CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Home Retail Group reports rise in profits

Article By: ,  Financial Analyst
April 29, 2015 1:26 PM

Home Retail Group has enjoyed a strong past year with a rise in pre-tax profit.

The owner of chains such as Argos and Homebase announced that for the year to February 28th, profits before tax grew by 32 per cent to £93.8 million. Sales across its operations were up one per cent to £5.7 billion with Argos and Homebase enjoying a rise of 0.6 per cent and 2.3 per cent respectively in like-for-like sales.

On top of the boost in sales, Home Retail Group's operation and distribution costs had fallen by £14 million to £1.9 billion. Benchmark profit before tax grew by 14 per cent to £132.1 million while the company's year-end cash balance stood at £309 million.

The company described the latest trading update as a "good overall performance" and allows brands such as Argos to continue their transformation plan. It has also boosted the group's share price which grew by 2.93 per cent as of 09:10 BST on Wednesday (April 29th).

John Coombe, chairman of Home Retail Group, said: "The group has completed another year of good financial performance, delivering both like-for-like sales and profit growth, together with a strong year-end cash balance of over £300 million.

"Our focus on managing costs and gross margin together with our ongoing cash management were all critical in delivering this good overall financial performance. We are recommending an increase of 15 per cent to the full-year dividend."

Argos improvement

Home Retail Group's success has allowed Argos to expand its operations. The group confirmed that the brand had completed the national roll-out of the 'hub & spoke' distribution network which has enabled same day collection of around 20,000 products. It has also opened 60 digital stores across three different formats.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024