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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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Gusbourne Plc | LSE:GUS | London | Ordinary Share | GB00B8TS4M09 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 59.50 | 58.00 | 61.00 | 59.50 | 59.50 | 59.50 | 4,691 | 08:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Wine,brandy & Brandy Spirits | 6.86M | -2.53M | -0.0415 | -14.34 | 36.2M |
Date | Subject | Author | Discuss |
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18/11/2004 12:39 | LONDON, November 18 (newratings.com) - Analysts at Dryden Financial maintain their "buy" rating on GUS (GUS.ZRH). In a research note published this morning, the analysts mention that the company reported its interim pre-tax profits ahead of the consensus. The like-for-like sales at the Argos and Homebase segments rose by 7% and 4%, respectively, during the period, the analysts say. The company's Dixons segment witnessed sluggish gross margins, Dryden Financial adds. | waldron | |
18/11/2004 12:34 | Further profit growth at GUS Thursday November 18 2004 Argos: Store openings boost market share Strong first half for retail group GUS has continued to consolidate its strength in the UK retail market, notching up a 15 per cent increase in profits across the six months to the end of September. The owner of the Argos and Homebase chains recorded pre-tax profits of £323m, with sales from continuing operations up 8 per cent. The period saw the partial IPO of South African retail group Lewis. The Argos Retail group saw sales grow 10 per cent to £2.7bn, with profits up 13 per cent to £173m. Consumer information business Experian saw sales grow by 15 per cent with profits up 13 per cent. At Argos, like-for-like sales grew by 7 per cent, with market share gains in product areas including consumer electronics, photography, and white goods. Argos opened 14 new stores in the first half, bringing the total to 570, with another 21 openings planned for the second half. DIY business Homebase saw sales grow by 7 per cent to £981m across the seven months to September 30, with progress in range development and store layout, boosting the core DIY and decorating offer. Homebase opened five stores in the first half, bringing the total to 283, and expects to open a further four in the second half. In addition 21 mezzanines opened in existing stores, bringing the total to 88, with another 25 planned in the second half. GUS said there has been an "encouraging response" to a trial of a furniture catalogue in 15 Homebase stores. This offers furniture from both the Argos and Homebase ranges, delivered to customer's homes by the Argos Direct operation. John Peace, GUS group chief executive, said: "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." Burberry, in which GUS has a 66 per cent stake, reported sales growth of 14 per cent to £348m this week, while Lewis Group, which GUS still hold 54 per cent of, grew sales by 13 per cent to £86m. | waldron | |
18/11/2004 12:17 | thanks phooey for the good luck, i did alright with GUS about 20% and would have held for 920 but I didn't think the results where going to be that fantastic, as the so-called experts ramped. With sell volumes well up on buys, lets see what unfolds. All the best. | daz2004 | |
18/11/2004 12:00 | Daz.. Yes turnover is only a tad higher but that did include discontinued operations in the 2003 figures, continueing operations up 10% on 2003 and more important than turnover, profit.... *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 In my opinion this still has some good upside and I'm still holding which why I fight my corner... but time will tell I wish you luck Daz | phooey | |
18/11/2004 11:17 | Phooey - decent results but not fantastic. Turnover was barely changed at £3.75bn compared to £3.74bn a year ago. Fair play to management they did predict slowdown in sales "GUS finance director David Tyler said the group's assessment is that growth in UK consumer spending will continue to slow through the September to December quarter." | daz2004 | |
18/11/2004 10:11 | I bought some at 892 and this morning at 865 | andy_bristol | |
18/11/2004 10:06 | I got 879p so happy to stay out for now. Good luck others. | daz2004 | |
18/11/2004 10:04 | perhaps 900p by the close isnt unreasonable to expect | andy_bristol | |
