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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Gusbourne Plc | GUS | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
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| 0.00 | 0.00% | 59.50 | 08:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 59.50 | 59.50 | 59.50 | 59.50 | 59.50 |
| Industry Sector |
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| GENERAL FINANCIAL |
| Top Posts |
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Posted at 29/9/2023 14:23 by tomps2 Gusbourne (GUS) Interim results presentation - September 23Gusbourne Interim CEO, Mike Paul and CFO, Katherine Berry present Interim results for the period ended 30 June 2023. Watch the video here: Or listen to the podcast here: |
Posted at 23/6/2023 13:00 by jaf111 Pleased to see GUS having a nice run…..maybe simply ‘better late than never’ response to excellent results 2 weeks ago, or wider coverage of English wine story….either way hopefully plenty more to come 🤞 |
Posted at 07/6/2023 11:06 by tomps2 A video/podcast of the FY22 results presentation by Charlie Holland, CEO & Katharine Berry, CFO. (Katherine just promoted to the board today.)Video: hxxps://www.piworld. Podcast hxxps://piworld.podb Net revenue: +49% £6.2m aEBITDA loss narrowed to £1.1m 5 yr CAGR +44% Gross Profit margin 59.2% Trade sales are up over 50%, International up over 70% and Direct to Consumer +29% as the UK premium sparkling wine market continues to take off. Of the outlook, Charlie says: "With these strong results, a fantastic harvest in 2022, the purchase of new land during the year and healthy inventory levels in our cellars, the Board continues to look to the future with great confidence as we further strengthen our position as one of the UK's most significant fine wine producers." |
Posted at 07/10/2021 10:52 by rangor Perhaps someone selling out of CDG and buying into GUS?Gusbournes latest results were quite positive so maybe people just buying based on that? |
Posted at 30/8/2018 09:47 by ayl30 Hi JAF, I bought in after reading the FT article, GUS sounded a great story and I like 'niche' companies where the barrier to entry is high.A bit of diversification in my p/f to an 'alternative' investment seemed a good idea too.Lets hope it continues to prosper, I would have thought harvest this year would be good |
Posted at 28/10/2014 09:42 by jonwig Chapel Down harvest report:Chapel Down is delighted to announce the conclusion of the 2014 harvest, which has surpassed expectations in both quality and quantity. Total tonnage of fruit received at the winery increased more than 40 per cent over 2013’s record harvest and Chapel Down will be able to produce nearly 1 million bottles of wine from the 2014 harvest. In addition the class of fruit received was excellent and will allow the Company to make still and sparkling wine of the very highest standard. GUS estate is about 4 miles away. |
Posted at 25/9/2014 07:52 by jonwig IC article this week about mostly Chapel Down, also about GUS:The other winery looking to raise capital is Aim-traded Gusbourne (GUS). Based near Ashford, just a few miles from Chapel Down, Gusbourne has none of its peer's flashy visitor facilities, operating instead out of a giant shed. It is also many years behind Chapel Down in terms of business maturity, with no expectation of cash profits before 2018. What it does offer is a premium brand (the company's benchmark bubbly sells for £28, compared with under £20 for Chapel Down's), backed by an impressive haul of awards and a commitment to the finer points of viticulture, including a very costly four-year production process. Revealingly, chief executive Ben Walgate was trained at Plumpton Agricultural College, not business school. At an offer price of 77p, compared with net tangible assets of 40p, Gusbourne's shares are clearly a riskier proposition than Chapel Down's. However, the key risk - that the company runs out of working capital while it waits for its stocks to mature - is mitigated by the backing of Lord Ashcroft, who owns 64 per cent of the shares. "Lord Ashcroft enjoys Gusbourne very much," stresses Mr Walgate. For personal as much as for economic reasons, Gusbourne might not be allowed to go bust. |
