Gusbourne Share Discussion Threads

[ariane] 27/9/2005 14:57

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 13:29

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 12:18

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 17:06

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 17:02

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 15:17

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 11:33

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."

[garybaldi] 10/8/2005 15:04

Argos Retail Group news

Argos changes staffing arrangements in store

10/08/2005

Argos, the UK's leading multi-channel retailer, today announces that it is introducing a number of changes to staffing within its stores.
This reorganisation ensures that over 500 managerial roles will be more customer-facing and that more staff are available in the hours in which an increasing number of Argos customers want to shop.

There are two key changes:


Argos will remove certain managerial roles in store and
introduce a new role of "Service Co-ordinator". All those
affected will have the option of taking a customer-facing role
in store, such as the role of Service Co-ordinator, or, if
possible, a position elsewhere in the Group.

Argos has decided to better reflect the changing shopping
habits of its customers by adjusting the hours that some of
its staff in store work. The working hours of these staff will
be re-deployed to give Argos greater flexibility to fit the sales
patterns in store, ensuring that the company is better placed
to serve customers during peak evening and weekend
trading hours.
Combined, these two initiatives will affect around 1,500 of the 21,000 staff across 604 stores. All those employees affected by the changes will be offered alternative roles or hours within the business. However, it is anticipated that some will choose to take redundancy.

According to Argos Managing Director, Sara Weller, "This is a practical measure to ensure that we are as flexible as possible in serving our customers.

"Like any responsible business it is vital that we constantly evaluate our working practices to ensure that we are operating effectively and it is important that we identify ways that we can provide better service to our customers".


-ENDS-

[ariane] 11/7/2005 05:12

thanks Max

enjoy your week

[maximoney1] 10/7/2005 21:50

Double bottom in place....could now see a strong rise....imo.

[ariane] 10/7/2005 16:02

LONDON (AFX) - Dixons Group PLC, the retail group that owns the Currys and
PC World chains, has lost its title as 'the UK's biggest retailer of products
for the home' to Argos Retail Group, the division of GUS PLC that owns Argos and
Homebase, The Sunday Telegraph reported.
According to the 'Retailing for the Home' survey by Verdict Research. Argos
Retail, which is led by Terry Duddy, is the first non-specialist retail group to
gain the largest share of the home market
Over 2004, its share of the 61.5 bln stg home market -- encompassing
retailers in electricals, furniture, DIY, floorcoverings and homewares -- grew
to 7.4 pct, edging past Dixons' 7.3 pct share.
ml/jlw

[ariane] 24/6/2005 08:17

FTSE 100 Retailers Recovery Looks Uncertain

Friday, June 24, 2005 2:19:45 AM ET
Dow Jones Newswires



0602 GMT [Dow Jones] A recovery for the FTSE 100 general retailers looks uncertain due to the weak environment and difficult comparisons through December '05, says Lehman Brothers. Cuts Boots (BOOT.LN) '06 EPS by 2% to 431p, cuts GUS (GUS.LN) '06 EPS by 2% to 63.6p, cuts Next (NXT.LN) '06 EPS by 8% to 115.5p, cuts Kingfisher (KGF.LN) EPS '06 by 9% to 17p, but ups Dixons (DXNS.LN) '06 EPS by 11% to 11.5p. Keeps Marks & Spencer (MKS.LN) estimates unchanged but reiterates overweight rating. Advises using any interest rate cut-inspired rally to take profits in Dixons, Kingfisher and Next. (DWE)

[maywillow] 16/6/2005 14:17

16/06/05 - Business section

Retail sales slow to six-year low
Michael Clarke, This is Money,

THE retail sector suffered more misery today after official figures revealed sales on the High Street rose at their weakest rate for six years.


According to Office of National Statistics figures, sales are now only 1.3% ahead of the same period last year after rising just 0.1% in May. This is the weakest rise since January 1999 and follows several months of slow consumer spending.


Furniture and DIY stores experienced the sixth consecutive decrease in volume, reflecting a slowdown in the housing market, while food sales also suffered poor growth. Clothes stores showed more signs of life however, rising 2.5% in the three months to May.


In a bid to encourage shoppers back to the tills, retailers cut prices by 1% against May 2004 figures.


The news comes as the House of Fraser reported a 3.2% dip in sales for the first 19 weeks of its financial year. The company said trading conditions had 'continued to be challenging in the early part of this year'.