18/11/2004 10:00 | Results were as good as predicted and xmas sales forcast are excellent IMO early selling due to people taking profits after the results... Now initial opening frenzy is over share price seems to be coming back Merrill kept its 'buy' rating on the group, while Panmure Gordon retained its 'outperform' stance. | phooey | |
18/11/2004 09:51 | SP turning around at present | andy_bristol | |
18/11/2004 09:41 | andy - brokers were building up GUS too much before todays announcement. I had a view over the last few days something wasn't right, as unless results were superb then even modestly decent results would mean a drop. I sold up first thing this morning and I'm afraid I see drop back coming. I also don't like the Experian holding with dollar plummenting, its not good long term. Might look back at getting in when dust as settled and Sp is 800. | daz2004 | |
18/11/2004 09:31 | Teather & Greenwood has issued a buy rating after today's results. | andy_bristol | |
18/11/2004 09:23 | I still dont understand why this has dropped this morning. Was looking for at least 900p. | andy_bristol | |
18/11/2004 09:07 | GUS crests 'chav' wave Guy Dresser, This Is Money 18 November 2004 CHAV culture continued to boost sales at GUS in the first half of the year. The company, which has a 66% stake in Burberry, has seen goods flying off the shelves as armies of young people take to its beige tartan accessories. GUS, which also runs Argos, said it expects to be one of the winners on the High Street this Christmas, dismissing fears among other retailers that a downturn in the housing market may spell disaster in the run up to the festive season. Even as other retailers fret about prospects following a downturn in the housing market and waning consumer confidence catalogue retailer Argos reported record half-year profits. GUS said today that each of its key businesses had reported their highest-ever results. The company's figures beat City forecasts and chief executive John Peace predicted a strong Christmas trading season. He admitted, however, that trading would be fiercely competitive, echoing warnings from Dixons yesterday. The combination of a new Argos catalogue and severe price cuts on popular products is expected to prove a winner for the chain. The popularity of Burberry fashion among the so-called 'chav' youth culture is on a roll. The clothes company unveiled an 18% rise in half-year profits to £78.8m plus a £250m share buy-back. GUS's credit checking arm, Experian, also produced record results and group profits at GUS were up 15% to £406m in the six months to the end of September. Shareholders were rewarded with a 13% hike in the half-time payout to 9p. Like-for-like sales at Argos were 7% ahead while Homebase was up by 4%. Savings at the DIY chain will now be double initial expectations, at £40m over three years. Peace said the group was not underestimating the current challenges in some of its markets. But he added: 'We have clear strategies for growth in each of our businesses and are confident of the strength of their competitive positions.' Shares in GUS rose 9p to 879½p. | maywillow | |
18/11/2004 08:17 | GUS First-Half Profit Gains 35% on Argos, Homebase (Update2) Nov. 18 (Bloomberg) -- GUS Plc, Britain's second-largest retailer by market value, said first-half profit increased 35 percent as its Argos stores outpaced competitors and sales growth accelerated at the Homebase home-improvement chain. Net income in the six months through September rose to 205 million pounds ($385 million), or 20.2 pence a share, from 152 million pounds, or 15.2 pence, a year earlier, the London-based company said in a statement today. Pretax profit before amortization advanced 15 percent to 406 million pounds, beating the median analyst estimate of 400 million pounds. GUS is focusing on its U.K. retail operations and said in May it might sell or spin off the Experian credit-checking unit over the next two years. First-half sales at Argos rose 13 percent to 1.55 billion pounds as the chain cut prices, added products and opened stores to take business from competitors. ``It's had a good first half and will probably have a decent second half,'' said Philip Manduca, who helps manage about $300 million of assets at Titanium Capital in London. The company ``is structured well, it has a diverse portfolio of products and management has proven itself to date.'' A