Financial highlights
Sales increased by 1% to £5,710m; like-for-like sales up 0.6% at Argos, and up 2.3% at Homebase
Cash gross margin broadly flat at £2,037m
Operating and distribution costs decreased by £14m to £1,908m
Benchmark profit before tax increased by 14% to £132.1m
Basic benchmark earnings per share increased by 25% to 13.0p
Reported profit before tax increased by 32% to £93.8m; reported basic earnings per share of 9.4p
Year-end cash balance of £309m
Full-year dividend up 15% at 3.8p (FY14: 3.3p); final dividend of 2.8p recommended
John Coombe, Chairman of Home Retail Group, commented:
"The Group has completed another year of good financial performance, delivering both like-for-like sales and profit growth, together with a strong year-end cash balance of over £300m. Our focus on managing costs and gross margin together with our ongoing cash management were all critical in delivering this good overall financial performance. We are recommending an increase of 15% to the full-year dividend."
John Walden, Chief Executive of Home Retail Group, added:
"The Group performed well in FY15 and ahead of consensus profit expectations, achieving 14% growth in benchmark profit before tax and 25% growth in benchmark EPS. Both Argos and Homebase contributed positive like-for-like sales and profit growth for the second successive year. I believe the strategic plans we are pursuing across the Group will enable us to innovate and lead in a rapidly changing retail market."
