MILTON KEYNES: Home Retail Group, owner of Homebase and Argos, reported full-year profits of £265.2m, down almost 10%.
The group's DIY chain Homebase fared better during the period, with profits up £6m to £47.6m. Homebase sales remained almost unchanged and it grew its market share of a shrinking market with "significant growth" in multi-channel sales and an installation services investment driving big-ticket sales, the company says.
The outlook for the coming year remains difficult, with the company forecasting a further fall in like-for-like sales at Argos, while at Homebase it expects stagnant sales.
"Prospects for the 2011-12 financial year are uncertain as consumers' disposable income, and their willingness to spend, is impacted by an increased VAT rate, an increase in personal taxes and the rising cost of living, plus the additional threat of public sector job losses and potential interest rate increases," said the firm in its statement.
Despite this, the retailer said that it would continue refurbishing stores and improve its online and mobile platforms.
