UK trade depresses Kingfisher

Children's publisher Kingfisher has said that it faced a challenging year during 2000, with difficulties both in overseas markets and in UK trading conditions. Weakness in special sales channels in the UK such as book clubs adversely affected the company's performance, while overseas sales were hampered by the strength of sterling.

In spite of the strength of sterling, Kingfisher increased overseas sales. But they "could not compensate for a very disappointing year in the UK," it said. Turnover at Kingfisher fell by 9% to £12.8m during the year to end-December 2000, and operating profit was down to £574,584 from a record high of £1.1m in 1999. Mark Zagar, Kingfisher financial director, declined to comment on the results.

In a memo to staff, Kingfisher said that books designed for the international markets were key to the stability of the business, because they helped to spread risk. "The rare ability to create titles that sell successfully door-to-door in Mexico, through Australian book clubs or in French bookshops is fundamentally important to our success," it said.

Kingfisher last year became part of the enlarged media group Vivendi Universal Publishing. VUP was formed in June 2000 through the merger of Vivendi (which owned Kingfisher's parent company Havas), Seagram and Canal+.

The UK publisher now has the potential to exploit film and television rights owned by the group, such as ET and Woody Woodpecker. "It will definitely be beneficial to be part of a larger group, there are opportunities to use content," a spokesman told The Bookseller.

VUP recently reaffirmed its commitment to book publishing with the £1.2bn acquisition of US publisher Houghton Mifflin.