate that their carrying amount may not be
recoverable, or where there is any indication that an impairment
loss recognised in a previous period either no longer exists or has
decreased. When a review for impairment is conducted, the
recoverable amount of an asset or a cash generating unit (CGU)
is determined as the higher of fair value less costs to sell and
value-in-use.
The determination of value-in-use for store assets requires the
estimation of future cash flows expected to arise from the
continuing operation of the store and the determination of
suitable discount and long-term growth rates in order to calculate
the present value of the forecast cash flows. Judgement is also
required around the nature and level of overheads that are
necessarily incurred to generate cash inflows in the context of
allocation to individual store cash generating units. Note that the
estimation of future cash flows and determination of suitable
discount rates requires a greater level of judgement than the
determination of long-term growth rates.
Sales projections take into consideration both external factors
such as market expectations, and internal factors such as trading
plans. They assume sales increases that are higher than recent
experience and driven by an improved and differentiated offer
alongside trade and digital expansion, and market growth
expectations based on internal and external forecasts. Assumed
margin percentage improvements reflect increased sales of the
Group’s own exclusive brands (OEB) as well as lower cost of sales
from leveraging our key vendors. Higher assumed operating
profit percentages reflect operational leverage from increased
sales as well as cost savings through operational efficiencies,
including more efficient organisation and leveraging of goods not
for resale (GNFR) spend. Actual outcomes could vary significantly
from these estimates and sensitivity analyses are undertaken to
assess the impact of projected benefits not being realised. The
pre-tax discount rates applied to the cash flow forecasts are
derived from the post-tax weighted average cost of capital for
each of the territories in which the Group operates. The
assumptions used in the calculation of the weighted average cost
of capital are based on observable external market data.
Cash flows beyond the period of the strategic plans are
calculated using a long-term growth rate based on inflation
expectations which does not exceed the long-term
average growth rates for the countries in which the Group’s
stores operate.
As a result of this review, the Group has recorded net store asset
impairment charges of £38m (2024/25: £94m) as adjusting items,
reflecting store-level performance and revised future financial
projections, principally in France and the UK.
The carrying amount of store-based assets subject to this
estimation uncertainty is £4,385m (2024/25: £4,278m). The
recoverable amount of impaired store-based assets for which an
impairment loss has been recognised or reversed, including how
the recoverable amount is supported, is as follows:
£ millions
2025/26
2024/25
Value-in-use
538
444
Fair value less costs to sell
196
205
734
649
142 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
The following changes in assumptions which, based on the
Group’s previous experience and management’s judgement
represent reasonably possible changes, would lead to the
following impacts on the net impairment charge:
Impact on net
Assumption
Change in assumption
impairment charge
Operating
—
Decrease by 10%
—
Increase by £43m
c
ash flows
—
Increase by 10%
—
Decrease by £31m
Post
-tax
—
Increase by 1%
—
Increase by £33m
discount rate
—
Decrease by 1%
— Decrease by £31m
Further information relating to store assets is provided in notes
15, 16 and 17.
Impairment of Castorama France goodwill
Goodwill is reviewed for impairment annually or earlier if
there is an indication of impairment. When a review for goodwill
impairment is performed, the recoverable amount of the
CGU to which goodwill is allocated is determined based on its
value-in-use. Where the recoverable amount is less than the net
assets of the CGU and related goodwill, an impairment of goodwill
is recorded.
For the goodwill allocated to the Castorama France group of
CGUs, the Group recorded a partial impairment charge of £84m
in the prior year, and disclosed that the carrying amount of the
remaining £140m is highly sensitive to changes in assumptions.
In the current year, the Group has recorded an impairment
charge of £73m, driven by revised financial projections
which reflect a subdued French DIY market in 2025/26.
The remaining Castorama France goodwill balance of £67m
continues to be highly sensitive to changes in assumptions, and
reasonably possible changes could result in further material
impairment charges.
The determination of value-in-use for the Castorama France
group of CGUs requires the estimation of future cash flows
expected to arise from the continuing operation of the
Castorama France retail banner and the determination of suitable
discount and long-term growth rates. These estimations are
subject to a high degree of uncertainty, in line with those for the
store-based asset impairment review. The relevant cash flows
for the Castorama France group of CGUs are derived from the
same cash flow projections used as part of the store-based
asset impairment review, in addition to the same discount and
long-term growth rates. In line with the value-in-use methodology
used for store-based asset impairment reviews, cash flows
beyond the period of the strategic plans are calculated using the
long-term growth rate.
The Group has reviewed a sensitivity analysis and has determined
that a 5% decrease in operating cash flows, or a 0.5% increase in
the post-tax discount rate, would lead to an impairment of the
remaining £67m goodwill carrying amount. These changes in
assumptions are within the Group’s reasonably possible changes
considered by management (see impairment of store-based
assets above) and could be influenced by a deterioration in
external market conditions against forecasted assumptions or
the Group’s ability to realise internal strategic initiatives.
Further information relating to goodwill is provided in note 13.
Post-employment benefits
The present value of the defined benefit obligations recognised
on the balance sheet is dependent on a number of market rates
and assumptions including interest rates of high-quality
corporate bonds, inflation and mortality rates. The net interest
expense or income is dependent on the interest rates of high-
quality corporate bonds and the net deficit or surplus position.
The market rates and assumptions are based on the conditions at
the time and changes in these can lead to significant movements
in the estimated obligations.
Due to the significance of the UK defined benefit obligation, the
carrying value of which is £1,679m (2024/25: £1,711m), reasonably
possible changes in financial and demographic assumptions (i.e.
discount rates, price inflation/rate of pension increases and
mortality assumptions) could result in a material adjustment to the
financial statements. During the year, changes in financial and
demographic assumptions have resulted in a decrease in the UK
defined benefit obligation of £56m (2024/25: £120m). To help the
reader understand the impact of changes in the key market rates
and assumptions, a sensitivity analysis is provided in note 28.
Critical accounting judgements
Adjusting items
The Group separately reports adjusting items in order to
calculate adjusted results, as it believes these adjusted measures
provide additional useful information on continuing performance
and trends to shareholders.
Judgement is required in determining whether an item should be
classified as an adjusting item or included within adjusted results.
The Group’s definition of adjusting items is outlined in note 2 (a).
During the year the Group has recorded, before taxation, a
charge for adjusting items of £182m (2024/25: £221m). Total
adjusting items after taxation were a charge of £171m (2024/25:
£196m charge). Refer to note 6 for further information on
adjusting items.
Notes to the consolidated financial statements continued
3 Critical accounting judgements and key
sources of estimation uncertainty
The preparation of consolidated financial statements under IFRS
requires the Group to make estimates and assumptions that
affect the application of policies and reported amounts.
Estimates and judgements are continually evaluated and are
based on historical experience and other factors including
expectations of future events that are believed to be reasonable
under the circumstances. Actual results may differ from these
estimates. The significant judgements applied in the preparation
of the financial statements, along with estimates and assumptions
which have a significant risk of causing a material adjustment to
the carrying amount of assets and liabilities within the next
financial year, are discussed below.
Key sources of estimation uncertainty
Inventories
The carrying amount of inventories recognised on the balance
sheet, which are carried at the lower of cost and net realisable
value, are subject to estimates around rates of provision applied
to certain inventory items. The level of provisions recorded are
subject to estimation uncertainty in determining the eventual
sales price of goods to customers in the future, as well as
assessing which items may be slow-moving or obsolete. This is
impacted by factors such as stock turn, range or delisted status,
shrinkage, damage, obsolescence and range review activity.
Range reviews and resulting clearance activity add additional
complexity to assessing the level of inventory that may become
obsolete and the expected net realisable value of inventory
which will be sold.
The carrying amount of inventories subject to estimation
uncertainty is £2,768m (2024/25: £2,719m). A 1% increase in the
provision as a percentage of gross inventory (before provisions
and a deduction for rebates) which, based on management’s
judgement, represents a reasonably possible change, would
result in a £30m decrease in the carrying amount of inventories
(2024/25: £30m).
The quantity, age and condition of inventories is regularly
measured and assessed as part of range reviews and inventory
counts undertaken throughout the year and across the Group.
Impairment of store-based assets and Castorama France goodwill
Impairment of store-based assets
The Group applies procedures to ensure that its assets are
carried at no more than their recoverable amount. These
procedures, by their nature, require estimates and assumptions
to be made. The most significant are set out below.
Store assets are reviewed for impairment if events or changes in
circumstances indicate that their carrying amount may not be
recoverable, or where there is any indication that an impairment
loss recognised in a previous period either no longer exists or has
decreased. When a review for impairment is conducted, the
recoverable amount of an asset or a cash generating unit (CGU)
is determined as the higher of fair value less costs to sell and
value-in-use.
The determination of value-in-use for store assets requires the
estimation of future cash flows expected to arise from the
continuing operation of the store and the determination of
suitable discount and long-term growth rates in order to calculate
the present value of the forecast cash flows. Judgement is also
required around the nature and level of overheads that are
necessarily incurred to generate cash inflows in the context of
allocation to individual store cash generating units. Note that the
estimation of future cash flows and determination of suitable
discount rates requires a greater level of judgement than the
determination of long-term growth rates.
Sales projections take into consideration both external factors
such as market expectations, and internal factors such as trading
plans. They assume sales increases that are higher than recent
experience and driven by an improved and differentiated offer
alongside trade and digital expansion, and market growth
expectations based on internal and external forecasts. Assumed
margin percentage improvements reflect increased sales of the
Group’s own exclusive brands (OEB) as well as lower cost of sales
from leveraging our key vendors. Higher assumed operating
profit percentages reflect operational leverage from increased
sales as well as cost savings through operational efficiencies,
including more efficient organisation and leveraging of goods not
for resale (GNFR) spend. Actual outcomes could vary significantly
from these estimates and sensitivity analyses are undertaken to
assess the impact of projected benefits not being realised. The
pre-tax discount rates applied to the cash flow forecasts are
derived from the post-tax weighted average cost of capital for
each of the territories in which the Group operates. The
assumptions used in the calculation of the weighted average cost
of capital are based on observable external market data.
Cash flows beyond the period of the strategic plans are
calculated using a long-term growth rate based on inflation
expectations which does not exceed the long-term
average growth rates for the countries in which the Group’s
stores operate.
As a result of this review, the Group has recorded net store asset
impairment charges of £38m (2024/25: £94m) as adjusting items,
reflecting store-level performance and revised future financial
projections, principally in France and the UK.
The carrying amount of store-based assets subject to this
estimation uncertainty is £4,385m (2024/25: £4,278m). The
recoverable amount of impaired store-based assets for which an
impairment loss has been recognised or reversed, including how
the recoverable amount is supported, is as follows:
£ millions
2025/26 2024/25
Value-in-use
538
444
Fair value less costs to sell
196 205
734
649
143Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
3 Critical accounting judgements and key
sources of estimation uncertainty
continued
Consideration of climate-related matters
The Group has considered the inclusion of climate change as a
‘principal risk’ and the potential impacts of climate change in
preparing these financial statements . The rationale for this being
included as a principal risk is included in the Risks section (pages
43 to 48). Climate scenario analysis has been performed and is
set out in the TCFD disclosures on pages 28 to 30. The financial
impact of these scenarios, once mitigating actions and
opportunities are taken into account over the respective time
horizons, is expected to be less than the results of the Group’s
impairment sensitivity analysis on operating cash flows
(see below).
The potential impacts of climate change on the financial
statements have been considered in the following areas:
— Carrying value and remaining useful economic life of property,
plant and equipment;
— Carrying value of inventories and valuations of other assets
and of provisions;
— Viability statement assessment of the Group over the next
three years; and
— Cash flow forecasts used for the purposes of impairment
assessments of store-based assets and goodwill.
To support our net-zero ambitions, the Group continues to invest
in more sustainable fixed assets. The Group has not recognised
any impairments or significant levels of accelerated depreciation
to existing fixed assets in the year resulting from such actual and
planned investments (i.e. due to a reduction in recoverable
amounts or expected remaining life). Current assets including
trade receivables and inventories at the balance sheet date
are expected to be realised within a relatively short timeframe,
and therefore no climate-related risks have been identified for
these balances, whilst the Group is not currently aware of
adverse exposures from climate change requiring provisions
to be recognised.
The Group’s internal three-year financial plans act as the basis for
the Viability Statement financial modelling and for impairment
reviews of non-current assets including goodwill. They include
consideration of climate-related risks and opportunities
expected within this internal financial planning time horizon. Within
this modelling, cash flow sensitivities are performed, for which the
most severe scenario in the Viability Statement estimates the
impact of a demand or supply shock preventing the Group from
realising a large part of its sales during the peak trading period.
The shock, as described in the Viability Statement on pages 49 to
50, would go far beyond the expected short-term impact from a
remote climate-driven extreme weather event, such as severe
flooding and the resulting damage, to one of the Group’s
distribution centres or network.
The financial modelling of climate change scenarios, as
performed and described in the TCFD disclosure identified no
risks that resulted in an adverse impact on the Group’s
discounted cash flows above 10%, which is the sensitivity
performed for store asset and goodwill impairment purposes.
Climate change risks are therefore not judged to be key drivers in
determining the outcome of the impairment exercise or the
Viability Statement.
As a result, the Group has concluded that climate change risk
does not represent a critical accounting judgement or key
source of estimation uncertainty for the current year financial
statements. This classification will be reassessed in future
reporting periods as we continue to review the impacts, risks and
opportunities presented by climate change and the Group’s
commitments to address the challenges presented.
144 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
4 Sales
£ millions
2025/26
2024/25
B&Q
3,971
3,820
Screwfix
2,755
2,636
Total UK & Ireland
6,726
6,456
Castorama
2,000
2,014
Brico Dépôt
1,866
1,869
Total France
3,866
3,883
Poland
1,843
1,788
Iberia
 425 384
Romania
1
60
257
Screwfix France & Other
2
25
16
Other International
510
657
Total Group
12,945
12,784
The majority of the sales in each segment are derived from in-store and online sales of products.
1. On 2 May 2025 the Group completed the divestment of its 100% equity interest in Brico Dépôt Romania.
2. ‘Screwfix France & Other’ consists of the consolidated results of Screwfix France, results from franchise and wholesale agreements and, in the prior year,
NeedHelp (the Group completed the divestment of its c.80% equity interest in NeedHelp on 18 July 2024).
5 Segmental analysis
Income statement
2025/26
Other
£ millions
UK & Ireland
France
Poland
International Total
Sales
6,726
3,866
1,843
510
12,945
Retail profit/(loss)
575
97
87
(25)
734
Central costs
 (80)
Share of interest and tax of equity accounted investments
(3)
Adjusting
items
(182)
Operating profit
469
Net finance costs
(91)
Profit before taxation
 378
2024/25
Other
£ millions
UK & Ireland
France
Poland
International
Total
Sales
6,456
3,883
1,788
657
12,784
Retail profit/(loss)
558
95
90
(47)
696
Central costs
 (62)
Share of interest and tax of equity accounted investments
(6)
Adjusting
items
(221)
Operating profit
407
Net finance costs
 (100)
Profit before taxation
 307
Notes to the consolidated financial statements continued
3 Critical accounting judgements and key
sources of estimation uncertainty
continued
Consideration of climate-related matters
The Group has considered the inclusion of climate change as a
‘principal risk’ and the potential impacts of climate change in
preparing these financial statements . The rationale for this being
included as a principal risk is included in the Risks section (pages
43 to 48). Climate scenario analysis has been performed and is
set out in the TCFD disclosures on pages 28 to 30. The financial
impact of these scenarios, once mitigating actions and
opportunities are taken into account over the respective time
horizons, is expected to be less than the results of the Group’s
impairment sensitivity analysis on operating cash flows
(see below).
The potential impacts of climate change on the financial
statements have been considered in the following areas:
— Carrying value and remaining useful economic life of property,
plant and equipment;
— Carrying value of inventories and valuations of other assets
and of provisions;
— Viability statement assessment of the Group over the next
three years; and
— Cash flow forecasts used for the purposes of impairment
assessments of store-based assets and goodwill.
To support our net-zero ambitions, the Group continues to invest
in more sustainable fixed assets. The Group has not recognised
any impairments or significant levels of accelerated depreciation
to existing fixed assets in the year resulting from such actual and
planned investments (i.e. due to a reduction in recoverable
amounts or expected remaining life). Current assets including
trade receivables and inventories at the balance sheet date
are expected to be realised within a relatively short timeframe,
and therefore no climate-related risks have been identified for
these balances, whilst the Group is not currently aware of
adverse exposures from climate change requiring provisions
to be recognised.
The Group’s internal three-year financial plans act as the basis for
the Viability Statement financial modelling and for impairment
reviews of non-current assets including goodwill. They include
consideration of climate-related risks and opportunities
expected within this internal financial planning time horizon. Within
this modelling, cash flow sensitivities are performed, for which the
most severe scenario in the Viability Statement estimates the
impact of a demand or supply shock preventing the Group from
realising a large part of its sales during the peak trading period.
The shock, as described in the Viability Statement on pages 49 to
50, would go far beyond the expected short-term impact from a
remote climate-driven extreme weather event, such as severe
flooding and the resulting damage, to one of the Group’s
distribution centres or network.
The financial modelling of climate change scenarios, as
performed and described in the TCFD disclosure identified no
risks that resulted in an adverse impact on the Group’s
discounted cash flows above 10%, which is the sensitivity
performed for store asset and goodwill impairment purposes.
Climate change risks are therefore not judged to be key drivers in
determining the outcome of the impairment exercise or the
Viability Statement.
As a result, the Group has concluded that climate change risk
does not represent a critical accounting judgement or key
source of estimation uncertainty for the current year financial
statements. This classification will be reassessed in future
reporting periods as we continue to review the impacts, risks and
opportunities presented by climate change and the Group’s
commitments to address the challenges presented.
145Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
5 Segmental analysis continued
Balance sheet
Other segmental information
2025/26
Other
£ millions
UK & Ireland
France
Poland
International
Central
Total
Additions to property, plant
and equipment, investment
property,
other intangible assets and right-of-use assets
493
165
86
17
3
764
Depreciation and amortisation
423
142
82
18
2
667
Impairment losses
29
124
5
3
–
161
Impairment reversals
 (16) (14) (4) (8)
–
(42)
Non-current assets
1
4,452
1,926
1,040
191
15
7,624
2024/25
Other
£ millions
UK & Ireland
France
Poland
International
Central
Total
Additions to property, plant and equipment, investment
property,
other intangible assets and right-of-use assets
321
157
69
21
1
569
Depreciation and amortisation
413
137
77
27
2
656
Impairment losses
38
157
5
22
–
222
Impairment reversals
(2)
(12)
(4)
(6)
–
(24)
Non
-current assets
1
4,362
1,968
999
216
18
7,563
1. Non-current assets comprise goodwill, other intangible assets, property, plant and equipment, investment property, right-of-use assets and equity
accounted investments.
The Group’s operating segments are based on the information reported internally to the Board of Directors and Group Executive, and
are generally determined to be the retail banners operating in each geographical area (i.e. B&Q and Screwfix in the UK & Ireland;
Castorama, Brico Dépôt and Screwfix in France; Castorama in Poland; Brico Dépôt in Iberia; Brico Dépôt in Romania and Koçtaş, the
Group’s joint venture in Turkey). NeedHelp, an online services marketplace, and the Group’s franchising and wholesaling operation are
also determined to be operating segments. On 18 July 2024, the Group completed the divestment of its c.80% equity interest in
NeedHelp. On 2 May 2025, the Group completed the divestment of its 100% interest in Brico Dépôt Romania.
The reportable segments disclosed above are based on the geographical areas in which the Group operates. Within both the UK &
Ireland and France reportable segments, operating segments determined at the retail banner level have been aggregated to form
reportable segments (i.e. B&Q and Screwfix in the UK & Ireland, and Castorama and Brico Dépôt in France). Other operating segments,
which do not individually meet the definition of a reportable segment, are combined and presented as ‘Other International’, consisting of
Brico Dépôt Iberia, Brico Dépôt Romania, Screwfix France, Koçtaş, results from franchising and wholesaling operations, and in the prior
year, NeedHelp. Screwfix France has not been aggregated as part of the France reportable segment due to its level of maturity
relative to Castorama France and Brico Dépôt France.
Central costs principally comprise the costs of the Group’s head office before adjusting items. Central assets and liabilities comprise
unallocated head office and other central items, principally relating to central creditors and accruals (including insurance and payroll)
and central tax assets.
2025/26
Other
£ millions
UK & Ireland
France
Poland
International Total
Segment net assets
2,833
1,698
1,156
186
5,873
Central
liabilities
(76)
Goodwill
2,239
Net debt
 (1,878)
Net assets
6,158
2024/25
Other
£ millions
UK & Ireland
France
Poland
International Total
Segment net assets
2,833
1,660
1,168
319
5,980
Central
assets
67
Goodwill
2,312
Net debt
 (2,015)
Net assets
6,344
146 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
6 Adjusting items
£ millions
2025/26
2024/25
Included within selling and distribution expenses
Net store asset impairment losses
(38)
(94)
Operating model restructuring
(26)
(5)
Release of France restructuring provisions
3
–
(61)
(99)
Included within administrative expenses
Castorama France goodwill impairment
(73)
(84)
Castorama France head
-office restructuring
–
(15)
UK guaranteed minimum pension credit
–
2
(73)
(97)
Included within other income/(expenses)
Loss on disposal of Brico Dépôt Romania
(31)
–
Profit on disposal of properties
2
–
Impairments of Romania assets and other exit costs
–
(22)
Loss on disposal of NeedHelp
–
(3)
(29) (25)
Included within share of post-tax results of equity accounted investments
Joint venture (Koçtaş) asset impairments
(19)
–
Adjusting
items before tax
(182)
(221)
Prior year and other adjusting tax items
11
25
Adjusting items
(171)
(196)
Net store asset impairment charges of £38m have been recognised in the year. Impairment charges of £80m have been recorded
principally in France and the UK, partially offset by impairment reversals of £42m in France, the UK and Iberia, reflecting store-level
performance and revised future financial projections.
Operating model restructuring costs of £26m have been incurred relating to store operating model programmes in the UK & Ireland
and Poland. In the UK & Ireland, implementation of a new simplified retail leadership structure across all B&Q stores commenced during
the year, following a successful year-long test of the proposed structure. Total operating model restructuring costs of £22m have
been incurred relating to this programme. In Poland, restructuring costs of £4m have been incurred relating to store operating model
simplification programmes. Both the UK & Ireland and Poland programmes are expected to be completed in 2026/27, at a total cost
of c.£30m.
A £3m release of restructuring provisions was recognised in respect of legacy store closure programmes in France, following the
settlement of costs at amounts below those initially estimated.
An impairment charge of £73m has been recorded relating to goodwill allocated to Castorama France, driven by revised financial
projections which reflect a subdued French DIY market in 2025/26.
The disposal of the Brico Dépôt Romania business was completed in May 2025, resulting in a loss on disposal of £31m. See note 34 for
further details.
A profit of £2m has been recorded on the exit of one property in France and one property in the UK.
A £19m charge was recognised in respect of the Group’s joint venture, Koçtaş, reflecting the continued challenging trading
environment and ongoing macro-economic uncertainty in Turkey.
Prior year and other adjusting tax items relate principally to current and deferred tax credits recorded in respect of the net store asset
impairment losses and restructuring expenses noted above, movements in prior year provisions to reflect a reassessment of expected
outcomes, agreed positions with tax authorities and items that have time-expired.
Notes to the consolidated financial statements continued
5 Segmental analysis continued
Balance sheet
Other segmental information
2025/26
£ millions
UK & Ireland France Poland
Other
International
Central Total
Additions to property, plant and equipment, investment
property,
other intangible assets and right-of-use assets
493
165
86
17
3
764
Depreciation and amortisation
423 142 82 18 2 667
Impairment losses
29
124
5
3
–
161
Impairment reversals
(16)
(14)
(4)
(8)
– (42)
Non-current assets
1
4,452
1,926
1,040
191
15
7,624
£ millions
2024/25
UK & Ireland France Poland
Other
International Central Total
Additions to property, plant and equipment, investment
property,
other intangible assets and right-of-use assets 321 157 69 21 1 569
Depreciation and amortisation
413
137
77
27
2
656
Impairment losses
38 157 5 22 – 222
Impairment reversals
(2)
(12)
(4)
(6)
–
(24)
Non
-current assets
1
4,362 1,968 999 216 18 7,563
1. Non-current assets comprise goodwill, other intangible assets, property, plant and equipment, investment property, right-of-use assets and equity
accounted investments.
The Group’s operating segments are based on the information reported internally to the Board of Directors and Group Executive, and
are generally determined to be the retail banners operating in each geographical area (i.e. B&Q and Screwfix in the UK & Ireland;
Castorama, Brico Dépôt and Screwfix in France; Castorama in Poland; Brico Dépôt in Iberia; Brico Dépôt in Romania and Koçtaş, the
Group’s joint venture in Turkey). NeedHelp, an online services marketplace, and the Group’s franchising and wholesaling operation are
also determined to be operating segments. On 18 July 2024, the Group completed the divestment of its c.80% equity interest in
NeedHelp. On 2 May 2025, the Group completed the divestment of its 100% interest in Brico Dépôt Romania.
The reportable segments disclosed above are based on the geographical areas in which the Group operates. Within both the UK &
Ireland and France reportable segments, operating segments determined at the retail banner level have been aggregated to form
reportable segments (i.e. B&Q and Screwfix in the UK & Ireland, and Castorama and Brico Dépôt in France). Other operating segments,
which do not individually meet the definition of a reportable segment, are combined and presented as ‘Other International’, consisting of
Brico Dépôt Iberia, Brico Dépôt Romania, Screwfix France, Koçtaş, results from franchising and wholesaling operations, and in the prior
year, NeedHelp. Screwfix France has not been aggregated as part of the France reportable segment due to its level of maturity
relative to Castorama France and Brico Dépôt France.
Central costs principally comprise the costs of the Group’s head office before adjusting items. Central assets and liabilities comprise
unallocated head office and other central items, principally relating to central creditors and accruals (including insurance and payroll)
and central tax assets.
£ millions
2025/26
UK & Ireland France Poland
Other
International
Total
Segment net assets
2,833
1,698
1,156
186
5,873
Central
liabilities (76)
Goodwill
2,239
Net debt
(1,878)
Net assets
6,158
2024/25
£ millions
UK & Ireland France Poland
Other
International
Total
Segment net assets
2,833
1,660
1,168
319
5,980
Central
assets 67
Goodwill
2,312
Net debt
(2,015)
Net assets
6,344
147Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
7 Net finance costs
£ millions
2025/26
2024/25
Bank overdrafts, bank loans and derivatives
–
(1)
Fixed term debt
(6)
(8)
Lease liabilities
(118)
(123)
Finance costs
 (124) (132)
Cash and cash equivalents and short-term deposits
22
22
Net interest income on defined benefit pension schemes
7
7
Finance lease income
–
1
Other interest income
4
2
Finance income
33
32
Net finance costs
 (91) (100)
8 Profit before taxation
The following items of expense/(income) have been charged/(credited) in arriving at profit before taxation:
£ millions
2025/26
2024/25
Amortisation of intangible assets
1
131
125
Depreciation of property, plant and equipment, investment property and right
-of-use assets
536
531
Impairment of goodwill
73
84
Impairment of intangible assets
8
6
Impairment of property, plant and equipment, right-of-use assets, investment property and assets held for sale
80
132
Reversal of impairment of property, plant and equipment
, right-of-use assets and investment property
(42)
(24)
Write-down to recoverable amount of trade and other receivables
3
2
1. Of the amortisation of intangible assets charge, £3m (2024/25: £2m) and £128m (2024/25: £123m) are included in selling and distribution expenses and
administrative expenses respectively.
Auditor’s remuneration
£ millions
2025/26
2024/25
Fees payable for the audit of the Company and consolidated financial statements
1.2
1.1
Fees payable to the Company’s auditor and their associates for other services to the Group:
The audit of the Company’s subsidiaries pursuant to legislation
2.3
2.2
Audit fees
3.5
3.3
Audit
-related assurance services
0.2
0.2
Other assurance services
0.1
0.1
Non-audit fees
0.3
0.3
Auditor’s remuneration
3.8
3.6
Details of the Group’s policy on the use of auditors for non-audit services, the reasons why the auditor was used rather than
another supplier and how the auditor’s independence and objectivity were safeguarded are set out in the Audit Committee report
on pages 68 to 72. Audit-related assurance services relate to the interim review. No services were provided pursuant to contingent
fee arrangements.