Posted at 12/7/2006 08:10 by grupo GUS says Homebase sales continue to fall, margin pressure at ArgosLONDON (AFX) - GUS PLC, the retail and credit information group, said underlying sales at its Homebase DIY chain continued to fall in its first quarter and revealed significant margin pressure at its Argos chain of high street catalogue shops. The group, which plans to demerge Argos Retail Group (ARG, which consists of Homebase and Argos) and Experian, its credit checking business, in October, also issued a cautious outlook statement. "In the first quarter of the financial year, the non-food, non-clothing market in the UK was stronger than expected," it said. "ARG remains cautious on the outlook for a recovery in the rate of growth in consumer spending and expects the DIY market in particular to remain difficult." However, GUS maintained all its businesses were trading in line with internal expectations and were in "good shape" for a future as independent companies. For the four months to June 30 Homebase's total sales fell 1 pct and on a like-for-like basis, which strips out the impact of new space, sales were down 5 pct. This compares to a fall of 5 pct over the previous five months. Homebase trades from 300 stores and is the UK's second largest home improvement retailer after Kingfisher PLC's B&Q, which is also struggling for sales in the face of weak consumer demand. GUS said although Homebase saw strong growth in kitchens and furniture, core DIY and decorating ranges remained weak. It noted that, as planned, gross margin was ahead of the previous year as a result of a reduced level of promotional activity together with the benefits obtained from supply chain initiatives. Argos, which trades from 663 UK stores, saw total sales increase 14 pct in the three months to June 30. Its like-for-like sales increased 7 pct -- an outturn ahead of analysts' expectations and an improvement on flat underlying sales in the previous quarter. Consumer electronics performed very strongly, especially flat panel TVs and set top boxes in the lead up to and during the World Cup. Argos also highlighted good sales growth in bedroom furniture, photography and video game systems. However, Argos' improved sales performance was "substantially offset" by a related reduction in gross margin compared to the previous year. This was driven by a shift in the product mix and by promotional offers in the quarter, partially offset by benefits from supply chain initiatives. Experian delivered another stellar performance in the three months to June 30, with sales at actual exchange rates up 23 pct and sales at constant exchange rates up 21 pct -- organic growth of 8 pct with the balance from acquisitions. Last week GUS revealed it had turned down several takeover approaches for ARG and Experian, having concluded that shareholder interests are better served by proceeding with the previously announced demerger. The group did not name its suitors but reports suggested venture capital groups KKR, CVC and Permira and the investment bank Goldman Sachs could be interested. Some analysts reckon GUS made public its rejection of the approaches to flush out higher bids. The demerger will see both ARG and Experian becoming independently listed on the London Stock Exchange -- ARG in the General Retailing sector and Experian in the Support Services sector. At the time of the demerger GUS is also planning for Experian to raise some 800 mln stg, with up to 5 pct of the shares available to new investors. GUS' outstanding bonds and loan notes, totaling about 2 bln stg, will be held with Experian. This reflects ARG's significant ongoing leasehold commitments -- over 300 mln stg a year in rent. The demerger will mark the final chapter in the break-up of the conglomerate formerly known as Great Universal Stores. Last year GUS disposed of Lewis, the South African retailer and demerged its remaining 65 pct stake in luxury brand Burberry Group PLC, and in January it sold its last remaining home shopping business, Dutch group Wehkamp, for 320 mln eur. GUS shares closed Tuesday at 989-1/2 pence, valuing the business at 8.78 bln stg. james.davey@afxnews. jdd/slm |
Posted at 12/1/2006 07:28 by waldron Trading StatementRNS Number:8147W GUS PLC 12 January 2006 12 January 2006 GUS plc Third Quarter 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: "The performance of both ARG and Experian in the third quarter reflects the benefits of our continued investment in initiatives to drive sustainable growth. Both Argos and Homebase outperformed their markets in the period, while Experian's broad range of products and services in many countries around the world continued to underpin its strong performance." Argos Retail Group (ARG) % change in sales year-on-year for 14 weeks to 7 January 2006 % Argos - total 9 - like-for-like 0 Homebase - total 1 - like-for-like (3) The non-food, non-clothing market remained weak during the period, although there was a boost to spending in the run-up to Christmas. Against this background, initiatives at Argos, including Argos Extra, and at Homebase, including mezzanines and Furniture Extra, have enabled both businesses again to outperform their markets. Looking forward, ARG continues to plan on the assumption that like-for-like sales will remain in decline for the non-food, non-clothing market as a whole for much of 2006, with increased promotional activity continuing in the DIY market in particular. UK retailers are also facing inflationary pressures on costs, as previously outlined. Argos In the 14 weeks to 7 January 2006, total sales at Argos increased by 9%. New stores contributed