Afternoon:
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From Britons holidaying at home this year and getting their kicks instead by splashing out on swish new tellies to householders looking to tart up their fallen-value homes, Argos and Homebase have had a good recession.
The Home Retail Group said its Homebase business has seen a 66% rise in profits offsetting a 7% dip at its Argos division. That enabled it not only to beat its own forecasts for the year so far but also to top City estimates with a £121 million profit for the six months to the end of August.
“If you told me last winter or in the spring it was going to turn out like this I would have taken it,” said chief executive Terry Duddy.
“Twelve months ago life looked gloomy but trading got better and has been better than expected.” Homebase this year has reported its first like-for-like growth in three years, aided by the demise of MFI. This has seen Homebase's move into selling big-ticket kitchen, bathroom and furniture items pay off.
Argos has suffered from a fall in sales in video gaming but partially offset that by customers finding other ways to entertain themselves.
“We have had fantastic sales of televisions to the point when one in five TVs in Britain is now sold by Argos,” said Duddy.
“We have benefited by the staycation and the ensuing growth in home entertainment. People have been upgrading their TVs whether in terms of screen size or [high definition].”
The Home Retail interim dividend is being held at 4.7p.