148 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
9 Employees and Directors
£ millions
2025/26
2024/25
Wages and salaries
1,774
1,729
Social security costs
342
311
Post-employment benefits
Defined contribution
60
55
Defined benefit – current service cost
10
10
Share-based compensation
27
20
Employee benefit expenses
2,213
2,125
Number thousands
2025/26
2024/25
Stores
64
66
Administration
7
8
Average number of persons employed
71
74
The average number of persons employed excludes those employed by the Group’s joint ventures and associates.
Remuneration of directors
£ millions
2025/26
2024/25
Emoluments
5.3
4.3
Amounts received under incentive schemes
1
–
4.7
5.3
9.0
1. Excludes amounts relating to past directors.
Emoluments comprise fees paid to non-executive directors and, for executive directors, salary and benefits earned during the relevant
financial year, plus cash bonuses awarded for the year.
Remuneration of key management personnel
£ millions
2025/26
2024/25
Short
-term employee benefits
13.2
11.0
Post-employment benefits
0.6
0.5
Termination benefits
0.4
0.1
Share-based compensation
8.2
3.6
22.4
15.2
The Group defines key management personnel as being those members of the Board of Directors and the Group Executive.
Further detail with respect to the Directors’ remuneration is set out in the Directors’ Remuneration Report on pages 73 to 98.
There have been no other transactions with key management during the year (2024/25: £nil).
10 Income tax expense
£ millions
2025/26
2024/25
UK corporation tax
Current tax on profits for the year
(78)
(79)
Adjustments in respect of prior years
12
4
(66)
(75)
Overseas tax
Current tax on profits for the year
 (37) (26)
Adjustments in respect of prior years
(6)
4
(43)
(22)
Current tax
 (109) (97)
Deferred tax
Current year
(16)
(13)
Adjustments in respect of prior years
(8)
(12)
Deferred tax
 (24) (25)
Income tax expense
(133)
(122)
Notes to the consolidated financial statements continued
7 Net finance costs
£ millions
2025/26 2024/25
Bank overdrafts, bank loans and derivatives
–
(1)
Fixed term debt
(6)
(8)
Lease liabilities
(118)
(123)
Finance costs
(124)
(132)
Cash and cash equivalents and short-term deposits
22
22
Net interest income on defined benefit pension schemes
7
7
Finance lease income
–
1
Other interest income
4
2
Finance income
33
32
Net finance costs
(91)
(100)
8 Profit before taxation
The following items of expense/(income) have been charged/(credited) in arriving at profit before taxation:
£ millions
2025/26 2024/25
Amortisation of intangible assets
1
131
125
Depreciation of property, plant and equipment, investment property and right
-of-use assets
536
531
Impairment of goodwill
73
84
Impairment of intangible assets
8
6
Impairment of property, plant and equipment, right-of-use assets, investment property and assets held for sale
80
132
Reversal of impairment of property, plant and equipment
, right-of-use assets and investment property
(42)
(24)
Write-down to recoverable amount of trade and other receivables
3
2
1. Of the amortisation of intangible assets charge, £3m (2024/25: £2m) and £128m (2024/25: £123m) are included in selling and distribution expenses and
administrative expenses respectively.
Auditor’s remuneration
£ millions
2025/26 2024/25
Fees payable for the audit of the Company and consolidated financial statements
1.2
1.1
Fees payable to the Company’s auditor and their associates for other services to the Group:
The audit of the Company’s subsidiaries pursuant to legislation
2.3
2.2
Audit fees
3.5
3.3
Audit
-related assurance services 0.2 0.2
Other assurance services
0.1
0.1
Non-audit fees
0.3
0.3
Auditor’s remuneration
3.8 3.6
Details of the Group’s policy on the use of auditors for non-audit services, the reasons why the auditor was used rather than
another supplier and how the auditor’s independence and objectivity were safeguarded are set out in the Audit Committee report
on pages 68 to 72. Audit-related assurance services relate to the interim review. No services were provided pursuant to contingent
fee arrangements.
149Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
10 Income tax expense continued
Factors affecting tax charge for the year
The tax charge for the year differs from the standard rate of corporation tax in the UK of 25% (2024/25: 25%). The differences are
explained below:
£ millions
2025/26
2024/25
Profit before taxation
378
307
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024/25: 25%)
(95)
(77)
Net expense not deductible for tax purposes
 (34) (32)
Temporary differences:
Losses not recognised
(3)
(9)
Share of post-tax results of joint ventures
(2)
(4)
Foreign tax rate differences
3
4
Adjustments in respect of prior years
(2)
(4)
Income tax expense
(133)
(122)
The adjusted effective tax rate on profit before adjusting items is 26% (2024/25: 28%). The adjusted effective tax rate calculation is set
out in the Financial Review on page 32.
The overall tax rate for the year is 35% (2024/25: 40%). This predominately reflects the blend of tax rates and profits in the Group’s
various jurisdictions, and the applicable tax treatment of adjusting items and losses made by companies which have not been
recognised for deferred tax. This includes a charge in respect of prior year provisions, which reflect a reassessment of expected
outcomes, agreed positions with tax authorities and items that have time-expired. Net expense not deductible for tax purposes does
not include any significant values that have been netted off.
In addition to the amounts charged to the income statement, tax of £12m has been credited directly to equity (2024/25: £30m credit)
of which £nil (2024/25: £1m charge) is included in current tax and a £12m credit (2024/25: £31m credit) is included in deferred tax.
See note 26 for further details.
The Group is subject to the global minimum tax rules (Pillar Two). The legislation implementing Pillar Two in the UK was substantively
enacted on 20 June 2023 and applies to the Group for financial years ending 31 January 2025 onwards.
The Group has assessed the impact of the rules and the estimated exposure to Pillar Two top-up taxes is negligible. The Group will
continue to closely monitor developments in respect of the Pillar Two rules and assess any potential impact on future tax charges.
The Group has applied the exception to IAS 12 in respect of recognising and disclosing information relating to deferred tax assets and
liabilities arising in respect of Pillar Two.
Changes in tax rates
During the year the French government approved a temporary CIT surcharge. Taxable profits were subject to tax at the headline
statutory rate of 25.0%, plus an additional liability at 41.2% of the average relevant CIT liabilities in respect of the periods 2024/25 and
2025/26. The Group has recorded a current tax expense in this respect of £1m (2024/25: £nil).
On 19 February 2026 the French government enacted legislation for the surcharge to be extended for a further year on the same basis
as above, with the additional liability of 41.2% calculated with reference to the average relevant CIT liabilities in respect of the periods
2025/26 and 2026/27. The impact of the surcharge in 2026/27 on Kingfisher’s French operations is estimated to be £3m.
There were no other significant changes to tax rates announced in the year relating to the overseas territories in which the
Group operates.
150 Kingfisher 2025/26 Annual Report and Accounts
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Information
Governance
Financial
Statements
Strategic
Report
11 Earnings per share
Pence
2025/26
2024/25
Basic earnings per share
14.0
10.1
Effect of dilutive share options per share
(0.2)
(0.2)
Diluted earnings per share
13.8
9.9
Basic earnings per share
14.0
10.1
Adjusting items before tax per share
10.5
12.0
Prior year and other adjusting tax items per share
(0.7)
(1.4)
Adjusted basic earnings per share
23.8
20.7
Diluted earnings per share
13.8
9.9
Adjusting items before tax per share
10.2
11.8
Prior year and other adjusting tax items per share
(0.6)
(1.3)
Adjusted diluted earnings per share
23.4
20.4
Basic earnings per share is calculated by dividing the profit for the year attributable to equity shareholders of the Company by the
weighted average number of shares in issue during the year, including vested but contingently issuable shares and deferred shares but
excluding those held in the Employee Share Ownership Plan trust (‘ESOP trust’) which for the purpose of this calculation are treated
as cancelled.
For diluted earnings per share, the weighted average number of shares is adjusted to assume conversion of all dilutive potential
ordinary shares. These represent share options granted in connection with employee share-based payment plans that are yet to vest.
The calculation of basic and diluted earnings per share is based on the profit for the year attributable to equity shareholders of the
Company. A reconciliation of statutory earnings to adjusted earnings is set out below:
£ millions
2025/26
2024/25
Earnings
245
185
Adjusting items before tax
182
221
Prior year and other adjusting tax items
(11)
(25)
Adjusted earnings
416
381
The weighted average number of shares in issue during the year, excluding those held in the ESOP trust, is set out below:
Weighted average number of shares (millions)
2025/26
2024/25
Basic
1,748
1,838
Effect of dilutive potential ordinary shares
28
29
Diluted
1,776
1,867
12 Dividends
£ millions
2025/26
2024/25
Dividends paid to equity shareholders of the Company
Ordinary interim dividend for the year ended 31 January 2026 of 3.80p per share
(year ended 31 January 202
5: 3.80p per share)
66
69
Ordinary final dividend for the year ended 31 January 2025 of 8.60p per share
(year ended 31 January 202
4: 8.60p per share)
152
159
218
228
The proposed dividend for the year ended 31 January 2026, subject to approval by shareholders at the Annual General Meeting, is
12.40p per share, comprising an interim dividend of 3.80p in respect of the six months ended 31 July 2025 and a final dividend of 8.60p.
The total final dividend for the year ended 31 January 2026 based on the issued share capital as at 31 January 2026 is expected to be
c.£147m. The final amount may vary depending on share movements between the balance sheet and payment date.
Notes to the consolidated financial statements continued
10 Income tax expense continued
Factors affecting tax charge for the year
The tax charge for the year differs from the standard rate of corporation tax in the UK of 25% (2024/25: 25%). The differences are
explained below:
£ millions
2025/26 2024/25
Profit before taxation
378
307
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024/25: 25%)
(95)
(77)
Net expense not deductible for tax purposes
(34)
(32)
Temporary differences:
Losses not recognised (3)
(9)
Share of post-tax results of joint ventures
(2)
(4)
Foreign tax rate differences
3 4
Adjustments in respect of prior years
(2)
(4)
Income tax expense
(133)
(122)
The adjusted effective tax rate on profit before adjusting items is 26% (2024/25: 28%). The adjusted effective tax rate calculation is set
out in the Financial Review on page 32.
The overall tax rate for the year is 35% (2024/25: 40%). This predominately reflects the blend of tax rates and profits in the Group’s
various jurisdictions, and the applicable tax treatment of adjusting items and losses made by companies which have not been
recognised for deferred tax. This includes a charge in respect of prior year provisions, which reflect a reassessment of expected
outcomes, agreed positions with tax authorities and items that have time-expired. Net expense not deductible for tax purposes does
not include any significant values that have been netted off.
In addition to the amounts charged to the income statement, tax of £12m has been credited directly to equity (2024/25: £30m credit)
of which £nil (2024/25: £1m charge) is included in current tax and a £12m credit (2024/25: £31m credit) is included in deferred tax.
See note 26 for further details.
The Group is subject to the global minimum tax rules (Pillar Two). The legislation implementing Pillar Two in the UK was substantively
enacted on 20 June 2023 and applies to the Group for financial years ending 31 January 2025 onwards.
The Group has assessed the impact of the rules and the estimated exposure to Pillar Two top-up taxes is negligible. The Group will
continue to closely monitor developments in respect of the Pillar Two rules and assess any potential impact on future tax charges.
The Group has applied the exception to IAS 12 in respect of recognising and disclosing information relating to deferred tax assets and
liabilities arising in respect of Pillar Two.
Changes in tax rates
During the year the French government approved a temporary CIT surcharge. Taxable profits were subject to tax at the headline
statutory rate of 25.0%, plus an additional liability at 41.2% of the average relevant CIT liabilities in respect of the periods 2024/25 and
2025/26. The Group has recorded a current tax expense in this respect of £1m (2024/25: £nil).
On 19 February 2026 the French government enacted legislation for the surcharge to be extended for a further year on the same basis
as above, with the additional liability of 41.2% calculated with reference to the average relevant CIT liabilities in respect of the periods
2025/26 and 2026/27. The impact of the surcharge in 2026/27 on Kingfisher’s French operations is estimated to be £3m.
There were no other significant changes to tax rates announced in the year relating to the overseas territories in which the
Group operates.
151Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
13 Goodwill
£ millions
Cost
At 1 February 2025
2,396
At 31 January 2026
2,396
Impairment
At 1 February 2025
(84)
Charge for the year
(73)
At 31 January 202
6
(157)
Net carrying amount
At 31 January 2026
2,239
Cost
At 1 February 2024
2,455
Disposals
 (8)
Transfers to held for sale
(49)
Exchange differences
 (2)
At 31 January 202
5
2,396
Impairment
At 1 February 20
24
(57)
Charge for the year
(84)
Disposals
 8
Transfers to held for sale
49
At 31 January 2025
(84)
Net carrying amount
At 31 January 202
5
2,312
An impairment charge of £73m has been recorded in the year as an adjusting item in relation to the goodwill allocated to the Castorama
France group of CGUs. Refer to note 3.
Impairment tests for goodwill
Goodwill has been allocated for impairment testing purposes to groups of cash generating units (CGUs) as follows:
B&Q Screwfix Castorama Brico Dépôt
£ millions
UK & Ireland UK & Ireland France France
Poland
Total
At 31 January 2026
Cost
1,036
760
224
295
81
2,396
Impairment
–
–
(157)
–
–
(157)
Net carrying amount
1,036
760
67
295
81
2,239
B&Q Screwfix Castorama Brico Dépôt
£ millions
UK & Ireland UK & Ireland France France
Poland
Total
At 31 January 202
5
Cost
1,036
760
225
296
81
2,398
Impairment
–
–
(84)
–
–
(84)
Exchange differences
–
–
(1)
(1)
–
(2)
Net carrying amount
1,036
760
140
295
81
2,312
The recoverable amounts of the groups of CGUs have been determined based on value-in-use calculations. The key assumptions used
for value-in-use calculations are set out below.
152 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Assumptions
The cash flow projections are based on approved strategic plans covering a three-year period. These are based on both past
performance and expectations for future market development. The projections reflect the expected benefits from certain strategic
initiatives, including an increased offer, an improved digital journey and improved operational efficiency. As required under IFRS,
cash flows related to uncommitted future restructurings and enhancement capital expenditure are excluded from the projections for
impairment testing purposes. For further details, refer to the Strategic Report on pages 31 to 37.
Key outcomes of the strategic plans are reflected in sales growth, and increases in margin and operating profit percentages. Sales
projections take into consideration both external factors such as market expectations, and internal factors such as execution on our
strategy. They assume sales increases in each CGU that are driven by an enlarged offer, an expansion of our trade business, improved
digital capabilities (including marketplaces) and local trading initiatives, supported by structural changes in the growth of the home
improvement market. Assumed gross margin percentages benefit from increased sales of the Group’s higher margin own exclusive
brands (OEB), vendor negotiations and operational leverage benefits from increased sales on logistics and distribution costs. Assumed
operating profit percentages reflect better utilisation of fixed costs through higher sales densities and cost savings driven from
operational efficiencies, including a more efficient organisation and leveraging our goods-not-for-resale spend.
Cash flows beyond the period of the strategic plans are calculated using a growth rate which does not exceed the long-term average
growth rate for the countries in which the Group’s CGUs operate.
The pre-tax discount rates are derived from the Group’s weighted average cost of capital, taking into account the cost of equity and
debt, to which specific market-related premium adjustments are made for each country in which the CGU operates.
The risk-adjusted nominal discount rates and long-term nominal growth rates used are as follows:
2025/26
2024/25
Annual % rate
UK
France
Poland
UK
France
Poland
Pre-tax discount rate
10.5
10.7
10.9
11.0
11.2
11.7
Post
-tax discount rate
8.4
8.4
9.3
8.8
8.9
10.0
Long-term growth rate
2.0
1.9
2.5
2.0
1.8
2.5
The Board has reviewed a sensitivity analysis and does not consider that a reasonably possible change in the assumptions used in the
value-in-use calculations would cause the carrying amounts of the B&Q UK & Ireland, Screwfix UK & Ireland, Brico Dépôt France and
Castorama Poland groups of CGUs to exceed their recoverable amounts.
Refer to note 3, where impairment of Castorama France goodwill is disclosed as a ‘Key source of estimation uncertainty’, for the
sensitivity analysis over the remaining goodwill balance allocated to the Castorama France group of CGUs.
Notes to the consolidated financial statements continued
13 Goodwill
£ millions
Cost
At 1 February 2025
2,396
At 31 January 2026
2,396
Impairment
At 1 February 2025
(84)
Charge for the year
(73)
At 31 January 202
6 (157)
Net carrying amount
At 31 January 2026
2,239
Cost
At 1 February 2024
2,455
Disposals
(8)
Transfers to held for sale
(49)
Exchange differences
(2)
At 31 January 202
5 2,396
Impairment
At 1 February 20
24 (57)
Charge for the year
(84)
Disposals
8
Transfers to held for sale
49
At 31 January 2025
(84)
Net carrying amount
At 31 January 202
5 2,312
An impairment charge of £73m has been recorded in the year as an adjusting item in relation to the goodwill allocated to the Castorama
France group of CGUs. Refer to note 3.
Impairment tests for goodwill
Goodwill has been allocated for impairment testing purposes to groups of cash generating units (CGUs) as follows:
£ millions
B&Q
UK & Ireland
Screwfix
UK & Ireland
Castorama
France
Brico Dépôt
France
Poland Total
At 31 January 2026
Cost
1,036
760
224
295
81
2,396
Impairment
–
–
(157)
–
–
(157)
Net carrying amount
1,036 760 67 295 81 2,239
£ millions
B&Q
UK & Ireland
Screwfix
UK & Ireland
Castorama
France
Brico Dépôt
France
Poland Total
At 31 January 202
5
Cost
1,036
760
225
296
81
2,398
Impairment
– – (84)
– – (84)
Exchange differences
–
–
(1)
(1)
–
(2)
Net carrying amount
1,036
760
140
295
81
2,312
The recoverable amounts of the groups of CGUs have been determined based on value-in-use calculations. The key assumptions used
for value-in-use calculations are set out below.
153Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
14 Other intangible assets
Other intangible
£ millions
assets
Cost
At 1 February 2025
1,005
Additions
88
Disposals
(233)
Exchange differences
3
At 31 January 202
6
863
Amortisation
At 1 February 2025
(693)
Charge for the year
(131)
Impairment losses
(8)
Disposals
233
Exchange differences
(3)
At 31 January 2026
(602)
Net carrying amount
At 31 January 2026
261
Cost
At
1 February 2024
1,011
Additions
78
Disposals
 (23)
Eliminations
1
(54)
Transfers to held for sale
 (5)
Exchange differences
(2)
At 31 January 202
5
1,005
Amortisation
At 1 February 2024
(643)
Charge for the year
(125)
Impairment losses
(6)
Disposals
23
Eliminations
1
54
Transfers to held for sale
3
Exchange differences
1
At 31 January 2025
(693)
Net carrying amount
At 31 January 2025
312
1. Eliminations consist of amounts in relation to nil net book value assets which were eliminated from the asset register following a verification project in the UK in the
prior year.
Other intangible assets are principally comprised of computer software.
Additions in the current and prior year primarily related to the development of IT infrastructure for the benefit of the Group.
Other intangible assets cost include £530m (2024/25: £482m) of internally generated development costs with a £138m (2024/25:
£171m) net carrying amount. None of the Group’s other intangible assets have indefinite useful lives.
154 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
15 Property, plant and equipment
Fixtures, fittings,
Land and equipment and
£ millions
buildings
other assets
Total
Cost
At 1 February 2025
2,753
2,925
5,678
Additions
64
239
303
Disposals
(2)
(116)
(118)
Transfers to investment properties
(47)
–
(47)
Transfers to assets held for sale
(3)
–
(3)
Exchange differences
75
47
122
At 31 January 202
6
2,840
3,095
5,935
Depreciation
At 1 February 2025
(641)
(1,932)
(2,573)
Charge for the year
(32)
(180)
(212)
Impairment losses
(24)
(22)
(46)
Impairment reversals
21
8
29
Disposals
1
114
115
Transfers to investment properties
10
–
10
Exchange differences
(18)
(34)
(52)
At 31 January 2026
(683)
(2,046)
(2,729)
Net carrying amount
At 31 January 2026
2,157
1,049
3,206
Cost
At 1 February 2024
2,761
3,637
6,398
Additions
32
206
238
Disposals
(11)
(52)
(63)
Eliminations and transfers
1
70
(820)
(750)
Transfers to assets held for sale
(73)
(27)
(100)
Exchange differences
 (26) (19) (45)
At 31 January 2025
2,753
2,925
5,678
Depreciation
At 1 February 2024
(628)
(2,564)
(3,192)
Charge for the year
 (29) (177) (206)
Impairment losses
(42)
(34)
(76)
Impairment reversals
14
2
16
Disposals
3
50
53
Eliminations and transfers
1
 (2)
752
750
Transfers to assets held for sale
36
24
60
Exchange differences
7
15
22
At 31 January 2025
(641)
(1,932)
(2,573)
Net carrying amount
At 31 January 2025
2,112
993
3,105
Assets in the course of construction included above at net carrying amount
At 31 January 2026
39
213
252
At 31 January 2025
35
160
195
1. Eliminations and transfers comprise amounts in relation to nil net book value assets which were eliminated from the asset register following a verification project in
the UK, in addition to other transfers across asset categories in the prior year.
Fixtures, fittings, equipment and other assets includes fixtures and fittings with a net carrying value of £763m (2024/25: £769m),
computers and electronic equipment with a net carrying value of £55m (2024/25: £46m) and motor cars and commercial vehicles with
a net carrying value of £18m (2024/25: £18m).
Net impairment charges of £17m have been recorded in the year relating to store-based assets (2024/25: £60m). Current year
impairment charges of £46m have been recorded principally in France and the UK, partially offset by impairment reversals of
£29m in France, the UK and Iberia, reflecting store-level performance and revised future financial projections.
Notes to the consolidated financial statements continued
14 Other intangible assets
£ millions
Other intangible
assets
Cost
At 1 February 2025
1,005
Additions
88
Disposals
(233)
Exchange differences
3
At 31 January 202
6 863
Amortisation
At 1 February 2025
(693)
Charge for the year
(131)
Impairment losses
(8)
Disposals
233
Exchange differences
(3)
At 31 January 2026
(602)
Net carrying amount
At 31 January 2026
261
Cost
At 1 February 2024
1,011
Additions
78
Disposals
(23)
Eliminations
1
(54)
Transfers to held for sale
(5)
Exchange differences
(2)
At 31 January 202
5 1,005
Amortisation
At 1 February 2024
(643)
Charge for the year
(125)
Impairment losses
(6)
Disposals
23
Eliminations
1
54
Transfers to held for sale
3
Exchange differences
1
At 31 January 2025
(693)
Net carrying amount
At 31 January 2025
312
1. Eliminations consist of amounts in relation to nil net book value assets which were eliminated from the asset register following a verification project in the UK in the
prior year.
Other intangible assets are principally comprised of computer software.
Additions in the current and prior year primarily related to the development of IT infrastructure for the benefit of the Group.
Other intangible assets cost include £530m (2024/25: £482m) of internally generated development costs with a £138m (2024/25:
£171m) net carrying amount. None of the Group’s other intangible assets have indefinite useful lives.
155Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
15 Property, plant and equipment continued
The net store impairment charges of £17m have been recorded as adjusting items (refer to note 6). Discount and long-term growth
rates are in line with those used for goodwill impairment testing (refer to note 13).
The Group does not revalue properties within its financial statements. A formal valuation of the portfolio was undertaken by external
professional valuers in October 2025, with the valuations then reviewed for any significant updates to 31 January 2026. Based on this
exercise, the value of property is £2.7bn (2024/25: £2.6bn) on a sale and leaseback basis with Kingfisher in occupancy. A vacant
possession valuation basis is used to approximate the fair value less costs to sell when reviewing for impairment. The key assumption
used in calculating this is the estimated yields and market rents. Property, plant and equipment market valuations (including vacant
possession valuations) are considered to have been determined by level 3 inputs as defined by the fair value hierarchy of IFRS 13, ‘Fair
value measurement’.
16 Investment property
£ millions
Cost
At 1 February 2025
47
Additions
 12
Disposals
(2)
Transfers from
property, plant and equipment
47
Transfers from assets held for sale
6
Transfers to assets held for sale
 (1)
Exchange differences
2
At 31 January 202
6
111
Depreciation
At 1 February 202
5
(13)
Disposals
1
Transfers from property
, plant and equipment
(10)
Impairment losses
(2)
Impairment reversals
 1
At 31 January 2026
(23)
Net carrying amount
At 31 January 2026
88
Cost
At 1 February 2024
40
Transfers from right
-of-use assets
4
Transfers from assets held for sale
3
At 31 January 2025
47
Depreciation
At 1 February 202
4
(13)
At 31 January 202
5
(13)
Net carrying amount
At 31 January 2025
34
A property valuation exercise is performed for internal purposes annually as described in note 15. Based on this exercise, the fair value
of investment property is £103m (2024/25: £40m). All the investment property market valuations are considered to have been
determined by level 3 inputs as defined by the fair value hierarchy of IFRS 13, ‘Fair value measurement’.
156 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
17 Leases
The Group is a lessee of retail stores, offices, warehouses and plant and equipment under lease agreements with varying terms,
escalation clauses and renewal rights. The Group is also a lessor and sub-lessor of space with freehold and leasehold
properties respectively.
Right-of-use assets
£ millions
2025/26
2024/25
Land and buildings
1,733
1,661
Fixtures, fittings and equipment
97
110
Net carrying amount
1,830
1,771
Leased fixtures, fittings and equipment includes items such as mechanical handling equipment and vehicles.
£ millions
2025/26
2024/25
At beginning of year
1,771
1,881
Additions
1
361
253
Depreciation charge for the year
 (324) (325)
Impairment losses
(32)
(56)
Impairment reversals
12
8
Transfers to held for sale
–
(17)
Transfers to investment property
–
(3)
Other movements
2
24
35
Exchange differences
18
(5)
At end of year
1,830
1,771
1. Right-of-use asset additions include new leases, lease renewals and increases in term and/or scope for existing leases.
2. Other movements principally comprise amounts in relation to indexation, rent reviews and other changes in lease term and scope.
Net right-of-use asset impairment charges of £20m (2024/25: £48m) have been recorded in the year relating to store-based assets.
Current year impairment charges of £32m have been recorded principally in France and the UK, partially offset by impairment
reversals of £12m in the UK and Iberia, reflecting store-level performance and revised future financial projections. The net store
impairment charges of £20m have been recorded as adjusting items. Refer to note 6.
Amounts included in profit and loss
£ millions
2025/26
2024/25
Short-term rentals
(44)
(43)
Depreciation of right
-of-use assets
Property leases
(285)
(284)
Equipment leases
(39)
(41)
Interest on lease liabilities
Property leases
(112)
(116)
Equipment leases
(6)
(6)
Amounts recognised in the cash flow statement
£ millions
2025/26
2024/25
Interest element of lease rental payments
Property leases
(112)
(117)
Equipment leases
(6)
(6)
Principal element of lease rental payments
Property leases
(336)
(344)
Equipment leases
(43)
(43)
Total cash outflow for leases
(497) (510)
Notes to the consolidated financial statements continued
15 Property, plant and equipment continued
The net store impairment charges of £17m have been recorded as adjusting items (refer to note 6). Discount and long-term growth
rates are in line with those used for goodwill impairment testing (refer to note 13).
The Group does not revalue properties within its financial statements. A formal valuation of the portfolio was undertaken by external
professional valuers in October 2025, with the valuations then reviewed for any significant updates to 31 January 2026. Based on this
exercise, the value of property is £2.7bn (2024/25: £2.6bn) on a sale and leaseback basis with Kingfisher in occupancy. A vacant
possession valuation basis is used to approximate the fair value less costs to sell when reviewing for impairment. The key assumption
used in calculating this is the estimated yields and market rents. Property, plant and equipment market valuations (including vacant
possession valuations) are considered to have been determined by level 3 inputs as defined by the fair value hierarchy of IFRS 13, ‘Fair
value measurement’.