strategic review started in May is ``on track,'' GUS said. Shareholders will be updated ``in due course,'' it said. Shares of GUS fell 22 pence to 870.5 pence in London on Wednesday after Dixons Group Plc, Britain's largest consumer- electronics seller, said slack consumer spending and increased competition were hurting sales and profitability. U.K. retail sales are slowing after five interest-rate increases in a year. ``The environment out there is one in which we see a slowdown in growth of consumer spending,'' GUS Chairman Victor Blank said in an interview. Kitchens, Bathrooms Blank declined to comment on speculation that GUS may be interested in buying MFI Furniture Group Plc, the largest U.K. furniture retailer whose shares have gained 12 percent this month on reports that the company may be a takeover target. ``If there are acquisition opportunities that make sense, we will continue to make them,'' Blank said. First-half operating profit at GUS's U.K. retail businesses advanced 13 percent to 173 million pounds as both the Argos and Homebase chains had record earnings, the company said. Argos, where shoppers pick merchandise from a catalog and have it brought from a back room, increased earnings by 16 percent to 85.7 million pounds. At Homebase, the second-largest U.K. home- improvement chain, profit rose 6.7 percent to 76.3 million pounds. Homebase is moving into kitchens and bathrooms and adding mezzanine floors to fuel demand. Revenue at outlets open at least a year gained 4 percent in the first half, while same-store sales at Argos rose 7 percent, GUS said last month. Experian At Experian, a company that checks people's credit histories for lenders such as Citigroup Inc., first-half earnings rose 4.7 percent to a record 153 million pounds. Growth was constrained by the U.S. dollar's decline against the pound, which reduced the value of North American earnings on translation, GUS said. At constant exchange rates, profit at the unit rose 13 percent. Revenue at Experian North America increased 15 percent at constant exchange rates, while Experian International's sales gained 16 percent on the same basis, GUS said last month. GUS owns 66 percent of U.K. luxury-goods retailer Burberry Group Plc, worth about 1.4 billion pounds. The company last sold Burberry stock a year ago and probably won't sell more in the near future, even though a one-year ``lock-up'' expires today, Goldman Sachs Group Inc. analyst Aaron Fischer said in a note. Burberry on Tuesday said first-half profit increased 25 percent as it sold more ponchos, mini-capes and fragrances. The company also announced plans to repurchase 250 million pounds of stock, of which GUS's share is worth about 165 million pounds. GUS plans to pay a first-half dividend of 9 pence a share, an increase of 13 percent on the previous year's 8 pence. A 200 million stock repurchase program should be completed by the end of the fiscal year, according to the company, which spent 67 million pounds buying back shares in the first half. | maywillow | |
18/11/2004 08:13 | I think not very good, it was ramped up by brokers to be blockbusting results;-( Sold up. | daz2004 | |
18/11/2004 07:52 | LONDON (AFX) - GUS PLC six months to September 30 2004 Sales - 3.75 bln stg vs 3.74 bln Pretax profit before exceptionals and goodwill - 406 mln stg vs 354 mln Pretax profit - 323 mln stg vs 247 mln EPS before exceptionals and goodwill - 28.9 pence vs 26.0 EPS - 20.5 pence vs 15.3 Interim div - 9.0 pence vs 8.0 vjt/ | maywillow | |
18/11/2004 07:52 | maywillow - as expected or not too good? | daz2004 | |
18/11/2004 07:33 | LONDON (AFX) - GUS PLC, the retail and business services group that launched a strategic review in May, reported a 15 pct increase in underlying interim profits above market expectations and expressed confidence in its competitive position going forward. For the six months to Sept 30 GUS made a profit before taxation, amortisation of goodwill and exceptional items of 406 mln stg compared to analyst expectations of 395-401 mln stg and 354 mln stg last time. jdd/ec | maywillow | |
18/11/2004 07:12 | RNS Number:3673F GUS 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. | maywillow | |
18/11/2004 07:11 | And the results prove how well run it is...record profits....excellent | phooey | |
17/11/2004 23:00 | u hopeful? | the pixie | |