It is one of a number of big name retailers that have reported deteriorating sales since the start of the year. Marks & Spencer, Boots, Next and French Connection have all suffered slips in sales as consumers tighten their belts.

HoF chief executive said: 'We are pleased with our progress in a difficult trading environment and have worked hard to manage the business effectively by focusing on stock management and further cost initiatives.'


Global Insight chief UK economist Howard Archer predicted the slowdown in consumer spending would continue. He said: 'Consumer spending will clearly remain a major focus for the Bank of England, which is expecting it to 'pick up somewhat' over the coming months.


'Consequently, the odds of an interest rate cut before the end of the year will rise markedly if the evidence grows that the slowdon in consumer spending has become entrenched.'


Earlier this month, the British Retail Consortium said sales dropped 2.4% in May and warned 2005 could be the worse year on the High Street since the 1960s.


Such tough trading conditions will see more retailers falling by the wayside. So far this year, department store chain Allders, clothes chain Pilot, the Gadget Shop and Ciro Citterio have been placed into administration. Some 830 stores have been closed or put up for sale.

Market research company GfK Martin Hamblin said a growing number of people thought it was not a good time to splash out.


A spokeswoman for the BRC, which has called on the Bank of England to cut interest rates, said High Street misery was continuing. 'We haven't seen anything that leads us to believe that June has been any better,' she said.


Bank Governor Mervyn King this week cast doubt on the widely held belief that rates have peaked, saying the slowdown had to be weighed against rapid money supply growth, rising import prices and a tight labour market.



--------------------------------------------------------------------------------

Find this story at

[grupo] 14/6/2005 07:36

LONDON (AFX) - GUS PLC said adoption of International Financial Reporting
Standards will not change how GUS is managed and will have no impact on
cash flow as it reported only a slight impact of the new accounting standard on
its benchmark pretax figure.
Under IFRS, the pretax profit before exceptionals and goodwill for the year
to end-March will merely be reduced by 4 mln stg against the 910 mln stg
reported under UK GAAP.
The retail and business services group reported results under GAAP last
month, with pretax profit before exceptionals and goodwill rsiing to 910 mln stg
year-on-year to 827 mln.
[e-mail]
lam

[waldron] 11/6/2005 05:12

Spending on DIY improvements rises 20%

By Scheherazade Daneshkhu, Economics Correspondent

Published: June 9 2005 03:00 | Last updated: June 9 2005 03:00

Spending on do-it-yourself improvements increased by 20 per cent over the past year, well above the 4.5 per cent increase in total overall household expenditure, according to official figures published yesterday. The amount spent on alterations rose to 4 per cent of total household spending in 2003-04 from 3 per cent the previous year, according to the Family Spending survey published by the Office for National Statistics. The wealthiest 10 per cent of the population spent £74.10 a week on altering and improving their homes, including installing new central heating, bathrooms, kitchens and garden sheds. This was more than twice the amount spent by the next wealthiest 10 per cent. The average amount spent by all households increased from £18.90 a week to £22.80. The ONS revealed the true cost of owning a home was £116 a week, equivalent to 20 per cent of household spending. This includes capital repayment of mortgages, household alterations and improvements, the cost of moving and of buying a second home. Other spending, principally pension and life assurance payments and investments, bumped up the total average amount spent by households to £592 a week, above the average gross weekly income of £570 a week. The average household spent more than it earned the previous year too, when average weekly spending was £566 compared with a gross household average income of £552.

However, when outgoings such as capital mortgage repayments, life assurance, income tax, national insurance, household improvements, savings, investments and second homes are excluded, the average weekly household spent £418 a week in 2003-04, up from £406 per week the previous year. The highest spending was on transport, which cost £61 a week, with the greatest slice of this going on buying new vehicles. Recreation and culture was the second largest expenditure category, taking up £57 of weekly household spend. This was followed by food and non-alcoholic drink at £44 a week, then by housing, fuel and power spending of £39 a week. The order of the top four categories has been unchanged for the past two years. This housing figure is based on a narrow internationally- agreed definition, based on rent and excludes mortgage interest payments and council tax. It is also averaged over all households, regardless of whether they own a home or not. The equivalent figure for households paying a mortgage was £97 a week, compared with £46 a week spent by in net rent by those paying rent. Mortgage-owning households in London spent the most £134 a week or 31 per cent more than the UK average. Those in the north-east spent 41 per cent less than the national average, or £58 a week.