all of this growth, aided by the 33 acquired Index stores. Argos had 650 stores at the period end, up from 583 a year ago. Like-for-like sales at Argos were in line with last year, supported by the national roll-out of Argos Extra. The contribution to sales of toys and jewellery in the third quarter is about double that in the rest of the year; jewellery remained a difficult market. There was, however, a good performance from consumer electronics, with strong market demand in gift areas such as MP3 players and video games systems, as well as flat screen TVs and satellite navigation. Furniture and white goods also achieved good growth. Gross margin was in line with last year as supply chain gains countered an adverse product mix. Customers continued to increase their use of Argos' multi-channel capabilities. Argos Direct, the delivery to home operation, grew sales by 14% in the period, representing 19% of sales. Within this, sales ordered on the Internet increased by 37% in the period, contributing 6% of sales. A further 13% of sales were reserved by phone or Internet for later collection in store (Check and Reserve), up 38% year-on-year. The Spring/Summer 2006 catalogue, which will be launched on 21 January, continues to give customers better value and increased range. It will be the first Spring/Summer catalogue to offer customers in all stores the entire Extra range of 17,200 lines (up from 13,300 in the main catalogue a year ago). Homebase Sales at Homebase grew by 1% in the 14 weeks to 7 January 2006. New stores contributed 4% to sales growth. Homebase traded from 297 stores at the period end (of which 141 had mezzanines) compared to 287 a year ago (104 with mezzanines). Despite an increase in promotional activity compared to last year, like-for-like sales declined by 3% in the period. Gross margin was slightly down year-on-year. In what remained a very difficult DIY market, total sales of core DIY and decorating products were lower than last year. Homebase's performance in the quarter was, however, helped by good growth in big ticket items driven by initiatives such as new mezzanines and the national roll-out of the Furniture Extra catalogue in Autumn 2005. Experian % change in sales year-on-year for the three months to 31 December 2005 Continuing At actual exchange At constant activities only rates % exchange rates % Experian North America 40 31 Experian International 8 8 Global Experian 25 20 Experian again performed strongly, with a 20% increase in sales in the third quarter (7% organic; 13% from acquisitions). Experian continues to win business in many countries, driven by the strength of its product range, its business mix and broad global reach. As expected, growth at Experian North America slowed from the exceptional levels achieved in the last twelve months. Experian North America In dollars, sales at Experian North America increased by 31% in total, of which 23% came from corporate acquisitions. Although the business traded against much stronger comparatives, organic growth in the quarter was 8%, supported by contract wins in many areas. In dollars, Credit Information and Solutions together delivered double-digit growth excluding acquisitions. This was driven by continued strength in prescreen, scoring and analytics. The FACT Act cost recovery charge contributed 3% of the growth in Credit and has fully annualised from 1 January 2006. Marketing Information and Solutions together showed solid growth, with e-mail marketing and syndicated market research performing particularly well. Experian Interactive accounted for 35% of North America sales in the third quarter. This reflected a first time contribution from acquisitions (LowerMyBills.com, ClassesUSA and PriceGrabber.com), which are trading ahead of plan, and a continued strong performance from Consumer Direct. MetaReward was down year-on-year as expected as it anniversaried some large, one-off campaigns last year. Experian International At constant exchange rates, sales at Experian International increased by 8% in the third quarter. Organic growth was 6% and acquisitions contributed 2% (as QAS has now been part of Experian for more than a year). Experian International showed solid growth in Credit, Marketing and Outsourcing. There was good growth at Experian UK despite subdued consumer lending. This reflected strength in both credit and marketing solutions, continued new contract wins in the telecoms and public sectors and direct-to-consumer. Experian-Scorex delivered double-digit growth with strong performances in Eastern Europe and Asia Pacific. The French Outsourcing business has recently won major contracts in cheque processing and the government sector. Experian International continues to make complementary acquisitions, including FootFall, the market leader in measuring pedestrian shopper flows. This transaction reinforces Experian's position as a leading provider of data, analytics and consultancy