B&Q owner Kingfisher is predicting a brighter outlook for the home improvement market despite a drop in profits for the second successive year.

Kingfisher posted pre-tax profits of £396.6 million for the year to February 3, down 11 per cent on last year but ahead of analysts' forecasts of £389 million.

Chief executive Gerry Murphy said that better weather had boosted trading since the end of the year and that the long-term outlook was bright despite "challenging conditions".