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

Read These Next



The range of colours and flowering times makes for cheerful and economic displays, Miranda Kimberley reports.

What can growers do to reduce their use of plastics?

What can growers do to reduce their use of plastics?

Growers are waking up to the push towards cutting plastic use and are increasingly looking for substitutes and alternative methods.

What does the future hold for online garden retail sales?

What does the future hold for online garden retail sales?

The online garden centre market is often cited as a great growth opportunity for garden centres, but how well are bricks-and-mortar retailers tackling the internet generation?

Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +
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


Free to subscribers, the essential guide for professional plant buyers

Download your copy