Gusbourne Share Discussion Threads

[ben nevis] 09/12/2005 14:16

Wow.

Shouldve bought GUS. Or MKS. Dammit.

They must fall in January ??

[grupo guitarlumber] 04/12/2005 07:47

Trouble at till

British retailers are pinning their hopes on a good festive season. They know if it doesn't go well, the vultures are circling, says Nick Mathiason

Sunday December 4, 2005
The Observer


On the face of it the story was hardly compelling. In fact most people would glaze over at the mention of a telecom takeover in Denmark. But last Thursday, Europe's largest-ever private equity takeover set alarm bells ringing in the boardrooms of Britain's leading retail companies.
UK-based Apax Partners and Permira teamed up with American counterparts Blackstone Group, Kohlberg Kravis Roberts and Providence Equity Partners in a deal worth £8.9 billion to buy telecoms operator TDC.

There is hardly anything new about venture capital firms forming consortia to buy companies. But the sheer recordbreaking scale of this private equity deal proves major venture capital is setting its sights on Europe with a vengeance. And what's more, money is no object.

For retailers busy gearing up for what many of them predict will be the worst Christmas for 20 years, the takeover didn't pass unnoticed. In fact they saw it as the shape of things to come.

One director of a leading retailer said: 'Venture capital is awash with money and they're going for big targets. Do not be surprised that in the first half of next year, you will see some very big deals.'

Even though they've got more than enough to worry about, talk of enemies at the gates of some of the most famous names in retail was gaining currency last week with Sainsbury's, Marks and Spencer, B&Q and Dixons all mentioned as possible targets next year.

The timing of this new interest in buying high-street businesses may seem bizarre. After all, last week a CBI survey said retailers were expecting their worst Christmas since 1983. And more than half the retailers polled said trading was down in November. In addition, Capital Economics believes that talk of a pension crisis dominating the news agenda will give consumers good reason to pause for thought about splashing out.

If that were not enough, a series of profit warnings and gloomy trading statements from some of the most famous names on the High Street has cast a deeper shadow. Strugglers include BHS, Matalan, Next, WH Smith, B&Q, MFI and Dixons. Insiders say other retailers likely to struggle over Christmas are Clinton Cards, Iceland and House of Fraser.

Richard Hyman, managing director of retail consultant Verdict Research, said: 'This Christmas will be a little bit worse than last Christmas which was poor but was not quite as bad as people made out. The really big problem faced by retailers is the squeeze on margins. That is not going away. In fact we believe it is here to stay forever.'

While clothing retailers are thankful that cold weather is increasing winter stock sales, furniture and DIY retailers are suffering badly.

Despite all this, some leading executives believe private equity firms are now about to unleash a spectacular raid on the sector, betting that this Christmas marks the end of the consumer downturn. The tactic is classic private equity: buy at the bottom and sell at the top.

Although last Thursday's CBI figures were woeful there is some evidence that shoppers are beginning to open their purses. Eighteen months of keeping a close watch on spending, while simultaneously paying off ballooning credit card bills may have run its course.

Sales at the John Lewis Partnership in the week to 26 November were up 8.5 per cent on the same period last year. And in the 17 weeks to last month, sales at the partnership, which includes the Waitrose supermarkets, rose by 5.1 per cent.

This week's British Retail Consortium figures are expected to show a small increase in like-for-like sales. This will be only the third time in 2005 that sales are up on the high street.

And the BRC, which represents Britain's biggest retailers, is expecting Christmas to be better than many are predicting. 'We're not looking at the sort of Christmas that the doom-mongers were talking about a few weeks ago,' said Kevin Hawkins, the BRC's director-general. 'It won't be Armageddon. It's going to be terribly challenging for some but this year retailers are trading off tighter stock levels. Decisions were made on stock last spring when confidence wasn't high.

'Margins will be protected so there won't be massive discounting. Any consumers expecting sales in the last few days before Christmas will be largely disappointed.' Footfall at the UK's major shopping centres is increasing on last year's figures.

Retail monitor Zephyr produced figures last Friday showing merger and acquisition activity in the UK has tailed off this year as consumer confidence flounders. The value of deals last month was the lowest since February 2003 at just £76m.

But the dam may be about to burst. And whereas in the past, venture capitalists steered away from large companies, preferring smaller fry, now they are scaling up, buoyed by a mountain of money. Investors are flocking to invest in VC buy-out funds which yield far better returns than equities and the slowing housing market.

Nick Bubb, retail analyst at Evolution Securities, said: 'Reading John Lewis's figures you're thinking, "Blimey, maybe things aren't as bad as we thought." But if interest rates go up again that will affect figures. Targets? Well DSG [owner of Dixons] has to be a strong possibility. It's got European business which offers arbitrage. It's too late for Boots. Everyone looked at that. Kingfisher [which owns B&Q] is similar to Dixons which has a strong European business.'