16 Investment property
£ millions
Cost
At 1 February 2025
47
Additions
12
Disposals
(2)
Transfers from
property, plant and equipment 47
Transfers from assets held for sale
6
Transfers to assets held for sale
(1)
Exchange differences
2
At 31 January 202
6
111
Depreciation
At 1 February 202
5 (13)
Disposals
1
Transfers from property
, plant and equipment (10)
Impairment losses
(2)
Impairment reversals
1
At 31 January 2026
(23)
Net carrying amount
At 31 January 2026
88
Cost
At 1 February 2024
40
Transfers from right
-of-use assets 4
Transfers from assets held for sale
3
At 31 January 2025
47
Depreciation
At 1 February 202
4 (13)
At 31 January 202
5 (13)
Net carrying amount
At 31 January 2025
34
A property valuation exercise is performed for internal purposes annually as described in note 15. Based on this exercise, the fair value
of investment property is £103m (2024/25: £40m). All the investment property market valuations are considered to have been
determined by level 3 inputs as defined by the fair value hierarchy of IFRS 13, ‘Fair value measurement’.
157Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
17 Leases continued
Maturity analysis of operating lease receivables
Undiscounted total future minimum rentals receivable under non-cancellable operating leases are as follows:
£ millions
2025/26
2024/25
Year 1
6
5
Year 2
5
5
Year 3
5
4
Year 4
5
4
Year 5
5
4
Year 6 and onwards
22
21
48
43
Other lease disclosures
The maturity analysis of lease liabilities has been reflected in note 25 Financial risk management.
Lease arrangements under which rental payments are contingent upon sales, other performance or usage are not significant for
the Group.
There are no corporate restrictions imposed by lease arrangements such as those concerning dividends, additional debt and
further leasing.
Sale and leaseback transactions
No sale and leaseback transactions were entered into in the current or prior year.
18 Equity accounted investments
£ millions
At 1 February 2025
29
Share of post-tax results
1
(28)
Exchange differences
2
(1)
At 31 January 202
6
–
£ millions
At 1 February 202
4
19
Share of post-tax results
(15)
Capital contribut
ion
19
Exchange differences
2
6
At 31 January 202
5
29
1. Includes an impairment charge of £19m recorded within adjusting items (2024/25: £nil). Refer to note 6.
2. Exchange differences include amounts in relation to IAS 29 Equity adjustments for Koçtaş.
No goodwill is included in the carrying amount of equity accounted investments (2024/25: £nil).
Details of the Group’s significant equity accounted investments are shown below:
Principal place of Class of shares
business % interest held owned Main activity
Principal joint venture
s
Koçtaş Yapı Marketleri Ticaret A.Ş.
Turkey
50%
Ordinary
Retailing
UNIO S.A.S.
France
50%
Ordinary
Sourcing
19 Inventories
£ millions
2025/26
2024/25
Finished goods for resale
2,768
2,719
The cost of inventories recognised as an expense and included in cost of sales for the year ended 31 January 2026 is £7,128m
(2024/25: £7,173m). The total amount of rebates deducted from the carrying value of inventories is £136m (2024/25: £123m).
158 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
20 Trade and other receivables
£ millions
2025/26
2024/25
Non-current
Trade receivables
4
–
Prepayments
7
7
Sublease receivables
2
4
13
11
Current
Trade receivables
106
100
Allowance for expected credit losses
(10)
(12)
Net trade receivables
96
88
Property receivables
6
5
Sublease receivables
1
1
Merchandise returns asset
10
10
Prepayments
56
62
Rebates due from suppliers
71
66
Other taxation and social security
13
14
Other receivables
36
30
289
276
Trade and other receivables
302
287
The fair values of trade and other receivables approximate to their carrying amounts. Refer to note 25 for further information on the
credit risk associated with trade and other receivables.
Trade receivables
The table below presents the ageing of trade receivables and related allowances for expected credit losses:
2025/26
2024/25
Carrying amount of
Carrying amount of
Expected loss rate trade receivables Loss allowance Expected loss rate trade receivables Loss allowance
£ millions
(%) (£m) (£m) (%) (£m) (£m)
Current
–
88
–
–
65
–
0-3 months past due
–
11
–
8%
24
2
3
-6 months past due
67%
3
2
80%
3
3
Over 6 months past due
100%
8
8
94%
8
7
Total
110
10
100
12
21 Cash and cash equivalents
£ millions
2025/26
2024/25
Cash at bank and in hand
255
263
Cash equivalents
210
73
Cash and cash equivalents
1
465
336
1. Excludes £nil of cash and cash equivalents included within assets held for sale (2024/25: £9m).
Included in cash and cash equivalents is restricted cash of £40m (2024/25: £39m) relating to cash held by the Group’s captive
insurance company and in virtual captive arrangements.
Cash equivalents include investments in money market funds, and bank deposits fixed for periods of up to three months. The carrying
amount of cash and cash equivalents are approximate to their fair values.
Notes to the consolidated financial statements continued
17 Leases continued
Maturity analysis of operating lease receivables
Undiscounted total future minimum rentals receivable under non-cancellable operating leases are as follows:
£ millions
2025/26 2024/25
Year 1
6
5
Year 2
5 5
Year 3
5
4
Year 4
5 4
Year 5
5
4
Year 6 and onwards
22 21
48 43
Other lease disclosures
The maturity analysis of lease liabilities has been reflected in note 25 Financial risk management.
Lease arrangements under which rental payments are contingent upon sales, other performance or usage are not significant for
the Group.
There are no corporate restrictions imposed by lease arrangements such as those concerning dividends, additional debt and
further leasing.
Sale and leaseback transactions
No sale and leaseback transactions were entered into in the current or prior year.
18 Equity accounted investments
£ millions
At 1 February 2025
29
Share of post-tax results
1
(28)
Exchange differences
2
(1)
At 31 January 202
6 –
£ millions
At 1 February 2024
19
Share of post-tax results
(15)
Capital contribution
19
Exchange differences
2
6
At 31 January 202
5 29
1. Includes an impairment charge of £19m recorded within adjusting items (2024/25: £nil). Refer to note 6.
2. Exchange differences include amounts in relation to IAS 29 Equity adjustments for Koçtaş.
No goodwill is included in the carrying amount of equity accounted investments (2024/25: £nil).
Details of the Group’s significant equity accounted investments are shown below:
Principal place of
business
% interest held
Class of shares
owned
Main activity
Principal joint venture
s
Koçtaş Yapı Marketleri Ticaret A.Ş.
Turkey
50%
Ordinary
Retailing
UNIO S.A.S. France 50% Ordinary Sourcing
19 Inventories
£ millions
2025/26 2024/25
Finished goods for resale
2,768
2,719
The cost of inventories recognised as an expense and included in cost of sales for the year ended 31 January 2026 is £7,128m
(2024/25: £7,173m). The total amount of rebates deducted from the carrying value of inventories is £136m (2024/25: £123m).
159Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
22 Trade and other payables
£ millions
2025/26
2024/25
Non-current
Other payables
2
2
Current
Trade payables
1,248
1,178
Other taxation and social security
271
272
Deferred revenue
156
145
Share purchase obligations
71
26
Merchandise returns provision
18
17
Payroll creditors and accruals
256
224
Accruals and other payables
504
493
2,524
2,355
Trade and other payables
2,526
2,357
The fair values of trade and other payables approximate to their carrying amounts.
Accruals and other payables include items related to goods not for resale, property, capital expenditure, insurance and interest.
The share repurchase obligations relate to a liability arising under an irrevocable closed season buyback of the Company’s own shares
(refer to note 29).
The deferred revenue balance represents amounts received directly from customers for goods and services where the Group has not
yet fulfilled its performance obligations, including unfulfilled sales orders and installation sales. Performance obligations are expected to
be met within twelve months of the reporting date. In both the current and prior year, the total opening balance was recognised in sales
in the year.
£ millions
2025/26
2024/25
At beginning of year
145
153
Revenue recognised
relating to deferred revenue at the beginning of the year
(145)
(153)
Increase due to cash received in the year
156
145
At end of year
156
145
Included in trade payables are amounts at 31 January 2026 of £138m (2024/25: £123m) for which suppliers have received payment from
finance providers under trade finance facilities. Judgement is required to assess the payables subject to these arrangements and
whether they should continue to be classified as trade payables, and whether the cash flows should continue to be classified as cash
flows from operating activities. Suppliers choose to enter into these arrangements at their discretion for working capital management
purposes, which provide access to favourable interest rates from the finance providers, based on the Group’s investment grade credit
rating. If suppliers do not choose early payment under these arrangements, their invoices are settled by the finance providers in
accordance with the originally agreed payment terms. In certain arrangements, the Group has agreed extended payment terms.
Facilities are provided by approved bank counterparties and are uncommitted.
These arrangements do not provide the Group with a significant benefit of additional financing and accordingly are classified as trade
payables. The total size of these facilities at the reporting date is £336m (2024/25: £349m). Of these facilities, £201m (2024/25: £274m)
is subject to payment terms which is in line with normal payment terms for the suppliers and is paid between 30 and 90 days.
For the remaining £135m (2024/25: £75m), Kingfisher has agreed extended payment terms with the finance providers. The carrying
amount at 31 January 2026 of financial liabilities that have extended payment terms under these arrangements is £35m (2024/25:
£19m). Without this facility, the Group pays such suppliers on average 30-60 days after the invoice date. Payment terms for these
financial liabilities that are part of the arrangements are extended by an average of 10 days, and by no more than 20 days.
The arrangements do not result in the concentration of liquidity risk because of the limited amount of liabilities subject to supplier
finance arrangements and the Group’s access to other sources of finance. There were no significant non-cash changes in the carrying
amount of the trade payables included in the Group’s supplier finance arrangements.
160 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
23 Borrowings
£ millions
2025/26
2024/25
Non-current
Bank loans
1
1
Fixed term debt
99
–
100
1
Current
Bank overdrafts
3
9
Fixed term debt
–
99
3
108
Borrowings
103
109
Bank loans
Non-current bank loans have an average maturity of two years (2024/25: two years) and are arranged at fixed rates of interest with an
effective interest rate of 4.1% (2024/25: 3.8%).
Fixed term debt
2025/26
2024/25
Principal Effective Carrying amount Carrying amount
outstanding
Maturity date
Coupon
interest rate £m £m
GBP
Term Loan
£50m
17/01/28
SONIA + 0.700%
4.4%
50
50
GBP Term Loan
£50m
23/06/27
SONIA + 0.700%
4.4%
49
49
99
99
Each of the £50m fixed term loans were refinanced during the year.
The Group has access to a committed revolving credit facility (RCF) of £650m, which was extended by one year in May 2025 and now
expires at the end of May 2028. As of 31 January 2026, this RCF was undrawn.
The terms of the committed RCF and term loans require that the ratio of Group operating profit (excluding adjusting items) to net
interest payable (excluding interest on lease liabilities) must be no less than 3:1 for the preceding 12 months as at the half and full year
ends. At 31 January 2026, the Group was in compliance with this requirement.
Fair values
Fair value
£ millions
2025/26
2024/25
Bank overdrafts
3
9
Bank loans
1
1
Fixed term debt
96
102
Borrowings
100
112
Fair values of borrowings have been calculated by discounting cash flows at prevailing interest and foreign exchange rates. This has
resulted in level 2 inputs as defined by the fair value hierarchy of IFRS 13, ‘Fair value measurement’.
24 Derivatives
£ millions
2025/26
2024/25
Non
-current assets
–
2
Current assets
1
22
Non
-current liabilities
(1)
–
Current liabilities
(22)
(5)
(22)
19
The net fair value of derivatives by hedge designation at the balance sheet date is:
£ millions
2025/26
2024/25
Cash flow hedges
 (20) 17
Non-designated hedges
(2)
2
(22)
19
Notes to the consolidated financial statements continued
22 Trade and other payables
£ millions
2025/26 2024/25
Non-current
Other payables
2
2
Current
Trade payables
1,248
1,178
Other taxation and social security
271
272
Deferred revenue
156
145
Share purchase obligations
71
26
Merchandise returns provision
18
17
Payroll creditors and accruals
256
224
Accruals and other payables
504
493
2,524
2,355
Trade and other payables
2,526 2,357
The fair values of trade and other payables approximate to their carrying amounts.
Accruals and other payables include items related to goods not for resale, property, capital expenditure, insurance and interest.
The share repurchase obligations relate to a liability arising under an irrevocable closed season buyback of the Company’s own shares
(refer to note 29).
The deferred revenue balance represents amounts received directly from customers for goods and services where the Group has not
yet fulfilled its performance obligations, including unfulfilled sales orders and installation sales. Performance obligations are expected to
be met within twelve months of the reporting date. In both the current and prior year, the total opening balance was recognised in sales
in the year.
£ millions
2025/26 2024/25
At beginning of year
145
153
Revenue recognised
relating to deferred revenue at the beginning of the year (145)
(153)
Increase due to cash received in the year
156
145
At end of year
156
145
Included in trade payables are amounts at 31 January 2026 of £138m (2024/25: £123m) for which suppliers have received payment from
finance providers under trade finance facilities. Judgement is required to assess the payables subject to these arrangements and
whether they should continue to be classified as trade payables, and whether the cash flows should continue to be classified as cash
flows from operating activities. Suppliers choose to enter into these arrangements at their discretion for working capital management
purposes, which provide access to favourable interest rates from the finance providers, based on the Group’s investment grade credit
rating. If suppliers do not choose early payment under these arrangements, their invoices are settled by the finance providers in
accordance with the originally agreed payment terms. In certain arrangements, the Group has agreed extended payment terms.
Facilities are provided by approved bank counterparties and are uncommitted.
These arrangements do not provide the Group with a significant benefit of additional financing and accordingly are classified as trade
payables. The total size of these facilities at the reporting date is £336m (2024/25: £349m). Of these facilities, £201m (2024/25: £274m)
is subject to payment terms which is in line with normal payment terms for the suppliers and is paid between 30 and 90 days.
For the remaining £135m (2024/25: £75m), Kingfisher has agreed extended payment terms with the finance providers. The carrying
amount at 31 January 2026 of financial liabilities that have extended payment terms under these arrangements is £35m (2024/25:
£19m). Without this facility, the Group pays such suppliers on average 30-60 days after the invoice date. Payment terms for these
financial liabilities that are part of the arrangements are extended by an average of 10 days, and by no more than 20 days.
The arrangements do not result in the concentration of liquidity risk because of the limited amount of liabilities subject to supplier
finance arrangements and the Group’s access to other sources of finance. There were no significant non-cash changes in the carrying
amount of the trade payables included in the Group’s supplier finance arrangements.
161Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
24 Derivatives continued
The Group holds the following derivative financial instruments at fair value:
£ millions
2025/26
2024/25
Foreign exchange contracts
1
24
Derivative assets
1
24
Foreign exchange contracts
 (23) (5)
Derivative liabilities
(23) (5)
(22)
19
The fair values are calculated by discounting future cash flows arising from the instruments and adjusted for credit risk. These fair value
measurements are all made using observable market rates of interest, foreign exchange and credit risk.
All the derivatives held by the Group at fair value are considered to have fair values determined by level 2 inputs as defined by the fair
value hierarchy of IFRS 13, ‘Fair value measurement’, representing significant observable inputs other than quoted prices in active
markets for identical assets or liabilities. There are no non-recurring fair value measurements nor have there been any transfers of
assets or liabilities between levels of the fair value hierarchy.
At 31 January 2026, net financing derivative liabilities included in net debt amount to £2m (2024/25: £2m asset).
Cash flow hedges
Forward foreign exchange contracts hedge currency exposures arising from forecast inventory purchases and IT contracts.
At 31 January 2026, the Sterling-equivalent amount of such contracts was £861m (2024/25: £959m) and the amount relating to IT
contracts was £23m (2024/25: £20m). These contracts are presented in the derivative asset and derivative liability lines in the
consolidated balance sheet with carrying amounts of £1m (asset) and £21m (liability) (2024/25: £21m asset and £4m liability). The
associated fair value gains and losses will be transferred to inventories when the purchases occur during the next 18 months.
The amount recognised in other comprehensive income during the year was a loss of £74m (2024/25: £22m gain). For contracts
which matured during the year, a loss of £36m (2024/25: £15m) was transferred to inventories, and a loss of £1m (2024/25: £nil) was
recognised in the income statement due to ineffectiveness arising from differences in timing and amount of forecast transactions
relating to foreign currency inventory purchases. The weighted average hedged rates for derivatives outstanding at 31 January 2026
for our material currencies are EUR/USD 1.17 and GBP/USD 1.34 (2024/25: EUR/USD 1.10 and GBP/USD 1.27).
Hedge effectiveness is assessed at the inception of the hedge relationship and on an ongoing basis to ensure that an economic
relationship exists between the hedged item and the hedging instrument. The Group enters into hedge relationships where the critical
terms of the hedging instrument match exactly with the terms of the hedged item. The Group therefore performs a qualitative
assessment of effectiveness.
For foreign currency inventory purchases, ineffectiveness may arise if the timing or amount of the forecast transaction changes from
what was originally estimated or if there are changes in the credit risk of the Group or the derivative counterparty. Foreign currency
basis spread of the derivative has been excluded from the hedge designation, however this is judged to be immaterial and no
adjustment has been made to the income statement.
Non-designated hedges
The Group has entered into certain derivatives to provide a hedge against fluctuations in the income statement arising from balance
sheet positions. At 31 January 2026, the Sterling-equivalent amount of such contracts was £459m (2024/25: £706m). These have not
been accounted for as hedges, since the fair value movements of the derivatives in the income statement offset the retranslation of
the balance sheet positions.
The Group has reviewed all significant contracts for embedded derivatives and none of these contracts has any embedded derivatives
which are not closely related to the host contract, and therefore the Group does not account for these separately.
The Group enters into netting agreements with counterparties to manage the credit and settlement risks associated with over-the-
counter derivatives. These netting agreements and similar arrangements generally enable the Group and its counterparties to
settle cash flows on a net basis and offset liabilities against available assets in the event that either party is unable to fulfil its
contractual obligations.
162 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Offsetting of derivative assets and liabilities:
Net amounts of Gross amounts
Gross amounts derivatives of derivatives not
Gross amounts offset in the presented in the offset in the
of recognised consolidated consolidated consolidated
£ millions
derivatives balance sheet balance sheet balance sheet Net amount
At 31 January 202
6
Derivative assets
1
–
1
(1)
–
Derivative liabilities
 (23)
–
(23)
1
(22)
At 31 January 2025
Derivative assets
24
–
24
(5)
19
Derivative liabilities
(5)
–
(5)
5
–
Net investment hedges
Foreign currency denominated lease liabilities are designated as hedging the exposure to movements in the spot retranslation of the
Group’s investment in foreign subsidiaries. The gains and losses on retranslation of the hedging instruments are presented in the
translation reserve within other reserves to offset gains and losses on the hedged balance sheet exposure. The nominal values of
these lease liabilities is £137m (2024/25: £187m). The amount recognised in the translation reserve is a loss of £2m (2024/25: £nil).
There is no ineffectiveness for 2025/26. The cumulative total amount recognised in the translation reserve in relation to investment
hedges is a loss of £105m (2024/25: £103m).
Categories of financial instruments
The table below sets out the carrying amount of financial assets and liabilities for each financial instrument category as defined
by IFRS 9:
2025/26
2024/25
1
Fair value
Fair value
through other
Fair value
through other
Fair value
comprehensive
through profit
Amortised
comprehensive through profit Amortised
£ millions
income
2
or loss
cost
Total
income
2
or loss
cost
Total
Cash and cash equivalents
–
–
465
465
–
–
336
336
Trade and other receivables
– current
3
–
–
210
210
–
–
190
190
Trade and other receivables – non-current
3
–
–
6
6
–
–
4
4
Derivative assets
– current
–
1
–
1
19
3
–
22
Derivative assets – non-current
–
–
–
–
2
–
–
2
Trade and other payables
– current
3
–
–
(1,823)
(1,823)
–
–
(1,697)
(1,697)
Trade and other payables – non-current
3
–
–
(2)
(2)
–
–
(2)
(2)
Derivative liabilities
– current
(20)
(2)
–
(22)
(4) (1)
–
(5)
Derivative liabilities – non-current
(1)
–
–
(1)
–
–
–
–
Borrowings
– current
–
–
(3)
(3)
–
–
(108)
(108)
Borrowings – non-current
–
–
(100)
(100)
–
–
(1)
(1)
Lease liabilities
– current
–
–
(351)
(351)
–
–
(345)
(345)
Lease liabilities – non-current
–
–
(1,887)
(1,887)
–
–
(1,866)
(1,866)
Financial assets and liabilities
(21)
(1)
(3,485)
(3,507)
17
2
(3,489)
(3,470)
1. Excludes Romania financial assets and liabilities which are classified as held for sale.
2. Relating to derivatives in designated hedge relationships.
3. Excluding non-financial items relating to prepayments, merchandise returns assets and provisions and deferred revenue, and non-contractual items relating to
other taxation and social security payables and receivables and payroll creditors and accruals.
Notes to the consolidated financial statements continued
24 Derivatives continued
The Group holds the following derivative financial instruments at fair value:
£ millions
2025/26 2024/25
Foreign exchange contracts
1 24
Derivative assets
1
24
Foreign exchange contracts
(23)
(5)
Derivative liabilities
(23)
(5)
(22)
19
The fair values are calculated by discounting future cash flows arising from the instruments and adjusted for credit risk. These fair value
measurements are all made using observable market rates of interest, foreign exchange and credit risk.
All the derivatives held by the Group at fair value are considered to have fair values determined by level 2 inputs as defined by the fair
value hierarchy of IFRS 13, ‘Fair value measurement’, representing significant observable inputs other than quoted prices in active
markets for identical assets or liabilities. There are no non-recurring fair value measurements nor have there been any transfers of
assets or liabilities between levels of the fair value hierarchy.
At 31 January 2026, net financing derivative liabilities included in net debt amount to £2m (2024/25: £2m asset).
Cash flow hedges
Forward foreign exchange contracts hedge currency exposures arising from forecast inventory purchases and IT contracts.
At 31 January 2026, the Sterling-equivalent amount of such contracts was £861m (2024/25: £959m) and the amount relating to IT
contracts was £23m (2024/25: £20m). These contracts are presented in the derivative asset and derivative liability lines in the
consolidated balance sheet with carrying amounts of £1m (asset) and £21m (liability) (2024/25: £21m asset and £4m liability). The
associated fair value gains and losses will be transferred to inventories when the purchases occur during the next 18 months.
The amount recognised in other comprehensive income during the year was a loss of £74m (2024/25: £22m gain). For contracts
which matured during the year, a loss of £36m (2024/25: £15m) was transferred to inventories, and a loss of £1m (2024/25: £nil) was
recognised in the income statement due to ineffectiveness arising from differences in timing and amount of forecast transactions
relating to foreign currency inventory purchases. The weighted average hedged rates for derivatives outstanding at 31 January 2026
for our material currencies are EUR/USD 1.17 and GBP/USD 1.34 (2024/25: EUR/USD 1.10 and GBP/USD 1.27).
Hedge effectiveness is assessed at the inception of the hedge relationship and on an ongoing basis to ensure that an economic
relationship exists between the hedged item and the hedging instrument. The Group enters into hedge relationships where the critical
terms of the hedging instrument match exactly with the terms of the hedged item. The Group therefore performs a qualitative
assessment of effectiveness.
For foreign currency inventory purchases, ineffectiveness may arise if the timing or amount of the forecast transaction changes from
what was originally estimated or if there are changes in the credit risk of the Group or the derivative counterparty. Foreign currency
basis spread of the derivative has been excluded from the hedge designation, however this is judged to be immaterial and no
adjustment has been made to the income statement.
Non-designated hedges
The Group has entered into certain derivatives to provide a hedge against fluctuations in the income statement arising from balance
sheet positions. At 31 January 2026, the Sterling-equivalent amount of such contracts was £459m (2024/25: £706m). These have not
been accounted for as hedges, since the fair value movements of the derivatives in the income statement offset the retranslation of
the balance sheet positions.
The Group has reviewed all significant contracts for embedded derivatives and none of these contracts has any embedded derivatives
which are not closely related to the host contract, and therefore the Group does not account for these separately.
The Group enters into netting agreements with counterparties to manage the credit and settlement risks associated with over-the-
counter derivatives. These netting agreements and similar arrangements generally enable the Group and its counterparties to
settle cash flows on a net basis and offset liabilities against available assets in the event that either party is unable to fulfil its
contractual obligations.
163Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
25 Financial risk management
The Group’s treasury function has primary responsibility for managing certain financial risks to which the Group is exposed. The Board
reviews the levels of exposure regularly and approves treasury policies covering the use of financial instruments required to manage
these risks. The Group’s treasury function is not run as a profit centre and does not enter into any transactions for speculative purposes.
In the normal course of business, the Group uses financial instruments including derivatives. The main types of financial instruments
used are fixed term debt, bank loans and deposits, money market funds, and foreign exchange contracts.
Interest rate risk
Borrowings arranged at floating rates of interest expose the Group to cash flow interest rate risk, whereas those arranged at
fixed rates of interest expose the Group to fair value interest rate risk. Where appropriate, the Group manages its interest rate
risk by entering into certain interest rate derivative contracts which modify the interest rate payable on the Group’s underlying
debt instruments.
Currency risk
The Group’s principal currency exposures are to the Euro, US Dollar and Polish Zloty. The Euro and Polish Zloty exposures are
operational and arise through the ownership of retail businesses in France, Spain, Portugal, the Republic of Ireland and Poland.
In particular, the Group generates a substantial part of its profit from the Eurozone and, as such, is exposed to the economic
uncertainty of its member states. The Group continues to monitor potential exposures and risks and consider effective risk
management solutions.
It is the Group’s policy not to hedge the translation of overseas earnings into Sterling. In addition, the Group has significant transactional
exposure arising on the purchase of inventories denominated in US Dollars, which it hedges using forward foreign exchange contracts.
Under Group policies, the Group’s operating companies are required to hedge committed inventory purchases and a proportion of
forecast inventory purchases, with hedging horizons determined locally, generally within a range of 12 to 18 months. This is monitored on
an ongoing basis. The Group also has smaller USD exposures relating to certain IT contracts, which are hedged using the same approach.
The Group also has exposure to certain leases denominated in currencies which are different from the functional (reporting)
currencies of the lessee. To reduce the Group’s exposure to this, most of the affected lease liabilities have been designated as net
investment hedges of Group assets held in the same currency.
The Group’s policy is to manage the interest rate and currency profile of its debt and cash using derivative contracts. The effect of
these contracts on the Group’s net debt is as follows:
2025/26
Sterling
Euro
US Dollar
Other
£ millions
Fixed
Floating
Fixed
Floating
Fixed
Floating
Fixed
Floating
Total
At 31 January 2026
Net cash/(debt) before financing
derivatives and lease liabilities
–
53
(2)
180
–
61
–
70
362
Financing derivatives
–
(457)
–
80
–
345
–
30
(2)
Lease liabilities
(1,614)
–
(566)
–
–
–
(58)
–
(2,238)
Net (debt)/cash
(1,614)
(404)
(568)
260
–
406
(58)
100
(1,878)
2024/25
Sterling
Euro
US Dollar
Other
£ millions
Fixed
Floating
Fixed
Floating
Fixed
Floating
Fixed
Floating
Total
At 31 January 202
5
Net cash/(debt) before financing
derivatives and lease liabilities
–
23
(2)
81
–
80
–
54
236
Financing derivatives
–
(591)
–
201
–
372
–
20
2
Lease liabilities
(1,611)
–
(553)
–
–
–
(89)
–
(2,253)
Net (debt)/cash
1
(1,611)
(568)
(555)
282
–
452
(89)
74
(2,015)
1. Includes net debt held for sale.
Financial instruments principally affected by interest rate and currency risks, being the significant market risks impacting the Group, are
borrowings, deposits and derivatives. The following analysis illustrates the sensitivity of net finance costs (reflecting the impact on
profit) and derivative cash flow hedges (reflecting the impact on other comprehensive income) to changes in interest rates and foreign
exchange rates.
164 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
2025/26
2024/25
Net finance Net finance
£ millions
costs costs
Effect of 1% rise in interest rates on net finance costs
Sterling
(4)
(6)
Euro
3
3
US Dollar
4
5
Due to the Group’s hedging arrangements and offsetting foreign currency assets and liabilities, there is no significant impact on profit
from the retranslation of financial instruments.
2025/26
2024/25
Derivative cash Derivative cash
flow hedges flow hedges
£ millions
increase increase
Effect of 10% appreciation in foreign exchange rates on derivative cash flow hedges
US Dollar against Sterling
78
80
US Dollar against Euro
20
21
US Dollar against other
8
10
The impact of changes in foreign exchange rates on cash flow hedges results from retranslation of forward purchases of US Dollars
used to hedge forecast US Dollar purchases of inventories. The associated fair value gains and losses are deferred in equity until the
purchases occur. Refer to note 24 for further details.
