Homebase owner Home Retail Group's profits exceeds expectations

Argos and Homebase owner Home Retail Group has said its financial results were better than expected despite reporting a fall in annual profits and predicts the coming year will remain "difficult".

Underlying profits fell to £292.9m for the year to 27 February, down 11% from last year's figure of £327.7m.

But the company said that results for both Argos and Homebase had "exceeded initial expectations".

In the year to 27 February 2010 sales were up two per cent to £6.023bn.

Operating highlights included a successful spring 2009 at Homebase and growth in market shares in "virtually all" of Argos' and Homebase's major product categories including outdoor living.

Benchmark operating profit was down 4% to £290m, with a decline of £37m or 12% at Argos and an increase of £26m or 177% at Homebase. Homebase turnover increased from £1.513bn to £1.571bn

Oliver Stocken, chairman of Home Retail Group, said: "The UK home and general merchandise market has experienced reduced levels of customer demand and industry-wide pressures on the cost of goods over the last year. On all measures, the group has produced a good result against this backdrop."

HRG chief executive Terry Duddy added: "The results for both Argos and Homebase exceeded initial expectations as we traded through the year. We have achieved further market share gains, demonstrated our commitment to remaining highly price competitive and controlled costs extremely tightly to support both operating profit and cash generation.

"Our approach over the last year has also prepared us for the year ahead, which is likely to remain difficult for UK retail. By continuing to invest and constantly develop our multi-channel leadership and differentiated formats, we will retain our competitive advantage and therefore remain well placed for the future."

 


Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Sign up now
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Read These Next

Garden centre and nursery experiences: the next big trend in 2018?

Garden centre and nursery experiences: the next big trend in 2018?

Reports say today's shoppers are as keen to take in "experiences" as they are to shop - and garden centres say they are well-placed to take in the trend.

Business Planning - Staff are your greatest asset

Business Planning - Staff are your greatest asset

An effective strategy to retain staff is the best way for any business to avoid a potential recruitment crisis, Neville Stein advises.

What benefits can buying an extra garden centre bring to retail owners?

What benefits can buying an extra garden centre bring to retail owners?

More garden centres are adding an extra location to their offer - Coolings in Kent being the most recent example of the trend. But why are they doing it - and what are the benefits?


Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +
Horticulture Jobs
More Horticulture Jobs

Horticulture Week Top 100 GARDEN CENTRES 2017

See our exclusive ranking of garden centre performance by annual turnover. 

Garden Centre Prices

Peter Seabrook

Inspiration and insight from travels around the horticultural world
 

Read more Peter Seabrook articles

Neville Stein

Business advice from Neville Stein, MD of business consultancy Ovation
 

Read latest articles