Financial highlights

• Sales2 up 3.0% in total to £2,736.5m (2006 pro forma: £2,656.4m), with like-for-like sales up 1.4% at Argos and down 2.5% at Homebase
  
  
• Gross margin ahead by approximately 125 basis points at Argos and approximately 300 basis points at Homebase
  
  
• Continued emphasis on operating cost control across the group with approximately 3% underlying inflation and around 1% other cost growth
  
  
• Benchmark operating profit3 up 34% to £136.1m (2006 pro forma: £101.7m), with growth of 50% at Argos and 12% at Homebase; reported operating profit of £150.4m
  
  
• Benchmark profit before tax4 up 40% to £149.8m (2006 pro forma: £107.2m); reported profit before tax of £169.3m
  
  
• Basic benchmark earnings per share5 up 41% to 11.7p (2006 pro forma: 8.3p); reported basic earnings per share of 13.2p
  
  
• Cash generation of £162.7m, benefiting principally from further improvement in working capital management; closing net cash position of £222.9m versus year-end £60.2m
  
  
• Interim dividend increased by 18% to 4.7p (2006: 4.0p)

Top of page