Kingfisher, which is the parent company of popular nationwide DIY goods supplier, B&Q, announced yesterday that it has enjoyed increased profits in the six month period ending 1st August 2009. In fact, the retail group has published half-year pre-tax profits of just over £288m, which represents an annual increase of around 34% or £74m.

Clearly, any business that has enjoyed massive profits at the height of a recession is operating in a market that has been largely unaffected by the economic downturn. In this case, Kingfisher’s increased profits further evidence claims that home-owners and property developers have opted for home improvements as a means of surviving a depressed housing market.

Furthermore, according to one Kingfisher source, the increase in profits are a clear indication of “renewed consumer interest” in DIY, which is not only seen as a way to improve existing living conditions but also one that can help improve the potential value of a home. However, whilst Kingfisher’s profits have also been stimulated by French home improvement chain, Castorama, there are other reasons that could explain the success besides increased consumer DIY activity. Indeed, the closure of MFI, formerly one of B&Q’s chief rivals in the home improvement sector, has no doubt pushed trade in Kingfisher’s direction.

Moreover, Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers, told the BBC that Kingfisher’s “fine performance” was partly due to “seasonally good weather… and the revamping of its offerings”. Part of this revamping was introduced a year ago when B&Q implemented a scheme to cut empty shelf space by 25%, increase its product range substantially and to significantly cut operation costs – a far cry from B&Q’s board restructuring of 2005 that was brought about by decreased sales.

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