Full Year Results - Part 1

Full Yera results = Part 2


Operating highlights

§ Announced transformation plan which will reinvent Argos as a digital retail leader and reposition it from a catalogue-led to a digitally-led business
§ Announced plans to invest in Homebase store refits and accelerated multi-channel capability to deliver an enhanced customer proposition
§ Argos' multi-channel sales penetration increased to 51% of total sales. Internet sales grew 10% to reach 42% of Argos' total sales. Argos' website and app visits increased by 24% with mobile shopping now representing 10% of total sales
§ Homebase's multi-channel sales penetration increased to 5% of total sales with Reserve and Collect sales growing by 27% and website visits increasing by 23%
§ In a year of positive like-for-like sales growth, Argos returned to market share growth whilst Homebase, despite a difficult trading environment, delivered its fourth consecutive year of market share gains
§ Ongoing growth and development of both exclusive and own-brand products, including the introduction of Habitat product into both Argos and Homebase

Financial highlights

§ Sales broadly flat at £5,475m
§ Cash gross margin down 1% to £2,002m
§ Robust management of costs with operating and distribution costs reduced by a further £21m to £1,908m, as underlying cost inflation was more than offset by further cost savings
§ Benchmark operating profit2 up £6m at Argos and down £12m at Homebase
§ Benchmark profit before tax3 down 10% to £91m
§ Basic benchmark earnings per share4 down 11% to 7.7p
§ Reported profit before tax of £130m; reported basic earnings per share of 11.7p
§ Strong cash generation in the year of £202m, driven principally by a strong working capital performance, with a closing net cash position of £396m
§ Full-year dividend of 3.0p (2012: 4.7p); final dividend of 2.0p recommended

Take your pick.

Panmure Gordon Sell 150.30 80.00 80.00 Reiterates

Investec Buy 150.30 173.00 173.00 Retains

Oriel Securities Reduce 150.30 - 140.00 Reiterates

Home Retail to reinvent Argos to stem profit fall

LONDON | Wed May 1, 2013 3:01pm BST
(Reuters) - Home Retail (HOME.L), Britain's biggest household goods retailer, will reinvent Argos stores to allow shoppers to pick up pre-paid goods in less than a minute, as it trials new initiatives to reverse half a decade of profit falls.

The group, which also owns the Homebase DIY chain, posted a 10 percent fall in 2012-13 profit, a fifth straight decline, and said it did not expect any improvement any time soon as consumers fret over job security and a squeeze on incomes.

Gone long looks like a recovery play fundy wise and chart looks very enticing......

Interim Management Statement

"Argos has delivered a good start to the year driven by continued success in consumer electronics and electricals, supported by growing internet and mobile commerce sales. Overall, its trading has been consistent with our expectations. Homebase produced a positive like-for-like sales performance, however seasonal sales were adversely impacted by the volatile weather and as a result its performance for the quarter was slightly behind our expectations.

Whilst we expect consumer spending to remain subdued, we are on track with delivering our investment plans to drive the long term development of both Argos and Homebase."

Second Quarter Trading Statement

Argos

Total sales at Argos grew by 2.4% to £889m. Net closed space reduced sales by 0.3% in the quarter with the store portfolio remaining at 737.

Like-for-like sales increased by 2.7% in the quarter. Growth was driven by strong sales in seasonal products which benefited from favourable weather conditions; this combined with continued growth in electricals, more than offset sales declines in furniture and homewares.

Sales via the internet continued to grow with internet penetration now representing 44% of total Argos sales, up from 42% for the same period last year. This growth was supported by strong sales in mobile commerce, which saw sales grow by 133% to 17% of total Argos sales, up from 7% for the same period last year, driven by the ongoing development of Argos' mobile and tablet apps.

The approximate 50 basis point gross margin decline was driven principally by the sales mix impact from the growth in electricals.

Homebase

Total sales at Homebase grew by 9.3% to £400m. Net closed space reduced sales by 1.7% in the quarter; three stores closed in the quarter reducing the store portfolio to 333.

Like-for-like sales increased by 11.0% in the quarter driven by strong sales of seasonal products, which represent c.40% of total sales in the quarter and which benefited from favourable weather conditions. Big ticket sales performance was also slightly ahead while sales in the remaining categories were slightly down.

The gross margin rate was level with the same period last year.

Other

A cash payment of £14.1m was made to the Home Retail Group Employee Share Trust during the period to fund the purchase of 10.0m shares. The shares contribute towards those already held by the Trust and which are potentially needed to satisfy obligations arising from employee share schemes, the majority of which relate to the save-as-you-earn plans offered to the Group's c.50,000 colleagues.

Other than those previously disclosed, no material events, transactions or impacts on the Group's financial position have taken place since the previously announced 2 March 2013 balance sheet date.

