Although there's a full set of annual results available to peruse from Argos owner Home Retail (HOME), if all goes to plan the company will soon cease to exist. The business has found itself the subject of several headlines since the start of the year as multiple suitors came forward, ready to gobble up the group. Its Homebase brand was sold to Australian buyer Wesfarmers for £340m just before the end of the reported period. In early April, the group agreed to sell what remains - including the Argos brand and store estate - to UK grocery chain Sainsbury's (SBRY).
The latter deal is currently being put to shareholders, who should receive 0.321 new Sainsbury's shares and 55p per share in cash, plus 25p a share from the Homebase sale and 2.8p a share in lieu of a final dividend.
The recommended Sainsbury's offer resulted in a goodwill impairment charge of £852m which, including a loss on disposal of Homebase, explains the statutory pre-tax loss. Last year, underlying sales fell 2.6 per cent at Argos as the retailer struggled to shift TVs, tablets and white goods. But online sales accounted for 49 per cent of total sales of £4.1bn, demonstrating the digital savvy that Sainsbury's is buying.
| HOME RETAIL GROUP (HOME) | ||||
|---|---|---|---|---|
| ORD PRICE: | 168.9p | MARKET VALUE: | £1.37bn | |
| TOUCH: | 168.9-169p | 12-MONTH HIGH: | 184p | LOW: 87p |
| DIVIDEND YIELD: | 0.6% | PE RATIO: | NA | |
| NET ASSET VALUE: | 226p* | NET CASH: | £623m | |
| Year to 27 Feb | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 5.58 | 104 | 9.1 | 4.7 |
| 2013 | 5.48 | 121 | 10.9 | 3.0 |
| 2014 | 5.66 | 71.0 | 6.8 | 3.3 |
| 2015 | 4.23 | 87.8 | 8.6 | 3.8 |
| 2016 | 4.23 | -840 | -109 | 1.0 |
| % change | - | - | - | - |
Ex-div: na** Payment: na** *Includes intangible assets of £530m, or 65p a share **2.8p per share will be paid in lieu of a final dividend as part of the takeover deal | ||||
