Kingfisher to put donations to vote
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SHAREHOLDERS in Kingfisher, owner of B&Q and Woolworths, are to be given the chance to vote on political donations by the company, which last year gave the Conservative Party pounds 25,000.
The promise to consult shareholders was made at the annual meeting in London yesterday, at which Kingfisher also warned that sales since February had grown more slowly than in the same period last year. That increased City concern about the group's trading and the shares fell 21p to 522p.
Nigel Whittaker, Kingfisher's corporate affairs director, said shareholders had written to the company about its political donations and raised questions at the annual meeting.
He added that Kingfisher supported the other political parties, although it made direct contributions only to the Conservatives. It attended the fund-raising dinner given by the Labour Party on the eve of John Smith's death and took a stand at the Liberal Democrats' annual conference.
Shareholders will be asked for their vote on the donations at next year's annual meeting and the approval, if granted, will last for five years.
Few companies ask for approval of political donations, although many have to field questions about the issue. Among those that do are BET and Legal & General - which both put a resolution every three years. Rank Organisation asked for approval at its annual meeting earlier this year, while Marks & Spencer consulted shareholders in 1986.
On current trading, Sir Geoff Mulcahy, Kingfisher's chairman, said sales in the past four months had shown an improving trend and gross margins were better. But he added that Woolworth's sales had remained slow, showing only a small increase over the quarter. B&Q's sales were up 4.9 per cent, but Comet and Superdrug suffered falls of 2.1 per cent and 0.7 per cent respectively.
That gave extra ammunition to those who believe Kingfisher's strategy of keeping prices low, with the aim of increasing volumes, is not working.
Its shares have underperformed the market by about 25 per cent since the start of the year.
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