17/11/2004 19:41 | No but in the same sector... hopefully a good set of results tomorrow showing it to be a well-run company will put it in the right direction again...up!!!! | phooey | |
17/11/2004 13:39 | GUS isnt Dixons though... Its a well-run company | andy_bristol | |
17/11/2004 12:40 | LONDON (AFX) - Dixons Group PLC added to gloom on the high street with news that sales growth over the last couple of weeks has slowed and cautious comments on the outlook for 'big ticket' expenditure in the run-up to the crucial Christmas period. The downbeat assessment on second half trading offset a solid set of first half sales figures, sending shares in Dixons 6 pct lower. It adds to emerging signs of slowing consumer spending in the UK -- a gloomy October report from the British Retail Consortium, anaemic recent weekly data from John Lewis' department stores and yesterday's profit warning from fashion retailer French Connection PLC and caution from luxury brand Burberry Group PLC. Shares in other general retailers exposed to UK electricals and bigger ticket durables were also under pressure -- GUS PLC, which owns Argos, Kingfisher PLC, which owns B&Q, and Kesa PLC, which owns Comet, were all sporting losses. "Business performance in the year to date has been satisfactory," said Dixons chief executive John Clare. "However, the rate of sales growth has slowed in recent weeks and we are cautious about the outlook for consumer expenditure on high-ticket discretionary purchases across the balance of the year, particularly in the UK." Clare noted that as always, Dixons' full year (to end-April 2005) performance will be significantly affected by trading over the important Christmas trading period. "We are confident in our plans for Christmas and we are prepared for an aggressive trading environment," he said. Dixons' total group retail sales rose 9 pct in the 28 weeks to Nov 13 and grew by 5 pct on a like-for-like basis, which strips out new space. Gross margins across the group were 0.7 percentage points lower than last year, having been down 0.4 points after 18 weeks -- implying a 120 basis points decline in margins over the last 10 weeks. Dixons attributed the margin fall to a higher level of business to business sales, lower credit commissions, and product mix changes. Analysts said Clare was "very gloomy" on the conference call about pricing pressure in the UK and gross margin prospects. They said the CEO pointed to a recent outbreak of UK price competition in response to weakening big-ticket demand. UK sales were up 6 pct on a like-for-like basis. Within this, like-for-like sales were up 9 pct at Currys, 3 pct at PC World, 3 pct at the Dixons chain and 8 pct at The Link. Analysts noted that UK like-for-like sales had been up 7 pct after 18 weeks (reported Sept 8), implying sales growth of around 4 pct in the last 10 weeks. They reckon like-for-like sales at PC World, the biggest ticket retailer in the group, were flat over the last 10 weeks. They pointed out the decline in growth has come despite a 10 pct increase in advertising expenditure and noted that comparatives get much tougher from here with like-for-like sales up 4 pct in the second half last year. International sales in sterling, which included eight weeks of trading from Greek retailer Kotsovolos, grew 14 pct in the first half, and 1 pct on a like-for-like basis. In local currencies, sales grew 19 pct. Like-for-like sales were up 2 pct at Elkjop (Scandinavia), down 2 pct at UniEuro (Italy), and up 6 pct in Ireland. Across the group, costs as a percentage of sales improved 0.5 pct. "Management's cautious commentary confirms the slowdown in sales momentum highlighted elsewhere," noted Citigroup Smith Barney. "As a result, downside risks to forecasts now look to be a serious issue for the shares." The US broker downgraded its recommendation to 'hold' from 'buy' and cut its target price to 170 pence from 190 pence. It reckons brokers' year to end-April 2005 pretax profit consensus will fall by around 15 mln stg to about 345 mln stg, versus 332 mln stg last year. Meanwhile Panmure Gordon downgraded its stance to 'sell' from 'hold', Teather & Greenwood shifted to 'hold' from 'buy' and Evolution Securities cut to 'weak add' from 'buy'. At 12.00 midday Dixons shares were down 9-1/4 pence at 157-1/2 pence, valuing the group at 3.03 bln stg. james.davey@afxnews. jdd/ra | grupo guitarlumber |
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