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

Espirito Santo Execution Noble Sell 172.15 185.00 140.00 Downgrades

Come to life on bid spec from SBRY.
2517

StockMarketWire.com
Home Retail Group, the owner of Argos and Homebase, has confirmed it received and rejected an approach from Sainsbury's regarding a possible cash and share offer for the company.

Home Retail said the board rejected the approach as it undervalued the group and its long-term prospects.

http://www.bloomberg.com/gadfly/articles/2016-01-06/sainsbury-seeks-january-bargain-in-argos-catalog-takeover-bid

Bid offer from Sainsbury's will have to be 170 -180 or more now.

Rumours of a tie-up between Ocado and Amazon are sending shockwaves throughout the supermarket sector as an already highly competitive sector looks to become even more difficult to operate within. The two pronged attack on the big four, with low-cost German entrants (Lidl and Aldi) on one side, and one of the world’s biggest retailers on the other, will no doubt shrink the perceived market share of the likes of Tesco and Sainsbury’s.

bloomberg reported a couple of hours back that the parties were closing in on agreeing a price

market is indicating that this might be true as sp now 147.7 = +11p or 8% ...... mam chart is of course behind the curve as always

very happy that i topped up a couple of days ago :-)

.

looks like the bears are starting to run for cover, as well they might

a nice little earner for early in the week
t/o terms equate to about 161p per share ...... won't make a huge profit but better than a poke in the eye for sure

bit of a swizz ...... didn't expect to see HOME back below 150

shall just sit on them for the moment

hence the chirpiness in the last couple of days ....

It has emerged that Sainsbury (Amsterdam: SJ6.AS - news) 's has competition in its bid to buy Argos-owner Home Retail Group.

It was announced by South African retailer Steinhoff, after financial markets had closed for the day in Europe, that it proposed an offer for Home Retail of 175p-per-share - valuing the company at £1.4bn.

That trumped the supermarket's planned bid of 161.3p-per-share, tabled two weeks ago, which valued Home Retail at £1.3bn - just above its current market value.