services for retailers and property owners. Disposals The demerger of GUS' remaining stake in Burberry to its shareholders was completed on 13 December 2005. Benchmark profit before tax1 for GUS for the year to 31 March 2006 will include a contribution from Burberry up to the date of disposal. On 28 October 2005, GUS announced an agreement to dispose of Wehkamp for about Euro390m to Industri Kapital, a private equity firm. Subsequently, the Dutch government announced a reduction in the maximum interest rate chargeable by commercial lenders to consumers from 21% to 16%. As this reduction will have a substantial effect on the future profitability of Wehkamp, the external funding made available to the purchaser was cut. In the circumstances, GUS has agreed to a reduction in consideration to approximately Euro320m to reflect lower expected earnings. Completion of the transaction is expected later this month. The net book value of assets at the date of completion is expected to be approximately Euro335m. GUS now expects to realise a loss, after costs, of about Euro25m on the transaction which will be booked in the second half of the current financial year. Future announcements GUS will announce its Preliminary Results for the 12 months to 31 March 2006 on 24 May 2006. The Second Half Trading Update will be on 12 April 2006. Enquiries GUS David Tyler Group 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. Certain statements made in this Trading Update 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. 1 Benchmark PBT is defined as profit before amortisation of acquisition intangibles, exceptional items (i.e. gains or losses on disposal or closure of businesses and goodwill impairment charges), financing fair value remeasurements and taxation. It includes the Group's share of associates' pre-tax profit and the profits or losses of discontinued operations up to the date of disposal or closure. This information is provided by RNS The company news service from the London Stock Exchange END TSTILFSTLIILLIR |
Posted at 18/11/2004 07:12 by maywillow RNS Number:3673FGUS PLC 18 November 2004 18 November 2004 GUS plc Interim Results for the Six Months Ended 30 September 2004 Strong financial performance *15% increase in profit before amortisation of goodwill, exceptional items and taxation to #406m (2003: #354m) *Profit before tax increased to #323m (2003: #247m) *11% increase in basic earnings per share before amortisation of goodwill and exceptional items to 28.9p (2003: 26.0p) *Basic earnings per share 20.5p (2003: 15.3p) *13% increase in interim dividend to 9.0p (2003: 8.0p) *10.4% post-tax return on capital in the 12 months to 30 September 2004, showing continued improvement Record profits again at Argos, Experian and Burberry *Argos Retail Group: sales up 10% and profit up 13% *Experian: sales up 15% and profit up 13% for continuing activities at constant exchange rates *Burberry: sales up 14% and profit up 22% at constant exchange rates Further initiatives to enhance shareholder value *Portfolio reshaping continues: IPO of 46% stake in Lewis Group completed; further Experian infill acquisitions; Burberry share repurchase programme of about #250m *#67m of GUS #200m share buyback programme completed Sir Victor Blank, Chairman of GUS, commented: "GUS has once again achieved record half-year profits. We have continued to invest across the Group to further enhance shareholder value. I would like to thank everybody at GUS for contributing to these excellent results." John Peace, Group Chief Executive of GUS, commented: "In the first half, we delivered double-digit sales and profit growth at constant exchange rates in each of our main businesses. While not underestimating the current challenges in some of our markets, we have clear strategies for growth in each of our businesses and are confident of the strength of their competitive positions." Enquiries GUS John Peace Group Chief Executive 020 7495 0070 David Tyler Group Finance Director Fay Dodds Director of Investor Relations Finsbury Rupert Younger 020 7251 3801 Rollo Head There will be a presentation today at 9.30am to analysts and investors at the Merrill Lynch Financial Centre, 2 King Edward Street, London EC1A 1HQ. The presentation can be viewed live on the GUS website at www.gusplc.com. The supporting slides and an indexed replay will also be available there later in the day. There will be a conference call to discuss the results at 3.00pm today (UK time), with a recording available later on the website. All relevant GUS, Burberry and Lewis Group announcements are also available on www.gusplc.com. GUS will issue its Third Quarter Trading Update on 13 January 2005. Its preliminary results for the year to 31 March 2005 will be announced on 25 May 2005. 