The sensitivity analysis excludes the impact of movements in market variables on the carrying amount of trade and other payables and
receivables, due to the low associated sensitivity, and are before the effect of tax. It has been prepared on the basis that the Group’s
debt, hedging activities, hedge accounting designations, and foreign currency proportion of debt and derivative contracts remain
constant, reflecting the positions at 31 January 2026 and 31 January 2025 respectively. As a consequence, the analysis relates to the
position at those dates and is not necessarily representative of the years then ended. In preparing the sensitivity analysis it is assumed
that all hedges are fully effective.
The effects shown above would be reversed in the event of an equal and opposite change in interest rates and foreign exchange rates.
Liquidity risk
The Group regularly reviews the level of cash and debt facilities required to fund its activities. This involves preparing a prudent cash
flow forecast for the medium term, determining the level of debt facilities required to fund the business, planning for repayment of debt
at its maturity and identifying an appropriate amount of headroom to provide a reserve against unexpected outflows and/or
unexpected impacts to cash inflows.
As at 31 January 2026, the Group had access to a committed undrawn revolving credit facility (RCF) of £650m, which was extended by
one year in May 2025 and now expires at the end of May 2028.
The following table analyses the Group’s financial liabilities and derivatives into relevant maturity groupings based on the remaining
period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted
cash flows (including interest) and as such may differ from the amounts disclosed on the balance sheet.
2025/26
Less than 1 More than 5
£ millions
On demand
year
1-2 years
2-3 years
3-4 years
4-5 years
years
Total
At 31 January 2026
Bank o
verdrafts
(3)
–
–
–
–
–
–
(3)
Trade and other payables
1
–
(1,823)
(2)
–
–
–
–
(1,825)
Bank loans
and fixed term debt
–
(5)
(104) (1)
–
–
–
(110)
Lease liabilities
–
(446)
(421)
(368)
(315)
(256)
(1,064)
(2,870)
Derivative financial liabilities:
Derivative contracts – receipts
–
934
59
–
–
–
–
993
Derivative contracts – payments
–
(958)
(61)
–
–
–
–
(1,019)
Derivative financial assets:
Derivative contracts – receipts
–
340
8
–
–
–
–
348
Derivative contracts – payments
–
(338)
(8)
–
–
–
–
(346)
Notes to the consolidated financial statements continued
25 Financial risk management
The Group’s treasury function has primary responsibility for managing certain financial risks to which the Group is exposed. The Board
reviews the levels of exposure regularly and approves treasury policies covering the use of financial instruments required to manage
these risks. The Group’s treasury function is not run as a profit centre and does not enter into any transactions for speculative purposes.
In the normal course of business, the Group uses financial instruments including derivatives. The main types of financial instruments
used are fixed term debt, bank loans and deposits, money market funds, and foreign exchange contracts.
Interest rate risk
Borrowings arranged at floating rates of interest expose the Group to cash flow interest rate risk, whereas those arranged at
fixed rates of interest expose the Group to fair value interest rate risk. Where appropriate, the Group manages its interest rate
risk by entering into certain interest rate derivative contracts which modify the interest rate payable on the Group’s underlying
debt instruments.
Currency risk
The Group’s principal currency exposures are to the Euro, US Dollar and Polish Zloty. The Euro and Polish Zloty exposures are
operational and arise through the ownership of retail businesses in France, Spain, Portugal, the Republic of Ireland and Poland.
In particular, the Group generates a substantial part of its profit from the Eurozone and, as such, is exposed to the economic
uncertainty of its member states. The Group continues to monitor potential exposures and risks and consider effective risk
management solutions.
It is the Group’s policy not to hedge the translation of overseas earnings into Sterling. In addition, the Group has significant transactional
exposure arising on the purchase of inventories denominated in US Dollars, which it hedges using forward foreign exchange contracts.
Under Group policies, the Group’s operating companies are required to hedge committed inventory purchases and a proportion of
forecast inventory purchases, with hedging horizons determined locally, generally within a range of 12 to 18 months. This is monitored on
an ongoing basis. The Group also has smaller USD exposures relating to certain IT contracts, which are hedged using the same approach.
The Group also has exposure to certain leases denominated in currencies which are different from the functional (reporting)
currencies of the lessee. To reduce the Group’s exposure to this, most of the affected lease liabilities have been designated as net
investment hedges of Group assets held in the same currency.
The Group’s policy is to manage the interest rate and currency profile of its debt and cash using derivative contracts. The effect of
these contracts on the Group’s net debt is as follows:
£ millions
2025/26
Sterling Euro US Dollar Other
Fixed Floating Fixed Floating Fixed Floating Fixed Floating Total
At 31 January 2026
Net cash/(debt) before financing
derivatives and lease liabilities
– 53 (2)
180 – 61 – 70 362
Financing derivatives
–
(457)
–
80
–
345
–
30
(2)
Lease liabilities
(1,614)
–
(566)
–
–
–
(58)
–
(2,238)
Net (debt)/cash
(1,614)
(404)
(568)
260
–
406
(58)
100
(1,878)
£ millions
2024/25
Sterling Euro US Dollar Other
Fixed Floating Fixed Floating Fixed Floating Fixed Floating Total
At 31 January 2025
Net cash/(debt) before financing
derivatives and lease liabilities
– 23 (2)
81
– 80
– 54 236
Financing derivatives
–
(591)
–
201
–
372
–
20
2
Lease liabilities
(1,611)
–
(553)
–
–
–
(89)
–
(2,253)
Net (debt)/cash
1
(1,611)
(568)
(555)
282
–
452
(89)
74
(2,015)
1. Includes net debt held for sale.
Financial instruments principally affected by interest rate and currency risks, being the significant market risks impacting the Group, are
borrowings, deposits and derivatives. The following analysis illustrates the sensitivity of net finance costs (reflecting the impact on
profit) and derivative cash flow hedges (reflecting the impact on other comprehensive income) to changes in interest rates and foreign
exchange rates.
165Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
25 Financial risk management continued
2024/25
Less than 1 More than 5
£ millions
On demand
year
1-2 years
2-3 years
3-4 years
4-5 years
years
Total
At 31 January 202
5
Bank overdrafts
(9)
–
–
–
–
–
–
(9)
Trade and other payables
1
–
(1,697)
(2)
–
–
–
–
(1,699)
Bank loans and fixed term debt
–
(108)
(1)
–
–
–
–
(109)
Lease liabilities
–
(446)
(425) (373) (319) (269) (996) (2,828)
Derivative financial liabilities:
Derivative contracts
– receipts
–
276
25
–
–
–
–
301
Derivative contracts – payments
–
(283)
(26)
–
–
–
–
(309)
Derivative financial assets:
Derivative contracts – receipts
–
1,317
48
–
–
–
–
1,365
Derivative contracts
– payments
–
(1,294)
(46)
–
–
–
–
(1,340)
1. Excluding non-financial items relating to deferred income and merchandise returns provisions and non-contractual items relating to other taxation and social
security payables and payroll creditors and accruals.
Credit risk
The Group manages credit risk from investing activities in accordance with treasury policy. The Group deposits surplus cash with a
number of banks with strong long-term credit ratings (BBB and above) and with money market funds with AAA credit ratings offering
same-day liquidity. An exposure limit for each counterparty is agreed by the Board, covering the full value of deposits and the fair value
of derivative assets. Credit risk is also managed by spreading investments and entering into derivative contracts across several
counterparties. As of 31 January 2026, the highest total cash investment with a single counterparty was £42m (2024/25: £17m).
The table below analyses the Group’s cash and cash equivalents and derivative assets by credit exposure, excluding cash held in stores
and cash in transit.
Credit rating of counterparty
1
£ millions
AAA
AA+
AA
AA-
A+
A
A-
BBB +/-
Other rating
Total
Cash and cash equivalents
2
95
–
–
–
218
9
14
5
1
342
Derivative assets
–
–
–
–
–
1
–
–
–
1
At 31 January 202
6
95
–
–
–
218
10
14
5
1
343
Credit rating of counterparty
1
£ millions
AAA
AA+
AA
AA-
A+
A
A-
BBB +/-
Other rating
Total
Cash and cash equivalents
2
18
–
–
–
192
22
21
1
–
254
Derivative assets
–
–
–
–
14
5
5
–
–
24
At 31 January 202
5
18
–
–
–
206
27
26
1
–
278
1. Standard & Poor’s equivalent rating shown. The Group determines this rating with reference to the majority credit rating from Standard & Poor’s, Moody’s or Fitch
where applicable.
2. Cash and cash equivalents excludes cash held in stores and cash in transit balances of £123m (2024/25: £82m).
The Group applies the low credit risk simplification under IFRS 9 for expected credit losses relating to cash at bank, short-term
deposits and money market funds. The resulting expected credit losses are not significant.
The Group’s exposure to credit risk at the reporting date is the carrying value of trade and other receivables, cash at bank, short-term
deposits and the fair value of derivative assets. Trade and other receivables mainly relate to trade receivables and rebates which
comprise low individual balances with short maturity spread across a large number of unrelated customers and suppliers, resulting in
low credit risk levels. They do not have a significant financing component and therefore the Group measures expected credit losses
using lifetime expected losses.
The estimated lifetime expected losses are based on historical loss rates adjusted where necessary for expected changes in
economic conditions.
Capital risk
Capital risk management disclosures are provided in the Financial Review on pages 31 to 37.
166 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
26 Deferred tax
£ millions
2025/26
2024/25
Deferred tax assets
6
7
Deferred tax liabilities
(207)
(193)
(201)
(186)
Deferred tax assets and liabilities are offset against each other when they relate to income taxes levied by the same tax jurisdiction and
when the Group intends, and has the legally enforceable right, to settle its current tax assets and liabilities on a net basis.
2025/26
Accelerated Short-term Post- Investment in
tax Gains on timing employment
£ millions
depreciation property Leases differences Tax losses benefits
subsidiaries
Other
Total
At 1 February 2025
(236)
(42)
106
38
–
(48)
(1)
(3)
(186)
(Charge)/credit to income
statement
(9)
2
(14)
(5)
–
2
–
–
(24)
Credit/(charge)
to equity
–
–
(2)
3
–
2
–
9
12
Exchange differences
(6)
(1)
1
2
–
1
–
–
(3)
At 31 January 202
6
(251)
(41)
91
38
–
(43)
(1)
6
(201)
2024/25
Accelerated Short-term Post- Investment in
tax Gains on timing employment
£ millions
depreciation
property
Leases
differences
Tax losses
benefits
subsidiaries
Other
Total
At 1 February 2024
(227)
(50)
118
38
1
(81)
–
4
(197)
(Charge)/credit to income
statement
(12)
5
(12)
–
(1)
(4)
(1)
–
(25)
Credit/(charge)
to equity
–
–
–
–
–
38
–
(7)
31
Transfers to held for sale
–
2
–
–
–
–
–
–
2
Exchange differences
3
1
–
–
–
(1)
–
–
3
At 31 January 202
5
(236)
(42)
106
38
–
(48)
(1) (3) (186)
At the balance sheet date, the Group has unused trading tax losses of £93m (2024/25: £269m) available for offset against future profits,
which may be carried forward indefinitely. No deferred tax asset has been recognised in respect of these losses (2024/25: £nil) due to
the unpredictability of future profit streams.
At the balance sheet date, the Group also has unused capital tax losses of £10m (2024/25: £10m) available for offset against future
capital gains. No deferred tax asset has been recognised in the year in respect of such losses (2024/25: £nil). All of these losses may be
carried forward indefinitely.
A deferred tax liability of £1m (2024/25: £1m) has been recognised in the year, reflecting the withholding tax anticipated to arise in light
of a planned repatriation of certain earnings that were generated in the current year. Except for this liability, all other unremitted
earnings of overseas subsidiaries and joint ventures are continually reinvested by the Group. Therefore, as no tax is expected to be
payable on these earnings in the foreseeable future, no deferred tax liabilities are recorded in relation to them. Additional earnings
which could be remitted on which there would be tax to pay total £244m (2024/25: £224m).
Notes to the consolidated financial statements continued
25 Financial risk management continued
£ millions
2024/25
On demand
Less than 1
year 1-2 years 2-3 years 3-4 years 4-5 years
More than 5
years Total
At 31 January 202
5
Bank overdrafts
(9)
–
–
–
–
–
–
(9)
Trade and other payables
1
– (1,697)
(2)
– – – – (1,699)
Bank loans and fixed term debt
–
(108)
(1)
–
–
–
–
(109)
Lease liabilities
– (446)
(425)
(373)
(319)
(269)
(996)
(2,828)
Derivative financial liabilities:
Derivative contracts
– receipts – 276
25 – – – – 301
Derivative contracts – payments
–
(283)
(26)
–
–
–
–
(309)
Derivative financial assets:
Derivative contracts – receipts
–
1,317
48
–
–
–
–
1,365
Derivative contracts
– payments – (1,294)
(46)
– – – – (1,340)
1. Excluding non-financial items relating to deferred income and merchandise returns provisions and non-contractual items relating to other taxation and social
security payables and payroll creditors and accruals.
Credit risk
The Group manages credit risk from investing activities in accordance with treasury policy. The Group deposits surplus cash with a
number of banks with strong long-term credit ratings (BBB and above) and with money market funds with AAA credit ratings offering
same-day liquidity. An exposure limit for each counterparty is agreed by the Board, covering the full value of deposits and the fair value
of derivative assets. Credit risk is also managed by spreading investments and entering into derivative contracts across several
counterparties. As of 31 January 2026, the highest total cash investment with a single counterparty was £42m (2024/25: £17m).
The table below analyses the Group’s cash and cash equivalents and derivative assets by credit exposure, excluding cash held in stores
and cash in transit.
Credit rating of counterparty
1
£ millions
AAA AA+ AA AA- A+ A A- BBB +/- Other rating Total
Cash and cash equivalents
2
95
–
–
–
218
9
14
5
1
342
Derivative assets
–
–
–
–
–
1
–
–
–
1
At 31 January 202
6 95 – – – 218 10 14 5 1 343
Credit rating of counterparty
1
£ millions
AAA AA+ AA AA- A+ A A- BBB +/- Other rating Total
Cash and cash equivalents
2
18
–
–
–
192
22
21
1
–
254
Derivative assets
– – – – 14 5 5 – – 24
At 31 January 2025
18
–
–
–
206
27
26
1
–
278
1. Standard & Poor’s equivalent rating shown. The Group determines this rating with reference to the majority credit rating from Standard & Poor’s, Moody’s or Fitch
where applicable.
2. Cash and cash equivalents excludes cash held in stores and cash in transit balances of £123m (2024/25: £82m).
The Group applies the low credit risk simplification under IFRS 9 for expected credit losses relating to cash at bank, short-term
deposits and money market funds. The resulting expected credit losses are not significant.
The Group’s exposure to credit risk at the reporting date is the carrying value of trade and other receivables, cash at bank, short-term
deposits and the fair value of derivative assets. Trade and other receivables mainly relate to trade receivables and rebates which
comprise low individual balances with short maturity spread across a large number of unrelated customers and suppliers, resulting in
low credit risk levels. They do not have a significant financing component and therefore the Group measures expected credit losses
using lifetime expected losses.
The estimated lifetime expected losses are based on historical loss rates adjusted where necessary for expected changes in
economic conditions.
Capital risk
Capital risk management disclosures are provided in the Financial Review on pages 31 to 37.
167Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
27 Provisions
£ millions
 2025/26
At 1 February 2025
25
Charged to income statement
25
Released to income statement
(4)
Utilised in the year
(13)
Exchange differences
(1)
At 31 January 202
6
32
Non-current liabilities
3
Current liabilities
29
32
Provisions principally consist of restructuring provisions relating to restructuring plans in the UK & Ireland, France and Poland. Amounts
charged to the income statement in the current year of £25m are principally related to the UK & Ireland and Poland operating model
restructuring costs incurred in the year. Refer to note 6 for further details.
The ultimate costs and timing of cash flows related to the above provisions are largely dependent on the timing of the related
people costs.
28 Post-employment benefits
The Group operates a number of post-employment benefit arrangements covering both funded and unfunded defined benefit
schemes and defined contribution schemes. The most significant defined benefit and defined contribution schemes are in the UK.
The principal overseas defined benefit schemes are in France, where they are mainly retirement indemnity in nature.
Defined contribution schemes
Costs for the Group’s defined contribution pension schemes, at rates specified in the individual schemes’ rules, are as follows:
£ millions
2025/26
2024/25
Charge to operating profit
60
55
From July 2012, an enhanced defined contribution pension scheme was offered to all UK employees. Eligible UK employees have been
automatically enrolled into the scheme since 31 March 2013.
Defined benefit schemes
The Group’s principal defined benefit arrangement is its funded, final salary pension scheme in the UK. This scheme was closed to new
entrants from April 2004 and was closed to future benefit accrual from July 2012.
The scheme operates under trust law and is managed and administered by the Trustee on behalf of members in accordance with the
terms of the Trust Deed and Rules and relevant legislation. The Trustee Board consists of ten Trustee Directors, made up of five
employer-appointed Directors, one independent Director and four member-nominated Directors. The Trustee Board delegates
day-to-day administration of the scheme to the Group pensions department of Kingfisher plc.
The main risk to the Group is that additional contributions are required if investment returns and demographic experience are worse
than expected. The scheme therefore exposes the Group to actuarial risks, such as longevity risk, currency risk, inflation risk, interest
rate risk and market (investment) risk. The Trustee Board regularly reviews such risks and mitigating controls, with a risk register
being formally approved on an annual basis. The assets of the scheme are held separately from the Group and the Trustee’s
investment strategy includes a planned medium-term de-risking of assets, switching from return-seeking to liability-matching assets.
Other de-risking activities have included the scheme acquiring an interest in a property partnership, as set out further below, and
entering into bulk annuities.
A full actuarial valuation of the scheme is carried out every three years by an independent actuary for the Trustee, and the last full
valuation was carried out as at 31 March 2022, with the 2025 valuation currently ongoing. In accordance with the scheme’s Statement
of Funding Principles, the Trustee and the Company agreed to cease annual employer contributions for the period from August 2022
to July 2025, and subsequently for the period from August 2025 to July 2028. This agreement was reached with reference to a funding
objective that targets a longer-term, low risk funding position in excess of the minimum statutory funding requirements. This longer-
term objective is based on the principles of the scheme reaching a point where it can provide benefits to members with a high level of
security, thereby limiting its reliance on the employer for future support. The Company monitors the scheme funding level on a regular
basis and will reassess with the scheme Trustee the appropriate level of contributions at future valuations.
168 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
The Trust Deed provides Kingfisher with an unconditional right to a refund of surplus assets assuming the full settlement of plan
liabilities in the event of a plan wind up. Furthermore, in the ordinary course of business the Trustee has no rights to unilaterally wind up
or otherwise augment the benefits due to members of the scheme. Based on these rights, any net surplus in the UK scheme is
recognised in full.
On 25 July 2024, the Court of Appeal ruled in Virgin Media Ltd v NTL Pension Trustees II Ltd (and others) that certain historic
amendments to contracted out defined benefit schemes are void where the statutory actuarial confirmation was not obtained.
On 5 June 2025, the Government announced plans to legislate to allow retrospective actuarial confirmation of such amendments.
On 23 January 2026, the Financial Reporting Council issued Technical Actuarial Guidance to support confirmations. No adjustment has
been recognised in these financial statements in respect of this matter. The Group and the Trustee continue to monitor developments
and will assess any implications for the UK defined benefit scheme once further legislative detail and supporting guidance are finalised.
UK scheme interest in property partnership
In 2010/11, the Group established a partnership, Kingfisher Scottish Limited Partnership (‘Kingfisher SLP’), as part of an arrangement
with the UK scheme Trustee to address an element of the scheme deficit and provide greater security to the Trustee. The partnership
interests are held by the Group and by the scheme, the latter resulting from investments of £78m and £106m made by the Trustee
in January and June 2011 respectively. These investments followed Group contributions of the same amounts into the scheme.
In accordance with IAS 19, ‘Employee Benefits’, the investments held by the scheme in Kingfisher SLP do not represent plan assets
for the purposes of the Group’s consolidated financial statements. Accordingly, the reported pension position does not reflect
these investments.
UK property assets with market values of £83m and £119m were transferred, in January 2011 and June 2011 respectively, into the
partnership and leased back to B&Q Limited. The Group retains control over these properties, including the flexibility to substitute
alternative properties. The Trustee has a first charge over the properties in the event that Kingfisher plc becomes insolvent. The
scheme’s partnership interest entitles it to much of the income of the partnership over the 20-year period of the arrangement. At the
end of this term, Kingfisher plc has the option to acquire the Trustee’s partnership interest in Kingfisher SLP.
The Kingfisher SLP is a structured entity, where voting rights are not the dominant factor in determining control, in which both the
Group and the Trustee hold an interest. A general partner, ‘Kingfisher Properties Investments Limited’, wholly owned by the Group, has
responsibility for the management and control of the Kingfisher SLP. As the Group can direct Kingfisher SLP’s relevant activities and
affect its returns, it has been concluded that the Group controls the partnership, despite not having a majority interest and therefore it
is consolidated in these Group financial statements. Accordingly, advantage has been taken of the exemptions provided by Regulation
7 of the Partnerships (Accounts) Regulations 2008 from the requirements for preparation, delivery and publication of the
partnership’s accounts.
Income statement
2025/26
2024/25
£ millions
UK
Overseas
Total
UK
Overseas
Total
Amounts charged/(credited) to operating profit
Current service cost
3
7
10
3
7
10
Past service
cost/(credit)
4
–
4
(2) (13) (15)
Administration costs
6
–
6
5
–
5
13
7
20
6
(6)
–
Amounts (credited)/charged to net finance costs
Net interest (income)/expense
(11)
4
(7)
(10)
3
(7)
Total charged /(credited) to income statement
2
11
13
(4) (3) (7)
Of the net charge to operating profit, a £14m debit (2024/25: £5m credit) and £6m debit (2024/25: £5m) are included in selling and
distribution expenses and administrative expenses respectively. Remeasurement gains and losses have been reported in the
statement of comprehensive income.
Notes to the consolidated financial statements continued
27 Provisions
£ millions
2025/26
At 1 February 2025
25
Charged to income statement
25
Released to income statement
(4)
Utilised in the year
(13)
Exchange differences
(1)
At 31 January 202
6 32
Non-current liabilities
3
Current liabilities
29
32
Provisions principally consist of restructuring provisions relating to restructuring plans in the UK & Ireland, France and Poland. Amounts
charged to the income statement in the current year of £25m are principally related to the UK & Ireland and Poland operating model
restructuring costs incurred in the year. Refer to note 6 for further details.
The ultimate costs and timing of cash flows related to the above provisions are largely dependent on the timing of the related
people costs.
28 Post-employment benefits
The Group operates a number of post-employment benefit arrangements covering both funded and unfunded defined benefit
schemes and defined contribution schemes. The most significant defined benefit and defined contribution schemes are in the UK.
The principal overseas defined benefit schemes are in France, where they are mainly retirement indemnity in nature.
Defined contribution schemes
Costs for the Group’s defined contribution pension schemes, at rates specified in the individual schemes’ rules, are as follows:
£ millions
2025/26 2024/25
Charge to operating profit
60 55
From July 2012, an enhanced defined contribution pension scheme was offered to all UK employees. Eligible UK employees have been
automatically enrolled into the scheme since 31 March 2013.
Defined benefit schemes
The Group’s principal defined benefit arrangement is its funded, final salary pension scheme in the UK. This scheme was closed to new
entrants from April 2004 and was closed to future benefit accrual from July 2012.
The scheme operates under trust law and is managed and administered by the Trustee on behalf of members in accordance with the
terms of the Trust Deed and Rules and relevant legislation. The Trustee Board consists of ten Trustee Directors, made up of five
employer-appointed Directors, one independent Director and four member-nominated Directors. The Trustee Board delegates
day-to-day administration of the scheme to the Group pensions department of Kingfisher plc.
The main risk to the Group is that additional contributions are required if investment returns and demographic experience are worse
than expected. The scheme therefore exposes the Group to actuarial risks, such as longevity risk, currency risk, inflation risk, interest
rate risk and market (investment) risk. The Trustee Board regularly reviews such risks and mitigating controls, with a risk register
being formally approved on an annual basis. The assets of the scheme are held separately from the Group and the Trustee’s
investment strategy includes a planned medium-term de-risking of assets, switching from return-seeking to liability-matching assets.
Other de-risking activities have included the scheme acquiring an interest in a property partnership, as set out further below, and
entering into bulk annuities.
A full actuarial valuation of the scheme is carried out every three years by an independent actuary for the Trustee, and the last full
valuation was carried out as at 31 March 2022, with the 2025 valuation currently ongoing. In accordance with the scheme’s Statement
of Funding Principles, the Trustee and the Company agreed to cease annual employer contributions for the period from August 2022
to July 2025, and subsequently for the period from August 2025 to July 2028. This agreement was reached with reference to a funding
objective that targets a longer-term, low risk funding position in excess of the minimum statutory funding requirements. This longer-
term objective is based on the principles of the scheme reaching a point where it can provide benefits to members with a high level of
security, thereby limiting its reliance on the employer for future support. The Company monitors the scheme funding level on a regular
basis and will reassess with the scheme Trustee the appropriate level of contributions at future valuations.
169Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
28 Post-employment benefits continued
Balance sheet
2025/26
2024/25
£ millions
UK
Overseas
Total
UK
Overseas
Total
Present value of defined benefit obligations
(1,679)
(118)
(1,797)
(1,711)
(121)
(1,832)
Fair value of scheme assets
1,860
20
1,880
1,913
20 1,933
Net surplus/(deficit)
181
(98)
83
202
(101)
101
Movements in the surplus or deficit are as follows:
2025/26
2024/25
£ millions
UK
Overseas
Total
UK
Overseas
Total
Net surplus/(deficit) at beginning of year
202
(101)
101
212 (113) 99
Current service cost
(3)
(7)
(10)
(3)
(7)
(10)
Past service
(cost)/credit
(4)
–
(4)
2
13
15
Administration costs
(6)
–
(6)
(5)
–
(5)
Net interest income/(expense)
11
(4)
7
10 (3) 7
Net remeasurement (losses)/gains
(19)
12
(7)
(14)
3
(11)
Contributions paid by employer
–
5
5
–
5
5
Exchange differences
–
(3)
(3)
–
1
1
Net surplus/(deficit) at end of year
181
(98)
83
202
(101)
101
Movements in the present value of defined benefit obligations are as follows:
2025/26
2024/25
£ millions
UK
Overseas
Total
UK
Overseas
Total
Present value of defined benefit obligations at beginning
of year
(1,711)
(121) (1,832) (1,826) (133) (1,959)
Current service cost
(3)
(7)
(10)
(3)
(7)
(10)
Past service
(cost)/credit
(4)
–
(4)
2 13 15
Interest expense
(90)
(4)
(94)
(87)
(3)
(90)
Remeasurement gains
– changes in financial assumptions
59
7
66
115
– 115
Remeasurement (losses)/gains – changes in demographic assumptions
(3)
–
(3)
5
3
8
Remeasurement (losses)/
gains – experience adjustments
(22)
5
(17)
(7)
–
(7)
Benefits paid
95
5
100
90
5
95
Exchange differences
–
(3)
(3)
–
1
1
Present value of defined benefit obligations at end of year
(1,679)
(118)
(1,797)
(1,711)
(121)
(1,832)
The present value of UK scheme defined benefit obligations is 44% (2024/25: 52%) in respect of deferred members and 56% (2024/25:
48%) in respect of current pensioners.
The weighted average duration of the UK scheme obligations at the end of the year is 12 years (2024/25: 14 years).
170 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Movements in the fair value of scheme assets are as follows:
2025/26
2024/25
£ millions
UK
Overseas
Total
UK
Overseas
Total
Fair value of scheme assets at beginning of year
1,913
20
1,933
2,038
20 2,058
Administration costs
(6)
–
(6)
(5)
–
(5)
Interest income
101
–
101
97
–
97
Remeasurement losses – actual return less interest income
(53)
–
(53)
(127)
–
(127)
Contributions paid by employer
–
5
5
–
5
5
Benefits paid
(95)
(5)
(100)
(90)
(5)
(95)
Fair value of scheme assets at end of year
1,860
20
1,880
1,913 20 1,933
The fair value of scheme assets is analysed as follows:
2025/26
2024/25
£ millions
UK
Overseas
Total
% of total
UK
Overseas
Total
% of total
Government bonds
1
620
–
620
33%
642
–
642
33%
Corporate bonds
385
–
385
20%
358
–
358
19%
Derivatives
(41)
–
(41)
(2)%
(21)
–
(21)
(1)%
Equities
11
–
11
1%
15
–
15
1%
Annuities
696
–
696
37%
736
–
736
38%
Cash
77
–
77
4%
74
–
74
4%
Other
112
20
132
7%
109
20
129
6%
Total fair value of scheme assets
1,860
20
1,880
100%
1,913
20
1,933
100%
1. Including LDI repurchase agreement liabilities.
All UK scheme assets have quoted prices in active markets, except for £808m (2024/25: £845m) of annuity and other assets.
