MILTON KEYNES: Weak sales at Homebase contributed to a slump in profits at Home Retail Group, which also owns Argos.
The group's pre-tax profits fell 70% to £29.4m compared with the same period a year ago. The group said Homebase was doing well in a challenging environment, and that although sales of big ticket items "remained challenging" there had been good growth in bedroom furniture sales.
Home Retail Group bought the rights to the Habitat brand in the period, along with three of its London stores.
Shares in Home Retail Group plunged nearly 17% after its half-year results revealed a profits collapse at its Argos catalogue retail chain, prompting analysts to call for a "radical restructuring".
