Homebase set for another year of DIY retail gloom
Thursday 30 April 2009
Home Retail Group has forecast another year of double-digit falling sales at its DIY chain, Homebase, as it battles against dire trading conditions in the wider home improvement market.
The gloomy forecast for Homebase came as Home Retail Group, which also owns the catalogue giant Argos, posted a 24 per cent fall in benchmark pre-tax profits, before exceptionals, to £328m for the year to 28 February 2009.
Terry Duddy, the chief executive of Home Retail Group, said it expects Homebase's like-for-like sales this year to fall by a similar level to the 10.2 per cent slump posted over the 52 weeks. He said: "We expect 2009/10 to be as difficult as 2008/09."
Argos has also forecast that its underlying sales this year will fall at a similar rate to the 4.8 per cent decline seen in the 52 weeks to 28 February.
The group's total sales fell by 1 per cent to £5.9bn over the period. On a more positive note, Home Retail Group had a net cash position of £284m at the year end and held its full-year dividend at 14.7p. But the group will increase the price of products at Homebase and Argos, as the cost of goods it sources overseas in dollar-denominated countries, primarily China, goes up by about 10 per cent in the second half.
Home Retail Group recorded total exceptional pre-tax charges of £694m, which pushed it into a £394m loss for the year to 28 February. Homebase accounted for the bulk of these charges with a £651.2m writedown in the carrying value of its assets, together with onerous lease charges on its property.
Kirstie Allsopp has waded into the female fertility debate again
Gillian Anderson lays into gender disparity in Hollywood
The Sistine Chapel is set to be illuminated with thousands of LEDs
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Prince held a Facebook Q&A and this is the only question he answered...
- 3 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 4 35,000 walrus gather on north-west Alaska beach 'for a rest'
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Prince held a Facebook Q&A and this is the only question he answered...
Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Jennifer Lawrence nude photos leak: More celebrities allegedly targeted as third wave of hacked images released
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Former Tory donor Arron Banks ups his Ukip donation to £1million following William Hague 'nobody' comment
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...