Full-year profit at Home Retail (HOME) landed slightly better than expected, rising 14 per cent to £132m. However, chief executive John Walden voiced caution over the group's prospects for the current year.
He warned of headwinds in the first six months in the form of tough comparatives and "category challenges" - namely, an industry-wide decline in sales of televisions and tablets. The "digital customer experience" programme at Argos will also continue into the period, potentially disrupting trading. As a result, investors should expect "modest year-on-year first-half declines" at Argos - although Homebase won't be as affected. Mr Walden said these challenges would ease off in the second half. He added that he was pleased with last year's performance, and that the group's strong net cash position gave it capacity to invest.