Half Year Results - Part 1

Operating highlights

§ Good first half, with both businesses delivering a positive like-for-like sales performance
§ Argos Transformation plan progress:
- Internet penetration increased to 43% of Argos' total sales, with mobile commerce growing 124% to account for 16% of total sales
- Launched both new and improved smartphone and tablet apps
- Reached eight million customer registrations
- Expanded 'hub & spoke' trial to around 50 stores
§ Homebase Renewal plan progress:
- Completed a further five store refits
- Launched a next or named day delivery proposition
- Grew multi-channel sales by 28%
- Achieved further market share gains

Financial highlights

§ Sales up 3% to £2,596m; like-for-like sales up 2.3% at Argos, and up 5.9% at Homebase
§ Cash gross margin up 1% to £962m
§ Operating and distribution costs held broadly flat at £936m
§ Benchmark operating profit1 up 40% to £26.4m
§ Benchmark profit before tax2 up 53% to £27.4m
§ Basic benchmark earnings per share3 up 79% to 2.5p
§ Reported profit before tax of £14.2m; reported basic earnings per share of 1.6p
§ Cash generation in the period of £16m with closing net cash of £412m
§ Interim dividend of 1.0p (2012: 1.0p)

Nice results... improving steadily over the last few years.

Next target is 230p for me and increase in the divi.

Trading Update 16th January.

Interim Management Statement

Appointment of new Chief Executive

Home Retail Group Plc PT Raised to GBX 250 at HSBC (HOME)
Posted by Bonnie Powley on Jan 17th, 2014

Home Retail Group Plc logoInvestment analysts at HSBC increased their price target on shares of Home Retail Group Plc (LON:HOME) from GBX 220 ($3.63) to GBX 250 ($4.12) in a note issued to investors on Friday, American Banking News reports. The firm currently has an “overweight” rating on the stock. HSBC’s target price suggests a potential upside of 22.49% from the company’s current price.
Home Retail Group Plc (LON:HOME) opened at 204.00 on Friday. Home Retail Group Plc has a 52 week low of GBX 117.10 and a 52 week high of GBX 203.30. The stock has a 50-day moving average of GBX 192.5 and a 200-day moving average of GBX 173.2. The company’s market cap is £1.632 billion.
A number of other firms have also recently commented on HOME. Analysts at Nomura raised their price target on shares of Home Retail Group Plc from GBX 215 ($3.54) to GBX 230 ($3.79) in a research note to investors on Friday. They now have a “buy” rating on the stock. Separately, analysts at Deutsche Bank raised their price target on shares of Home Retail Group Plc from GBX 225 ($3.71) to GBX 230 ($3.79) in a research note to investors on Friday. They now have a “buy” rating on the stock. Finally, analysts at Societe Generale raised their price target on shares of Home Retail Group Plc from GBX 158 ($2.60) to GBX 175 ($2.88) in a research note to investors on Friday. They now have a “sell” rating on the stock. Eleven research analysts have rated the stock with a sell rating, seven have issued a hold rating and five have assigned a buy rating to the company. The company has a consensus rating of “Hold” and a consensus price target of GBX 157.11 ($2.59).
Home Retail Group plc is a home and general merchandise retailer. The Company is organized into three business segments: Argos, Homebase and Financial Services together with Central Activities.

Nomura Buy 207.95 215.00 230.00 Reiterates

HSBC Overweight 207.95 220.00 250.00 Reiterates

Citigroup Neutral 207.95 195.00 205.00 Reiterates

Societe Generale Sell 207.95 158.00 175.00 Reiterates

Deutsche Bank Buy 207.95 225.00 230.00 Reiterates

BROKER UPGRADE......

Home Retail Group Plc Given New GBX 230 Price Target at Deutsche Bank (HOME)
Posted by Wayne Rhoads on Jan 20th, 2014

Home Retail Group Plc logoHome Retail Group Plc (LON:HOME) had its price objective hosited by Deutsche Bank from GBX 225 ($3.69) to GBX 230 ($3.78) in a report released on Friday, AnalystRatings.Net reports. Deutsche Bank currently has a buy rating on the stock.
Deutsche Bank has also taken action a number of other stocks recently. The firm initiated coverage on shares of Luxottica Group S.p.A.. They issued a buy rating on that stock. Also, Deutsche Bank upgraded shares of Statoil from a hold rating to a buy rating. Finally, Deutsche Bank raised its price target on shares of Chelsea Therapeutics International from $4.00 to $5.00. They have a hold rating on that stock.
Several other analysts have also recently commented on the stock. Analysts at Societe Generale raised their price target on shares of Home Retail Group Plc from GBX 158 ($2.59) to GBX 175 ($2.87) in a research note to investors on Friday. They now have a sell rating on the stock. Separately, analysts at Citigroup Inc. raised their price target on shares of Home Retail Group Plc from GBX 195 ($3.20) to GBX 205 ($3.37) in a research note to investors on Friday. They now have a neutral rating on the stock. Finally, analysts at N+1 Singer reiterated a hold rating on shares of Home Retail Group Plc in a research note to investors on Thursday. They now have a GBX 210 ($3.45) price target on the stock. Eleven equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and five have given a buy rating to the company’s stock. Home Retail Group Plc has a consensus rating of Hold and a consensus target price of GBX 158.25 ($2.60).


