Financial performance


This section is based on the latest full year results announcement for the 52 weeks to 28 February 2009



Overview


Operating highlights

  • Strength of the operating model and excellent cost management have helped to offset challenges due to the market environment
  • Successful Spring 2009 at Homebase, combined with a strong operational performance and tight cost control
  • Continued development and investment in the overall customer offers at Argos and Homebase to meet changing consumer needs
  • Growth in market shares in virtually all of Argos’ and Homebase’s major product categories including consumer electronics, toys, kitchens and outdoor living
  • Leadership in multi-channel convenience, driven by continuing strong growth in Check & Reserve
  • Focus on absolute cash gross margin to substantially offset the cost of goods pressures while remaining highly price competitive

Financial highlights

  • Sales up 2% to £6,023m; cash gross margin down 3% to £2,276m
  • Operating and distribution costs reduced by £64m or 3% to £1,986m, as increases attributable to volume growth and inflation were more than offset by cost actions
  • Benchmark operating profit1 down 4% to £290m, with a decline of £37m or 12% at Argos and an increase of £26m or 177% at Homebase
  • Net interest income reduced by £25m to £5m, with an improved net cash position more than offset by lower interest rates
  • Benchmark profit before tax2 down 11% to £293m
  • Basic benchmark earnings per share3 down 10% to 23.4p
  • Reported profit before tax of £293m; reported basic earnings per share of 24.3p
  • Cash generation of £130m; closing net cash position of £414m
  • Share buy-back announced; up to £150m to be returned over next 12 months
  • Final dividend of 10.0p recommended; full-year dividend held at 14.7p

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