Sales slumped at B&Q over the past three months as the DIY chain reeled from the effects of miserable weather and a slide in consumer confidence.

Ian Cheshire, chief executive of parent group Kingfisher, today insisted the rain would not dampen his plans to overhaul the business but admitted times were hard.

A year ago Kingfisher was basking in sunshine and a housing market that was still rising, making DIY a popular activity.

In the 13 weeks to 3 May this year, UK like-for-like sales slumped 7.9%, though they held up better overseas, which accounts for half of the group's total business. The France arm dipped 1.5% while the rest were up 1.2% despite continuing problems in China.

Cheshire said: "Trading remained very tough and the poor weather was unhelpful."

He is introducing a private-equity style reward scheme for the company's top 50 managers, though his own incentives are unchanged.

Cheshire thinks the company was too decentralised under previous chief executive Gerry Murphy, with each arm of the company run as its own fiefdom. He has brought in a tighter structure with a mantra of collective responsibility for overall successes and failures.

The managers could reap millions, but the targets are fairly demanding.

Cheshire has been forced to slash the dividend and cut costs as he attempts to deliver a "step change" in shareholder value. He said the tough climate made it easier to introduce a new culture. "It's harder to change an organisation when things are going swimmingly."

Profits for the period rose 8.9% to £96 million, better than the City was expecting.

The shares have halved in the past year, but got a small fillip today, up 3/4p at 1391/2p.

The management team in China has been strengthened and the business should return to profitability next year, but the UK remains the key.

"Profit recovery in the UK will be the largest single driver of improving shareholder value," the company said.

China was a boom venue for B&Q until recently. Millions of people are moving from rural areas into the cities and buying flats that require decorating.

A recent move by the government to take the heat out of the property market has slowed things somewhat, while new regulations haven't helped.

"China remains an important market opportunity and we have built a leading position but without delivering the consistent returns we need," said Cheshire.

Not every analyst is convinced by Cheshire's plans. Nick Bubb at Pali International said the profits were much better than expected and margins were holding up well. "The outlook statement is not too bad, with some selfhelp going on. But the UK downturn will get them in the end," he said, adding: "The shares are still a sell."

Cheshire is also a non-executive at beleaguered bank Bradford & Bingley. He said his commitments there were "manageable".