Kingfisher appoints female CEO

Nestled in an index that may miss its 2015 target for increasing female representation in Britain's top boardrooms, FTSE 100 home improvement group Kingfisher announced that it is to be headed by Véronique Laury when Sir Ian Cheshire steps down next year.

Laury, an in-house appointment, will take the helm when group chief executive Cheshire retires from the role at the end of the financial year on 31 January, after 16 years in the business.

"This decision, reached during the regular succession discussions between the board and Sir Ian, recognises that the next phase of Kingfisher's evolution requires a significant leadership commitment and continuity," the company said.

The next five years are expected to be busy as it delivers "best in class" IT systems and omnichannel capabilities, the company said. As well as completing its common brands programme, Kingfisher plans to expand Screwfix and Brico Dépôt into new markets and integrate newly acquired retail chain Mr Bricolage with Kingfisher's businesses in France.

In March earlier this year, the government was warned by the Trades Union Congress that unless Britain's blue chips went on a boardroom hiring drive, the 25% female board representation target set by Lord Davies of Abersoch in 2011 will be missed.

The news was published with Kingfisher's first-half results on Wednesday, which showed that the group had failed to win over its main market in the period: France.

A sharp downturn in its second quarter didn't help French trading, but profits of £182 million were flat at constant currency. But UK trading fared much better with retail profits of £166 million, up nearly 18%. This was helped by nicer weather and encouraging signs for smaller tradesmen in the market. B&Q UK & Ireland, part of its UK business, delivered its best first-half sales growth in over a decade.

"Whilst our French business saw an improvement in August, we remain cautious about the economic backdrop and focused on trading effectively with continued self-help initiatives, whilst continuing with our initiatives to build a long-term, sustainable future for the business," the group said.

"We have a strong balance sheet and cash flow to enable the necessary investment in the future, as well as paying a healthy dividend to our shareholders. I am pleased that we are also recommencing our share buyback."

The market responded well to the news and it was the biggest mover in the blue-chip index, with its share price up 4% to 320p in morning trading.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.