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Shares in DIY retail chain Kingfisher rose by 6.43 per cent in mid-morning trading on improved profit and a confident outlook.

The group, which runs B&Q in the UK, said pre-tax profit rose 23 per cent to £214 million for the first half, despite a 2.6 per cent fall in like-for-like sales.

Kingfisher said "good progress" has been made on the company's turnaround plan and targets to drive down costs have been established.

Ian Cheshire, chief executive, said: "We continue to anticipate very tough times ahead, especially in the UK, but remain focused on providing the best choice and value to our customers whilst managing our costs and working capital tightly."

The total UK home improvement market declined by around two per cent over the first half of the year, according to GfK, as the UK economic environment worsened.

However, Kingfisher's UK businesses outperformed the market, delivering broadly flat sales, the group added.

Kingfisher said action taken to slash costs will help protect the group from slower sales in the second half.

The interim dividend is proposed at 1.925p per share, around half of last year's 3.85p, in line with the reduction made to the 2007/08 final dividend, Kingfisher said.