Kingfisher sells finance arm

KINGFISHER, the B&Q and Comet retailing group, is to sell its Time Retail Finance arm to GE Capital Bank for £149m. The proceeds will be used to reduce Kingfisher's borrowings, currently around £900m following the demerger of Woolworths last year.

Kingfisher set up Time Retail Finance in 1988 to provide credit for its customers and GE Capital will continue to provide such services to Comet and B&Q customers. In addition, the two chains will offer a wide range of financial products and services to their customers, Kingfisher said.

Based in Leeds, Time Retail has more than 1.1m active Timecard holders and made profits of £4.9m before tax in the year to 31 January 2001, from turnover of £77.4m.

Chief executive Sir Geoff Mulcahy said: 'The sale of Time Retail Finance will allow Kingfisher to reduce its borrowings while crystalising value for our shareholders. This is another step taken during a year of delivery that has left us with a strengthened balance sheet and focused on our core retailing strengths.'

Kingfisher is due to give an update on its trading performance when it releases fourth-quarter sales figures on February 14.