Senior insiders say that J Sainsbury and even Marks & Spencer are on the venture capital radar. These companies will only be bought out by private equity forming into consortia as they did with TDC in Denmark. J Sainsbury has long been slated for a buyout, although the company still has 32 per cent of its shares held by family members who would have to agree to any deal. Persistent talk says former Asda boss Archie Norman will be the man parachuted in to run the show.

The unstoppable spread of Tesco seems set to bite great chunks out of traditional electrical retailers' businesses. The supermarket giant is pledged to sell 50,000 iPods, 10,000 satellite navigation kits, 70,000 digital cameras and 25,000 flat-screen TVs over the Christmas period. If that wasn't enough to give rivals grief, the prospect of a struggle for ownership is beginning to loom large.

[waldron] 30/11/2005 08:03

Kingfisher Q3 profit slumps 21 pct on B&Q woes

LONDON (AFX) - Kingfisher PLC, Europe's largest home improvement retailer,
has reported a 21.4 pct slump in third quarter retail profit with the vast
majority of the fall accounted for by its troubled B&Q unit in the UK.
For the three months to end-Oct 2005 the group made a retail profit --
stated before central costs, exceptional items and share of joint venture and
associate interest and tax -- of 157.1 mln stg compared to analysts' forecasts
of 138-161 mln stg, with a consensus of 146 mln stg, and down from a restated
199.8 mln stg last time.
This was achieved on retail sales up 6.8 pct to 2.07 bln stg, with sales on
a like-for-like basis, which strips out the impact of new and closed space, down
0.3 pct.
Within this B&Q's retail profit crashed 53 pct to 50.3 mln stg on sales down
3.9 pct. Its like-for-like sales fell 8.4 pct, having been down 7.0 pct in the
first half.
"The UK retail environment continues to weaken, significantly impacting
B&Q's sales and profits," said chief executive Gerry Murphy.
"We have taken firm action to support sales and manage costs and to ensure
that B&Q is well placed for market recovery."
He noted that outside the UK, where Kingfisher generates half its sales,
third quarter sales increased 15 pct, while profits were up 9 pct.
The UK DIY market deteriorated significantly over the summer with UK
consumers feeling the pinch from escalating energy costs, higher taxes and
pension contributions, rising debt burdens and a weak housing market.
Earlier this month Travis Perkins PLC, which owns Kingfisher rival Wickes,
issued a profit warning blaming an escalating price war, while Homebase owner
GUS PLC made some cautious comments on prospects for the next 12 months. MFI
Furniture Group PLC and privately-owned Focus are also struggling.
In September, Kingfisher signalled a shift in strategy at B&Q. It is
focusing on driving higher sales from existing stores. It is lowering prices and
wooing more female shoppers by offering a broader range of products.
It also moved to cut costs with 22 B&Q stores in markets already well served
by other outlets to close. Also 16 of B&Q's larger Warehouse stores will be
converted to the new mini-Warehouse format, releasing space that will be
marketed to other retailers. In all B&Q's total selling space will fall by 7
pct.
The new strategy for B&Q is being complemented by Kingfisher's new UK Trade
project, comprising Screwfix Trade Counters and a new Trade Depot format. This
will target the 50 bln stg market for trade and building materials.
Prior to an April 27 first quarter profit alert the market's consensus
estimate for the retailer's year to end-January 2006 was an underlying pretax
profit of about 690 mln stg. Analysts are now forecasting about 440 mln stg.
They are also concerned about the sustainability of Kingfisher's dividend, 10.65
pence last time.
Kingfisher shares closed Tuesday at 220-1/4 pence, valuing the business at
5.17 bln stg.
jdd/tc

[ariane] 17/11/2005 09:25

GUS 1st-Half Profit Falls as Argos and Homebase Slide (Update1)
Nov. 17 (Bloomberg) -- GUS Plc, Britain's second-largest retailer by market value, said first-half profit fell 6.9 percent as sliding earnings at U.K. store chains Argos and Homebase outweighed growth at the Experian credit-checking business.

Net income for the six months ended Sept. 30 slid to 276.5 million pounds ($475 million), or 27.6 pence a share, from 296.9 million pounds, or 29.3 pence, a year earlier, London-based GUS said today in a Regulatory News Service statement. A Bloomberg survey of 12 analysts showed a 253 million-pound median estimate.

Sales at Argos and Homebase are falling as record fuel costs and stagnating home prices crimp U.K. household spending. That's offsetting revenue growth at Experian, which is benefiting as more U.S. consumers seek information on their credit histories. GUS is delaying plans to sell or spin off Experian until market conditions for the U.K. retail businesses become more favorable.

``Although profit at Argos Retail Group has been impacted by the tough U.K. retail environment, we have gained share and maintained or improved gross margin,'' Chief Executive John Peace said in the statement. Experian's first-half profit exceeded 200 million pounds for the first time, he said.

Shares of GUS have dropped 9.4 percent this year, similar to the loss by the FTSE 350 General Retailers Index. The stock fell 7.5 pence to 850 pence in London yesterday, giving the company a market value of 8.5 billion pounds. Tesco Plc, the U.K.'s largest retailer by market value, is worth 24.5 billion pounds.