[waldron] 27/5/2005 06:30

JP Morgan More Bearish On UK Retail >GUS.LN

Friday, May 27, 2005 2:04:36 AM ET
Dow Jones Newswires



0600 GMT [Dow Jones] JP Morgan cuts sales forecasts across the board for UK retailers on indications that the sales trend so far in 2Q "is as disappointing as in 1Q." Now forecasts an average decline in 05/06 of 3.7% from 1.2%. However, raises overseas estimates for GUS (GUS.LN), Signet (SIG), Kesa (KESA.LN) and Kingfisher (KGF.LN) based on better than expected performance. Maintains GUS, PPR (12148.FR), Signet overweight, as all have "strong international businesses." (PBA)

[waldron] 25/5/2005 14:55

services group into separate companies, starting with the distribution
of its 66 pct stake in fashion group Burberry PLC to shareholders later this
year.
However the lack of firm details on the timing and method for the separation
of its other two units, Argos Retail Group (ARG) and Experian, disgruntled
investors, with the stock firmly ensconced at the top of the FTSE-100 losers
board for most of the day. The reiteration of a gloomy outlook for trading
conditions also added to the decline.
GUS launched a two year strategic review last May, with many pundits
believing a break up of the catalogue-shopping-to-credit-checking group the best
way to deliver shareholder value. A spin off of its fastest growing business,
the credit checking unit Experian, was widely expected to be first.
"The demerger is good news, although uncertainty of the timing is slightly
disappointing," analyst Richard Ratner at Seymour Pierce said.
Dresdner Kleinwort Wasserstein brokers described the lack of news on timing
and methods as "frustrating".
One third of Burberry, the luxury goods group known for its checked prints
popular with footballer's wives and popstars, was floated on the London Stock
Exchange in 2002. The remaining stake will be issued to GUS shareholders via a
dividend in shares.
On a conference call with journalists chief executive John Peace refused to
be drawn on when or how Experian and ARG -- which as well as the eponymous
catalogue business includes Homebase do-it-yourself stores and a financial
services arm -- will be split.
"We have no specific plans, although there are various options," he said.
He rebuffed suggestions that a downturn in consumer spending prompted any
delay, stressing that the state of the struggling UK retail sector is only one
of many elements to consider before a decision on timing is made.
"There are a number of factors, which will be assessed by the board and they
will reach a conclusion at the right time," Peace said, declining to elaborate
further.
"This isn't the time to have the ARG (Argos Retail Group) management team
distracted," he added.
Last month, GUS joined retailers including Dixons PLC, Kingfisher PLC and
Next PLC in highlighting difficult conditions on the high street as consumer
spending stagnates. It revealed the first decline in underlying quarterly sales
for six years at its Argos catalogue business, and a 2 pct fall in fourth
quarter sales at Homebase.
"We don't expect either Argos Retail Group or Experian to be anything other
than growth businesses for the foreseeable future, but any business that
operates in difficult conditions will be affected," Peace commented today.
Consumer spending in the UK has slowed sharply in recent months, GUS again
noted this morning, and Peace said he sees difficult conditions continuing this
year, and maybe into 2006. He refused to comment on current trading conditions,
saying the company will provide a first-quarter update in July.
For the full year, finance chief David Tyler said analysts' forecasts are
likely to be changed. They will have to take into account the sale of the
remaining 50 pct stake in South African retailer Lewis Group last week, which
will slice 50 mln stg from profits, and Experian's acquisition of
LowerMyBills.com last month.
"Some no doubt will also want to reflect the fact that we believe retail
market conditions will go on being difficult," he added.
Merrill Lynch this morning told clients it trimmed 2005/06 EPS estimates by
5 pct. Other experts were factoring in a fall in like-for-like sales, which
strips out the impact of new space, of around 2-3 pct at Argos and Homebase in
the current year, and many said forecasts are under review.
While ARG and Experian remain within the same group, GUS intends to continue
investment, and this morning revealed a four year expansion plan for Argos and
Homebase. Pace stressed the length of the programme has "no connection at all"
to the timing of a spin off.
The 592-store Argos chain will expand to more than 750, with around 35 new
stores a year, while 15 outlets a year will be added to Homebase, taking it to
350 by March 2009.
Meanwhile Don Robert, head of Experian, said that side of the business will
continue to be an "active acquirer" this year.
"Part of our stated growth strategy involves the use of our very strong cash
flow acquisitions, and we're committed to that," he said.
The business, which currently accounts for almost one fifth of sales and
just over a third of profits, was beefed up with the 380 mln usd acquisition of
California-based website LowerMyBills.com earlier this month.
In the year to end-March Experian, which holds credit information on 300 mln
US consumers and 20 mln businesses worldwide, reported a 16 pct rise in profit,
to 316.8 mln stg, as turnover climbed 18 pct.
That beat growth at ARG, which revealed a 10 pct rise in profit, to 456 mln
stg, on 5.5 bln stg of sales, up 7 pct.
Total group pretax profit, before goodwill, exceptionals and one-off charges
rose to 945 mln stg, up 4 pct from the previous year and above analysts
expectations of 930-940 mln stg.
The full year dividend was hiked 9 pct to 29.5 pence, and earnings, before
exceptionals and goodwill rose to 63.8 pence, up from 60.7 pence.
The better-than-expected figures could not offset disappointment on the
demerger front, however, with GUS shares at 3.00 pm trading 3 pct, or 26 pence
lower at 860-1/2. The stock, which before today had advanced around 4 pct this
month, has slipped almost 6 pct this year.
Burberry shares climbed 19-3/4 to 398-3/4.
[e-mail]
ab/hjp