To reduce volatility risk, a liability driven investment (‘LDI’) strategy forms part of the Trustee’s management of the UK defined benefit
scheme’s assets, including government bonds, corporate bonds and derivatives. The government bond assets category in the table
above includes gross assets of £1.0bn (2024/25: £1.0bn) and associated repurchase agreement liabilities of £0.4bn (2024/25: £0.4bn).
Repurchase agreements are entered into with counterparties to better offset the scheme’s exposure to interest and inflation rates,
whilst remaining invested in assets of a similar risk profile. Interest rate and inflation rate derivatives are also employed to complement
the use of fixed and index-linked bonds in matching the profile of the scheme’s liabilities.
Principal actuarial valuation assumptions
The assumptions used in calculating the costs and obligations of the Group’s defined benefit pension schemes are set by the Directors
after consultation with independent professionally qualified actuaries. The assumptions are based on the conditions at the time, and
changes in these assumptions can lead to significant movements in the estimated obligations, as illustrated in the sensitivity analysis.
The UK scheme discount rate is derived using a single equivalent discount rate approach, based on the yields available on a portfolio of
high-quality Sterling corporate bonds with the same duration as that of the scheme liabilities.
2025/26
2024/25
Annual % rate
UK
Overseas
UK
Overseas
Discount rate
5.60
3.80
5.40
3.40
Price inflation
3.10
2.40
3.25
2.40
Rate of pension increases
2.95
–
3.05
–
Salary escalation
n/a
2.8
n/a
2.8
Notes to the consolidated financial statements continued
28 Post-employment benefits continued
Balance sheet
£ millions
2025/26 2024/25
UK Overseas Total UK Overseas Total
Present value of defined benefit obligations
(1,679)
(118)
(1,797)
(1,711)
(121)
(1,832)
Fair value of scheme assets
1,860 20
1,880 1,913
20
1,933
Net surplus/(deficit)
181
(98)
83
202
(101)
101
Movements in the surplus or deficit are as follows:
£ millions
2025/26 2024/25
UK Overseas Total UK Overseas Total
Net surplus/(deficit) at beginning of year
202
(101)
101
212
(113)
99
Current service cost
(3)
(7)
(10)
(3)
(7)
(10)
Past service
(cost)/credit
(4)
–
(4)
2
13 15
Administration costs
(6)
–
(6)
(5)
–
(5)
Net interest income/(expense)
11
(4)
7
10
(3)
7
Net remeasurement (losses)/gains
(19)
12
(7)
(14)
3
(11)
Contributions paid by employer
–
5
5
– 5
5
Exchange differences
–
(3)
(3)
–
1
1
Net surplus/(deficit) at end of year
181
(98)
83
202
(101)
101
Movements in the present value of defined benefit obligations are as follows:
2025/26 2024/25
£ millions
UK Overseas Total UK Overseas Total
Present value of defined benefit obligations at beginning
of year (1,711)
(121)
(1,832)
(1,826)
(133)
(1,959)
Current service cost
(3)
(7)
(10)
(3)
(7)
(10)
Past service
(cost)/credit (4)
– (4)
2
13
15
Interest expense
(90)
(4)
(94)
(87)
(3)
(90)
Remeasurement gains
– changes in financial assumptions 59 7 66 115
–
115
Remeasurement (losses)/gains – changes in demographic assumptions
(3)
–
(3)
5
3
8
Remeasurement (losses)/
gains – experience adjustments (22)
5 (17)
(7)
– (7)
Benefits paid
95
5
100
90
5
95
Exchange differences
– (3)
(3)
– 1
1
Present value of defined benefit obligations at end of year
(1,679)
(118)
(1,797)
(1,711)
(121)
(1,832)
The present value of UK scheme defined benefit obligations is 44% (2024/25: 52%) in respect of deferred members and 56% (2024/25:
48%) in respect of current pensioners.
The weighted average duration of the UK scheme obligations at the end of the year is 12 years (2024/25: 14 years).
171Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
28 Post-employment benefits continued
For the UK scheme, the mortality assumptions used for IAS 19 purposes have been selected with regard to the characteristics and
experience of the membership of the scheme as assessed during triennial funding valuations. The base mortality assumptions have
been derived using an analysis of current mortality rates carried out by Club Vita for the Trustee and the Continuous Mortality
Investigation (CMI) life expectancy projection model data published by the UK actuarial profession. The latter allowance is in line with
CMI 2024 improvements subject to a long-term rate of 1.5% p.a. for both males and females. The assumptions for life expectancy of UK
scheme members are as follows:
Years
2025/26
2024/25
Age to which current pensioners are expected to live (60 now)
—
Male
86.0
85.6
— Female
88.6
88.3
Age to which future pensioners are expected to live (60 in 15 years’ time)
— Male
87.4
86.9
—
Female
90.8
90.4
The following sensitivity analysis for the UK scheme shows the estimated impact on the obligation resulting from changes to key
actuarial assumptions, whilst holding all other assumptions constant.
Assumption
Change in assumption
Impact on defined benefit obligation
Discount rate
Increase/decrease by 0.5%
Decrease/increase by £103m
Price inflation
Increase/decrease by 0.25%
Increase/decrease by £49m
Rate of pension increases
Increase/decrease by 0.25%
Increase/decrease by £45m
Mortality
Increase/decrease in life expectancy by one year
Increase/decrease by £52m
Due to the asset-liability matching investment strategy, the above impacts on the obligations of changes in discount rate and price
inflation would be significantly offset by movements in the fair value of the scheme assets.
29 Share capital
Number of
ordinary shares Ordinary share
millions capital £ millions
Allotted, called up and fully paid:
At 1 February 20
25
1,793
282
New shares issued under share schemes
5
1
Purchase of own shares for cancellation
 (88) (14)
At 31 January 202
6
1,710
269
At 1 February 20
24
1,875
294
New shares issued under share schemes
1
–
Purchase of own shares for cancellation
 (83) (12)
At 31 January 202
5
1,793
282
Ordinary shares have a par value of 15
5/7
pence per share and carry full voting, dividend and capital distribution rights.
During the year, the Group purchased 88 million (2024/25: 83 million) of the Company’s own shares for cancellation at a cost of £256m
(2024/25: £225m) as part of its capital returns programme.
172 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
30 Other reserves
2025/26
Translation Cash flow hedge
£ millions
reserve
reserve
Other
Total
At
1 February 2025
124
16
159
299
Inventory cash flow hedges – fair value losses
–
(74)
–
(74)
Tax on items that will not be reclassified subsequently to profit or loss
–
18
–
18
Currency translation differences
Subsidiaries
97
–
–
97
Equity accounted investments
(1)
–
–
(1)
Transferred to income statement
14
–
–
14
Other comprehensive
income/(expense) for the year
110
(56)
–
54
Inventory cash flow hedges – losses transferred to inventories
–
36
–
36
Tax on equity items
 (1) (9)
–
(10)
At 31 January 2026
233
(13)
159
379
2024/25
Translation Cash flow hedge
£ millions
reserve reserve
Other
Total
At 1 February 2024
144
(13)
159
290
Inventory cash flow hedges
– fair value gains
–
22
–
22
Tax on items that will not be reclassified subsequently to profit or loss
–
(6)
–
(6)
Currency translation differences
Subsidiaries
(25)
–
–
(25)
Equity accounted investments
6
–
–
6
Inventory cash flow hedges – losses transferred to income statement
–
1
–
1
Other comprehensive (expense)/income for the year
(19)
17
–
(2)
Inventory cash flow hedges
– losses transferred to inventories
–
15
–
15
Tax on equity items
(1)
(3)
–
(4)
At 31 January 202
5
124
16
159
299
The ‘other’ category of reserves represents the premium on the issue of convertible loan stock in 1993 and the merger reserve relating
to the acquisition of Darty in 1993.
31 Share-based payments
2025/26
2024/25
Number of Weighted Number of Weighted
options
average exercise
options average
thousands price £ thousands exercise price £
Outstanding at beginning of year
67,596
0.50
71,336
0.46
Granted during the year
1
22,482
0.47
20,810
0.42
Forfeited and expired during the year
(14,414)
0.20
(14,252)
0.37
Exercised during the year
(12,482)
0.74
(10,298)
0.23
Outstanding at end of year
63,182
0.47
67,596
0.50
Exercisable at end of year
6,736
0.18
8,721
0.49
1. The weighted average exercise price for options granted during the year represents a blend of nil price Performance Share Plan and discounted Sharesave
options (see below).
Information on the share schemes is given in note 10 of the Company’s separate financial statements.
Options have been exercised on a regular basis throughout the year. On that basis, the weighted average share price during the year,
rather than at the date of exercise, is £2.83 (2024/25: £2.63). The options outstanding at the end of the year have exercise prices
ranging from nil to £2.75 and a weighted average remaining contractual life of 5.5 years (2024/25: 5.4 years).
The Group recognised a total expense of £27m in the year ended 31 January 2026 (2024/25: £20m) relating to equity-settled share-
based payment transactions.
Notes to the consolidated financial statements continued
28 Post-employment benefits continued
For the UK scheme, the mortality assumptions used for IAS 19 purposes have been selected with regard to the characteristics and
experience of the membership of the scheme as assessed during triennial funding valuations. The base mortality assumptions have
been derived using an analysis of current mortality rates carried out by Club Vita for the Trustee and the Continuous Mortality
Investigation (CMI) life expectancy projection model data published by the UK actuarial profession. The latter allowance is in line with
CMI 2024 improvements subject to a long-term rate of 1.5% p.a. for both males and females. The assumptions for life expectancy of UK
scheme members are as follows:
Years
2025/26 2024/25
Age to which current pensioners are expected to live (60 now)
—
Male 86.0 85.6
— Female
88.6
88.3
Age to which future pensioners are expected to live (60 in 15 years’ time)
— Male
87.4
86.9
—
Female 90.8 90.4
The following sensitivity analysis for the UK scheme shows the estimated impact on the obligation resulting from changes to key
actuarial assumptions, whilst holding all other assumptions constant.
Assumption
Change in assumption Impact on defined benefit obligation
Discount rate
Increase/decrease by 0.5% Decrease/increase by £103m
Price inflation
Increase/decrease by 0.25%
Increase/decrease by £49m
Rate of pension increases
Increase/decrease by 0.25% Increase/decrease by £45m
Mortality
Increase/decrease in life expectancy by one year
Increase/decrease by £52m
Due to the asset-liability matching investment strategy, the above impacts on the obligations of changes in discount rate and price
inflation would be significantly offset by movements in the fair value of the scheme assets.
29 Share capital
Number of
ordinary shares
millions
Ordinary share
capital £ millions
Allotted, called up and fully paid:
At 1 February 20
25 1,793 282
New shares issued under share schemes
5
1
Purchase of own shares for cancellation
(88)
(14)
At 31 January 2026
1,710
269
At 1 February 20
24 1,875 294
New shares issued under share schemes
1
–
Purchase of own shares for cancellation
(83)
(12)
At 31 January 2025
1,793
282
Ordinary shares have a par value of 15
5/7
pence per share and carry full voting, dividend and capital distribution rights.
During the year, the Group purchased 88 million (2024/25: 83 million) of the Company’s own shares for cancellation at a cost of £256m
(2024/25: £225m) as part of its capital returns programme.
173Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
31 Share-based payments continued
The fair value of share options and deferred shares is determined by independent valuers using Black-Scholes and stochastic option
pricing models. The inputs of the principal schemes into these models are as follows:
Share price at
Expected life
1
Expected
Date of grant grant £ Exercise price £ years
volatility
2
%
Dividend yield
3
%
Risk-free rate
4
%
Fair value £
Kingfisher Incentive Share
03/05/17
3.40
–
7
–
–
–
3.40
Plan
– Deferred Bonus
23/04/18
3.09
–
7
–
–
–
3.09
Awards
24/04/19
2.63
–
7
–
–
–
2.63
Performance Share Plan
24/06/22
2.43
–
10
–
–
–
2.43
21/10/22
2.04
–
10
–
–
–
2.04
20/04/23
2.57
–
10
–
–
–
2.57
18/10/23
2.04
–
10
–
–
–
2.04
25/04/24
2.47
–
10
–
–
–
2.47
17/10/24
3.17
–
10
–
–
–
3.17
24/04/25
2.67
–
10
–
–
–
2.67
23/10/25
3.11
–
10
–
–
–
3.11
UK and International
01/11/18
2.62
2.06
3.5
23.2%
4.1%
1.1%
0.33
Sharesave
01/11/18
2.62
2.06
5.5
23.0%
4.1%
0.8%
0.27
01/11/19
2.07
1.59
3.5
25.7%
5.2%
0.4%
0.39
01/11/19
2.07
1.59
5.5
25.1%
5.2%
0.4%
0.35
29/10/20
2.88
2.37
3.5
37.0%
2.8%
0.0%
0.80
29/10/20
2.88
2.37
5.5
32.4%
2.8%
0.0%
0.77
28/10/21
3.31
2.75
3.5
37.4%
3.6%
0.7%
0.88
28/10/21
3.31
2.75
5.5
32.6%
3.6%
0.8%
0.82
28/10/22
2.15
1.77
3.5
38.1%
5.8%
3.3%
0.56
28/10/22
2.15
1.77
5.5
34.0%
5.8%
3.5%
0.53
27/10/23
2.05
1.77
3.5
28.3%
6.1%
4.5%
0.40
27/10/23
2.05
1.77
5.5
34.4%
6.1%
4.3%
0.48
25/10/24
3.10
2.60
3.5
27.9%
4.0%
4.0%
0.75
25/10/24
3.10
2.60
5.5
34.4%
4.0%
4.1%
0.94
24/10/25
3.17
2.37
3.5
30.2%
3.9%
3.7%
0.94
24/10/25
3.17
2.37
5.5
29.7%
3.9%
4.9%
0.98
Alignment Shares
19/07/16
3.32
–
10
–
–
–
3.32
24/04/17
3.37
–
10
–
–
–
3.37
23/10/17
3.03
–
10
–
–
–
3.03
23/04/18
3.09
–
10
–
–
–
3.09
29/10/18
2.50
–
10
–
–
–
2.50
24/04/19
2.63
–
10
–
–
–
2.55
30/07/19
2.23
–
10
–
–
–
2.04
21/10/19
2.15
–
10
–
–
–
2.05
28/07/20
2.49
–
10
–
–
–
2.38
23/10/20
3.20
–
10
–
–
–
3.20
22/04/21
3.60
–
10
–
–
–
3.46
21/10/21
3.41
–
10
–
–
–
3.41
Delivering Value Incentive
30/07/19
2.24
–
10
–
–
–
1.75
04/05/21
3.57
–
10
–
–
–
3.19
1. Expected life is disclosed based on the UK schemes. For the Kingfisher Incentive Share Plan scheme in the UK, the expiry date is seven years from the date of
grant. For the Performance Share Plan and the Alignment Share award the expiry date is 10 years from the date of grant. Expiry of the overseas Alignment Share
award is 3 years from the date of grant.
2. Expected volatility was determined for each individual award (or relevant components of an award), by calculating the historical volatility of the Group’s share
price (plus reinvested dividends) immediately prior to the grant of the award, over the same period as the vesting period of each award, adjusted by expectations
of future volatility.
3. As these awards are made under an approved SAYE scheme, option holders cannot be compensated for dividends foregone. As such, the historical dividend yield
is used, calculated as dividends announced in the 12 months prior to grant as a percentage of the share price on the date of grant.
4. Risk-free rate was determined for each individual award (or relevant components of an award).
174 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
32 Cash generated from operations
£ millions
2025/26
2024/25
Operating profit
469
407
Share of results of equity accounted investments
28
15
Depreciation and amortisation
667
656
Net impairment losses
119
198
Loss on disposal of property, plant and equipment and investment property
2
8
Gain on disposal of property assets held for sale
(2)
–
Loss on disposal of subsidiaries
31
3
Lease gains
(4)
–
Share-based compensation charge
27
20
(Increase)/decrease in inventories
(1)
87
(Increase)/decrease in trade and other receivables
(16)
63
Increase/(decrease) in trade and other payables
91
(50)
Movement in provisions
8
9
Movement in post-employment benefits
15
(5)
Cash generated from operations
1,434
1,411
33 Net debt
£ millions
2025/26
2024/25
Cash and cash equivalents
465
336
Cash and cash equivalents included within assets held for sale
–
9
Bank overdrafts
(3)
(9)
Cash and cash equivalents
and bank overdrafts (including cash and cash equivalents held for sale)
462
336
Bank loans
(1)
(1)
Fixed term debt
 (99) (99)
Lease liabilities
(2,238)
(2,211)
Lease liabilities
directly associated with assets held for sale
–
(42)
Net financing derivatives
(2)
2
Net debt (including net debt held for sale)
(1,878)
(2,015)
£ millions
2025/26
2024/25
Net debt at beginning of year
(2,015)
(2,116)
Net
increase/(decrease) in cash and cash equivalents and bank overdrafts
106
(11)
Arrangement fees paid
1
2
Net cash flow
1
107
(9)
Lease liabilities disposed
38
–
M
ovements in lease liabilities
(1)
107
Exchange differences and other non-cash movements
(7)
3
Net debt at end of year
(1,878)
(2,015)
1. Refer to the glossary for the definition of net cash flow.
Notes to the consolidated financial statements continued
31 Share-based payments continued
The fair value of share options and deferred shares is determined by independent valuers using Black-Scholes and stochastic option
pricing models. The inputs of the principal schemes into these models are as follows:
Date of grant
Share price at
grant £
Exercise price £
Expected life
1
years
Expected
volatility
2
%
Dividend yield
3
% Risk-free rate
4
% Fair value £
Kingfisher Incentive Share
Plan
– Deferred Bonus
Awards
03/05/17
3.40
–
7
–
–
–
3.40
23/04/18
3.09 – 7 – – – 3.09
24/04/19
2.63
–
7
–
–
–
2.63
Performance Share Plan
24/06/22 2.43 – 10 – – – 2.43
21/10/22
2.04
–
10
–
–
–
2.04
20/04/23 2.57 – 10 – – – 2.57
18/10/23
2.04
–
10
–
–
–
2.04
25/04/24 2.47 – 10 – – – 2.47
17/10/24
3.17
–
10
–
–
–
3.17
24/04/25 2.67 – 10 – – – 2.67
23/10/25
3.11
–
10
–
–
–
3.11
UK and International
Sharesave
01/11/18
2.62
2.06
3.5
23.2%
4.1%
1.1%
0.33
01/11/18
2.62
2.06
5.5
23.0%
4.1%
0.8%
0.27
01/11/19
2.07
1.59
3.5
25.7%
5.2%
0.4%
0.39
01/11/19
2.07
1.59
5.5
25.1%
5.2%
0.4%
0.35
29/10/20
2.88
2.37
3.5
37.0%
2.8%
0.0%
0.80
29/10/20
2.88
2.37
5.5
32.4%
2.8%
0.0%
0.77
28/10/21
3.31
2.75
3.5
37.4%
3.6%
0.7%
0.88
28/10/21
3.31
2.75
5.5
32.6%
3.6%
0.8%
0.82
28/10/22
2.15
1.77
3.5
38.1%
5.8%
3.3%
0.56
28/10/22
2.15
1.77
5.5
34.0%
5.8%
3.5%
0.53
27/10/23
2.05
1.77
3.5
28.3%
6.1%
4.5%
0.40
27/10/23
2.05
1.77
5.5
34.4%
6.1%
4.3%
0.48
25/10/24
3.10
2.60
3.5
27.9%
4.0%
4.0%
0.75
25/10/24
3.10
2.60
5.5
34.4%
4.0%
4.1%
0.94
24/10/25
3.17
2.37
3.5
30.2%
3.9%
3.7%
0.94
24/10/25
3.17
2.37
5.5
29.7%
3.9%
4.9%
0.98
Alignment Shares
19/07/16 3.32 – 10 – – – 3.32
24/04/17 3.37 – 10 – – – 3.37
23/10/17 3.03 – 10 – – – 3.03
23/04/18 3.09 – 10 – – – 3.09
29/10/18 2.50 – 10 – – – 2.50
24/04/19 2.63 – 10 – – – 2.55
30/07/19 2.23 – 10 – – – 2.04
21/10/19 2.15 – 10 – – – 2.05
28/07/20 2.49 – 10 – – – 2.38
23/10/20 3.20 – 10 – – – 3.20
22/04/21 3.60 – 10 – – – 3.46
21/10/21 3.41 – 10 – – – 3.41
Delivering Value Incentive
30/07/19
2.24
–
10
–
–
–
1.75
04/05/21
3.57
–
10
–
–
–
3.19
1. Expected life is disclosed based on the UK schemes. For the Kingfisher Incentive Share Plan scheme in the UK, the expiry date is seven years from the date of
grant. For the Performance Share Plan and the Alignment Share award the expiry date is 10 years from the date of grant. Expiry of the overseas Alignment Share
award is 3 years from the date of grant.
2. Expected volatility was determined for each individual award (or relevant components of an award), by calculating the historical volatility of the Group’s share
price (plus reinvested dividends) immediately prior to the grant of the award, over the same period as the vesting period of each award, adjusted by expectations
of future volatility.
3. As these awards are made under an approved SAYE scheme, option holders cannot be compensated for dividends foregone. As such, the historical dividend yield
is used, calculated as dividends announced in the 12 months prior to grant as a percentage of the share price on the date of grant.
4. Risk-free rate was determined for each individual award (or relevant components of an award).
175Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
33 Net debt continued
The table below sets out the movements in liabilities arising from financing activities:
2025/26
Borrowings
(excluding bank Net financing Share purchase Total financing
£ millions
overdrafts)
derivatives
Lease liabilities
obligations
1
liabilities
At 1 February 202
5
(100)
2
(2,211)
(26) (2,335)
Principal repayments
–
–
379
–
379
Arrangement fees paid
1
–
–
–
1
Shares purchased for cancellation
–
–
–
256
256
Interest paid
6
–
118
–
124
Cash outflow relating to financing liabilities
7
–
497
256
760
Interest charge
(6)
–
(118)
–
(124)
Lease liability additions
–
–
(359)
–
(359)
Transfers from liabilities directly associated with assets held for sale
–
–
(2)
–
(2)
Other movements in lease liabilities
2
–
–
(21)
–
(21)
Recognised liability due to share purchase commitments
–
–
–
(301)
(301)
Other non
-cash movements
3
 (1) (4) (24)
–
(29)
At 31 January 2026
(100)
(2)
(2,238)
(71)
(2,411)
2024/25
Borrowings
(excluding bank Net financing Share purchase Total financing
£ millions
overdrafts) derivatives Lease liabilities
obligations
1
liabilities
At 1 February 202
4
(102)
–
(2,367)
–
(2,469)
Principal re
payments
–
–
387
–
387
Arrangement fees paid
2
–
–
–
2
Shares purchased for cancellation
–
–
–
225
225
Interest paid
7
–
123
–
130
Cash outflow relating to financing liabilities
9
–
510
225
744
Interest charge
(7)
–
(123)
–
(130)
Lease liability additions
–
–
(250)
–
(250)
Transfers to liabilities directly associated with assets held for sale
–
–
42
–
42
Other movements in lease liabilities
2
–
–
(30)
–
(30)
Recognised liability due to share purchase commitments
–
–
–
(251)
(251)
Other non
-cash movements
3
–
2
7
–
9
At 31 January 202
5
(100)
2
(2,211)
(26) (2,335)
1. Share purchase obligations are not included in the Group’s net debt measure. Refer to the glossary for the definition of net debt.
2. Other movements in lease liabilities principally consist of amounts in relation to indexation, rent reviews and other changes in lease term and scope.
3. Other non-cash movements consist of amortisation of arrangement fees paid, fair value movements and exchange differences.
176 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
34 Disposals
In the prior year, following the announcement that the Group had reached an agreement to dispose of its interest in Brico Dépôt
Romania, the business was classified as held for sale. On 2 May 2025, the Group disposed of its 100% interest in the Brico Dépôt
Romania business to Altex Romania for a gross consideration of £53m. Brico Dépôt Romania has not been classified as a discontinued
operation as it does not represent a major operation for the Group.
Brico Dépôt Romania was included within the Other International aggregation of operating segments.
The loss on disposal of £31m, which arises due to the transfer of cumulative foreign exchange losses previously recorded in the
translation reserve on consolidation, as well as adjustments to the final proceeds received and net assets disposed compared with the
estimated values at 31 January 2025, is analysed as follows:
£ millions
 2025/26
Proceeds
 53
Net assets disposed (see below)
(68)
Transaction costs and warranties
 (2)
Loss on disposal before cumulative exchange losses
 (17)
Cumulative exchange losses transferred from translation reserve
(14)
Loss on disposal
(31)
The current year net cash flow effect of the disposal is analysed as follows:
£ millions
 2025/26
Cash proceeds
 53
Cash disposed
(17)
Disposal
and other costs
(3)
Net disposal proceeds received
 33
The major classes of assets and liabilities disposed are as follows:
£ millions
 2025/26
Other intangible assets
2
Property, plant and equipment
38
Right
-of-use assets
15
Inventories
94
Trade and other receivables
4
Cash and cash equivalents
17
Trade and other payables
(61)
Lease liabilities
(38)
Other liabilities
(3)
Net assets disposed
68
35 Commitments
Capital commitments contracted but not provided for by the Group at 31 January 2026 amount to £25m (2024/25: £14m).
Notes to the consolidated financial statements continued
33 Net debt continued
The table below sets out the movements in liabilities arising from financing activities:
£ millions
2025/26
Borrowings
(excluding bank
overdrafts)
Net financing
derivatives Lease liabilities
Share purchase
obligations
1
Total financing
liabilities
At 1 February 2025
(100)
2
(2,211)
(26)
(2,335)
Principal repayments
–
–
379
–
379
Arrangement fees paid
1 – – – 1
Shares purchased for cancellation
–
–
–
256
256
Interest paid
6 – 118 – 124
Cash outflow relating to financing liabilities
7
–
497
256
760
Interest charge
(6)
–
(118)
–
(124)
Lease liability additions
–
–
(359)
–
(359)
Transfers from liabilities directly associated with assets held for sale
–
–
(2)
–
(2)
Other movements in lease liabilities
2
–
–
(21)
–
(21)
Recognised liability due to share purchase commitments
–
–
–
(301)
(301)
Other non-cash movements
3
(1)
(4)
(24)
–
(29)
At 31 January 2026
(100)
(2)
(2,238)
(71)
(2,411)
£ millions
2024/25
Borrowings
(excluding bank
overdrafts)
Net financing
derivatives
Lease liabilities
Share purchase
obligations
1
Total financing
liabilities
At 1 February 202
4 (102)
– (2,367)
– (2,469)
Principal repayments
–
–
387
–
387
Arrangement fees paid
2
–
–
–
2
Shares purchased for cancellation
–
–
–
225
225
Interest paid
7
–
123
–
130
Cash outflow relating to financing liabilities
9 – 510 225 744
Interest charge
(7)
–
(123)
–
(130)
Lease liability additions
– – (250)
– (250)
Transfers to liabilities directly associated with assets held for sale
–
–
42
–
42
Other movements in lease liabilities
2
– – (30)
– (30)
Recognised liability due to share purchase commitments
–
–
–
(251)
(251)
Other non
-cash movements
3
– 2 7 – 9
At 31 January 2025
(100)
2
(2,211)
(26)
(2,335)
1. Share purchase obligations are not included in the Group’s net debt measure. Refer to the glossary for the definition of net debt.
2. Other movements in lease liabilities principally consist of amounts in relation to indexation, rent reviews and other changes in lease term and scope.
3. Other non-cash movements consist of amortisation of arrangement fees paid, fair value movements and exchange differences.
