B&Q OWNER Kingfisher hailed an important year as it revealed a 14.7 per cent hike in annual profits thanks to an overhaul of its DIY chain and surging sales at Screwfix.

The group posted underlying pre-tax profits of £787m for the year to January 31, up from £686m a year earlier, after seeing B&Q like-for-like sales lift by 3.5 per cent.

But its trade-focused arm Screwfix was once again the star performer, with same-store sales leaping 13.8 per cent higher.

The group said it had finished its B&Q store closure programme, which has seen it shut 65 shops and slash 3,000 jobs in the UK and Ireland over the last two years.

Kingfisher chief executive Veronique Laury said: “It has been a very productive and important year, a year which has again delivered sales and profit growth.”

She said the group had learned a lot and was aware of the challenges as she ploughs on with an ambitious five-year turn-around plan.

Kingfisher is also braced for change in the UK and in France, where the group trades as Castorama and Brico Depot.

Veronique said: “The EU referendum has created uncertainty for the UK economic outlook and we remain cautious on the outlook for France, especially in light of the forthcoming presidential elections.”

Alongside full-year results, the group also said chairman Daniel Bernard would retire in June after eight years in the role.

He will be replaced by Andy Cosslett - a former chief executive of Fitness First and InterContinental Hotels Group - who becomes chairman-designate on April 1.

Kingfisher also revealed a £52m boost as the weak pound flattered its overseas profits. The group said its B&Q like-for-like sales benefited from extra trade from closed stores, which added 2.6 per cent of the 3.5 per cent sales rise.

Total B&Q sales fell 3.3 per cent after its store closure programme.

It opened 60 Screwfix outlets over the year, expanding its chain to 517 and has upped its long-term target to have 700 stores in the UK, from 600 previously.

The Screwfix sales surge helped UK & Ireland retail profits rise 9.9% to £358 million, which offset a 0.3% fall in profits in its French business.

Kingfisher admitted its French businesses under-performed the wider market, with like-for-like sales falling by 2.7%.

On a bottom-line basis, overall group pre-tax profits rose 48.2% to £759 million.

Shares fell nearly 3% after the results, despite being marginally better than expected, according to retail analyst Mark Photiades at Cantor Fitzgerald.

He said: “Encouragingly, progress is being made with the restructuring plan.”

But he highlighted risks that “a downturn in consumer spending in the UK and France will impact sales and profitability”.