THE owner of Hampshire-based B&Q has seen pre-tax profits rise by more than 70 per cent after the pandemic drove a DIY boom.

Kingfisher said it was facing mounting pressure on its supply chain, with costs and visibility affected, but said it was managing the problems.

It posted a 70.6 per cent rise in statutory pre-tax profits to £677million in the six months to July 31.

Sales for Chandlers Ford-headquartered B&Q rose by 28.8 per cent.

Underlying profits rose 61.6 per cent to £669 million.

Kingfisher – which also owns the Screwfix chain – announced a £300m share buyback and hiked its interim dividend on the back of the half-year figures.

Although the group was boosted by the DIY boom, sales have slipped in recent months compared with the strong performance at the start of the pandemic.

B&Q sales soared 81.9 per cent in the first quarter for 2021 but fell 1.2 per cent in the following three months and are 4.2 per cent lower so far in the third quarter.

On a two-year basis, third quarter sales to date at B&Q are running 18.7 per cent higher and across the group they are up 16.1 per cent.

Group-wide annual sales are now expected to drop by between three per cent and seven per cent, rather than a previously predicted 15 per cent.

The group said it was now set for underlying pre-tax profits of between around £910m and £950m, up from a market consensus of £913m.

But it faces rising costs for freight and raw materials and revealed it was still “below target product availability levels” in some categories – in particular timber and cement.

Kingfisher said it had been able to manage through the issues and UK lorry driver shortage, with stock levels gradually improving over the first half thanks to an early buying strategy, and expected to rebuild product inventory ahead of the peak trading periods.

Kingfisher said: “Like many other businesses and industries, we are facing significant operational pressures arising due to the pandemic, including product supply and availability, shipping and logistics, and cost price inflation, which have been managed effectively to date.”

It gave assurances that Christmas tree stocks were not set to be affected by the issues, with the group “well set up” for the festive season.

Thierry Garnier, chief executive of Kingfisher said: “Our industry is benefiting from new trends that we believe will be supportive over the long term.

“These include people spending more time working from home, the emergence of a new generation of DIY-ers, the need for greener homes, and a strong housing market.”