Argos, Homebase

Pretax profit before one-time gains and losses fell to 376.4 million pounds from 406.9 million pounds a year earlier, GUS said. That median analyst estimate was 368 million pounds.

Earnings at Argos Retail Group, which includes the 636- store Argos chain and Homebase home-improvement stores, fell 35 percent to 108.9 million pounds, GUS said. Profit was affected by one-time costs of 20 million pounds related mostly to the acquisition of 33 Index stores from Littlewoods, the company said. Revenue was little changed at 2.62 billion pounds.

Sales at Argos stores open a year or longer fell 3 percent in the first half, while Homebase, the U.K.'s second-largest home-improvement chain, had a 4 percent decline, GUS said.

Experian's first-half earnings jumped 35 percent to 200.4 million pounds, the company said. Sales at the unit rose 29 percent in the period to 808 million pounds.

Breakup

GUS remains committed to the separation of Argos Retail Group and Experian ``at the right time,'' it said in the statement.

Simon Irwin, an analyst at JPMorgan Chase & Co. in London, expects GUS to wait until May before announcing plans to separate Experian from the rest of the group, he wrote in a note last week.

The breakup of GUS begins next month, when the company distributes its 65 percent stake in luxury-goods maker Burberry Group Plc to existing investors. The split of the businesses will take place on Dec. 13, GUS said today. London-based Burberry said Nov. 15 first-half profit fell 2.7 percent as revenue growth waned and the company paid to start upgrading computer systems.

GUS plans to pay a first-half dividend of 9.6 pence a share. The payment is equivalent to 9 pence a share after adjusting for the demerger of Burberry, the same as last year, the company said.



To contact the reporter on this story:
Paul Jarvis in London at [e-mail].
Last Updated: November 17, 2005 02:48 EST

[ariane] 17/11/2005 08:09

GUS underlying H1 profit down 8 pct as Burberry demerger set for Dec 13

LONDON (AFX) - GUS PLC, the retail and business services group, reported
a better-than-expected 8 pct fall in first-half underlying pretax profit as it
set Dec 13 as the date for the demerger of its remaining 65 pct stake in
Burberry Group PLC, the luxury brand.
Subject to shareholder approval GUS will allocate the Burberry holding to
its shareholders by way of a "dividend in specie".
The move will be accompanied by a consolidation of GUS shares, designed to
keep the GUS share price at approximately the same level, subject to normal
market movements, before and after the demerger.
For every 1,000 existing GUS shares held at 7.00 am on Dec 13 GUS
shareholders will receive 305 Burberry shares and approximately 859 new GUS
shares.
For the six months to Sept 30 2005, GUS made a profit before tax,
exceptional items and amortisation of 376 mln stg under new IFRS accounting
rules compared to analyst expectations of 346-374 mln stg but down from a
re-stated 407 mln stg last time.
Pretax profit fell to 348 mln stg from 365 mln stg.
The interim dividend is 9.6 pence per new consolidated GUS share versus 9.0
pence per existing share.
jdd/jc

[grupo guitarlumber] 05/11/2005 12:07

November 05, 2005 05:00 AM US Eastern Timezone

Price Inflation is Predicted in the UK DIY Market between 2005 and 2009

DUBLIN, Ireland--(BUSINESS WIRE)--Nov. 5, 2005--Research and Markets ( has announced the addition of DIY and Home Improvements Industry Market Review 2005 to their offering.


The UK retail market for DIY tools and materials grew by 5.2% in 2004, to a value of GBP 10.74bn. This report focuses on five major product sectors, which together accounted for around a quarter of the market's value in 2004. These sectors are: paint and woodcare, wallcoverings, ceramic tiles, power tools and accessories, and hand tools and decorating tools. Garden products and furniture are excluded, as are the housewares and soft furnishings sold by some DIY stores. Products that showed growth between 2000 and 2004 included garden woodcare, coloured emulsion paints, cordless tools and upmarket textured wallcoverings.

The low cost of imported tools, the strong competitive pressure among retailers and the buying power of the major multiples combined to prevent price rises in the DIY market over the review period. Overall inflation was zero in 2004 and close to zero for the period from 2000 to 2004.

Market drivers have included the high level of home ownership, low interest rates (which have encouraged spending rather than saving), the boom in house prices (which has boosted the housing market and enabled established homeowners to withdraw equity for home improvements), rising household disposable income and high levels of employment. In addition, a strong interest in the home has been encouraged by home and garden `makeover' programmes on television.

The dominance of the big DIY superstores has continued. However, in a reversal of the trend towards consolidation that has prevailed over the past decade, the Focus and Wickes chains separated in 2004.

Trading reports for the first few months of 2005 suggested a decline in the DIY market, and the results of our own survey on the use of DIY retailers tend to confirm a lower footfall. Some of this decline appears to be due to the cool spring, early Easter and weaker consumer confidence at the beginning of the year. It is forecast that the market's growth will remain positive for 2005 as a whole, although it will be lower than that seen in the previous 5 years.