177Kingfisher 2025/26 Annual Report and Accounts
Notes to the consolidated financial statements continued
36 Contingent liabilities
The Group is subject to claims and litigation arising in the ordinary course of business and provision is made where liabilities are
considered likely to arise on the basis of current information and legal advice.
The Group files tax returns in many jurisdictions around the world and at any one time is subject to periodic tax audits in the ordinary
course of its business. Applicable tax laws and regulations are subject to differing interpretations, and the resolution of a final tax
position can take several years to complete. Where it is considered that future tax liabilities are more likely than not to arise, an
appropriate provision is recognised in the financial statements.
Whilst the procedures that must be followed to resolve these types of tax issues make it likely that it will be some years before the
eventual outcome is known, the Group does not currently consider the likelihood of adverse outcomes in relation to these matters
(other than those matters for which liabilities have already been recorded) to be probable.
In October 2017, the European Commission opened a state aid investigation into the Group Financing Exemption section of the UK
Controlled Foreign Company rules. While the Group had complied with the requirements of UK tax law in force at the time, in April 2019
the European Commission concluded that aspects of the UK Controlled Foreign Company regime partially constituted illegal state aid.
In September 2024, the European Court of Justice annulled this decision, and, in March 2025, HMRC repaid the £64m tax and interest
previously assessed, plus an additional £5m payment of repayment interest.
Subsidiary audit exemptions
The following UK subsidiary undertakings are exempt from the requirements of the Companies Act 2006 (the Act) relating to the audit
of individual accounts by virtue of section 479A of the Act:
Company
Company
Company
Name
number
Name
Number
Name
Number
B&Q Properties Chesterfield Limited
07347750
B&Q Properties Swindon
07156385
Kingfisher Marketplaces Limited
03257957
Limited
B&Q Properties Farnborough Limited
07595097
B&Q Properties Witney
07595124
Kingfisher Properties
07501852
Limited
Investment
s Limited
B&Q Properties Investments Limited
SC389774
B&Q Properties Wrexham
07347678
Kingfisher TMB Limited
03926623
Limited
B&Q Properties Limited
03885270
Eijsvogel Finance Limited
02792015
New England Paint Company
04056989
Limited
B&Q Properties New Malden Limited
03926734
Kingfisher France Limited
04213347
Sheldon Poland Investments
08409745
Limited
B&Q Properties South Shields Limited
07156522
Kingfisher Holdings Limited
09404258
Zeus
Land Investments Limited
00601220
B&Q Properties Sutton-In-Ashfield
07594922
Kingfisher International
02558762
Limited
Holdings Limited
Kingfisher plc will guarantee all outstanding liabilities that these subsidiaries are subject to as at the financial year ended 31 January
2026 in accordance with section 479C of the Act, as amended by the Companies and Limited Liability Partnerships (Accounts and
Audit Exemptions and Change of Accounting Framework) Regulations 2012.
37 Related party transactions
During the year, the Group carried out a number of transactions with related parties in the normal course of business and on an arm’s
length basis. The names of the related parties, the nature of these transactions and their total value are shown below:
2025/26
2024/25
£ millions
Income
Receivable
Income
Receivable
Transactions with
Koçtaş Yapı Marketleri Ticaret A.Ş. in which the Group
holds a 50% interest
Commission and other income
0.3
–
0.6
0.2
Transactions with the Kingfisher Pension Scheme
Provision of administrative services
0.9
0.9
0.8
0.6
Services are usually negotiated with related parties on a cost-plus basis. Goods are sold or bought on the basis of the price lists in
force with non-related parties. In the prior year, the Group made capital contributions totalling £19m into the Koçtaş joint venture.
The remuneration of key management personnel is given in note 9.
Other transactions with the Kingfisher Pension Scheme are detailed in note 28.
38 Post balance sheet events
During the period since the balance sheet date, the Group purchased 20 million of the Company’s own shares for cancellation at a cost
of £71m. This amount was deducted from equity in 2025/26 as a result of an irrevocable buyback agreement which was in place at
31 January 2026.
178 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Company balance sheet
At 31 January 2026
£ millions
Notes 2025/26 2024/25
Non-current assets
Property, plant and equipment
5
6
Right-of-use assets
9
10
Investment
s in subsidiaries 4
6,829
6,825
Trade and other receivables
5
3,133
3,268
Post
-employment benefits 8
7
9
Deferred tax assets
8
5
9,991
10,123
Current assets
Trade and other receivables
5
21
62
Derivative assets
– 3
Current tax assets
66
91
Cash and cash equivalents
196 111
283
267
Total assets
10,274
10,390
Current liabilities
Trade and other payables
6
(5,076)
(5,584)
Borrowings
7
–
(99)
Lease liabilities
(2)
(2)
(5,078)
(5,685)
Net current liabilities
(4,795)
(5,418)
Total assets less current liabilities
5,196
4,705
Non-current liabilities
Borrowings
7 (99)
–
Lease liabilities
(10)
(12)
(109)
(12)
Total liabilities
(5,187)
(5,697)
Net assets
5,087
4,693
Equity
Share capital
9
269
282
Share premium
2,228
2,228
Own shares held in ESOP trust
(38)
(34)
Retained earnings
1,809
1,412
Capital redemption reserve
108
94
Other reserves
711
711
Total equity
5,087 4,693
The Company’s profit for the year was £900m (2024/25: £437m).
As permitted by section 408 of the Companies Act 2006, the income statement of the Company has not been presented.
The financial statements of Kingfisher plc (company number 01664812) were approved and authorised by the Board of Directors on
23 March 2026 and signed on its behalf by:
Thierry Garnier Bhavesh Mistry
Chief Executive Officer Chief Financial Officer
Notes to the consolidated financial statements continued
36 Contingent liabilities
The Group is subject to claims and litigation arising in the ordinary course of business and provision is made where liabilities are
considered likely to arise on the basis of current information and legal advice.
The Group files tax returns in many jurisdictions around the world and at any one time is subject to periodic tax audits in the ordinary
course of its business. Applicable tax laws and regulations are subject to differing interpretations, and the resolution of a final tax
position can take several years to complete. Where it is considered that future tax liabilities are more likely than not to arise, an
appropriate provision is recognised in the financial statements.
Whilst the procedures that must be followed to resolve these types of tax issues make it likely that it will be some years before the
eventual outcome is known, the Group does not currently consider the likelihood of adverse outcomes in relation to these matters
(other than those matters for which liabilities have already been recorded) to be probable.
In October 2017, the European Commission opened a state aid investigation into the Group Financing Exemption section of the UK
Controlled Foreign Company rules. While the Group had complied with the requirements of UK tax law in force at the time, in April 2019
the European Commission concluded that aspects of the UK Controlled Foreign Company regime partially constituted illegal state aid.
In September 2024, the European Court of Justice annulled this decision, and, in March 2025, HMRC repaid the £64m tax and interest
previously assessed, plus an additional £5m payment of repayment interest.
Subsidiary audit exemptions
The following UK subsidiary undertakings are exempt from the requirements of the Companies Act 2006 (the Act) relating to the audit
of individual accounts by virtue of section 479A of the Act:
Name
Company
number
Name
Company
Number
Name
Company
Number
B&Q Properties Chesterfield Limited
07347750
B&Q Properties Swindon
Limited
07156385
Kingfisher Marketplaces Limited
03257957
B&Q Properties Farnborough Limited
07595097
B&Q Properties Witney
Limited
07595124
Kingfisher Properties
Investment
s Limited
07501852
B&Q Properties Investments Limited
SC389774
B&Q Properties Wrexham
Limited
07347678
Kingfisher TMB Limited
03926623
B&Q Properties Limited
03885270
Eijsvogel Finance Limited
02792015
New England Paint Company
Limited
04056989
B&Q Properties New Malden Limited
03926734
Kingfisher France Limited
04213347
Sheldon Poland Investments
Limited
08409745
B&Q Properties South Shields Limited
07156522
Kingfisher Holdings Limited
09404258
Zeus
Land Investments Limited
00601220
B&Q Properties Sutton-In-Ashfield
Limited
07594922
Kingfisher International
Holdings Limited
02558762
Kingfisher plc will guarantee all outstanding liabilities that these subsidiaries are subject to as at the financial year ended 31 January
2026 in accordance with section 479C of the Act, as amended by the Companies and Limited Liability Partnerships (Accounts and
Audit Exemptions and Change of Accounting Framework) Regulations 2012.
37 Related party transactions
During the year, the Group carried out a number of transactions with related parties in the normal course of business and on an arm’s
length basis. The names of the related parties, the nature of these transactions and their total value are shown below:
2025/26 2024/25
£ millions
Income Receivable Income Receivable
Transactions with
Koçtaş Yapı Marketleri Ticaret A.Ş. in which the Group
holds a 50% interest
Commission and other income 0.3 – 0.6 0.2
Transactions with the Kingfisher Pension Scheme
Provision of administrative services
0.9
0.9
0.8
0.6
Services are usually negotiated with related parties on a cost-plus basis. Goods are sold or bought on the basis of the price lists in
force with non-related parties. In the prior year, the Group made capital contributions totalling £19m into the Koçtaş joint venture.
The remuneration of key management personnel is given in note 9.
Other transactions with the Kingfisher Pension Scheme are detailed in note 28.
38 Post balance sheet events
During the period since the balance sheet date, the Group purchased 20 million of the Company’s own shares for cancellation at a cost
of £71m. This amount was deducted from equity in 2025/26 as a result of an irrevocable buyback agreement which was in place at
31 January 2026.
179Kingfisher 2025/26 Annual Report and Accounts
Company statement of changes in equity
Year ended 31 January 2026
2025/26
£ millions
Notes
Share
capital
(note 9)
Share
premium
Own
shares
held
Retained
earnings
Capital
redemption
reserve
Other
reserves
1
Total
equity
At 1 February 2025
282
2,228
(34)
1,412
94
711
4,693
Profit
for the year
–
–
–
900
–
–
900
Other comprehensive expense for the year
–
–
–
(2)
–
–
(2)
Total comprehensive expense for the year
–
–
–
898
–
–
898
Share
-based compensation 10
– – – 8 – – 8
Capital contributions given relating to share-
based payments
–
–
–
21
–
–
21
New shares issued under share schemes
9
1
–
–
8
–
–
9
Own shares issued under share schemes
–
–
21
(21)
–
–
–
Purchase of own shares for cancellation
9
(14)
–
–
(301)
14
–
(301)
Purchase of own shares for ESOP trust
–
–
(25)
–
–
–
(25)
Dividends
–
–
–
(218)
–
–
(218)
Tax on equity items
–
–
–
2
–
–
2
At 31 January 202
6
269 2,228 (38
)
1,809 108 711 5,087
2024/25
£ millions
Notes
Share
capital
(note 9)
Share
premium
Own
shares
held
Retained
earnings
Capital
redemption
reserve
Other
reserves
1
Total
equity
At 1 February 2024
294
2,228
(31)
1,452
82
711
4,736
Profit for the year
–
–
–
437
–
–
437
Other comprehensive
expense for the year – – – – – – –
Total comprehensive
expense for the year – – – 437 – – 437
Share-based compensation
10
–
–
–
5
–
–
5
Capital contributions given relating to share
-
based payments
–
–
–
16
–
–
16
New shares issued under share schemes
9 – – – 2 – – 2
Own shares issued under share schemes
–
–
23
(23)
–
–
–
Purchase of own shares for cancellation
9 (12)
– – (251)
12 – (251)
Purchase of own shares for ESOP trust
–
–
(26)
–
–
–
(26)
Dividends
– – – (228)
– – (228)
Tax on equity items
–
–
–
2
–
–
2
At 31 January 2025
282
2,228
(34)
1,412
94
711
4,693
1. The other reserves represent the premium on the issue of convertible loan stock in 1993 and the merger reserve relating to the acquisition of Darty in 1993.
180 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Notes to the Company financial statements
1 General information
The Company is a public company limited by shares and
incorporated in England and Wales, United Kingdom, and is listed
on the London Stock Exchange. The Company is non-trading and
is the ultimate parent of the Kingfisher plc group (‘the Group’).
The nature of the Group’s operations and its principal activities
are set out in the Strategic Report on pages 2 and 51.
The address of its registered office is One Paddington Square,
London, W2 1GG. A full list of related undertakings of the
Company and their registered offices is given in note 12.
2 Material accounting policies
The financial statements of Kingfisher plc (‘the Company’) are
for the year ended 31 January 2026 (‘the year’ or ‘2025/26’)
and were authorised for issue by the Board of Directors on
23 March 2026. The comparative financial year is the year ended
31 January 2025 (‘the prior year’ or ‘2024/25’).
The directors of Kingfisher plc consider that adequate resources
exist for the Company to continue in operational existence for
the foreseeable future and they continue to adopt the going
concern basis in preparing the financial statements for the year
ended 31 January 2026. Refer to note 2a of the consolidated
financial statements for details of the Directors’ assessment.
The Company meets the definition of a qualifying entity under
Financial Reporting Standard 100 and as such these financial
statements have been prepared in accordance with Financial
Reporting Standard 101 Reduced Disclosure Framework (‘FRS 101’)
and the provisions of the Companies Act 2006. The financial
statements have been prepared under the historical cost
convention, as modified by the use of valuations for certain financial
instruments, share-based payments and post-employment benefits.
The Company has taken advantage of the following disclosure
exemptions under FRS 101:
— the requirements of paragraphs 45(b) and 46 to 52 of IFRS 2
‘Share-based Payments’;
— the requirements of IFRS 7 ‘Financial Instruments: Disclosures’;
— the requirements of paragraphs 91 to 99 of IFRS 13 ‘Fair Value
Measurement’;
— the requirement in paragraph 38 of IAS 1 ‘Presentation of Financial
Statements’ to present comparative information in respect of:
— paragraph 73(e) of IAS 16 Property, Plant and Equipment;
— the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C,
38D, 40A, 40B, 40C, 40D, 111 and 134 to 136 of IAS 1
‘Presentation of Financial Statements’;
— the requirements of IAS 7 ‘Statement of Cash Flows’;
— the requirements of paragraphs 30 and 31 of IAS 8 ‘Accounting
Policies, Changes in Accounting Estimates and Error’;
— the requirements of paragraphs 17 and 18A of IAS 24 ‘Related
Party Disclosures’;
— the requirements in IAS 24 ‘Related Party Disclosures’ to disclose
related party transactions entered into between two or more
members of a group, provided that any subsidiary which is a party
to the transaction is wholly owned by such a member; and
— the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d) to
134(f) and 135(c) to 135(e) of IAS 36 ‘Impairment of Assets’.
Where required, equivalent disclosures are given in the
consolidated financial statements of Kingfisher plc.
The material accounting policies applied in the preparation of
these financial statements are set out below. These policies have
been consistently applied to the years presented.
Changes to accounting policies as a result of new
standards issued and effective
New and amended accounting standards issued and effective do
not have a material impact on the Company’s financial statements.
a. Foreign currencies
Monetary assets and liabilities denominated in foreign currencies
are translated into Sterling at the rates of exchange at the
balance sheet date. Exchange differences on monetary items are
taken to the income statement.
Principal rates of exchange against Sterling:
2025/26
Year end rate
2024/25
Year end rate
Euro
1.15 1.20
US Dollar
1.37
1.24
Polish Zloty
4.86 5.04
The financial statements are presented in Sterling, which is the
Company’s presentation currency and the currency of the
primary economic environment in which the entity operates
(i.e. its functional currency).
b. Investments
Investments in subsidiaries are included in the balance sheet at
cost, less any provisions for impairment. The Company tests the
investment balance for impairment annually or when there is an
indicator of impairment. The recoverable amount is assessed by
reference to the present value of expected future cash flows
(‘value-in-use’), based on the Group’s most recent Board
approved plans. Where the recoverable amount is less than the
carrying amount of the investment, an impairment loss is
recognised in the income statement.
c. Employee benefits
(i) Post-employment benefits
The Company operates defined benefit and defined contribution
pension schemes for its employees. A defined benefit scheme
is a pension scheme which defines an amount of pension benefit
which an employee will receive on retirement. A defined
contribution scheme is a pension scheme under which the
Company usually pays fixed contributions into a separate
entity. In all cases a separate fund is being accumulated to
meet the accruing liabilities. The assets of each of these funds
are held under trusts and are entirely separate from the
Company’s assets.
The asset or liability recognised in the balance sheet in respect of
defined benefit pension schemes is the fair value of scheme
assets less the present value of the defined benefit obligation
at the balance sheet date. The defined benefit obligation is
calculated annually by independent actuaries using the projected
unit credit method. The present value of the defined benefit
obligation is determined by discounting the estimated future cash
outflows using interest rates of high-quality corporate bonds
which are denominated in the currency in which the benefits will
be paid and which have terms to maturity approximating to the
terms of the related pension liability.
Company statement of changes in equity
Year ended 31 January 2026
2025/26
£ millions
Notes
Share
capital
(note 9)
Share
premium
Own
shares
held
Retained
earnings
Capital
redemption
reserve
Other
reserves
1
Total
equity
At 1 February 2025
282
2,228
(34)
1,412
94
711
4,693
Profit
for the year
–
–
–
900
–
–
900
Other comprehensive expense for the year
–
–
–
(2)
–
–
(2)
Total comprehensive expense for the year
–
–
–
898
–
–
898
Share
-based compensation 10
– – – 8 – – 8
Capital contributions given relating to share-
based payments
–
–
–
21
–
–
21
New shares issued under share schemes
9
1
–
–
8
–
–
9
Own shares issued under share schemes
–
–
21
(21)
–
–
–
Purchase of own shares for cancellation
9
(14)
–
–
(301)
14
–
(301)
Purchase of own shares for ESOP trust
–
–
(25)
–
–
–
(25)
Dividends
–
–
–
(218)
–
–
(218)
Tax on equity items
–
–
–
2
–
–
2
At 31 January 202
6
269 2,228 (38
)
1,809 108 711 5,087
2024/25
£ millions
Notes
Share
capital
(note 9)
Share
premium
Own
shares
held
Retained
earnings
Capital
redemption
reserve
Other
reserves
1
Total
equity
At 1 February 2024
294
2,228
(31)
1,452
82
711
4,736
Profit for the year
–
–
–
437
–
–
437
Other comprehensive expense for the year
–
–
–
–
–
–
–
Total comprehensive expense for the year
–
–
–
437
–
–
437
Share-based compensation
10
–
–
–
5
–
–
5
Capital contributions given relating to share-
based payments
–
–
–
16
–
–
16
New shares issued under share schemes
9
–
–
–
2
–
–
2
Own shares issued under share schemes
–
–
23
(23)
–
–
–
Purchase of own shares for cancellation
9
(12)
–
–
(251)
12
–
(251)
Purchase of own shares for ESOP trust
–
–
(26)
–
–
–
(26)
Dividends
–
–
–
(228)
–
–
(228)
Tax on equity items
–
–
–
2
–
–
2
At 31 January 2025
282
2,228
(34)
1,412
94
711
4,693
1. The other reserves represent the premium on the issue of convertible loan stock in 1993 and the merger reserve relating to the acquisition of Darty in 1993.
181Kingfisher 2025/26 Annual Report and Accounts
Notes to the Company financial statements continued
2 Material accounting policies continued
Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are credited or
charged to other comprehensive income as they arise.
For defined contribution schemes, the Company has no further
payment obligations once the contributions have been paid.
The contributions are recognised as an employee benefit
expense when they are due.
(ii) Share-based compensation
The Company operates several equity-settled, share-based
compensation schemes. The fair value of the employee
services received in exchange for the grant of options or
deferred shares is recognised as an expense and is calculated
using Black-Scholes and stochastic models. The total amount
to be expensed over the vesting period is determined by
reference to the fair value of the options or deferred shares
granted. The value of the charge is adjusted to reflect expected
and actual levels of options vesting due to non-market
vesting conditions.
The fair value of the compensation given to subsidiaries in
respect of share-based compensation schemes is recognised as
a capital contribution over the vesting period. The capital
contribution is reduced by any payments received from
subsidiaries in respect of these schemes.
(iii) Employee Share Ownership Plan trust (‘ESOP trust’)
The ESOP trust is a separately administered discretionary trust.
Liabilities of the ESOP trust are guaranteed by the Company
and the assets of the ESOP trust mainly comprise shares in
the Company.
Own shares held by the ESOP trust are deducted from equity
and the shares are held at historical cost until they are sold.
The assets, liabilities, income and costs of the ESOP trust
are included in both the Company’s and the consolidated
financial statements.
d. Taxation
The tax currently payable or receivable is based on taxable profit
or loss for the year.
Taxable profit differs from profit before taxation as reported in
the income statement because it excludes items of income or
expense which are taxable or deductible in other years or which
are never taxable or deductible.
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used
in the computation of taxable profit and is accounted for using the
balance sheet liability method.
Deferred tax liabilities are generally recognised for all taxable
temporary differences. Deferred tax assets are recognised to
the extent that it is probable that taxable profits will be available
against which deductible temporary differences or unused tax
losses can be utilised. Deferred tax assets and liabilities are not
generally recognised if the temporary difference arises from the
initial recognition (other than in a business combination) of other
assets and liabilities in a transaction which affects neither the
taxable profit nor the accounting profit. Deferred tax liabilities are
recognised for taxable temporary differences arising on
investments in subsidiaries, joint ventures and associates, except
where the Company is able to control the reversal of the
temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all
or part of the asset to be recovered.
Current and deferred tax are calculated using tax rates which
have been enacted or substantively enacted by the balance
sheet date and are expected to apply in the period when the
liability is settled or the asset is realised.
Current and deferred tax are charged or credited to the income
statement, except when they relate to items charged or credited
directly to equity, in which case the current or deferred tax is also
recognised directly in equity.
e. Financial instruments
Financial assets and financial liabilities are recognised on the
Company’s balance sheet when the Company becomes a party to
the contractual provisions of the instrument. Financial assets are
derecognised when the contractual rights to the cash flows from the
financial asset expire or the Company has substantially transferred
the risks and rewards of ownership. Financial liabilities (or a part of a
financial liability) are derecognised when the obligation specified in
the contract is discharged or cancelled or expires.
Financial assets and liabilities are offset only when the Group
has a currently enforceable legal right to set-off the respective
recognised amounts and intends either to settle on a net basis, or
to realise the asset and settle the liability simultaneously.
The Company has a number of term loans with its group entities.
These loans are denominated in Sterling and Euro and are priced
to SONIA and ESTR respectively.
182 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
(i) Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held on
call with banks and other short-term highly liquid investments that
are readily convertible to a known amount of cash, are subject to
insignificant risk of changes in value and which have original
maturities of three months or less. Cash and cash equivalents are
held for the purpose of meeting short-term cash commitments
rather than for investment or other purposes.
(ii) Borrowings
Interest bearing borrowings are recorded at fair value (which is
typically equivalent to the proceeds received) net of direct issue
costs and subsequently measured at amortised cost. Where
borrowings are in designated and effective fair value hedge
relationships, adjustments are made to their carrying amounts
to reflect the hedged risks. Finance charges, including premiums
payable on settlement or redemption and direct issue costs,
are amortised to the income statement using the effective
interest method.
(iii) Trade receivables
Trade receivables are initially recognised at their transaction
price and are subsequently measured at amortised cost less any
allowance for expected credit losses. Amounts owed by Group
companies are recorded as non-current unless there is an
expectation that they will be received within 12 months.
(iv) Trade payables
Trade payables are initially recognised at fair value and are
subsequently measured at amortised cost.
(v) Derivatives and hedge accounting
Where hedge accounting is not applied, or to the extent to which
it is not effective, changes in the fair value of derivatives are
recognised in the income statement as they arise.
Derivatives are initially recorded at fair value on the date a
derivative contract is entered into and are subsequently carried
at fair value. The accounting treatment of derivatives and other
financial instruments classified as hedges depends on their
designation, which occurs at the start of the hedge relationship.
The Company designates certain derivatives as a hedge of the
fair value of an asset or liability (‘fair value hedge’).
For an effective hedge of an exposure to changes in fair value,
the hedged item is adjusted for changes in fair value attributable
to the risk being hedged with the corresponding entry being
recorded in the income statement.
In order to qualify for hedge accounting, the Company
documents in advance the risk management objective and
strategy for undertaking the hedge and the relationship
between the item being hedged and the hedging instrument.
The Company also documents and demonstrates an assessment
of the relationship between the hedged item and the hedging
instrument, which shows that the hedge will be highly effective on
an ongoing basis and provides an analysis of the sources of hedge
ineffectiveness. The effectiveness testing is performed at half
year and year end or upon a significant change in circumstances
affecting the hedge effectiveness requirements.
Hedge accounting is discontinued when the hedging instrument
expires or is sold, terminated or exercised, or no longer qualifies
for hedge accounting. The fair value adjustment to the carrying
amount of the hedged item arising from the hedged risk is
amortised to profit or loss from that date. Amortisation is based
on recalculated effective interest rate.
The company does not have any cash flow hedging instruments.
f. Dividends
Interim dividends are recognised when they are paid to the
Company’s shareholders. Final dividends are recognised when
they are approved by the Company’s shareholders.
g. Share repurchases
Shares purchased for cancellation are deducted from retained
earnings. The Group uses irrevocable closed period buyback
programmes. A liability to purchase shares is recognised at
inception of the programme with any subsequent reduction in the
obligation credited back to retained earnings at the end of the
programme. Share capital is reduced and credited to the capital
redemption reserve, maintaining non-distributable reserves.
Critical accounting judgements and key
sources of estimation uncertainty
The preparation of the Company financial statements requires
the Company to make estimates and assumptions that affect the
application of policies and reported amounts. Estimates and
judgements are continually evaluated and are based on historical
experience and other factors including expectations of future
events that are believed to be reasonable under the
circumstances. Actual results may differ from these estimates.
There have been no critical accounting judgements made by
the Directors or key sources of estimation uncertainty identified
during the year.
Notes to the Company financial statements continued
2 Material accounting policies continued
Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are credited or
charged to other comprehensive income as they arise.
For defined contribution schemes, the Company has no further
payment obligations once the contributions have been paid.
The contributions are recognised as an employee benefit
expense when they are due.
(ii) Share-based compensation
The Company operates several equity-settled, share-based
compensation schemes. The fair value of the employee
services received in exchange for the grant of options or
deferred shares is recognised as an expense and is calculated
using Black-Scholes and stochastic models. The total amount
to be expensed over the vesting period is determined by
reference to the fair value of the options or deferred shares
granted. The value of the charge is adjusted to reflect expected
and actual levels of options vesting due to non-market
vesting conditions.
The fair value of the compensation given to subsidiaries in
respect of share-based compensation schemes is recognised as
a capital contribution over the vesting period. The capital
contribution is reduced by any payments received from
subsidiaries in respect of these schemes.
(iii) Employee Share Ownership Plan trust (‘ESOP trust’)
The ESOP trust is a separately administered discretionary trust.
Liabilities of the ESOP trust are guaranteed by the Company
and the assets of the ESOP trust mainly comprise shares in
the Company.
Own shares held by the ESOP trust are deducted from equity
and the shares are held at historical cost until they are sold.
The assets, liabilities, income and costs of the ESOP trust
are included in both the Company’s and the consolidated
financial statements.
d. Taxation
The tax currently payable or receivable is based on taxable profit
or loss for the year.
Taxable profit differs from profit before taxation as reported in
the income statement because it excludes items of income or
expense which are taxable or deductible in other years or which
are never taxable or deductible.
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used
in the computation of taxable profit and is accounted for using the
balance sheet liability method.
Deferred tax liabilities are generally recognised for all taxable
temporary differences. Deferred tax assets are recognised to
the extent that it is probable that taxable profits will be available
against which deductible temporary differences or unused tax
losses can be utilised. Deferred tax assets and liabilities are not
generally recognised if the temporary difference arises from the
initial recognition (other than in a business combination) of other
assets and liabilities in a transaction which affects neither the
taxable profit nor the accounting profit. Deferred tax liabilities are
recognised for taxable temporary differences arising on
investments in subsidiaries, joint ventures and associates, except
where the Company is able to control the reversal of the
temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all
or part of the asset to be recovered.
Current and deferred tax are calculated using tax rates which
have been enacted or substantively enacted by the balance
sheet date and are expected to apply in the period when the
liability is settled or the asset is realised.
Current and deferred tax are charged or credited to the income
statement, except when they relate to items charged or credited
directly to equity, in which case the current or deferred tax is also
recognised directly in equity.
e. Financial instruments
Financial assets and financial liabilities are recognised on the
Company’s balance sheet when the Company becomes a party to
the contractual provisions of the instrument. Financial assets are
derecognised when the contractual rights to the cash flows from the
financial asset expire or the Company has substantially transferred
the risks and rewards of ownership. Financial liabilities (or a part of a
financial liability) are derecognised when the obligation specified in
the contract is discharged or cancelled or expires.