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 results to differ materially from any expected future results in forward looking statements. GROUP STRATEGY In May 2004, the Board of GUS stated that it believed that there is further scope to increase shareholder value significantly. Considerable progress has been made during the first half of the year. Delivered strong financial performance GUS has grown profit before tax by 15% in the first half. Each of our three main businesses has again reported record operating profits and generated double-digit sales and profit growth at constant exchange rates. The interim dividend has been increased by 13%. Continued to invest in three main businesses GUS has continued to invest in its main activities through a combination of capital expenditure (#164m in the period), working capital (a #57m increase in the Financial Services loan book) and acquisition (#36m on buying complementary businesses for Experian). Continued to transform the Group The partial IPO of the Lewis Group took place in September 2004. GUS sold 46m shares (or 46% of the equity) for net proceeds of #105m. It will also transfer about three million shares to Lewis share incentive schemes. Although the transaction is modestly dilutive to earnings, the listing has enabled GUS to realise value, while at the same time enhancing the development opportunities for Lewis. The share repurchase programme announced by Burberry will enable GUS to maintain its existing holding in Burberry while receiving about #165m in available cash. Burberry has announced a share repurchase programme of approximately #250m, following a review of its balance sheet strategy. This is expected to be completed by March 2006. GUS will retain its existing 66% stake in Burberry, but benefit from Burberry returning cash to its shareholders. To effect this transaction, for every share bought in the market from external shareholders, Burberry will purchase a proportionate number of shares directly from GUS at the same price. This mechanism is subject to approval at a Burberry EGM. GUS has completed #67m of its share buyback programme of approximately #200m announced in May 2004 (7.8m shares at an average price of 850p). This is in addition to #191m of dividends paid to shareholders in the first half. GUS expects to complete the balance of the buyback as planned by the end of this financial year. The scope for subsequent buybacks will, as previously announced, be regularly reviewed. Initiated strategic review process GUS announced in May 2004 that its Board would actively review all strategic options over a two-year period in order to create further value for its shareholders. This process is on track and GUS will update shareholders in due course. GROUP FINANCIAL HIGHLIGHTS Sales from continuing operations up 8% to #3.7bn An increase of 15% to #406m of profit before amortisation of goodwill, exceptional items and taxation. This is after an adverse foreign exchange movement of #14m. An increase of 11% to 28.9p in earnings per share before amortisation of goodwill and exceptional items. Minority interests were #19m (2003: #10m), reflecting strong profit growth at Burberry and the sale of a further stake in that business in November 2003. An effective tax rate of 24.4%, based on profit before amortisation of goodwill and before profits and losses on sale of businesses. This compares to 23.4% in the last financial year. Net debt reduced to #1.3bn at 30 September 2004, down from #1.5bn a year ago, driven by strong operational cash flow and proceeds from disposals. The increase of #58m in net debt since 31 March 2004 reflects the share buyback undertaken in the period. Interim dividend of 9.0p announced (2003: 8.0p). 10.4% post-tax return on capital for the 12 months to 30 September 2004, up from 9.4% for the previous 12 months. 6 months to 30 September Sales Profit before taxation -------------------- ---------------- ---------------- 2004 2003 2004 2003 #m #m #m #m -------------------- --------- --------- --------- --------- Argos Retail Group 2,675 2,435 172.7 153.0 Experian 645 638 152.7 145.7 Burberry 348 321 78.8 66.9 Other 81 73 14.0 10.0 --------- --------- --------- --------- Continuing operations 3,749 3,467 418.2 375.6 Discontinued operations - 269 - 15.0 --------- --------- --------- --------- Total 3,749 3,736 418.2 390.6 -------------------- --------- --------- Net interest (12.4) (36.2) --------- --------- Profit before amortisation of goodwill, exceptional 405.8 354.4 items and taxation Amortisation of goodwill (98.8) (91.4) Exceptional items 16.4 (15.6) --------- --------- Profit before taxation 323.4 247.4 -------------------- EPS before amortisation of goodwill and exceptional 28.9p 26.0p items -------------------- Basic EPS 20.5p 15.3p -------------------- The profit before taxation figure shown against each business above is operating profit, defined as profit before interest, taxation, exceptional items and goodwill amortisation. The same definition of operating profit is used in each table in this announcement. 