Although the pressure on DIY prices will not disappear, raw-material prices are rising and background inflation is increasing the costs for distributors. Therefore, it is predicted that there will be some price inflation in the DIY market between 2005 and 2009.

Companies mentioned:

- B&Q PLC

- Homebase Ltd

- Wilkinson Hardware Stores Ltd

- Wickes

- Focus (DIY)

- Screwfix Direct Ltd

- Topps Tiles PLC

- Robert Dyas Holdings Ltd

- Glyn Webb Ltd

- ICI Paints

- Akzo Nobel Decorative Coatings Ltd

- Kalon Ltd

- Ronseal Ltd

- CWV Ltd

- Graham & Brown Ltd

- H-A Interiors Ltd

- Walker Greenbank PLC

- Fine Decor Wallcoverings Ltd

- SJ Dixon & Son Ltd

- Coleman Bros Wholesale Wallpapers Ltd

- H&R Johnson Tiles Ltd

- Pilkington's Tiles Group PLC

- British Ceramic Tile (BCT Ltd)

- CP Group

- Black & Decker

- Robert Bosch Ltd

- Alba PLC

- Makita (UK) Ltd

- Earlex Ltd

- Stanley Tools

- Spear & Jackson PLC

- LG Harris & Co Ltd

- Hamilton Acorn Ltd

- Halls Beeline Group

For more information visit

[waldron] 12/10/2005 14:46

GUS' faltering retail offset by Experian growth in H1 UPDATE

(Adds comments from finance director David Tyler)
LONDON (AFX) - GUS PLC has reported first half underlying sales declines at
its retail businesses, Argos and Homebase, offset by record underlying sales
growth at its Experian credit information company.
The Argos chain, which sells everything from electrical appliances to garden
furniture, saw its like-for-like sales, which strip out the impact of new and
closed space, fall 3 pct in the six months to Sept 30 2005. Total Argos sales
were up 4 pct.
Argos' gross margin was in line with last year despite an adverse product
and promotional mix as supply chain gains continued to be delivered.
The business, which trades from 636 stores, noted good performances from
consumer electronics, particularly MP3 players and LCD televisions, white goods,
leisure and toys. However, jewellery and housewares remained "difficult".
GUS has previously flagged that Argos' first half profit will bear the
transitional costs for the 33 acquired Index stores, costs associated with
changes to staffing arrangements and higher catalogue and payroll-related costs
as reported under IFRS. These will total around 20 mln stg.
At the 293 store Homebase, GUS's DIY chain, like-for-like sales for the
seven months to Sept 30 were down 4 pct. Total Homebase sales were down 1 pct.
The business saw strong performances from horticulture and from big ticket
items, especially in kitchens and Furniture Extra. However, tools, building and
seasonal gardening lines were weaker.
Driven by supply chain gains, Homebase's first half gross margin was
"slightly ahead" of last year although higher costs impacted the operating
margin.
"Looking forward, increased promotional activity in the market may also
affect [Homebase] profit," GUS cautioned.
Finance director David Tyler said Homebase is conscious of Kingfisher PLC's
recent move to change the strategy of its B&Q DIY unit that has made the market
more promotional.
"Our objective is not to go head to head with B&Q, we've got a very
different strategy, we've got a differentiated position," he said.
Tyler wouldn't be drawn on whether GUS is interested in acquiring Duke
Street Capital's Focus business, which is reportedly struggling.
"Homebase we believe is an extremely strong brand and much stronger than any
other possible brand that might become available in the market," he said.
GUS noted the non-food, non-clothing market in the UK remained weak during
the first half, with sales falling on a like-for-like basis.
It is planning on the assumption that like-for-like sales will remain in
decline for the market as a whole for the next 12 months.
"However, in the first half, against this background, both Argos and
Homebase outperformed their markets and maintained or improved gross margin.
Retailers are currently facing higher cost inflation which is adversely
affecting Argos but more so Homebase, given its cost structure," GUS said.
Experian's first half total global sales were up 29 pct at both actual and
constant exchange rates -- organic growth of 12 pct and a 17 pct contribution
from acquisitions.
Within this Experian North America's sales at constant exchange rates
increased 37 pct, while Experian International's were up 19 pct.
GUS said Experian's growth was driven by the strength of its product offer
aided by effective sales execution and continued innovation in value-added
solutions.
Experian's phenomenal growth means it now contributes some 20 pct of GUS'
annual sales and 40 pct of profit.
Burberry Group PLC, the luxury brand 65 pct owned by GUS, saw first half
sales at actual and constant exchange rates increase 2 and 3 pct respectively.
GUS said preparations for the planned demerger of its remaining Burberry
stake in December this year are "on track".
The group has also committed to demerge Experian and the Argos Retail Group
(Argos and Homebase) at a later unspecified date.
"We believe that all our businesses are executing effectively on plans
designed to deliver long-term value creation for shareholders," said chief
executive John Peace.
Going into today analysts were forecasting a year to end-March 2006 pretax
profit of 884-930 mln stg.
At 2.11 pm shares in GUS were up 3 pence at 859-1/2.
jdd/joy

[waldron] 12/10/2005 14:40

GUS believes slump will last another year

Published: 11:02 Wednesday 12 October 2005
By Douglas Bence, Companies Correspondent

Retail sales are expected to remain depressed for another 12 months, according to GUS, the Argos to Homebase and credit rating group, vindicating Aberdeen fund manager Chou Chong's decision to ditch its shares recently.

