Profit forecast raised by Home Retail Group

Home Retail Group, owner of the Argos and Homebase stores, saw like-for-like sales dip in the eight weeks to February 27th, but has raised its profit forecast for the full year.

Sales at Argos were down 9.4 per cent in the post-Christmas period, while Homebase transactions slipped 0.6 per cent.

However, the firm has increased its profit expectation for the 12 months to around £290 million - £15 million higher than the figure analysts had predicted prior to the announcement.

The news helped Home Retail Group rise during morning stock market trading and its shares were 5.6p higher on 273.4p by 09:45 GMT.

Terry Duddy, chief executive, said that the company is continuing to "plan cautiously" for the current financial year due to the current economic uncertainty.

It is expected to announce its full-year results on April 28th and Mr Duddy added that the business is anticipating "a good outcome to a challenging year".

Posted by Clive Arneil