2003 sales have been restated for FRS 5 Application Note G. Discontinued operations include sales from Home shopping and Reality and operating profit from Property. See Appendix for details. ARGOS RETAIL GROUP (ARG) Sales up 10% to #2.7bn and profit up 13% to #173m at ARG, the UK's largest general merchandise retailer Argos again outperformed its market; 7% like-for-like sales growth Homebase demonstrating benefits of repositioning; 4% like-for-like sales growth ARG sourcing initiatives progressing well Financial Services moved into profit; driving merchandise sales in Argos and Homebase 6 months to 30 September Sales Operating profit -------------------- --------------- ---------------- 2004 2003 2004 2003 #m #m #m #m -------------------- -------- --------- --------- --------- Argos 1,552 1,377 85.7 73.9 Homebase 981 917 76.3 71.5 Financial Services 35 25 0.4 (3.3) Wehkamp 107 116 10.3 10.9 -------- --------- --------- --------- Total 2,675 2,435 172.7 153.0 -------------------- -------- --------- --------- --------- Operating margin 6.5% 6.3% -------------------- -------- --------- --------- --------- Notes (relevant to all ARG tables): 2003 sales and operating margin have been restated for FRS 5 Application Note G and exclude discontinued activities. Full details are given in the Appendix. Homebase sales and operating profit are for the seven-month periods to 30 September. ARG is focused principally on selling general merchandise in the UK. It has a multi-brand, multi-channel offer, supported where appropriate by a central infrastructure in areas such as sourcing and supplier management, multi-channel ordering and home delivery and financial services. At the time of the Homebase acquisition in December 2002, ARG expected integration benefits of at least #20m per annum within three years. Incremental benefits have now been identified, principally driven by joint sourcing activities. Sourcing savings have come through in greater quantity and faster than envisaged at the time of acquisition. Total benefits from the integration are therefore now expected to be about #40m in the year to March 2006, broadly double the initial target. These savings will be largely re-invested in lower prices or re-invested in the business to support future growth. Argos 6 months to 30 September 2004 2003 Growth #m #m -------------------- Sales 1,552 1,377 13% Total growth 13% 14% Like-for-like growth 7% 7% Operating profit 85.7 73.9 16% Operating margin 5.5% 5.4% -------------------- At 30 September Number of stores 570 540 Of which: Argos Extra stores 146 26 In an increasingly competitive general merchandise market in the UK, Argos aims to win more customers and a greater share of their spend by offering the most compelling combination of choice, value and convenience. Operational review Argos again clearly outperformed its market. Sales grew by 13% year-on-year as Argos made strong market share gains in many product categories, especially consumer electronics, photography, white goods and leisure. Argos Extra, which offers consumers even more choice, performed well in the first half. The Argos Extra range has 3,800 more lines than the main catalogue at 13,200. It is now available in 146 stores, of which 109 stock-in the additional lines. In the remaining 37 neighbourhood stores, customers can order the extended range for later collection. Leisure, storage and lighting ranges sold particularly well in the first half. A high single-digit percentage sales uplift continued to be achieved during the period in the Argos Extra stocked-in stores. Sales performance is stronger in those conurbations, such as Bristol, which have several Extra stores. The progress of Argos Extra will continue to be evaluated through peak trading. Argos continues to re-invest supply chain gains in further improving value for its customers. Prices on re-included lines in the Autumn/Winter 2004 catalogue are approximately 5% lower than last year, helped in part by the movement in the US dollar. Argos also continues to reduce prices during the life of the catalogue to improve its value proposition with customers. In the Spring/Summer 2004 catalogue, over 20% of sales were at promotional prices, broadly in line with the previous year. Argos continues to win share driven by the convenience of its multi-channel offer. Argos offers customers the ability to order or reserve goods in store, by phone or on the Internet, for delivery to store or home. Further progress was made during the first half in improving convenience: - Argos opened 14 stores in the first half, bringing the total to 570. A further 21 store openings are planned for the second half; - Argos Direct, the delivery to home operation, grew sales by 30% and accounted for 24% of total sales in the first half. The third Argos Direct two-man delivery warehouse in Darlington is planned to be operational in time for the build-up to Christmas 2005; - 5% of Argos' sales in the first half were ordered over