'I can't see the non-food, non-clothing market turning round for another year' finance director David Tyler said while commenting on GUS' interim trading statement.

GUS shares were in favour earlier this year as investors switched out of other retailers and speculation grew of a possible break up of the company. However last month's Aberdeen Asset Management's head of pan European equities Chou Chong told Citywire he had sold out his holdings in the company because its valuation had become too stretched.

Although Tyler expects the Argus Retail Group to beat its competitors, trading at both Argus and Homebase was hit in the period to 30 September by what he calls 'the challenging UK retail environment'.

But a grim first half for GUS was rescued by an 'outstanding performance' at its credit agency arm Experian where sales were up 29%, boosted to a record by a 31% rise in the second quarter against 26% in the first. GUS shares added 6.25p to 862.75p in active early trading.

Experian's activities are dominated by the US, 60% of the total, where sales were up 37%. Acquisitions accounted for 19% of growth. But the group is also moving into China and is now working for seven banks in Korea.

Total sales in the first half increased 29% at constant exchange rates. Organic growth was 12% while the balance of 17% came from acquisitions. Tyler said growth will continue, but not at these high rates unless there are further acquisitions.

Homebase was particularly hit by the collapse in the do-it-yourself market with sales 1% lower in the seven months to 30 September with a 4% fall like-for-like. Seven months because Homebase has a February year end to avoid distortions arising from when the busy Easter weekend falls.

Horticulture and kitchens did well in Homebase's 293 stores, but tools, building and seasonal gardening lines were weaker. Gross margins were slightly ahead of last year, but higher costs are impacting operating margins.

Although Tyler wouldn't say how Homebase planned to counter B&Q's initiative on special offers, he did warn that increased promotional activity could hit profits.

The addition of new stores helped turnover rise 4% at Argus' 636 stores in the six months to 30 September, but like-for-like sales were 3% down. Argos opened 44 stores in the half year, including 30 of the 33 acquired Index stores – the other three open at the end of the month. Index is expected to add 2% to Argus sales by the year end.

Sales of MP3 players and LCD televisions boosted consumer electronics sales while white goods, leisure products and toys also did well. Jewellery and homeware sales were difficult.

Tyler said that both Argos and Homebase outperformed their markets and maintained or improved gross margins. Retailers were currently facing higher cost inflation, which is adversely affecting Argos and especially Homebase, given its cost structure.

Internet sales increased 30% and now represent 7% of total revenue making Argos number three in this market behind Amazon and Tesco.

GUS gave no clue as to when it might proceed with its plan to float off Experian, but current market conditions suggest that it is still at least a year away. The sale of the 65% Burberry stake is still set for December.

In spite of collapsing retail markets, Numis analysts Steve Davies and Jose Marco still rate GUS a buy and have a target price for the shares of £10.30. Retail sales were not down by as much as some expected and, although they think the figure might be 'a little optimistic', they are looking for profit before tax for the year of £956.2 million.

Citywire Verdict:

Although GUS shares threatened to break through the £10 barrier at the beginning of the year, they suffered badly in the spring and had a poor September. As a year ago they were 893p, they have seriously underperformed. Analysts are keen to get a timetable for the sale of Experian and it's easy to see why: without it today's trading statement, while not catastrophic, would make a miserable read. The proceeds from the Burberry sale are already reflected in the share price, so stay away.

[waldron] 12/10/2005 07:30

GUS' faltering retail offset by Experian growth in H1

LONDON (AFX) - GUS PLC reported first-half underlying sales declines at its
retail businesses, Argos and Homebase, offset by continuing strong growth at its
Experian credit information company.
The Argos chain, which sells everything from electrical appliances to garden
furniture, saw its like-for-like sales, which strip out the impact of new and
closed space, fall 3 pct in the six months to end September. Total Argos sales
rose 4 pct.
At Homebase, GUS's DIY chain, like-for-like sales for the seven months to
Sept 30 were down 4 pct. Total Homebase sales were down 1 pct.
Experian global sales grew 29 pct at both actual and constant exchange
rates.
Burberry Group PLC, the luxury brand 65 pct owned by GUS, saw first-half
sales at actual and constant exchange rates increase 2 and 3 pct respectively.
GUS said preparations for the planned demerger of its remaining Burberry
stake in December this year are "on track".
GUS shares closed Tuesday up 3 pence at 856-1/2.
jdd/jc

[waldron] 12/10/2005 07:08

Trading Statement

RNS Number:5367S
GUS PLC
12 October 2005


12 October 2005

GUS plc
First Half Trading Update

GUS plc, the retail and business services group, today issues its regular update
on trading.

