B&Q the 'jewel in the crown' for Kingfisher

Many investors thought the slump in the housing market would be bad news for Kingfisher. Instead the company behind B&Q reckons it has had a good recession, with DIY trendy again.

Chief executive Ian Cheshire said: "There was a consumer shift heading our way. People were looking to improve rather than move and B&Q has been the jewel in the crown."

In the half year to August, profit is up 35% to £288 million on sales that rose 7% to £5.5 billion.

"It's a bit cooler to do DIY than it was a few years ago," said Cheshire. The trend to grow-your-own vegetables has also helped B&Q.

The trade arm of the business has not fared so well. White Van Man has found life tough, which means sales at Screwfix are down 6%.

Kingfisher's Chinese business, which specialises in fitted kitchens for families moving from rural areas into big cities, remains in trouble.

Cheshire says losses in China are "stabilising" at £22 million.

Upon taking the top job in February 2008, Cheshire pledged to deliver a "step change" in shareholder value. Since then the shares have rallied from around 141p to 210p, up by 4½p, today.

Debts have been cut by 26% to £740 million, while the interim dividend is held at 1.925p a share.

The company is still planning for "challenging times" despite recent signs of hope for the economy.