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Financial Summary
Sales up 3.1% to £2,737m,
reflecting total growth of 4.7% at Argos and a decline of 0.3% at Homebase.
Like-for-like sales were up 1.4% at Argos and down 2.5% at Homebase, while
the net new space contribution was 3.3% at Argos and 2.2% at Homebase.
Gross margin ahead at both businesses.
Argos’ gross margin was ahead by approximately 125 basis points and
Homebase’s by approximately 300 basis points, with the principal drivers
being ongoing supply chain initiatives and foreign exchange benefits.
Continued operating cost control.
Total growth of 4%, of which underlying inflation represented approximately
3%.
Benchmark operating profit up 34% to £136m,
comprising a £33m or 50% increase at Argos and a £5m or 12%
increase at Homebase; Financial Services declined £1m and costs of
Central Activities were £3m higher.
Benchmark PBT up 40% to £150m,
which additionally reflects the £8.5m improvement in net interest
income as a result of further strong cash generation.
An effective tax rate based on benchmark PBT of 32.0%.
Basic benchmark EPS up 41% to 11.7p.
Interim dividend up 18% to 4.7p per share.
Net cash of £223m at 1 September 2007.
Cash generation of £163m in the half reflected further improvements
in working capital management, together with the strong profit performance
and lower year-on-year capital expenditure.
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