20 April – final results
Results for the 52 weeks ended 26 February 2011 showed sales down 3% to £5.85bn and benchmark profit before tax down 13% to £254m. Reported basic earnings per share were 23.1p and net cash at the period end was £259m. The final dividend was held at 10.0p, maintaining the full year dividend of 14.7p.
Although both Homebase and Argos are being hit by subdued consumer spending, this is undoubtedly a quality business and we feel that the current share price puts a very conservative price tag on it. The yield of 6.8% should prove attractive and offer support. Although the price has rallied since our last update the company is cheap compared to many other retailers. We believe a BUY rating is well deserved.