B&Q firm faces 'very tough times'

B&Q is focusing on customer services as part of its shake-up

B&Q-owner Kingfisher has warned of "very tough times ahead" despite unveiling better-than-expected profits.

Adjusted pre-tax profits rose to £214m in the six months to August, up 23% on the same period a year earlier.

However, sales at UK DIY chain B&Q fell, which Kingfisher blamed on the worsening economic climate.

Looking ahead, the firm said it would cut more costs to help it cope with tough trading conditions, particularly in the UK.

"We have delivered a solid set of results in a difficult period for consumers," said chief executive Ian Cheshire.

"We have grown sales and our profits have benefited from actions to improve margins and manage costs," he added.

"We continue to anticipate very tough times ahead, especially in the UK."

Like-for-like sales - which strip out the effect of new stores - at B&Q slipped 4.6% in the 26 weeks to the end of August.

But news from the group's international operations was more positive, with sales rising in Russia, Poland and France.

The company is currently involved in a shake-up aimed at stemming its decline, which includes a B&Q store revamp, a more modern product range and a heavier focus on customer service.