Mixed bag for GUS as Homebase slumps

Homebase and Argos owner GUS today reported a mixed set of results as it prepares for the demerger of its retail and credit-checking businesses.

A rush to snap up flat-screen TVs and set-top boxes before the World Cup helped boost like-for-like sales at Argos by 5% in the five months to August 31.

The company described the performance as “outstanding” and said it had also noticed strong growth in sales of child-safety products and video game consoles.

However, the picture wasn’t so rosy at its Homebase chain as like-for-like sales for the six months to August 31 suffered a 3% slump.

The firm said it was caused by weakness in the decorating and core DIY markets, although it received a shot in the arm from the warm weather with air-conditioning and gardens doing well.

The trading update came as GUS released more details about its plans to split the home-retail arm from the Experian credit-checking business, including shareholders’ entitlements.

Experian’s sales lifted 18% in the five months to August 31, with organic growth of 7% thanks to strong growth in email marketing and research services.