Financial assets and liabilities are offset only when the Group
has a currently enforceable legal right to set-off the respective
recognised amounts and intends either to settle on a net basis, or
to realise the asset and settle the liability simultaneously.
The Company has a number of term loans with its group entities.
These loans are denominated in Sterling and Euro and are priced
to SONIA and ESTR respectively.
183Kingfisher 2025/26 Annual Report and Accounts
Notes to the Company financial statements continued
3 Income statement disclosures
The audit fee for the Company and the consolidated financial statements is disclosed in note 8 of the Kingfisher plc consolidated
financial statements. Fees payable to Deloitte LLP and their associates for audit and non-audit services to the Company are not
required to be disclosed because the Group financial statements disclose such fees on a consolidated basis. Details of the Company’s
policy on the use of auditors for non-audit services, the reasons why the auditor was used rather than another supplier and how the
auditor’s independence and objectivity were safeguarded are set out in the Audit Committee report on pages 68 to 72.
Dividend disclosures are provided in note 12 to the Kingfisher plc consolidated financial statements.
£ millions
2025/26 2024/25
Wages and salaries
45
38
Social security costs
7
5
Post-employment benefits – defined contribution
3
3
Share
-based compensation
8
5
Employee benefit expenses
63
51
Number
2025/26 2024/25
Average number of persons employed
Administration
315
306
Directors’ remuneration and details of share option exercises are disclosed in the Directors’ Remuneration report on pages 73 to 98.
Total Directors’ remuneration for the year is £8m (2024/25: £5m). Refer to note 9 of the consolidated financial statements for details of
the directors remuneration as defined under Paragraph 1 of Schedule 5 to the Accounting Regulations.
As permitted by s408 of Companies Act 2006, no separate income statement or statement of comprehensive income is presented in
respect of the parent Company. The profit attributable to the Company is disclosed in the footnote to the Company’s balance sheet.
4 Investments
£ millions
Investments
in subsidiaries
At 1 February 202
5
6,825
Capital contributions given relating to share
-based payments 21
Contributions received relating to share
-based payments
(17)
At 31 January 202
6 6,829
The Company’s investments in subsidiaries are principally composed of its investment in Kingfisher Holdings Limited, which is an
intermediate holding company for the remainder of the subsidiaries, joint ventures and associates of the Kingfisher Group. At each
reporting date, an assessment is performed as to whether there are any indicators that the Company’s investment may be impaired
and, should such indicators exist, the recoverable amount is estimated. At the balance sheet date, the Company’s market capitalisation
was less than the carrying amount of its investments, which is an indicator of impairment.
An impairment review has been performed for the Company’s investment with no resulting impairments. As an intermediate holding
company for the Kingfisher Group, the Company’s subsidiary investment is supported by the continuing value-in-use of the Group as a
whole and the Company continues to have significant headroom above the carrying amount of the investment as a result. The Board
has reviewed a sensitivity analysis and does not consider that a reasonably possible change in the assumptions used in the value-in-use
calculations would cause the carrying amount of the Company’s investment to exceed the recoverable amount. See note 13 to the
consolidated financial statements for further details on the assumptions used.
184 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
5 Trade and other receivables
£ millions
2025/26 2024/25
Non
-current
Owed by Group undertakings
3,133
3,268
3,133 3,268
Current
Owed by Group undertakings
21
62
21
62
Trade and other receivables
3,154
3,330
Amounts owed by Group undertakings are repayable on demand and any interest due thereon is at current market rates. The amounts
owed are not secured with collateral or guarantees. The Company has intercompany term loan receivables from Group undertakings
of £190m (2024/25: £84m) and £nil (2024/25: £58m), respectively. The £190m intercompany loan matures on 30 June 2026 and is
priced to 2.58% interest. The intention is for this loan to be extended at its maturity date and it has been recorded as a non-current
receivable as a result.
Amounts owed by subsidiary undertakings have been considered for impairment using the 12 month expected credit loss model
because there have been no changes in credit risk since initial recognition. The expected credit losses on amounts owed by Group
undertakings is £nil (2024/25: £nil).
6 Trade and other payables
£ millions
2025/26 2024/25
Current
Owed to Group undertakings
4,968 5,521
Other taxation and social security
4
5
Contract to purchase own shares for cancellation
71 26
Accruals
31
25
O
ther payables 2 7
5,076 5,584
The share repurchase obligations relate to a liability arising under an irrevocable closed season buyback of the Company’s own shares.
Amounts owed to Group undertakings are repayable on demand and any interest due thereon is at current market rates. The amounts
owed are not secured with collateral or guarantees.
7 Borrowings
£ millions
2025/26 2024/25
Non-current
Fixed term debt
99 –
99 –
Current
Fixed term debt
–
99
–
99
Borrowings
99 99
The fixed term debt represents two GBP term loans maturing in June 2027 and January 2028.
See notes 23 and 33 to the consolidated financial statements for further details.
Notes to the Company financial statements continued
3 Income statement disclosures
The audit fee for the Company and the consolidated financial statements is disclosed in note 8 of the Kingfisher plc consolidated
financial statements. Fees payable to Deloitte LLP and their associates for audit and non-audit services to the Company are not
required to be disclosed because the Group financial statements disclose such fees on a consolidated basis. Details of the Company’s
policy on the use of auditors for non-audit services, the reasons why the auditor was used rather than another supplier and how the
auditor’s independence and objectivity were safeguarded are set out in the Audit Committee report on pages 68 to 72.
Dividend disclosures are provided in note 12 to the Kingfisher plc consolidated financial statements.
£ millions
2025/26 2024/25
Wages and salaries
45
38
Social security costs
7
5
Post-employment benefits – defined contribution
3
3
Share
-based compensation
8
5
Employee benefit expenses
63
51
Number
2025/26 2024/25
Average number of persons employed
Administration
315
306
Directors’ remuneration and details of share option exercises are disclosed in the Directors’ Remuneration report on pages 73 to 98.
Total Directors’ remuneration for the year is £8m (2024/25: £5m). Refer to note 9 of the consolidated financial statements for details of
the directors remuneration as defined under Paragraph 1 of Schedule 5 to the Accounting Regulations.
As permitted by s408 of Companies Act 2006, no separate income statement or statement of comprehensive income is presented in
respect of the parent Company. The profit attributable to the Company is disclosed in the footnote to the Company’s balance sheet.
4 Investments
£ millions
Investments
in subsidiaries
At 1 February 202
5
6,825
Capital contributions given relating to share-based payments
21
Contributions received relating to share
-based payments
(17)
At 31 January 202
6 6,829
The Company’s investments in subsidiaries are principally composed of its investment in Kingfisher Holdings Limited, which is an
intermediate holding company for the remainder of the subsidiaries, joint ventures and associates of the Kingfisher Group. At each
reporting date, an assessment is performed as to whether there are any indicators that the Company’s investment may be impaired
and, should such indicators exist, the recoverable amount is estimated. At the balance sheet date, the Company’s market capitalisation
was less than the carrying amount of its investments, which is an indicator of impairment.
An impairment review has been performed for the Company’s investment with no resulting impairments. As an intermediate holding
company for the Kingfisher Group, the Company’s subsidiary investment is supported by the continuing value-in-use of the Group as a
whole and the Company continues to have significant headroom above the carrying amount of the investment as a result. The Board
has reviewed a sensitivity analysis and does not consider that a reasonably possible change in the assumptions used in the value-in-use
calculations would cause the carrying amount of the Company’s investment to exceed the recoverable amount. See note 13 to the
consolidated financial statements for further details on the assumptions used.
185Kingfisher 2025/26 Annual Report and Accounts
Notes to the Company financial statements continued
8 Post-employment benefits
The Company participates in both a funded defined benefit scheme and a funded defined contribution scheme.
Defined contribution scheme
Pension costs for the defined contribution scheme, at rates specified in the scheme’s rules, are as follows:
£ millions
2025/26 2024/25
Charge to operating profit
3 3
From July 2012, an enhanced defined contribution scheme was offered to all Company employees. Eligible Company employees have
been automatically enrolled into the defined contribution scheme since 31 March 2013.
Defined benefit scheme
Kingfisher plc is one of a number of Group companies that participate in the Kingfisher Pension Scheme, and therefore the Company
has accounted for its share of the scheme assets and liabilities. The Group’s policy is for each entity to recognise its share of assets
and liabilities based on the proportion of the scheme contributions payable by that entity. A full actuarial valuation of the scheme is
carried out every three years by an independent actuary for the Trustee, and the last full valuation was carried out as at 31 March 2022,
with the 2025 valuation currently ongoing. In accordance with the scheme’s Statement of Funding Principles, the Trustee and
Kingfisher agreed to cease annual employer contributions for the period from August 2022 to July 2025, and subsequently for the
period from August 2025 to July 2028. See note 28 to the consolidated financial statements for further detail on the Kingfisher
Pension Scheme.
The final salary pension scheme was closed to future benefit accrual with effect from July 2012.
The Trust Deed provides Kingfisher with an unconditional right to a refund of surplus assets assuming the full settlement of plan
liabilities in the event of a plan wind up. Furthermore, in the ordinary course of business the Trustee has no rights to unilaterally wind up,
or otherwise augment the benefits due to members of the scheme. Based on these rights, any net surplus in the scheme is recognised
in full.
In 2010/11 and 2011/12 the Company entered into two phases of a property partnership arrangement with the scheme Trustee. Further
details on this arrangement are given in note 28 to the consolidated financial statements. The reported pension position reflects the
Company’s share of the resulting scheme asset.
Balance sheet
Movements in the present value of the defined benefit obligation and the fair value of scheme assets are as follows:
£ millions
Defined benefit
obligation Scheme assets Total
At 1 February 202
5
(49)
58
9
Interest (expense)/income
(3)
3 –
Remeasurement gains/(losses)
1
1
(3)
(2)
Benefits paid
3 (3)
–
At 31 January 202
6 (48)
55 7
At 1 February 202
4 (53)
62 9
Interest (expense)/income
(3)
3 –
Remeasurement gains/(losses)
1
4 (4)
–
Benefits paid
3 (3)
–
At 31 January 202
5 (49)
58 9
1. Remeasurement gains/(losses) are recognised in Other Comprehensive Income (net of related deferred tax).
The fair value of scheme assets is analysed as follows:
£ millions
2025/26 2024/25
Equities
1 –
Government and corporate bonds
30
29
Annuities
19
22
Cash and other
5 7
Total fair value of scheme assets
55 58
186 Kingfisher 2025/26 Annual Report and Accounts
Other
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Governance
Financial
Statements
Strategic
Report
9 Called up share capital
Number of
ordinary shares
millions
Ordinary
share capital
£ millions
Allotted, called up and fully paid:
At 1 February 202
5
1,793
282
New shares issued under share schemes
5 1
Purchase of own shares for cancellation
(88)
(14)
At 31 January 202
6
1,710
269
At 1 February 202
4 1,875 294
New shares issued under share schemes
1
–
Purchase of own shares for cancellation
(83)
(12)
At 31 January 202
5 1,793 282
Ordinary shares have a par value of 15
5/7
pence per share and carry full voting, dividend and capital distribution rights.
During the year the Company purchased 88 million (2024/25: 83 million) of the Company’s own shares for cancellation at a cost of
£256m (2024/25: £225m) as part of its capital returns programme.
10 Share-based payments
The Company operates a number of share incentive plans including the Performance Share Plan (‘PSP’), Kingfisher Incentive Share Plan
(‘KISP’), and Sharesave plans in the UK and Ireland.
Options have been exercised on a regular basis throughout the year. On that basis, the weighted average share price during the year,
rather than at the date of exercise, is £2.83 (2024/25: £2.63). The options outstanding at the end of the year have exercise prices
ranging from nil to £2.75 and a weighted average remaining contractual life of 7.2 years (2024/25: 7.1 years).
In the current year, the Company recognised a total expense of £8m (2024/25: £5m) relating to equity-settled share-based
payment transactions.
The Executive Directors’ awards are disclosed in the Directors’ Remuneration report on pages 73 to 98.
PSP awards are based on service and performance conditions over a three-year period. The awards are granted as nil cost options.
Vesting dates may vary according to individual grants.
Under the UK Sharesave scheme, eligible UK employees have been invited to enter into HMRC-approved savings contracts for a
period of three or five years, whereby shares may be acquired with savings under the contract. The option price is the average market
price over three days shortly before the invitation to subscribe, discounted by 20%. Options are exercisable within a six-month period
from the conclusion of a three- or five-year period. The Irish Sharesave plan, which operates along similar lines to the UK Sharesave
scheme, includes eligible employees in the Republic of Ireland.
The rules of all schemes include provision for the early exercise of options in certain circumstances.
The Employee Share Ownership Plan trust (‘ESOP trust’)
The ESOP trust is funded by an interest-free loan from the Company of £87m (2024/25: £79m) to enable it to acquire shares in
Kingfisher plc. The shares are used to satisfy options awarded under the Group’s equity-settled share incentive plans, excluding
Sharesave plans.
The ESOP trust’s shareholding at 31 January 2026 is 13 million shares (2024/25: 12 million shares) with a nominal value of £2m (2024/25:
£2m) and a market value of £44m (2024/25: £29m). Dividends on these shares were waived for the interim and final dividends.
Notes to the Company financial statements continued
8 Post-employment benefits
The Company participates in both a funded defined benefit scheme and a funded defined contribution scheme.
Defined contribution scheme
Pension costs for the defined contribution scheme, at rates specified in the scheme’s rules, are as follows:
£ millions
2025/26 2024/25
Charge to operating profit
3
3
From July 2012, an enhanced defined contribution scheme was offered to all Company employees. Eligible Company employees have
been automatically enrolled into the defined contribution scheme since 31 March 2013.
Defined benefit scheme
Kingfisher plc is one of a number of Group companies that participate in the Kingfisher Pension Scheme, and therefore the Company
has accounted for its share of the scheme assets and liabilities. The Group’s policy is for each entity to recognise its share of assets
and liabilities based on the proportion of the scheme contributions payable by that entity. A full actuarial valuation of the scheme is
carried out every three years by an independent actuary for the Trustee, and the last full valuation was carried out as at 31 March 2022,
with the 2025 valuation currently ongoing. In accordance with the scheme’s Statement of Funding Principles, the Trustee and
Kingfisher agreed to cease annual employer contributions for the period from August 2022 to July 2025, and subsequently for the
period from August 2025 to July 2028. See note 28 to the consolidated financial statements for further detail on the Kingfisher
Pension Scheme.
The final salary pension scheme was closed to future benefit accrual with effect from July 2012.
The Trust Deed provides Kingfisher with an unconditional right to a refund of surplus assets assuming the full settlement of plan
liabilities in the event of a plan wind up. Furthermore, in the ordinary course of business the Trustee has no rights to unilaterally wind up,
or otherwise augment the benefits due to members of the scheme. Based on these rights, any net surplus in the scheme is recognised
in full.
In 2010/11 and 2011/12 the Company entered into two phases of a property partnership arrangement with the scheme Trustee. Further
details on this arrangement are given in note 28 to the consolidated financial statements. The reported pension position reflects the
Company’s share of the resulting scheme asset.
Balance sheet
Movements in the present value of the defined benefit obligation and the fair value of scheme assets are as follows:
£ millions
Defined benefit
obligation Scheme assets Total
At 1 February 202
5
(49)
58
9
Interest (expense)/income
(3)
3
–
Remeasurement gains/(losses)
1
1
(3)
(2)
Benefits paid
3
(3)
–
At 31 January 2026
(48)
55
7
At 1 February 202
4 (53)
62 9
Interest (expense)/income
(3)
3
–
Remeasurement gains/(losses)
1
4 (4)
–
Benefits paid
3
(3)
–
At 31 January 2025
(49)
58
9
1. Remeasurement gains/(losses) are recognised in Other Comprehensive Income (net of related deferred tax).
The fair value of scheme assets is analysed as follows:
£ millions
2025/26 2024/25
Equities
1
–
Government and corporate bonds
30
29
Annuities
19
22
Cash and other
5 7
Total fair value of scheme assets
55
58
187Kingfisher 2025/26 Annual Report and Accounts
Notes to the Company financial statements continued
11 Related party transactions
During the year, the Company carried out a number of transactions with related parties in the normal course of business and on
an arm’s length basis. The names of the related parties, the nature of these transactions and their total value are shown below:
2025/26
2024/25
£ millions
Income
Receivable at
year end
Income
Receivable at
year end
Transactions with
Koçtaş Yapı Marketleri Ticaret A.Ş. in which the Kingfisher plc
Group holds a 50% interest
Commission and other income
0.3
–
0.6 0.2
Transactions with the Kingfisher Pension Scheme
Provision of administrative services
0.9
0.9
0.8
0.6
Services are usually negotiated with related parties on a cost-plus basis. Goods are sold or bought on the basis of the price lists in
force with non-related parties. In the prior year, the Group made capital contributions totalling £19m into the Koçtaş joint venture.
The remuneration of key management personnel is given in note 9 of the consolidated financial statements.
Other transactions with the Kingfisher Pension Scheme are detailed in note 28 of the consolidated financial statements.
12 Related undertakings of the Group
In accordance with Section 409 of the Companies Act 2006, a full list of related undertakings, the address of their registered office and
their country of incorporation as at 31 January 2026 is shown below. Changes to the list of related undertakings since the year-end
date, if any, are detailed in the footnotes below. All undertakings are indirectly owned by the Company unless otherwise stated.
All related subsidiary undertakings, unless otherwise noted, are consolidated in the Group’s financial statements, have only one class of
share in issue (being ordinary shares), and have all their shares held by companies within the Group, other than the Company
(Kingfisher plc).
Certain UK subsidiaries are intending to avail of the exemption from the requirements of the Companies Act 2006 (the Act) relating to
the audit of individual accounts by virtue of section 479A of the Act. Kingfisher plc will guarantee all outstanding liabilities that these
subsidiaries are subject to as at the financial year ended 31 January 2026 in accordance with section 479C of the Act. Refer to note 36
of the consolidated financial statements for more details, including the list of subsidiaries intending to avail of this exemption.
Wholly-owned subsidiary undertakings
China and Hong Kong
2/F, KOHO, 73-75 Hung To Road, Kwun Tong, Kowloon, Hong Kong
Kingfisher Asia Limited
B&Q China, 4th Floor, B&Q Pudong Commercial Building, No. 393 Yin
Xiao Road, Pudong New Area, Shanghai 201204, China
Kingfisher (Shanghai) Sourcing Consultancy Co. Ltd
France
30
-32 rue de la Tourelle, 91310 Longpont-sur-Orge, France
Brico Dépôt S.A.S.
Euro Dépôt Immobilier S.A.S.
Horizons 1000 S.A.S.
Société Letranne S.C.I.
Parc d’Activités, rue de l’Epinoy, Templemars, 59175, France
KF10 S.A.S.
KF11 S.A.S.
Parc d’Activités, Templemars, 59175, France
ADSR-Real Estate S.A.S.
KFL8 S.A.S.
Kingfisher Développement S.A.S.
Kingfisher Information Technology Services (France) S.A.S.
France (continued)
Kingfisher International Products France S.A.S.
SCREWFIX S.A.S.
SOCODI S.A.R.L.
Route de l’Epinoy, Parc d’Activités, Templemars, 59175, France
Kingfisher Retail Media France S.A.S.
Zone Industrielle, Templemars, 59175, France
Castorama France S.A.S.
Kingfisher Investissements S.A.S.
L’Immobiliere Castorama S.A.S.
Guernsey
Redwood House, St Julian’s Avenue, St Peter Port, GY1 1WA,
Guernsey
B&Q (Retail) Guernsey Limited
Ireland
6th Floor, 2 Grand Canal Square, Dublin 2, D02 A342, Ireland
B&Q Ireland Limited
Screwfix Direct (Ireland) Limited
B. & Q. Warehouse, Liffey Valley Retail Park East, Ascail an Life, Dublin
22, Ireland
Paddington Investment Ireland Limited
188 Kingfisher 2025/26 Annual Report and Accounts
Other
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Governance
Financial
Statements
Strategic
Report
Ireland (continued)
Willis Towers Watson House, Elm Park, Merrion Road, Dublin 4,
D04 P231, Ireland
Kingfisher Insurance Designated Activity Company
Jersey
3rd Floor, 44 Esplanade, St Helier, JE4 9WG, Jersey
B&Q (Retail) Jersey Limited
Netherlands
Basisweg 10, 1043AP, Amsterdam, Netherlands
Kingfisher Group Finance B.V.
Rapenburgerstraat 175 E, 1011VM, Amsterdam, Netherlands
Kingfisher International Products B.V.
Poland
ul. Krakowiakow 78, Warszawa 02
-255, Poland
Castim Sp. z o.o.
Castorama Polska Sp. z o.o.
Kingfisher Sourcing Eastern Europe Sp. z o.o.
Melani 1 Sp. z o.o.
ul. Wielicka 28, Krakow, 30
-552, Poland
KFS Sp. z o.o.
Portugal
Rua Elias García,
Estrada Nacional 294, km 14, Freguesia de Rio
de Mouro, Concelho de Sintra, Lisboa, Portugal
Brico Depot Portugal, S.A.
Romania
3, Mihai Eminescu Street, 1st Floor, Cluj
-Napoca, Cluj, Romania
Kingfisher Information Technology Services (Romania) SRL
Spain
C/ la Selva, 10, Inblau Edificio A 1°, 08820 El Prat de Llobregat,
Barcelona, Spain
Euro Depot España SAU
Turkey
Barbaros Mahallesi Mor Sümbül Sokak, Nidakule Blok No: 7/3,
İçkapı no: 127, Ataşehir /İstanbul, Turkey
KSO Istanbul Sourcing Ev Geliştirme Ürünleri ve Hizmetleri Ltd Sti
United Kingdom
1 Paddington Square, London, England, W2 1GG, United Kingdom
Alcedo Finance Limited
Eijsvogel Finance Limited
Halcyon Finance Limited
Kingfisher France Limited
Kingfisher Group Limited
Kingfisher Holdings Limited
a
Kingfisher Information Technology Services (UK) Limited
Kingfisher International Holdings Limited
Kingfisher International Products Limited
Kingfisher Marketplaces Limited
b
Kingfisher Pension Trustee Limited
Kingfisher Properties Investments Limited
New England Paint Company Limited
Sheldon Holdings Limited
Sheldon Poland Investments Limited
Zeus Land Investments Limited
B&Q House, Chestnut Avenue, Chandlers Ford, Eastleigh, Hampshire,
SO53 3LE, United Kingdom
B&Q Limited
c
B&Q Properties Chesterfield Limited
B&Q Properties Farnborough Limited
B&Q Properties Limited
B&Q Properties New Malden Limited
B&Q Properties South Shields Limited
B&Q Properties Sutton-in-Ashfield Limited
B&Q Properties Swindon Limited
B&Q Properties Witney Limited
B&Q Properties Wrexham Limited
Dickens Limited
Kingfisher TMB Limited
Trade Point Limited
c/o Teneo Financial Advisory Limited, The Colmore Building, 20
Colmore Circus Queensway, Birmingham, England & Wales, B4
6AT, United Kingdom
Kingfisher International France Limited
d
c/o Womble Bond Dickinson (UK) LLP, 2 Semple Street,
Edinburgh, Scotland, EH3 8BL, United Kingdom
B&Q Properties Investments Limited
Trade House, Mead Avenue, Houndstone Business Park, Yeovil,
Somerset, BA22 8RT, United Kingdom
Geared Up Limited
Screwfix Direct Limited
e
Screwfix Spares Limited
SFD LTD
Notes to the Company financial statements continued
11 Related party transactions
During the year, the Company carried out a number of transactions with related parties in the normal course of business and on
an arm’s length basis. The names of the related parties, the nature of these transactions and their total value are shown below:
2025/26
2024/25
£ millions
Income
Receivable at
year end
Income
Receivable at
year end
Transactions with
Koçtaş Yapı Marketleri Ticaret A.Ş. in which the Kingfisher plc
Group holds a 50% interest
Commission and other income
0.3
–
0.6 0.2
Transactions with the Kingfisher Pension Scheme
Provision of administrative services
0.9
0.9
0.8
0.6
Services are usually negotiated with related parties on a cost-plus basis. Goods are sold or bought on the basis of the price lists in
force with non-related parties. In the prior year, the Group made capital contributions totalling £19m into the Koçtaş joint venture.
The remuneration of key management personnel is given in note 9 of the consolidated financial statements.
Other transactions with the Kingfisher Pension Scheme are detailed in note 28 of the consolidated financial statements.
12 Related undertakings of the Group
In accordance with Section 409 of the Companies Act 2006, a full list of related undertakings, the address of their registered office and
their country of incorporation as at 31 January 2026 is shown below. Changes to the list of related undertakings since the year-end
date, if any, are detailed in the footnotes below. All undertakings are indirectly owned by the Company unless otherwise stated.
All related subsidiary undertakings, unless otherwise noted, are consolidated in the Group’s financial statements, have only one class of
share in issue (being ordinary shares), and have all their shares held by companies within the Group, other than the Company
(Kingfisher plc).
Certain UK subsidiaries are intending to avail of the exemption from the requirements of the Companies Act 2006 (the Act) relating to
the audit of individual accounts by virtue of section 479A of the Act. Kingfisher plc will guarantee all outstanding liabilities that these
subsidiaries are subject to as at the financial year ended 31 January 2026 in accordance with section 479C of the Act. Refer to note 36
of the consolidated financial statements for more details, including the list of subsidiaries intending to avail of this exemption.
Wholly-owned subsidiary undertakings
China and Hong Kong
2/F, KOHO, 73-75 Hung To Road, Kwun Tong, Kowloon, Hong Kong
Kingfisher Asia Limited
B&Q China, 4th Floor, B&Q Pudong Commercial Building, No. 393 Yin
Xiao Road, Pudong New Area, Shanghai 201204, China
Kingfisher (Shanghai) Sourcing Consultancy Co. Ltd
France
30-32 rue de la Tourelle, 91310 Longpont-sur-Orge, France
Brico Dépôt S.A.S.
Euro Dépôt Immobilier S.A.S.
Horizons 1000 S.A.S.
Société Letranne S.C.I.
Parc d’Activités, rue de l’Epinoy, Templemars, 59175, France
KF10 S.A.S.
KF11 S.A.S.
Parc d’Activités, Templemars, 59175, France
ADSR-Real Estate S.A.S.
KFL8 S.A.S.
Kingfisher Développement S.A.S.
Kingfisher Information Technology Services (France) S.A.S.
France (continued)
Kingfisher International Products France S.A.S.
SCREWFIX S.A.S.
SOCODI S.A.R.L.
Route de l’Epinoy, Parc d’Activités, Templemars, 59175, France
Kingfisher Retail Media France S.A.S.
Zone Industrielle, Templemars, 59175, France
Castorama France S.A.S.
Kingfisher Investissements S.A.S.
L’Immobiliere Castorama S.A.S.
Guernsey
Redwood House, St Julian’s Avenue, St Peter Port, GY1 1WA,
Guernsey
B&Q (Retail) Guernsey Limited
Ireland
6th Floor, 2 Grand Canal Square, Dublin 2, D02 A342, Ireland
B&Q Ireland Limited
Screwfix Direct (Ireland) Limited
B. & Q. Warehouse, Liffey Valley Retail Park East, Ascail an Life, Dublin
22, Ireland
Paddington Investment Ireland Limited
189Kingfisher 2025/26 Annual Report and Accounts
Notes to the Company financial statements continued
12 Related undertakings of the Group continued
Related undertakings other than wholly-owned subsidiary undertakings
The undertakings denoted with an asterisk (*) are charitable entities/partnerships and do not have a share capital.
