Argos owner hikes dividend as profits rise
The firm said underlying pre-tax profits soared 27 per cent to £115.4 million in the year to 1 March, on sales 3 per cent higher at almost £5.7 billion.
New chief executive John Walden, who succeeded long-standing boss Terry Duddy last month, said total sales at Argos grew 3 per cent to £4bn, helped by a strong rise in revenues over the internet, which now account for 44 per cent of total takings.
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Hide AdDemand for gadgets such as tablet computers and video game systems “more than offset” declines in furniture and jewellery.
Homebase sales were up 4.1 per cent at £1.5bn, with demand for “big ticket” items like kitchens and bathrooms ahead of last year.
Walden said: “The group has delivered a good performance in what remained a challenging market. Both retail businesses recorded positive like-for-like sales for all four reporting periods, resulting in 27 per cent growth in group benchmark profit before tax.”
The board recommended a final dividend of 2.3p a share, to be paid on 23 July, giving a total payout for the year of 3.3p – an increase of 10 per cent on last time.