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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