Argos outperforms Homebase
Home Retail Group, which owns the Argos and Homebase chains, revealed that its group sales rose 8 per cent to£2.82 billion, compared with£2.62 billion last year, for the six months ending 30 September.

These are the Group's first interim results since demerging from former parent company GUS.

Benchmark operating profit , which assumes the Group's new capital structure had been in place since April increased by 2 per cent to£106.9 million, from£105.3 million last year. Pre-tax profit was£66.2 million.

Analysts at Panmure Gordon & Co said: 'Argos has moved profits ahead by 22 per cent on sales up 11.5 per cent, this has been offset by a 22 per cent decline in profits at Homebase. This is a solid performance that owes much to Argos's strong market shares, routes to market and customer franchise.'

The Group revealed strong growth in consumer electronics, furniture and kitchens. The company also reported it will be extending trials of the Argos Home Catalogue and the Homebase Big Book of Home Furnishings. Argos internet orders represent 15 per cent of its total sales and 31 stores were opened across the Group.

Home Retail Group chief executive officer Terry Duddy said: 'Home Retail Group has delivered a good performance in the first half against a backdrop of challenging conditions in some of our markets.

'While we remain cautious on the short-term outlook for UK consumer spending, we will continue to drive our business forward for long-term growth. We have set out a clear strategy to achieve this, including leveraging the strength and breadth of our product offering and our unique multichannel skills.'

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