Argos powers upbeat GUS

ANOTHER storming performance from its Argos catalogue shops chain will see retail and financial information group GUS top City profit forecasts for the first half.

In an upbeat trading statement, GUS chief executive John Peace said the group had enjoyed 'good momentum' in all its businesses, which range from the financial information operation, Experian, to the Homebase DIY chain and a 77% stake in luxury goods group Burberry.

'Despite challenging conditions in some of our markets, we look forward with confidence to the second half of the year and beyond,' he said.

Like-for-like sales at Argos jumped by 7% in the six months to 30 September, significantly outperforming the market. Consumer electronics, mobile phones and toys fared particularly well. Margins also moved ahead slightly, the group said.

Homebase made 'considerable progress' and saw its underlying sales advance by 2% in the seven month period to end September. There were good performances from garden, kitchens and bathrooms.

There was a strong performance from Experian, which enjoyed double-digit sales growth in both North America and its international operations. Excluding the impact of currency fluctuations, international sales soared 18%. In North America, the gain was 13%.

GUS has now withdrawn from the home shopping market following the £590m sale of its Kays catalogue business to Littlewoods. Although that deal is now being investigated by the Competition Commission, GUS has already received £450m.