Kingfisher, Europe's biggest home-improvements retailer, says it will return cash to share holders after its annual profit rose by a quarter, sending its share price surging.
London-listed Kingfisher said in a results statement on Tuesday that it would return STG200 million ($A362.65 million) to investors in its current 2014/2015 financial year, which could take the form a share buyback and special dividend.
The group added that it had agreed to sell its entire 21.2-per cent stake in Germany peer Hornbach for STG195 million following a review of the investment.
Kingfisher said that its net profits jumped 25.9 per cent to STG710 million in the group's 2013/2014 financial year that ended on February 1. That compared with profit after tax of STG564 million the previous year.
The company, which runs the B&Q home improvements chain in Britain as well as Castorama and Brico Depot stores in France, added that revenues grew 5.2 per cent to STG11.13 billion.
In reaction, the group's share price soared by more than seven per cent in morning trade.
The stock later stood at 427.8 pence in early afternoon trade, up 5.24 per cent from Monday's closing level, topping London's FTSE 100 index of leading companies.
The FTSE was 1.16-per cent higher at 6,595.96 points.
