HRG value slashed by £542 million
22 October 2008 09:39
;Home Retail Group has warned that profits for the year will be at the lower end of expectations after the company slashed £542 million from its value. The group added that it would cut costs and investment in Homebase. ;In the 26 weeks to August 30th, the group said that total sales were "level", with like-for-like sales down 3.0% at Argos and down 10.3% at Homebase. ;Meanwhile, benchmark operating profit for the group before tax was down 19% to £121 million, with a decline of 14% at Argos and 37% at Homebase. ;Terry Duddy, chief executive, commented: "Against a backdrop of a difficult trading environment, we delivered an operating result for the half which demonstrated further success on both cost control and cash generation. The challenging conditions look set to remain for some time, and indeed have worsened in the turbulent recent weeks. If these conditions continue through our peak trading months of November and December, the profit outcome for the year would likely be around the bottom of current market expectations. The Group continues to adapt to this backdrop, and our operating model and financial strength will be key drivers of competitive advantage".
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