Argos corporate news

Argos staff share £5.9 million bonanza

30 July 2004

More than 2,200 Argos employees across the UK are celebrating a potential pay-out of £5.9 million following the maturity of the first Sharesave Scheme run by GUS plc, Argos ’ parent company.

Store staff, delivery drivers and managers are among those who have benefited from the companies success. The average profit per employee is £2590 with top investors receiving over £10,000.

Under the terms of the scheme, which was first introduced in 2001, employees can buy shares in GUS at a 20% discount using a special tax-free savings account. Employees can save between £5 and £250 per month for three or five years. At the end of the savings period members have the option of using all of their savings and bonus to buy the GUS shares at a discount or of taking all of their savings and bonus in cash.

Employees who chose not to keep their shares bought them at the reserved £3.84 option price and sold them for £7.85, immediately obtaining a £4.01 profit on each share option they held.

Many will be treating their families to exotic holidays while others have set aside the cash for home improvements, weddings or new cars.

Terry Duddy, Argos Retail Group Chief Executive, said: "This pay-out is a tribute to the hard work of our staff who continue to share in the success of the business.  The Sharesave Scheme is a safe and easy way for staff to save and provides real rewards for all their efforts."

Argos employees benefiting from this year’s pay-out include:

Amy Bains, age 35, a customer service supervisor at the Argos store in Boston, Lincs. Amy put aside £100 per month for the scheme. She has made a profit of over £5000 on her investment and is now planning to celebrate her good fortune by treating herself to a holiday and spending the balance on a new car.

Rachel Pillans, age 33, a compensation and benefits analyst at Argos, made a profit of over £2000 after saving £50 a month for three years. She used the money to help her to buy a convertible Saab 900.

The most recent three and five year schemes to be offered to Argos staff in 2004 attracted over 3600 applications.