the Internet for direct delivery to home. This increase of about 50% over the same period last year contributed to the growth in Argos Direct. In addition, 6% of total sales were reserved by customers, either by phone, Internet or text messaging, for later collection in-store; and - Argos will have quick pay kiosks in over 300 stores by Christmas 2004. Kiosks process about 8% of sales where present, reducing queuing in-store for customers. Financial review Sales for the six months of #1,552m increased by 13%, of which 6% came from new stores that continue to perform ahead of expectations. Like-for-like sales growth was 7%. Gross margin was in line with the previous year, with supply chain benefits continuing to fund lower prices. Operating profit grew by 16% and operating margin advanced by a further ten basis points to 5.5%, despite investment in the roll-out of Argos Extra and additional distribution capacity. Homebase 7 months to 30 September 2004 2003 Growth #m #m -------------------- Sales 981 917 7% Total growth1 6% 4% Like-for-like growth1 4% 2% Operating profit 76.3 71.5 7% Operating margin 7.8% 7.8% -------------------- At 30 September Number of stores 283 273 Of which: number with mezzanine floor 88 52 1 Total and like-for-like growth for H1 2004 excluded 29 February 2004. Homebase continues to reposition itself as the UK's leading home enhancement retailer. The key strategic priorities remain unchanged, being to: - improve the existing core business; - enhance and extend its home furnishings offer; and - deliver synergies by leveraging the scale and expertise of ARG. During the period under review, Homebase has made further substantial progress in executing and delivering on this strategy. Operational review Homebase continues to improve the in-store experience for its customers. The actions initiated during the last year to improve customer service, stock availability and retailing basics have continued in the first half. The results are beginning to show through in positive feedback from customers. Homebase has made good progress in range development and store layout, supporting the core DIY and decorating offer. Range developments have taken place on tiling, own brand paint and power tools, the latter being jointly sourced from the Far East with Argos. There has also been a successful new store design trial in Telford and Plymouth incorporating improved layout, range and navigation. This has included increased mezzanine space, allowing extensions to the core DIY and decorating product offer on the ground floor. Homebase continues to see strong growth in home furnishings, especially kitchens and bathrooms. New product ranges are better displayed in the new store formats and customer service is being enhanced by, for example, the roll-out of CAD systems across the chain. Homebase is also benefiting from the infrastructure and expertise of ARG. For example, there has been an encouraging response to its trial of a furniture catalogue in 15 of its stores. This offers furniture from both the Argos and Homebase ranges and is delivered to home using the Argos Direct infrastructure. Homebase continues to refine and roll out its mezzanine format. Homebase opened 21 mezzanines in the first half of the year, bringing the total to 88 and expects to open up to a further 25 in the second half. The latest enhanced mezzanine formats are trading well and delivering sales uplifts in excess of 15%. Homebase continues with its store opening programme. Homebase opened five stores in the first half, bringing the total to 283, and expects to open a further four new stores in the second half. Plans are in place to accelerate the store opening programme to about 45 new stores in the three years 2006 to 2008. This will add about 12% to selling space by March 2008. Combined sourcing improvements are ahead of plan and continue to fund re-investment in lower pricing where appropriate. Product sourcing between Argos and Homebase, using the ARG Far Eastern offices, has proved successful particularly in areas such as garden power, power tools and garden furniture. An accelerated pace of activity on joint programmes - including value chain improvement, reverse auctions and development of own-brand product - continues to drive down cost prices. Financial review Sales in the seven months to 30 September 2004 increased by 6%, 4% on a like-for-like basis (excluding 29 February 2004). The strong performances in kitchens, bathrooms and tiling continued, while there were good uplifts from new ranges in areas such as paints and power tools. Gross margin was in line with previous year, as supply chain gains funded lower prices and increased seasonal promotions. Operating profit at #76.3m grew by 7% compared to the same period last year, with operating margin remaining level at 7.8%. Investment in marketing and mezzanines increased year-on-year. |
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