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Kingfisher, Europe's largest home improvements retailer, has reported a 6.2 per cent rise in first-half profits.

The owner of the B&Q DIY chain said that it made an adjusted pre-tax profit of £189.6 million in the six months to August 4th, up from £178.5 million for the corresponding period of 2006.

However the company warned that it expected to face tough trading conditions in the second-half.

"In the UK, all our businesses delivered sales growth in a market which remains relatively weak," stressed Kingfisher group chief executive Gerry Murphy.

But he added: "We expect the second half to be tough as recent interest rate rises and current uncertainty in financial markets affect customer behaviour."

Kingfisher's overall sales were up 9.8 per cent to £4.8 billion over the first-half, with sales at the group's UK B&Q outlets up 4.8 per cent to £2.1 billion.

Nonetheless the retail group said that sales growth in decorative, building and kitchen products had been partially offset by weak outdoor product sales.

Meanwhile retail profit in the UK declined by £4.8 million to £77.8 million over the first six months of the year, with £15.8 million of additional costs for revamping large stores weighing on B&Q's performance.

Kingfisher stressed that B&Q's development plan was "progressing well", with the company on track to modernise over half its store space by the end of the year.

B&Q is also set to have updated around 60 per cent of its product ranges by the end of 2007, with overall improvements at the DIY chain being supported by a major new advertising campaign.

Meanwhile Kingfisher said that its international businesses, which now account for more than half of the group's sales, continued to deliver strong sales and profit growth over the first-half.