John Peace, Group Chief Executive of GUS, said:

"An outstanding performance from Experian was clearly the highlight of our first
half. With sales up 29%, the strength of Experian's broad product and geographic
reach is evident. ARG continues to be affected by the challenging UK retail
environment but made good operational progress in the half. We believe that all
our businesses are executing effectively on plans designed to deliver long-term
value creation for shareholders."


Argos Retail Group (ARG)

% change in sales year-on-year
Six months to 30 September 2005 %
Argos - total 4
- like-for-like (3)

Seven months to 30 September 20051
Homebase - total (1)
- like-for-like (4)
--------------------------- --------------------

1 Homebase's year-end is the end of February to avoid distortions relating to
the timing of Easter.

The non-food, non-clothing market in the UK remained weak during the first half,
with sales falling on a like-for-like basis. ARG is planning on the assumption
that like-for-like sales will remain in decline for the market as a whole for
the next 12 months.

However, in the first half, against this background, both Argos and Homebase
outperformed their markets and maintained or improved gross margin.
Retailers are currently facing higher cost inflation which is adversely
affecting Argos but more so Homebase, given its cost structure. Despite the
current weak economic environment, both businesses continue to invest in areas
such as new space, supply chain and new ranges to strengthen their long-term
competitive position.

Argos
Argos increased its sales by 4% in total in the first half. Of this, new stores
contributed nearly 7%, while like-for-like sales declined by 3%. Compared to the
same period last year, there were good performances from consumer electronics
(particularly MP3 players and LCD televisions), white goods, leisure and toys.
Jewellery and housewares remained difficult. Argos continued to deliver supply
chain gains such that gross margin was in line with last year despite an adverse
product and promotional mix.

The biggest ever Autumn/Winter catalogue was successfully launched on 30 July.
This catalogue now offers 17,700 lines (up from 13,200 a year ago) to customers
in all stores. Argos also opened 44 stores in the half, including 30 of the 33
acquired Index stores, which were refitted and reopened near to the end of the
period. The remaining three Index stores will open by the end of October. At 30
September 2005, Argos traded from 636 stores.

Argos Direct, the delivery to home operation, grew its sales by 6% in the first
half and accounted for 25% of Argos' revenue. Sales via the Internet increased
by 30%, representing 7% of total revenue. A further 7% of total sales was made
via Argos' "Check and Reserve" multi-channel ordering facilities, up 26% year on
year.

As previously announced, profit at Argos in the first half will bear the
transitional costs for the Index stores, the costs associated with the change in
staffing arrangements in-store and higher catalogue and payroll-related costs as
reported under IFRS. Combined, these are expected to total around #20m.

Homebase
In a market that deteriorated further towards the end of the first half, sales
at Homebase declined by 1% in total for the seven months to 30 September 2005.
Of this, new stores contributed 3% growth while like-for-like sales declined by
4%. There were strong performances from horticulture (new ranges and
merchandising) and from big ticket items, especially in kitchens and Furniture
Extra, which benefited from new ranges and additional mezzanine space. Tools,
building and seasonal gardening lines were weaker.

Driven by supply chain gains, gross margin at Homebase in the first half was
slightly ahead of last year although higher costs are impacting its operating
margin. Looking forward, increased promotional activity in the market may also
affect profit.

At 30 September 2005, Homebase traded from 293 stores, an increase of six in the
half. 19 mezzanine floors were added to existing stores in the period, with
another four planned for the second half. 134 stores currently have mezzanine
floors.

Experian

% change in sales year-on-year for the six months to 30 September 2005

Continuing activities only At actual exchange At constant
rates % exchange rates %

Experian North America 36 37
Experian International 20 19
Global Experian 29 29

Experian has achieved record underlying sales growth in the first half. This was
driven by the strength of Experian's offer in many products and in many
countries, aided by effective sales execution and continued innovation in
value-added solutions. Total sales in the first half increased by 29% at
constant exchange rates with strong organic growth (12%) complemented by the
contribution from acquisitions (17%) which are trading well.

Experian North America
In dollars, Experian North America's sales from continuing activities increased
by 37% in the first half. Corporate acquisitions contributed 19% to sales growth
in the first half, with the largest being LowerMyBills.com which was purchased
in May 2005. Excluding these acquisitions, sales grew by an exceptional 18%. The
business faces much stronger comparatives in the second half (H1 2004/5: +7%; H2
2004/5: +14%).

Credit sales benefited from strong market demand in credit profiles and
prescreen activity, from the FACTA cost recovery charge as well as continued
contract wins in value-added products such as event triggers, account management
and scoring products. Strong organic sales growth from email marketing, business
marketing and the automotive business underpinned the performance of Marketing.
Excluding acquisitions, sales at Experian Interactive grew by nearly 40% in the
first half, slowing in the latter part of the period. Increased use of the
Internet by consumers and advertisers coupled with product innovation continues
to drive premium growth in this business.

Experian International
Experian International, which accounts for over 40% of Experian's worldwide
revenue, grew sales from continuing activities in the first half by 19% at
constant exchange rates. Of this, 14% came from acquisitions, mainly QAS, a
leading supplier of address management software, which was acquired in October
2004.

