Argos and Homebase owner reports rise in profits

The owner of Argos and Homebase, Home Retail Group, has reported an increase in annual profits.

Pre-tax profits for the year to 28 February rose 32% to £93.8m, with total sales up 1% to £5.71bn.

Underlying sales at Argos rose 0.6%, and it said the internet now accounted for 46% of sales at the retailer.

Like-for-like sales at DIY chain Homebase climbed 2.3%. Last year, Home Retail Group said it would close a quarter of Homebase stores by 2019.

Home Retail Group said it had made "good progress" in reducing the size of the Homebase chain, cutting the number of stores by 27 to 296.

John Walden, chief executive of Home Retail Group, said: "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."