Kingfisher in search for new boss

Source: Stock Market Digital

Date :02/11/2007 08:38:05

B&Q owner Kingfisher has said chief executive Gerry Murphy is leaving the company in February after five years at the helm

The home improvement chain said there were strong internal candidates to replace Mr Murphy, but said it will also look outside the company. Ian Cheshire, who heads B&Q in the UK, is set to be among the favourites for the job.

Payoff

Mr Murphy, who is 51, said it was the right time to hand over to a new leader. He will be entitled to a year's salary of £1.6 million and other entitlements, although the payout depends on whether he begins a new job within the year.

Kingfisher chairman Peter Jackson praised Mr Murphy for building a strong management team and giving Kingfisher clear direction.

Mr Jackson added: "Our strategy of building strong positions in fast-growing markets and improving our established businesses is the right one."

However, it is thought that the board wanted clarity on the leadership position at a time when it is reviewing its plans for the next three to five years. Mr Murphy's last job was as chief executive of Carlton Communications.

Market leader

Kingfisher is Europe's leading home improvement retail group and the third largest in the world, with leading market positions in the UK, France, Poland, Italy, Turkey, China and Taiwan.

Sales for the year to last February were £8.7 billion, 50% of which was generated outside the UK. Adjusted pre-tax profit for the year was £396.6 million.

Kingfisher operates over 760 stores in 10 countries in Europe and Asia. Its main retail brands are B&Q, Castorama, Brico Depot and Screwfix Direct.

Mr Murphy's final year in the role has been marked by challenging conditions in its UK market.

November 2, 2007