Strong Experian performance carries GUS
ARG and Experian will be demerged in October 2006
At Argos, sales in the year to 31 March 2006 increased by 7% in total. Of this, 8% came from new space while like-for-like sales fell by 1% in the year. The group benefited from the growth in online shopping in the UK, with 12% of its sales now ordered over the Internet for delivery to home or for later collection in store. This is a 55% increase on the previous year and the first time that the value of orders over the Internet has exceeded that over the phone.
Sales at Homebase fell slightly in total, outperforming the DIY market as a whole. New stores contributed 3% to sales and are trading in line with plan. Like-for-like sales were down 4% for the year, although this performance was worse in the latter part of the period.
At Experian sales grew by 16% at constant exchange rates, of which 9% came from acquisitions and 7% was organic. The full year impact of acquisitions made to date is expected to increase sales growth by mid-single digits in 2007. Despite a slowdown in the growth of UK consumer lending, Experian’s sales in the UK, which account for about 60% of its International revenues, still grew by 6% excluding acquisitions.
Sir Victor Blank, Chairman of GUS, commented ‘This year has been one of significant strategic progress for GUS with Burberry, Lewis and Wehkamp all leaving the Group, and ARG and Experian scheduled for demerger in October. GUS has a long history of creating value for its shareholders and we are confident that this will continue as they will now have the choice to invest directly in three extremely well-positioned businesses – ARG, Burberry and Experian.’
