The DIY chain, which also saw sales dip 3.7% to £3.9bn, said 2005 had seen a sharp downturn in home-related spending, presenting the “toughest trading environment for many years”.
Kingfisher group chief executive Gerry Murphy said: “The UK home improvement market continues to weaken into 2006. With the important spring and summer season still to come, it is too early to forecast the full year, although a continuation of the recent stronger mortgage and housing trends could provide some support later in the year.”
B&Q’s profit was impacted by the lower sales, stock clearance, more aggressive price discounting and cost inflation.
The chain’s action programme to counter market conditions has included closing 17 less productive stores and converting 21 outlets to the company’s mini-Warehouse format. B&Q has also shed 400 administration staff and reduced stock levels by £90m.
Meanwhile, the company is planning to increase the number of its Chinese stores from the current 49 to 60 by the end of 2006.