Home Retail Group, the UK's leading home and general merchandise retailer, today announces its results for the 26 weeks to 1 September 2012 and also outlines its transformation plan for Argos following the completion of a comprehensive business review.
Operating highlights
- Ongoing investment initiatives in both businesses to maintain leadership in multi-channel retailing:
- Argos multi-channel sales penetration increased to 51% of total sales. Online Check & Reserve at 30% of total sales, remains the fastest growing channel
- Argos is the second most visited internet retailer in the UK with over 440 million site visits in the last 12 months
- Argos mobile shopping represented 7% of total sales, contributing in excess of £100m of sales in the period
- Homebase multi-channel sales penetration increased to 5% of total sales with Reserve and Collect sales growing by 31%
- Ongoing growth and development in both exclusive and own-brand products, including the introduction of Habitat product
Financial highlights
- Sales down 1% to £2,531m
- Cash gross margin down 2% to £952m
- Robust management of costs with operating and distribution costs reduced by £11m to £933m
- Benchmark operating profit down 29% to £19m
- Benchmark profit before tax down 37% to £18m
- Basic benchmark earnings per share down 44% to 1.4p
- Reported profit before tax of £51m; reported basic earnings per share of 4.6p
- Strong cash generation in the period of £122m with closing net cash position of £316m
- Interim dividend of 1.0p (2011: 4.7p)