[ggekkko] 10/5/2005 08:46

UK retail sales announcement says they are taking a dive big style.

[ariane] 04/5/2005 16:29

Focus DIY embarks on email campaign By Staff
04-05-2005 03:42 PM
Related: Advertising Marketing Retail
Retailer Focus DIY has selected CheetahMail to run a new email marketing campaign, targeting customers with its latest home improvement offers.
CheetahMail, owned by Experian, is tasked with boosting opening and click-through rates and online transactions for Focus DIY's e-mail campaigns.

The campaign will be managed by CheetahMail's new creative services division, which will create e-mail design and copy to appeal specifically to Focus DIY's customers.

Colin Ball, commercial services director at Focus DIY, said: "CheetahMail will enhance Focus DIY's e-mail marketing - providing the technology and agility to reach our thousands of customers across the UK with the latest offers."

In addition, CheetahMail's targeting and segmentation tools will also allow Focus to personalise e-mail campaigns according to customer demographics, preferences, behaviour and purchasing patterns.

Focus DIY can also calculate return on investment against click-through activity and transactions, using CheetahMail's reporting system.

[waldron] 28/4/2005 11:12

West LB Downgrades Kingfisher To Neutral

Thursday, April 28, 2005 5:08:57 AM ET
Dow Jones Newswires



0855 GMT [Dow Jones] West LB cuts Kingfisher (KGF.LN) to neutral from outperform following profits warning. Cuts target price to 280p from 320p. Lowers '05/'06 full-year pretax profit forecasts by 10.8% to GBP662M from GBP742M. "While our negative stance on the stores sector over the last six months has been borne out by events, we are very disappointed that Kingfisher's B&Q business has been so vulnerable in this context," West LB says. "We suspect the aggressive pricing of Homebase has not helped in this regard." Shares -0.9% at 252p. (DWE)

[maywillow] 21/4/2005 11:08

Profit for Homebase

The UK DIY chain Homebase concluded the financial year (to 28 Feburary 2005) with sales up by six per cent over the previous year. That translated into a sales increase of three per cent in like-for-like terms. Following nine new openings, Homebase had 287 stores at the end of the financial year, 111 of them (67 the previous year) with a mezzanine floor.




18 April 2005

[waldron] 18/4/2005 08:30

Argos and Homebase thrive in Ireland
Monday, April 18 06:21:26

(BizWorld)

UK catalogue retailer Argos and its DIY division Homebase are enjoying continued success in the Irish market.

According to the latest Companies Office filings show that both brands are growing quickly in the Irish market with combined annual sales well in excess of E200m, according to a report in the Irish Times.
Their parent, Great Universal Stores, did not provide a breakdown for the Irish business in its trading statement last week when it warned of a downturn in its overall sales in the three months to the end of March.


However, a company spokeswoman told the newspaper that plans to open a new Argos store in Cavan and three new Homebase outlets this year were proof of its "very positive" outlook in the Irish market.

Argos already has 22 stores in the Republic and Homebase, which bought the Texas group in 1995, has five stores in the State.

Accounts for Argos Distributors (Ireland) Ltd show that sales for the business grew to E197.47m in the year ended March 31st, 2004, up from E184.09 m in the previous period.

Pretax profits rose to E20.66m from E18.1m a year earlier. Operating profits rose to E20.48m from E17.91m.

