Questor share tip: Kingfisher will fly following a housing recovery Total French sales fell 6.2pc but rose 0.3pc when currency effects are stripped out. The UK and Ireland saw total sales fall 0.5pc, with other international sales up 2pc. The international business, especially Russia and China, offers good scope for growth, but international profits fell 19.8pc, primarily because of weakness in Poland. All of this led to an 11pc slide in annual pre-tax profits to £691m. This is the first time in four years that the group has seen profits fall but the figure was in line with the City's expectations following updates last year. However, the retailer managed to end the year in a positive net cash position of £38m, the first time in at least a decade it has finished the year with this figure in the black. Net debt stood at £88m at the same point last year. Management plans to keep focusing on cash management at the group, an important strategy in subdued times. Kingfisher is increasing its total dividend for the year by 7pc to 9.46p. The final payment of 6.37p will be made on June 17. This means that the 2012 dividend was covered by earnings 2.4 times. Cover is down from 2.8 times last year, with the board setting a medium term dividend cover objective of 2.5 times. This is still pretty comfortable and should allow for continued investment. The prospective yield in the current year is 3.5pc, rising to 3.8pc. Questor last recommended a purchase of the shares in September 2011 when they were at 241.6p. They are up about 13.4pc since that time. However, they have been essentially range bound for most of the past year. What Kingfisher needs is for the housing market to get moving again, as moving home is often associated with numerous trips to the local DIY store. There is light at the end of the tunnel in the UK, with Help to Buy measures introduced in last week's Budget aimed at getting the market moving again. The proposals mean new or existing homeowners who raise a deposit of 5pc, could borrow a further 20pc from the Government interest-free. Until there is a recovery in the housing market, Kingfisher is focusing on self help measures. These include a move to buying more goods centrally to get better discounts and sourcing its stock from cheaper manufacturing centres such as China. The shares area trading on a January 2014 earning multiple of 12 times, falling to 10.7, which seems pretty full. However, the shares will be supported by hopes of a share buy-back over the medium term as the company continues focus on self help. Hold.