Same-store sales at discount operator Argos, the major arm of Home Retail Group (HOME), grew 2.7 per cent in the 18 weeks to 5 January, prompting management to raise its forecast for underlying group profits for 2012-13. It now expects profits to be roughly £10m higher than City estimates of £73m, and a cash balance at the year end of more than £300m.
IC TIP:
Hold
at
140p
Chief executive Terry Duddy says consumer confidence will remain subdued, but management's transformation plan will "reinvent Argos as a digital retail leader". Broker Seymour Pierce is keeping its 2013-14 pre-tax profit forecasts of £80m, giving EPS of 7p, rising to £95m in 2014-15, with EPS of 8.4p.
