Home Retail Group sees sharp fall in profits

By Mark Fordham

Annual profits at Home Retail Group - owner of Argos and Homebase - have taken a hit.

Profits have dropped by more than 60 per cent after Argos claimed that it was hit by the weak market for consumer electronics.

For the year to February 25th, Home Retail Group's pre-tax profits were £90.2 million, which is a drop from £265.2 million the year before.

Operating profits at Argos sank 60 per cent to £94.2 million, while they were even lower at Homebase.

Total sales at Argos were found to have fallen by more than seven per cent over the year to £3.8 billion.

Home Retail Group suggested it had been successful in markets such as laptops and homewares but this was offset by disappointing weakness in other categories.

"Prospects for the 2012-13 financial year remain uncertain as consumers' disposable income is impacted by ongoing inflationary pressure, together with low levels of consumer confidence," chief executive of the firm Terry Duddy was quoted as saying.