France
40, Avenue Hoche, Paris, 75008, France
Fondation Brico Dépôt pour l’Habitat*
Fondation Castorama*
6, Passage Tenaille, Paris, 75014, France
UNIO S.A.S. (France, 50%)
f
Poland
ul. Krakowiakow 78, Warszawa, 02-255, Poland
Fundacja Castorama*
Spain
C/ la Selva, 10, Inblau Edificio A 1°, 08820 El Prat de Llobregat,
Barcelona, Spain
Fundación Brico Depôt Iberia*
Turkey
Tasdelen Mahallesi Sirri Celik Bulvari Oto Koc Blok No:9 Cekmekoy,
Istanbul, Turkey
Koçtas Yapi Marketleri Ticaret A.Ş. (Turkey, 50%)
g
United Kingdom
B&Q House, Chestnut Avenue, Chandlers Ford, Eastleigh, Hampshire,
SO53 3LE, United Kingdom
B&Q Foundation*
c/o Womble Bond Dickinson (UK) LLP, 2 Semple Street, Edinburgh,
Scotland, EH3 8BL, United Kingdom
Kingfisher Scottish Limited Partnership*
h
Trade House Mead Avenue, Houndstone Business Park, Yeovil,
Somerset, England, BA22 8RT, United Kingdom
The Screwfix Foundation*
a. The shares are held directly by Kingfisher plc.
b. Kingfisher International Holdings Limited holds 200 Ordinary A shares, 100 Ordinary B shares, 5 Ordinary C shares, 5 Ordinary D shares and 10 Ordinary E
shares – each of £1 and each representing 100% of the nominal value of each class of share. These represent 100% of the total issued share capital.
c. Kingfisher Investissements S.A.S. holds 45,663,000 Ordinary shares of £0.05 each and 678,420,375 Ordinary shares of £1 each; Kingfisher plc holds 1,000 Special
shares of £0.05 each, and 1,000 Special A shares of £0.05 each – each representing 100% of the nominal value of each class of share. These represent 100% of
the total issued share capital.
d. Entity in process of liquidation as at 31 January 2026.
e. Kingfisher International Holdings Limited holds 4,083 Ordinary A shares of £1 each, 45,917 Ordinary C shares of £1 each and 4,591,700 Ordinary D shares of £0.0001
each – each representing 100% of the nominal value of each class of share. These represent 100% of the total issued share capital.
f. Class of shares held – EUR100.00 Ordinary.
g. Class of shares held – TRY100.00 Registered.
h. Kingfisher Properties Investments Limited and Kingfisher Pension Trustee Limited are the limited partners; B&Q Properties Investments Limited is the
general partner.
13 Post balance sheet events
During the period since the balance sheet date, the Group purchased 20 million of the Company’s own shares for cancellation at a cost
of £71m. This amount was deducted from equity in 2025/26 as a result of an irrevocable buyback agreement which was in place at
31 January 2026.
190 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Group five year financial summary
£ millions
2021/22 2022/23 2023/24 2024/25 2025/26
Income statement
Sales
13,183 13,059 12,980 12,784
12,945
Retail profit
1,148 923 749 696 734
Central costs
(60)
(49)
(60)
(62)
(80)
Share of interest and tax of equity accounted investments
(2)
(4)
(16)
(6)
(3)
Net finance costs before adjusting items
(137)
(112)
(105)
(100)
(91)
Adjusted pre
-tax profit 949 758 568 528 560
Adjusting items (before tax)
58
(147)
(93)
(221)
(182)
Profit before taxation
1,007
611
475 307
378
Income tax expense (including adjusting items)
(164)
(140)
(130)
(122)
(133)
Profit for the year
843
471
345
185
245
Balance sheet
Goodwill and other intangible assets
2,754
2,779
2,766 2,624
2,500
Property, plant and equipment
, and investment property 3,111 3,235 3,233 3,139 3,294
Right
-of-use assets 1,885
1,947
1,881 1,771
1,830
Equity accounted investments
17 30 19 29 –
Assets and liabilities (excluding net debt) held for sale
6
3
3 99
4
Other net current assets
1
367 931 844 800 519
Post
-employment benefits 410
137
99 101
83
Other net non
-current liabilities
1
(200)
(125)
(125)
(204)
(194)
Capital employed
8,350
8,937
8,720
8,359
8,036
Equity shareholders’ funds
6,778 6,663 6,604 6,344
6,158
Net debt
1,572
2,274
2,116 2,015
1,878
Capital employed
8,350
8,937
8,720 8,359
8,036
Other financial data
Like
-for-like sales growth 9.9% (2.1)%
(3.1)%
(1.7)
%
1.1%
Adjusted effective tax rate
22% 22% 27% 28%
26%
Basic earnings per share (pence)
40.3
23.8
18.2 10.1
14.0
Adjusted basic earnings per share (pence)
35.2 29.7 21.9 20.7
23.8
Ordinary dividend per share (pence)
12.40
12.40
12.40 12.40
12.40
Gross capital expenditure
2
397 449 363 317
388
Number of stores
3
1,474
1,572
1,638 1,681
1,691
1. Other net current assets and other net non-current liabilities reported above exclude any components of net debt.
2. Excluding business acquisitions.
3. Excluding equity accounted investments.
Notes to the Company financial statements continued
12 Related undertakings of the Group continued
Related undertakings other than wholly-owned subsidiary undertakings
The undertakings denoted with an asterisk (*) are charitable entities/partnerships and do not have a share capital.
France
40, Avenue Hoche, Paris, 75008, France
Fondation Brico Dépôt pour l’Habitat*
Fondation Castorama*
6, Passage Tenaille, Paris, 75014, France
UNIO S.A.S. (France, 50%)
f
Poland
ul. Krakowiakow 78, Warszawa, 02-255, Poland
Fundacja Castorama*
Spain
C/ la Selva, 10, Inblau Edificio A 1°, 08820 El Prat de Llobregat,
Barcelona, Spain
Fundación Brico Depôt Iberia*
Turkey
Tasdelen Mahallesi Sirri Celik Bulvari Oto Koc Blok No:9 Cekmekoy,
Istanbul, Turkey
Koçtas Yapi Marketleri Ticaret A.Ş. (Turkey, 50%)
g
United Kingdom
B&Q House, Chestnut Avenue, Chandlers Ford, Eastleigh, Hampshire,
SO53 3LE, United Kingdom
B&Q Foundation*
c/o Womble Bond Dickinson (UK) LLP, 2 Semple Street, Edinburgh,
Scotland, EH3 8BL, United Kingdom
Kingfisher Scottish Limited Partnership*
h
Trade House Mead Avenue, Houndstone Business Park, Yeovil,
Somerset, England, BA22 8RT, United Kingdom
The Screwfix Foundation*
a. The shares are held directly by Kingfisher plc.
b. Kingfisher International Holdings Limited holds 200 Ordinary A shares, 100 Ordinary B shares, 5 Ordinary C shares, 5 Ordinary D shares and 10 Ordinary E
shares – each of £1 and each representing 100% of the nominal value of each class of share. These represent 100% of the total issued share capital.
c. Kingfisher Investissements S.A.S. holds 45,663,000 Ordinary shares of £0.05 each and 678,420,375 Ordinary shares of £1 each; Kingfisher plc holds 1,000 Special
shares of £0.05 each, and 1,000 Special A shares of £0.05 each – each representing 100% of the nominal value of each class of share. These represent 100% of
the total issued share capital.
d. Entity in process of liquidation as at 31 January 2026.
e. Kingfisher International Holdings Limited holds 4,083 Ordinary A shares of £1 each, 45,917 Ordinary C shares of £1 each and 4,591,700 Ordinary D shares of £0.0001
each – each representing 100% of the nominal value of each class of share. These represent 100% of the total issued share capital.
f. Class of shares held – EUR100.00 Ordinary.
g. Class of shares held – TRY100.00 Registered.
h. Kingfisher Properties Investments Limited and Kingfisher Pension Trustee Limited are the limited partners; B&Q Properties Investments Limited is the
general partner.
13 Post balance sheet events
During the period since the balance sheet date, the Group purchased 20 million of the Company’s own shares for cancellation at a cost
of £71m. This amount was deducted from equity in 2025/26 as a result of an irrevocable buyback agreement which was in place at
31 January 2026.
191Kingfisher 2025/26 Annual Report and Accounts
Shareholder information
Financial calendar
Q1 26/27 trading update 26 May 2026
Annual General Meeting 26 June 2026
Half-year results
1
22 September 2026
Q3 26/27 trading update
1
24 November 2026
1. Dates are provisional and may be subject to change.
Annual General Meeting (AGM)
We consider the AGM to be an important event in our calendar
and a significant opportunity to engage with our shareholders.
The 2026 AGM will be held at No. 11, Cavendish Square,
London,W1G 0AN on 26 June 2026 at 10am.
Details of how to participate at the AGM will be set out in the
Noticeof AGM and on our website.
General Counsel & Company Secretary
Sapna Dutta
Registered office
Kingfisher plc
1 Paddington Square,
London, England, W2 1GG
Telephone: +44 (0) 20 7372 8008
Website: www.kingfisher.com
Registered in England and Wales
Registered Number 01664812
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS99 6ZZ
Telephone: +44 (0) 370 702 0129
Shareholders can also visit our online Investor Centre,
www.investorcentre.co.uk.
Dividends
The company pays all cash dividends through direct payment
toshareholder bank accounts. Shareholders who have not yet
notified our Registrar of their preferred bank account details
should do so without delay. This does not affect those
shareholders who have subscribed for the Dividend
Reinvestment Plan.
The interim dividend for the financial year ended 31 January 2026
of 3.80p per ordinary share was paid on 14 November 2025.
The table below provides the payment information for the final
dividend of 8.60p per ordinary share, subject to shareholder
approval at the 2026 AGM.
Ex-dividend date 28 May 2026
Record date 29 May 2026
Final date for return of DRIP mandate forms/
currency elections
12 June 2026
Euro exchange rate notification 15 June 2026
Payment date and DRIP purchase 3 July 2026
American Depositary Receipts (ADR)
The company has a Sponsored Level 1 ADR programme in theUS,
which trades on the OTCQX Platform. Each ADR represents two
Kingfisher plc ordinary shares. Thecompany’s ADR programme
isadministered by Citibank, N.A.
ADR investor contact
Registered holders:
If calling from within the USA: +1 877 248 4237 (+1 877 CITI ADR).
If calling from outside the USA: +1 781 575 4555
Email: citibank@shareholders-online.com
ADR investors who hold ADRs via a broker should contact
theirbroker for any questions.
ADR broker contact
Telephone: +1 212 723 4483/+44 (0) 20 7500 2030
Email: michael.oleary@citi.com or michael.woods@citi.com
Share dealing facilities
Shareholders wishing to sell or purchase shares in the company
may do so through a bank or a stockbroker. Alternatively, please
go to www.computershare.com/dealing/uk for a range of dealing
services made available by Computershare.
ShareGift
If you would like to consider donating your shareholding to
thecharity ShareGift (Registered charity 1052686), further
information may be obtained by calling 020 7930 3737 or
fromwww.ShareGift.org.
Shareholder security
Details of any share dealing facilities that the company endorses
will be included in company mailings only. If you receive any
unsolicited investment advice, whether over the telephone,
through the post or by email, you should:
— Make sure you get the name of the person and organisation;
— Check that they are properly authorised by the FCA before
getting involved by visiting www.fca.org.uk/consumers/
fca-firm-checker; and
— Report the matter to the FCA either by calling 0800 111 6768 or
by completing an online form at www.fca.org.uk/consumers/
report-scam.
More detailed information on this or similar activity can be found
on the FCA website www.fca.org.uk/scamsmart.
192 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Share price information
The company’s ordinary shares are listed on the London Stock
Exchange. Share price history and the latest share price are
available on the company’s website.
Electronic communications
Shareholders who have not yet elected to receive shareholder
documentation in electronic form can sign up by visiting
www.investorcentre.co.uk and registering their details.
Forward-looking statements
All statements in this Annual Report and Accounts, other than
historical facts, may be forward-looking statements (including
within the meaning of the safe harbour provisions of the United
States Private Securities Litigation Reform Act of 1995). Such
statements are therefore subject to inherent risks, assumptions
and uncertainties that could cause actual results to differ
materially from those expressed or implied, because they
relate to future events.
Forward-looking statements can be identified by the use of
relevant terminology including the words: ‘believes’, ‘estimates’,
‘anticipates’, ‘expects’, ‘intends’, ‘plans’, ‘goal’, ‘target’, ‘aim’, ‘may’,
‘will’, ‘would’, ‘could’, ‘should’, ‘project’, ‘continue’ or ‘forecast’,
in each case, their negative or other variations or comparable
terminology and include all matters that are not historical facts.
These forward-looking statements are based on currently
available information and our current assumptions,
expectations and projections about future events.
These forward-looking statements appear in a number of
places throughout this Annual Report and Accounts and include
statements which look forward in time or statements regarding
our intentions, beliefs or current expectations and those of our
officers, directors and employees concerning, among other
things, our results of operations, financial condition, changes
in tax rates, liquidity, prospects, growth strategies and the
businesses we operate.
Other factors that could cause actual results to differ materially
from those estimated by the forward-looking statements include,
but are not limited to, global economic business conditions, global
and regional trade conditions (including a downturn in the retail or
financial services industries), the state of the housing and home
improvement markets, share repurchases and dividends, capital
expenditure and capital allocation, liquidity, prospects, growth
andstrategies, litigation or other proceedings to which we are
subject, monetary and interest rate policies, foreign currency
exchange rates, equity and property prices, the impact of
competition, inflation and deflation, changes to regulations, taxes
and legislation, changes to consumer saving and spending habits,
acts of war or terrorism worldwide, work stoppages, slowdowns
or strikes, public health crises, outbreaks of contagious disease
or environmental disaster, political volatility and our success
inmanaging these factors.
Consequently, our actual future financial condition,
performanceand results could differ materially from the
plans,goals and expectations set out in our forward-looking
statements. Reliance should not be placed on any forward-
looking statement. Nothing in this Annual Report and Accounts
oron the Kingfisher website should be construed as a profit
forecast or an invitation to deal in the securities of Kingfisher.
Forfurther information regarding risks to Kingfisher’s business,
consult the Risks section on pages 43 to 48.
The forward-looking statements contained herein speak onlyas
of the date of this Annual Report and Accounts and thecompany
undertakes no obligation to publicly update anyforward-looking
statement, whether as a result of newinformation, future events
or otherwise, other than in accordance with its legal or regulatory
obligations (including under the UK Listing Rules and the
Disclosure Guidance and Transparency Rules of the Financial
Conduct Authority).
You are not to construe the content of this Annual Report and
Accounts as investment, legal or tax advice and you should make
your own evaluation of the company and the market. Ifyou are
in any doubt about the contents of this Annual Report and
Accounts or the action you should take, you should consult a
person authorised under the Financial Services and Markets
Act 2000 (as amended) (or if you are a person outside the UK,
otherwise duly qualified in your jurisdiction). Nothing in this Annual
Report and Accounts should be construed as either anoffer or
invitation to sell or any offering of securities or any invitation or
inducement to any person to underwrite, subscribe for or
otherwise acquire securities in any company within the Group or
an invitation or inducement to engage in investment activity
under section 21 of the Financial Services and Markets Act 2000
(as amended) (or, otherwise under any other law, regulation or
exchange rules in any other applicable jurisdiction).
193Kingfisher 2025/26 Annual Report and Accounts
Glossary
Alternative Performance Measures (APMs)
In the reporting of financial information, the Directors have adopted various Alternative Performance Measures (APMs), also known as
non-GAAP measures, of historical or future financial performance, position or cash flows other than those defined or specified under
International Financial Reporting Standards (IFRS). These measures are not defined by IFRS and therefore may not be directly
comparable with other companies’ APMs, including those used by other retailers. APMs should be considered in addition to, and are not
intended to be a substitute for, or superior to, IFRS measurements.
APM
Closest
equivalent
IFRS measure
Reconciling items
toIFRS measure Definition and purpose
Adjusted basic
earnings per
share (EPS)
Basic earnings
per share
A reconciliation of
adjusted basic earnings
per share is included
in note 11 of the
consolidated financial
statements
Adjusted basic earnings per share represents profit after tax attributable to
the owners of the parent, before the impact of adjusting items (see definition
below), divided by the weighted average number of shares in issue during the
period. The exclusion of adjusting items helps provide an indication of the
Group’s ongoing business performance.
Adjusted EBITDA Profit before
taxation
A reconciliation of
Adjusted EBITDA is set
out in the Financial
Review
Adjusted EBITDA (earnings before adjusting items, interest, tax, depreciation
and amortisation) is calculated as retail profit less central costs and before
depreciation and amortisation. This measure is widely used in calculating
the ratio of net debt to Adjusted EBITDA, and is used to reflect the
Group’sleverage.
Adjusted
effective tax rate
Effective tax
rate
A reconciliation to the
statutory effective tax
rate is set out in the
Financial Review
The adjusted effective tax rate is calculated as continuing income tax
expense excluding tax adjustments in respect of prior years (including the
impact of changes in tax rates on deferred tax), significant one-off tax
settlements and provision charges/releases and the tax effects of adjusting
items, divided by continuing profit before taxation excluding adjusting items.
Prior year tax items represent income statement tax relating to underlying
items originally arising in prior years, including the impact of changes in tax
rates on deferred tax. The exclusion of items relating to prior years, and
those not in the ordinary course of business, helps provide an indication of
the Group’s ongoing rate of tax.
Adjusted pre-tax
profit (PBT)
Profit before
taxation
A reconciliation of
adjusted PBT is set out
in the Financial Review
Adjusted pre-tax profit is used to report the performance of the business
at a Group level. This is stated before adjusting items. The exclusion of
adjusting items helps provide an indication of the Group’s ongoing
businessperformance.
Adjusted
post-tax profit
Profit after tax A reconciliation of
adjusted post-tax profit is
set out in the Financial
Review and note 11 of the
consolidated financial
statements
Adjusted post-tax profit is used to report the after-tax performance of the
business at a Group level. This is stated before adjusting items. The exclusion
of adjusting items helps provide an indication of the Group’s ongoing
after-tax business performance.
Adjusting items No direct
equivalent
Not applicable Adjusting items, which are presented separately within their relevant income
statement category, include items which by virtue of their size and/or nature,
do not reflect the Group’s ongoing trading performance. Adjusting items may
include, but are not limited to: non-trading items included in operating profit
such as profits and losses on the disposal, closure, exit or impairment of
subsidiaries, joint ventures, associates and investments which do not form
part of the Group’s ongoing trading activities; the costs of significant
restructuring and incremental acquisition integration costs; profits and losses
on the disposal/exit of properties, impairments of goodwill and significant
impairments (or impairment reversals) of other non-current assets, which the
Group identifies as adjusting due to volatility which can arise year-on-year
based on future forecasts and assumptions; prior year tax items (including
the impact of changes in tax rates on deferred tax), significant one-off tax
settlements and provision charges/releases and the tax effects of other
adjusting items; financing fair value remeasurements i.e., changes in the fair
value of financing derivatives, excluding interest accruals, offset by fair value
adjustments to the carrying amount of borrowings and other hedged items
under fair value (or non-designated) hedge relationships. Financing
derivatives are those that relate to hedged items of a financing nature.
‘Big-ticket’
category sales
No direct
equivalent
Not applicable ‘Big-ticket’ category sales comprise the sales from our kitchen, bathroom &
storage products. It is used as a measure of performance of our relatively
higher-value products.
194 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
APM
Closest
equivalent
IFRS measure
Reconciling items
toIFRS measure Definition and purpose
Central costs No direct
equivalent
Not applicable Central costs principally comprise the costs of the Group’s head office
before adjusting items. This helps provide an indication of the Group’s
ongoing head office costs.
Constant
currency
No direct
equivalent
Not applicable Constant currency changes in total sales, LFL sales, gross profit, gross
margin %, retail profit, retail profit margin % and operating costs reflect the
year-on-year movements after translating the prior year comparatives at
the current year’s average exchange rates. These are presented to eliminate
the effects of exchange rate fluctuations on the reported results.
Core category
sales
No direct
equivalent
Not applicable Core sales include the sales from non-seasonal products across all our
categories, other than ‘big-ticket’ sales (i.e., kitchen, bathroom & storage). It is
used as a measure of our non-seasonal related performance, which is the
majority of Group sales.
Dividend cover No direct
equivalent
Not applicable Dividend cover represents the ratio of earnings to dividends. It is calculated
as adjusted basic earnings per share divided by the total (full year) dividend
per share. It is used as an indication of how sustainable dividend payments are.
E-commerce
sales penetration
%
No direct
equivalent
Refer to definition E-commerce sales penetration % represent total e-commerce sales as a
percentage of sales. For the purpose of this calculation only, sales are
adjusted to replace marketplace net sales with marketplace gross sales. It is
used to track the success of our e-commerce strategy.
First-party
e-commerce
sales or 1P
No direct
equivalent
Refer to definition First-party e-commerce sales are total first-party sales (excluding VAT)
derived from online transactions, including click & collect (C&C). This includes
sales transacted on any device, however not sales through a call centre.
Sales (and related commissions/fees) from products supplied by third-party
e-commerce marketplace vendors are excluded. It is used to measure the
performance of our first-party e-commerce business across the Group.
Total
e-commerce
sales
No direct
equivalent
Refer to definition Total e-commerce sales are first-party e-commerce sales plus marketplace
gross sales. References to digital or e-commerce sales growth relates to
growth in constant currency. It is used to measure the performance of all
e-commerce business (first-party and third-party) across the Group.
Free cash flow Net cash flows
from operating
activities
A reconciliation of free
cash flow is set out in the
Financial Review
Free cash flow represents the cash generated from operations (excluding
adjusting items) less the amount spent on interest, tax and capital
expenditure during the year (excluding asset disposals). This provides a
measure of how much cash the business generates that can be used for
expansion, capital returns and other purposes.
Gross margin % No direct
equivalent
Refer to definition Gross profit represents sales from the supply of home improvement
products and services (excluding VAT), less the associated cost of those
sales. Gross margin % represents gross profit as a percentage of sales. It is a
measure of operating performance.
LFL sales Sales Refer to definition LFL (like-for-like) sales growth represents the constant currency, year-on-
year sales growth for stores that have been open for more than one year,
aswell as other revenue streams which have more than one year of
comparative sales (e.g. marketplace net sales). It is a measure to reflect the
Group’s performance on a comparable basis. Non-LFL sales represent the
difference between total sales and LFL sales, principally comprising sales for
stores open for less than one year.
Marketplace
gross
merchandise
value (GMV)
No direct
equivalent
Refer to definition Marketplace GMV is the total transaction value (including VAT) from the sale
of products supplied by third-party e-commerce marketplace vendors. It is
used to measure the performance of our e-commerce marketplace, and is
the basis on which our commissions from third-party vendors are determined.
Marketplace
gross sales
No direct
equivalent
Refer to definition Marketplace gross sales is the transaction value (excluding VAT) from the
sale of products supplied by third-party e-commerce marketplace vendors.
Returned and cancelled orders are excluded. It is used to measure the
performance of our e-commerce marketplace.
Marketplace net
sales
No direct
equivalent
Refer to definition Marketplace net sales are commissions (excluding VAT) earned on
e-commerce marketplace transactions, together with other service fees.
This is included within sales. Commissions are determined based on GMV.
It is used to measure the performance of our e-commerce marketplace.
195Kingfisher 2025/26 Annual Report and Accounts
APM
Closest
equivalent
IFRS measure
Reconciling items
toIFRS measure Definition and purpose
Marketplace
participation %
No direct
equivalent
Refer to definition Marketplace participation % represents marketplace gross sales as a
percentage of total e-commerce sales. It is used to track the success of our
marketplace strategy and performance.
Net debt No direct
equivalent
A reconciliation of this
measure is provided
in note 33 of the
consolidated financial
statements
Net debt comprises lease liabilities, borrowings and financing derivatives
(excluding accrued interest), less cash and cash equivalents and short-term
deposits, including such balances classified as held for sale.
Net cash flow Net (decrease)
/increase in
cash and cash
equivalents
and bank
overdrafts
A reconciliation of net
cash flow is set out in
the Financial Review
and in note 33 of the
consolidated financial
statements
Net cash flow is a measure to reflect the total movement in the net debt
balance during the year excluding the movement in lease liabilities, exchange
differences and other non-cash movements.
Operating costs No direct
equivalent
Not applicable Operating costs represent gross profit less retail profit. This is the Group’s
operating cost measure used to report the performance of our retail
businesses.
Own exclusive
brands (OEB)
sales
No direct
equivalent
Refer to definition OEB refers to our portfolio of own exclusive brands across seven core
categories – surfaces & décor, tools & hardware, bathroom & storage,
kitchen, EPHC (electricals, plumbing, heating & cooling), building & joinery,
andoutdoor.
OEB sales are sales of own exclusive brand products. It is used to measure
the performance of OEB across the Group.
Retail profit Profit before
taxation
A reconciliation of Group
retail profit to profit
before taxation is set out
in the Financial Review
and note 5 of the
consolidated financial
statements. There is no
statutory equivalent to
retail profit at a retail
banner level
Retail profit is defined as continuing profit before tax before central costs,
the Group’s share of interest and tax of JVs and associates, adjusting items
and net finance costs. This is the Group’s operating profit measure used to
report the performance of our retail businesses.
Retail profit
margin %
No direct
equivalent
Refer to definition Retail profit is the Group’s operating profit measure used to report the
performance of our retail businesses and is separately defined above. Retail
profit margin % represents retail profit as a percentage of sales. It is a
measure of operating performance.
ROCE No direct
equivalent
Refer to definition ROCE (return on capital employed) is the post-tax retail profit less central
costs, excluding adjusting items, divided by capital employed excluding
historic goodwill, net debt and adjusting restructuring provisions. The
measure provides an indication of the ongoing returns from the capital
invested in the business. Capital employed is calculated as a two-point
average. The calculation excludes disposed businesses.
Seasonal
category sales
No direct
equivalent
Refer to definition Seasonal category sales include the sales from certain products within our
outdoor, electricals, plumbing, heating & cooling (EPHC) and surfaces &
décor categories. It is used as a measure of the performance of our sales
that are subject to the season we are in, or prevailing weather conditions.
Trade sales No direct
equivalent
Refer to definition All sales made against a trade loyalty card or account (Including B2B) or by
trade customers per Screwfix’ customer database. Sales are inclusive of
adjustments for refunds, discounts, vouchers, and cashback.
Trade sales
penetration
No direct
equivalent
Refer to definition It represents total trade sales as a percentage of total sales. It is used to
track the success of our trade strategy.
Glossary continued
196 Kingfisher 2025/26 Annual Report and Accounts
Other
Information
Governance
Financial
Statements
Strategic
Report
Other Definitions
B2B customer is a trade customer engaged in constructing, improving, or maintaining properties specifically for commercial purposes
related to the properties themselves – such as sale, rental, or ongoing maintenance to support business continuity (e.g. facilities
management). These activities typically occur at a regional or national level.
B2B manager is a role dedicated to supporting B2B customers to engage with our trade proposition.
France consists of Castorama France and Brico Dépôt France.
GNFR (Goods Not For Resale) covers the procurement of all goods and services a retailer consumes (including ocean freight, energy,
media buying, cleaning, and security).
Iberia consists of Brico Dépôt Spain and Brico Dépôt Portugal.
Other International consists of Iberia, Romania, ‘Screwfix France & Other’, and Turkey (Koçtaş JV). ‘Screwfix France & Other’ consists
of the consolidated results of Screwfix France, NeedHelp, and results from franchise and wholesale agreements. On 18 July 2024, we
completed a divestment of our c.80% equity interest in NeedHelp. On 2 May 2025 the Group completed the divestment of its 100%
equity interest in Brico Dépôt Romania for proceeds of £53m. The Group recognised a £31m loss on disposal (included in adjusting
items). Please see note 6 and note 34 of the consolidated financial statements for more details.
SKU (Stock Keeping Unit) is defined as the number of individual variants of products sold or remaining in stock. It is a distinct type of
item for sale, such as a product and all attributes associated with the item type that distinguish it from others. These attributes could
include, but are not limited to, manufacturer, description, material, size, colour, packaging and warranty terms.
Trade colleague refers to in-store customer advisor dedicated to supporting all professional customers in-store, often signposted as
such (e.g. distinctive uniform, stationed in trade area).
Trade customer refers to someone who regularly purchases our products or services to improve physical spaces used or owned by
others – unlike Home Improvers, who buy for the purpose of improving spaces they personally use.
Trade sales partner is a customer-facing role dedicated to building strong, 1:1 relationships with a small number of high value/high
potential value customers where there is a mutually beneficial opportunity to grow their engagement with our propositions. Typically at
a local or regional level.
UK & Ireland consists of B&Q in the United Kingdom & Republic of Ireland and Screwfix in the United Kingdom & Republic of Ireland.
197Kingfisher 2025/26 Annual Report and Accounts
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Kingfisher plc
1 Paddington Square
London, W2 1GG
+44 (0)20 7372 8008
www.kingfisher.com