Bunnings, Homebase’s Australian owners, made it clear in a strategy briefing last week, that the further roll-out of the Bunnings brand in the UK is entirely dependent on the success of its pilot stores.

The company has re-branded three Homebase outlets to date – two in St Albans, both reported to be trading well, and one in Hemel Hempstead,  – and plans seven more by the end of this year. The next one is due to open at Milton Keynes later this month, with Folkestone and Sittingbourne in the pipeline.

But the MD of parent company Wesfarmers, Richard Goyder, said Bunnings had experienced “significant disruption across all areas of the business” since it acquiring the 255-store Homebase chain in January 2016, with May trading failing to make up for losses caused by lousy weather in previous months. He expected losses to continue through the rest of the year and the first half of 2018.

April, May and June were important trading months, particularly thanks to gardening, and profitability would be below expectations.

He also said a staffing issue could limit the roll-out of new stores after this year’s pilots. Under-investment in people by Homebase’s previous owners meant changes had taken longer.

Goyder said the further roll-out would go ahead if the pilots showed return on capital, good customer numbers, good sales, good margins and correct operating costs. Successful pilots were an “absolute precursor to further investment”.

Accordiong to the Sydney Morning Herald, Bunnings UK and Ireland losses in the first half of the financial year were $48 million, with no guarantee from the MD of a profitable second half. Analysts understood that the repositioning of the kitchen and bathroom offers had dragged back sales and profits.