Home improvements retail group Kingfisher has said that profits rose over the past year, despite challenges and revealed that the group is in “good shape”.

In the financial year, group profits rose 9.8%, prompting Kingfisher to say that its future looked “bright”.

Kingfisher's group chief executive, Sir Ian Cheshire, said: "We finish a challenging year in good shape, with our self-help programme meaning we have grown profit and economic return, improved our balance sheet strength whilst also investing in lower prices for our customers and improved convenience. The economic backdrop was generally soft across Europe for much of the year, particularly in France, our most significant market.

"Looking ahead we are well placed to benefit from a pick-up in consumer spending as Europe's economies return to growth. Our prospects remain bright, giving us confidence to invest in the business and actively manage our portfolio, including expanding into new markets, whilst also commencing a programme of returning surplus capital to our shareholders, alongside the healthy annual dividend."