Argos and Homesbase owner Home Retail Group (HRG) has said that it anticipates better-than-expected results for the full year, following a rise of 3.3% in like-for-like sales at Argos.
Terry Duddy, chief executive of HRG, commented: "The positive sales performance in the last few weeks of our financial year concludes a good year for both Argos and Homebase, with both businesses having delivered like-for-like sales growth throughout the year.  As a result of this recent trading performance, we now expect Group benchmark profit before tax to be slightly ahead of the top end of the current range of market expectations of £107 million to £111 million.  The cash outflow for the year will also be slightly better than previous guidance, resulting in a closing net cash position of around £330 million.

"We have made good progress with the investment plans in both businesses during the current financial year and we have a clear agenda for growth.  However, although there are signs that economic conditions may be beginning to improve, we will continue to plan for a subdued consumer environment.

"It has been a very exciting time leading the group over the last 15 years. Digital technology, together with changes in consumer behaviour, have fundamentally changed the face of retailing in recent times, and both Argos and Homebase have well defined plans and strong management teams in place to be leaders in both digital trends and changes in the way people shop. I would like to thank our 50,000 colleagues for their huge commitment and support."

Total sales at Argos grew by 5.2% to £526 million in the eight weeks, with electrical goods continuing to impress, whilst total sales at Homebase grew by 6.9% to £203 million in the period.