The Homebase and Argos parent company said benchmark pre-tax profit fell 28 per cent in the year to 27 February to £94.7m. Group sales were down one per cent - flat at Argos, while three per cent at the DIY/garden centre specialist Homebase, which sold to Wesfarmers in February.
Home Retail Group chief executive John Walden said: "The past year has been a landmark period for the group, during which we have completed the sale of Homebase and recommended to shareholders the offer from Sainsbury for the acquisition of the remaining group, principally Argos. I am pleased that, with its offer for Home Retail Group, Sainsbury's has recognised the good progress we have made in transforming Argos into a digital retail leader.
"During the year we continued to progress the Argos transformation plan, including the introduction of Fast Track, which offer market-leading propositions for both same-day home delivery and store collection. We have been encouraged by the customer response to Fast Track with our on-time delivery rates and customer satisfaction having continued to improve to leading levels.
"Argos also now has a proven digital store model, including small formats and concessions, which require lower capital outlay and provide customers with fast access to an expanded product range regardless of store stock capacity.
"Finally, the group ended the year with a cash balance of £623m, which is significantly stronger than previously anticipated. With leading digital capabilities, new Fast Track propositions, proven and flexible digital store formats and strong financial resources, we are well positioned for an exciting future."