[ariane] 16/4/2005 12:54

LONDON, April 15 (newratings.com) - Analyst Philip Mitchell of JP Morgan maintains his "overweight" rating on GUS (GUS.ZRH). The 12-month target price is set to 990p.

In a research note published this morning, the analyst mentions that the company's H2 sales were marginally ahead of expectations. Despite the market weakness, GUS witnessed gross margin expansion at its retail segment, the analyst says. GUS' robust cash flows and earnings growth would support the company's share price going forward, JP Morgan adds.

[ariane] 15/4/2005 09:17

LONDON (AFX) - The extent of the downturn in UK consumer spending was today
starkly illustrated by Argos, GUS PLC's high street catalogue business, which
reported its first decline in underlying quarterly sales for six years.
Over the fourth quarter to March 31 2005, Argos, which trades from 592
stores and sells everything from electrical appliances to garden furniture, saw
like-for-like sales, which strip out the impact of new and closed stores, fall 1
pct.
"That's disappointing to the extent that we haven't had a decline previous
to this for six years in any quarter," finance director David Tyler told
reporters.
"The issue is that consumers have got less money in their pockets,
particularly for big ticket items."
News of a dip into negative territory for Argos follows downbeat updates
from the likes of Woolworths, Boots and Marks & Spencer.
Argos had previously flagged a slowdown -- like-for-like sales growth of 7
pct in the first half, slipping to 1 pct in the third quarter.
Nevertheless, with full year like-for-like sales growth of 3 pct and an
improved gross margin, the retailer claimed to have outperformed its market for
a sixth consecutive year and reckons it is well placed to continue to do so.
Tyler said Argos' prices are currently some 6 pct lower year-on-year. He
highlighted strong fourth quarter performances from consumer electronics,
digital cameras and leisure, but noted the rate of growth in sales of furniture
and white goods slowed.
Underlying sales growth at the 287-outlet Homebase, GUS' do-it-yourself
business, also slowed in the fourth quarter. Having been up 4 pct in both the
first half and third quarter they fell 2 pct in the fourth quarter. Full-year
growth was 3 pct and again the gross margin was ahead of the previous year.
"Consumer spending in the UK has slowed sharply in recent months, resulting
in a modest decline on a like-for-like basis in the non-food, non-clothing
market," GUS said.
"Looking forward, we are planning on the assumption that this trend in the
market continues. At the same time, retailers are facing higher cost inflation
in areas such as rates, wages and energy costs. Clearly Argos and Homebase are
not immune from this downturn in demand or these cost pressures."
But disappointment with Argos and Homebase was offset by another impressive
outturn from Experian, GUS' global business services division.
Second-half total worldwide sales from continuing activities were up by 20
pct at constant exchange rates compared to first half growth of 15 pct, and
third quarter growth of 24 pct.
"We believe this is a stellar performance and it very much highlights
Experian's unique position in fast growing markets around the world," said
Tyler.
Sales at Experian North America were up 22 pct in dollars, following a rise
of 15 pct in the first half and third quarter growth of 30 pct. The division saw
strong performances from direct-to-consumer products through to database
marketing contracts.
Experian International grew sales by 18 pct at constant exchange rates
compared to a first half rise of 16 pct and a third quarter rise of 18 pct.
Over the full year global sales at constant exchange rates were up 18 pct.
GUS launched a two year strategic review last May. Many pundits believe a
break-up of GUS, with Experian sold or demerged, is the best way to deliver
shareholder value.
There has been some speculation that GUS will shortly formally announce
plans to demerge Experian.
Tyler would not be drawn on this. "We're not planning to say anything on the
strategic review today nor are we flagging when we'll say anything," he said.
Burberry Group PLC, the luxury brand 66 pct owned by GUS, published its
second half update yesterday. This revealed a 6 pct increase in total revenues
at constant exchange rates and a rise of 2 pct on a reported basis.
Analysts expect GUS to make a year-to-March 31 2005 profit before taxation,
amortisation of goodwill and exceptional items of 930-940 mln stg, up from 827
mln stg last time. Full year results will be published on May 25.
"Despite challenges in some of our markets, GUS has completed another
successful year," said group chief executive John Peace.
"Looking forward, while the UK retail environment has become more difficult,
we remain confident that the strong competitive positions and clear
strategies for growth in all our main businesses will enable GUS to deliver
further progress in the new financial year," he added.
At 1.56 pm shares in GUS were down 10-1/2 pence at 903 pence, valuing the
business at 9.02 bln stg.
[e-mail]
jdd/tc