Shares of Home Retail Group Plc (LON:HOME) opened at 204.10 on Friday. Home Retail Group Plc has a one year low of GBX 117.10 and a one year high of GBX 210.00. The stock’s 50-day moving average is GBX 192.9 and its 200-day moving average is GBX 173.4. The company’s market cap is £1.633 billion.
Home Retail Group plc is a home and general merchandise retailer. The Company is organized into three business segments: Argos, Homebase and Financial Services together with Central Activities.

End of Year Trading Statement

Full Year Results - Part 1

Operating highlights
§ Good performances at both Argos and Homebase, with both businesses delivering positive like-for-like sales growth throughout the year
§ Argos Transformation plan progress:
- Increased internet penetration to 44% of Argos' total sales, including mobile commerce which grew 89% to account for 18% of total sales
- Launched improved smartphone and tablet apps
- Achieved 11.6 million customer registrations
- Trialled 'hub & spoke' distribution model in 49 stores
- Added aspirational new brands to Argos range
- Trialled six digital concept stores
§ Homebase Renewal plan progress:
- Completed a further 12 store refits
- Launched a next day delivery proposition
- Grew multi-channel sales by 53%
- Reduced the store estate in line with plans

Financial highlights
§ Sales up 3% at £5,663m
§ Cash gross margin up 2% to £2,034m
§ Operating and distribution costs up £13m to £1,921m as a result of ongoing investment in strategic initiatives across both Argos and Homebase
§ Benchmark operating profit1 up 21% to £113.0m
§ Benchmark profit before tax2 up 27% to £115.4m
§ Basic benchmark earnings per share3 up 35% to 10.4p
§ Reported profit before tax of £71.2m; reported basic earnings per share of 6.8p
§ Year-end cash balance of £331m
§ Full-year dividend up 10% at 3.3p (FY13: 3.0p); final dividend of 2.3p recommended



Full Year Results - Part 2

Final Results

· Financial summary
- Revenue of £568.3m up 4% on prior year (2013: £546.5m)
- Adjusted operating profit of £86.9m (2013: £107.6m):
- UK adjusted operating profit of £53.4m (2013: £78.3m)
- Established International businesses adjusted operating profit of £39.2m (2013: £34.1m)
- Adjusted free cash flow of £92.6m (2013: £80.2m)with net debt of £42.3m at 31 March 2014 (2013: £42.9m)
- Statutory profit before tax of £24.4m (2013: £66.5m) includes exceptional expenditure of £46.7m in respect of the resolution of UK matters.

· Strategy and customer focus reaffirmed in the UK business

- 2.1m customers reflecting strong retention performance at 82% (2013: 79%)
- Further investment made to enhance products and service leading to continued improvement in customer satisfaction
- Effective multi-channel marketing acquired 0.2m customers in the year
- Financial Conduct Authority investigation completed and financial penalty paid in February 2014
- All customers included in the re-contact exercise have now been contacted and associated costs have been fully provided

· International businesses now account for 62% of total customers

- Strong profit growth in the USA (36%) and Spain (29%)
- 19% customer growth in the USA
- Signed 12 new affinity partnership agreements in the USA, including one with American Electric Power (AEP), a utility serving 3.7m households
- Customer numbers more than doubled in Spain
- Signed a new affinity partnership agreement with Aqualia, a water utility in Spain that serves 2.6m households

Interim Management Statement

Full-Year Results

Home Retail Group, the UK's leading home and general merchandise retailer, today announces its results for the 52 weeks to 28 February 2015.

Operating highlights
§ A good overall performance, with a second year of like-for-like sales growth at both Argos and Homebase.
§ Argos Transformation Plan progress:
- Completed the national roll-out of the 'hub & spoke' distribution network enabling same day collection of c.20,000 products
- 60 digital stores now trading across three different store formats
- Internet penetration accounted for 46% of total sales including mobile commerce which grew by 38% to represent 25% of total sales
- Added a further c.11,000 products and 29 aspirational brands
§ Homebase Productivity Plan progress:
- Completed a comprehensive review of the Homebase business, and announced the Productivity Plan in October 2014
- Good progress achieved in reducing the size of the store estate by 27 stores to 296 stores in a cash generative manner
- Argos concessions now in 20 stores and Habitat concessions in 35 stores

Financial highlights
§ Sales increased by 1% to £5,710m; like-for-like sales up 0.6% at Argos, and up 2.3% at Homebase
§ Cash gross margin broadly flat at £2,037m
§ Operating and distribution costs decreased by £14m to £1,908m
§ Benchmark profit before tax increased by 14% to £132.1m
§ Basic benchmark earnings per share increased by 25% to 13.0p
§ Reported profit before tax increased by 32% to £93.8m; reported basic earnings per share of 9.4p
§ Year-end cash balance of £309m
§ Full-year dividend up 15% at 3.8p (FY14: 3.3p); final dividend of 2.8p recommended