Excluding acquisitions, Experian International showed solid growth in Credit,
Marketing and Outsourcing. Despite a slowdown in the rate of growth in gross
lending in the UK, Experian continued to deliver a robust performance in this
market driven by value-added products and by initiatives focused on markets
including automotive, telecommunications and the public sector. Underlying
double-digit growth continued in Spain, Italy and Eastern Europe. Experian
continues to invest in new regions, recently signing its first contract in Japan
to sell decision solutions to JCB, the largest card issuer in Japan.


Burberry
GUS has a 65% stake in Burberry Group plc. The following summarises the latter's
Trading Update released today.

% change in sales year-on-year for the six months ended 30 September 2005

%
At actual exchange rates 2
At constant exchange rates1 3

1 Also excludes the financial effect of the acquisition of Burberry's
Taiwan-related business.

Underlying sales at Burberry in the first half increased by 3% at constant
exchange rates excluding the effect of the acquisition of Burberry's
Taiwan-related business.

Underlying retail sales increased by 9% driven by contributions from new and
refurbished stores. Underlying Wholesale revenue declined by 1% in the half. On
the basis of Spring/Summer 2006 merchandise orders received to date, Burberry
anticipates a moderate underlying decline in Wholesale revenue for the second
half. Underlying licensing revenue increased by 3%. Burberry recently announced
a new ten-year eyewear licence with Luxottica Group.

The management team at Burberry will be further strengthened by the appointment
of Angela Ahrendts. She will join Burberry in January 2006 and become Chief
Executive on 1 July 2006. Rose Marie Bravo will assume the role of Vice-Chairman
at that time.

Preparations for the planned demerger of GUS' remaining 65% stake in Burberry in
December 2005 are on track.

Future announcements
GUS will announce its Interim Results for the six months to 30 September 2005 on
17 November 2005. The Third Quarter Trading Update will be on 12 January 2006.

Enquiries

GUS
David Tyler Finance Director 020 7495 0070
Fay Dodds Director of Investor Relations

Finsbury
Rupert Younger 020 7251 3801
Rollo Head

GUS announcements are available on its website, www.gusplc.com. There will be a
conference call to discuss this update at 3pm today, with a recording available
later on the GUS website.

All financial statements presented by GUS are now prepared under International
Financial Reporting Standards (IFRS). The unaudited financial results for the
year to 31 March 2005 and the six months to 30 September 2004 as prepared under
IFRS were released on 14 June 2005 and are available on the GUS website.

Certain statements made in this announcement are forward looking statements.
Such statements are based on current expectations and are subject to a number of
risks and uncertainties that could cause actual events or results to differ
materially from any expected future events or results referred to in these
forward looking statements.

Any shares to be distributed in the proposed demerger of Burberry Group plc have
not been and will not be registered under the US Securities Act of 1933 (the
"Securities Act") and may not be offered or sold within the United States absent
registration under the Securities Act or an exemption from registration. No
public offering of such shares will be made in the United States.




This information is provided by RNS
The company news service from the London Stock Exchange

END
TSTILFIAILLLLIE

[enami] 11/10/2005 10:26

Also the demerger of Burberry announcement to consider. I read on DJ Newswire yesterday that the BRBY Trading Statement is delayed to co-incide with GUS so I expect that the details of the demerger will be posted tomorrow.

[machineman] 11/10/2005 10:25

do you guys think people will sell when the announcement is made tomorrow?

[waldron] 11/10/2005 09:37

UK: GUS TO REVEAL FALTERING SALES AT ARGOS AND HOMEBASE
GUS's first-half update on Wednesday is expected to reveal underlying sales declines at the group's retail businesses, Argos and Homebase, offset by continuing strong growth at its Experian business services unit. The Argos chain saw its like-for-like sales fall 4% in the first quarter to end-June. This followed a 1% decline in the fourth quarter, the retailer's first decline in underlying quarterly sales for six years. Analysts at Deutsche Bank are forecasting a first-half to end-September like-for-like fall of 4%. For DIY chain Homebase, they anticipate a first-half fall of 3.5%, worse than the fall of 2% seen in the first quarter.

[waldron] 10/10/2005 07:59

DAILY EXPRESS
Investment Strategist:
* Don't miss out on UK retail bargains (Dixons, GUS, Kingfisher)


source: citywire

[hectorp] 10/10/2005 07:45

GUS share price at a critical point around here... If it can hold, I'd be long, compared with some other retailers.

[garybaldi] 04/10/2005 12:32

DIRECTORS: PROPING UP THE S.P. ??

