Home Retail Group has slumped to a big loss of £437m in the first-half of the current year. The Group controls DIY chain Homebase and Argos catalogue shops which saw a big plunge in sales in recent weeks.

The retailer had written off more than £500,000 from the value of Homebase, which is an indication that Home Retail Group paid more than what the underperforming retailer deserved when it bought Homebase for £900m from equity group Permira in 2002.

Profits of the Group for the first two quarters to the end of August were very much down even before write-off, falling 22% to £106m, with a profit plunge of 37% at Homebase and 14% at Argos.

Chief executive, Terry Duddy, stated that trading conditions had gone from bad to worse in recent weeks.

Argos and Homebase like-for-like sales were down by 9% compared to 2007 levels. Duddy warned that if sales did not improve in the crucial trading period of Christmas, profits would touch £327m which is the bottom of City expectations, as against £426m last year.

Duddy informed that Argos’ like-for-like sales were at negative levels which the retailer had never seen before. He saw a depressing outlook for retailers and remarked that there was never so much lack of clarity in the past that made advance planning so much difficult.

Home Retail group is curbing costs by putting opening of new stores on hold and cutting staff working hours by 20%.

Things to consider:
Do you need any Pneumatic Controls
Floor Sanding here