[ariane] 27/9/2005 15:57

Kingfisher, GUS Eyed; Talk DIY Looks Wobbly

Tuesday, September 27, 2005 9:22:20 AM ET
Dow Jones Newswires



1310 GMT [Dow Jones] Kingfisher's B&Q (KGF.LN) and GUS' (GUS.LN) Homebase units under scrutiny amid speculation Focus Wickes (FWX.YY) has breached its banking covenants, says trader. A person close to Focus says the speculation is "untrue." Says the talk is springing from a meeting held between Focus and its bankers and shareholders regarding its business plan "a few weeks ago," but that its financing arrangements have not changed. Analyst David Stoddart at Teather & Greenwood says he already has "pretty weak assumptions" for B&Q in his Kingfisher forecasts in any case. Kingfisher -0.4% at 224.75p, GUS -1% at 138.75p. (PBA)

[fenec007] 20/9/2005 14:29

there is more downside to gus closed the first gap after 45 days still one more gap at 851.5.imho

[waldron] 19/9/2005 13:18

GUS "overweight," target price reduced

Monday, September 19, 2005 7:12:48 AM ET
J.P. Morgan Securities

LONDON, September 19 (newratings.com) - Analysts at JP Morgan maintain their "overweight" rating on GUS Plc (GUS.ZRH), while reducing their estimates for the company. The target price has been reduced to 930p.

In a research note published this morning, the analysts mention that the company is likely to witness challenges to attaining the separation of ARG and Experian. According to the analysts, the downward revision to the 2005 and 2006 EPS estimates reflects a revision in the prospects for Argos and Homebase, in view of the present consumer environment. The EPS estimates for 2005 and 2006 have been reduced by 4% and 5.1%, respectively.

[j tuwatmoya] 18/9/2005 18:06

must read in sunday telegraph...



Gloom deepens as stores suffer 20pc drop in sales
By James Hall and Robert Watts (Filed: 18/09/2005)

Retail sales collapsed last week, with some stores reporting falls of up to 20 per cent, as an anticipated autumn recovery failed to materialise

[waldron] 18/9/2005 18:02

GUS may buy Focus - report

LONDON (AFX) - GUS PLC, the retail and business services group, is running
its slide rule over DIY and home furnishings business Focus with a view to
bolting the business on to its existing Homebase operation, the Sunday Express
reported.
According to the newspaper, GUS approached Focus' majority owner Duke Street
Capital a few weeks ago.
It cites a source close to the talks as saying: "GUS is negotiating hard
with them and the talks have reached a very delicate stage ... I really don't
think Focus will be around by the end of the year."
The newspaper reckons Focus is worth about 600 mln stg. It said Duke Street
declined to comment.
jdd/cml

[ariane] 29/8/2005 16:17

LONDON (AFX) - Kingfisher PLC's DIY retail chain, B&Q, is losing ground to arch-rival Homebase as a long-running home improvements boom runs out of steam, the Guardian newspaper reported, citing a study by market researchers Verdict.

According to the Guardian, Verdict predicts that B&Q's share of the UK DIY market will rise by just 0.1 percentage points this year, lagging a combined 0.8 percentage point increase for Homebase and sister company Argos. Homebase and Argos are operated by ARG, the retail unit of GUS PLC.

Last year, B&Q's share of the market was unchanged at 24.1 pct, while Homebase's market share rose 0.2 percentage points to 10.4 pct.

B&Q's weaker performance comes as a downturn in the property market is weighing on overall spending on DIY and gardening. Verdict sees total spending in 2005 falling 1.6 pct to 16.4 bln stg, the first decline in five years, the Guardian said.

"B&Q has come off the boil. If you look at the past ten years it has experienced extremely strong growth, but it is now facing much stronger competition from ARG," the paper quoted Verdict analyst Gavin Rothwell as saying.

Kingfisher shares closed 2-1/4 pence lower at 255-1/2 on Friday, while GUS shares finished down 2 at 919-1/2.

mn/bam

[ariane] 29/8/2005 12:33

B&Q losing ground to rival Homebase as trend shows DIY fans downing tools


B&Q, Britain's biggest DIY retailer, has suffered more than closest rival Homebase in the worst trading year for the industry.

The DIY and gardening sector is expected to see its first-ever decline in consumer spending, according to research published today by Verdict.

DIY and gardening spending is expected to fall by 1.6 per cent to £16.4 billion in 2005 - on the back of a slowdown in the housing market - after five years of continued growth.

And B&Q, owned by retailing group Kingfisher, is being challenged by an improved Homebase, now owned by retail group GUS.

Gavin Rothwell, a senior retail analyst at Verdict, said: "B&Q has come off the boil. If you look at the past ten years, it has experienced extremely strong growth, but it is now facing much stronger competition from ARG [Argos Retail Group, owner of Homebase and Argos]."

According to Verdict, B&Q only managed to maintain its market share, at 24.1 per cent. Homebase added 0.2 percentage points to take its share to 10.4 per cent. Although well behind B&Q, Homebase and Argos combined had a 15.2 per cent share.

Verdict predicts B&Q will increase its market share by 0.1 percentage points, but expects ARG to add 0.8 percentage points, with strong gains at both Homebase and Argos. In May, Kingfisher announced turnover at B&Q slid 7.7 per cent amid a spending slowdown.

Mr Rothwell said: "B&Q is developing a new strategy, but I'm not sure what they will come up with. It probably involves developing a softer appeal to attract more women, but the problem for B&Q is that it's got to maintain its core DIY appeal, which makes it quite tricky."