Trading Statement
15 10월 2003 - 4:00PM
UK Regulatory
RNS Number:9103Q
GUS PLC
15 October 2003
15 October 2003
GUS plc
First Half Trading Update
GUS plc, the retail and business services group, today issues its regular update
on trading in its main businesses.
John Peace, Group Chief Executive of GUS, said:
"GUS has completed a successful first half, with good momentum in all of our
businesses. We therefore expect interim profits to be ahead of market
expectations. Despite challenging conditions in some of our markets, we look
forward with confidence to the second half of the year and beyond."
Argos Retail Group (ARG)
% change in sales year on year
Six months to 30 September 2003
Argos(1) - total 14
- like-for-like 7
Seven months to 30 September 2003
Homebase - total 4
- like-for-like 2
-------------------------- ---------------------
1. Excludes Argos Additions
Argos
Argos again significantly outperformed its market in the first half of the year.
It increased sales by 14% in total, with new stores contributing 7% of this.
Like-for-like sales increased by 7%. Consumer electronics, mobile phones,
bedding, textiles and toys performed particularly strongly.
Argos Direct, the delivery to home operation, grew sales by 33% and accounted
for 23% of sales (up from 20% in the first half of last year).
Gross margins at Argos were slightly up, with the impact of mix and a more
promotional trading stance funded by continued buying benefits.
Homebase
Homebase is making considerable progress in strengthening its business and
building a platform for future growth. It is investing in initiatives to improve
customer service and store standards. There are now 52 stores with mezzanine
floors, an increase of 16 since the start of the period. A new home furnishings
range, called mi Home, began trials in ten stores. Homebase personal loans were
launched in April 2003 and the new store card was introduced last week.
Sales at Homebase in the seven months to 30 September 2003 grew by 4% in total,
or 2% like-for-like. This was driven by good performances from garden, kitchens
and bathrooms. Gross margins were in line year-on-year.
Disposal of Home shopping and Reality
On 27 May 2003, GUS announced the disposal of its Home shopping businesses in
the UK, Ireland and Sweden, together with Reality, its logistics and customer
care business. The disposal was unconditional in the United Kingdom. Disposal
proceeds of #410m were received that day and a further #40m at the end of July
following regulatory clearance of the Irish and Swedish disposals. The balance
of about #140m is payable in May 2006.
To aid investors, the appendix includes a restatement of the sales and profits
of ARG and GUS, separating out discontinued activities for the first half of
last year. It also includes the split of sales and operating profit at Homebase
between the first and second half of the year to 28 February 2003.
Experian
% change in sales year on year for the six months to 30 September 2003
Total Total at constant
exchange rates
Experian North America 3 10
Experian International 23 18
Global Experian 10 13
Experian increased its worldwide sales by 13% at constant exchange rates,
showing double-digit growth in both North America and International. It
continued to win new contracts in all major business areas, while improving
productivity and operating efficiencies to drive further profit growth.
Experian North America
In dollars, Experian North America grew sales by 10% in the first half.
Credit Information and Credit Solutions together generated double-digit sales
growth, boosted by the mortgage sector. As anticipated, this slowed towards the
end of the period. Consumer Direct's sales grew by over 60% year-on-year. An
additional seven affiliate bureaux were purchased in the first half, bringing
the total to 18.
Marketing Information and Marketing Solutions sales together were slightly ahead
of last year, driven by increased sales in database management and in the
financial services sector. However, the operating environment in the direct
marketing industry remained difficult throughout the half.
FARES, the real estate information joint venture, had a record six months. The
recent acquisition of Transamerica's tax and flood service businesses is
expected to be a major factor offsetting the impact on the profit of FARES of
the current slowdown in the mortgage refinancing market.
Experian International
Experian International, which accounts for over 40% of worldwide revenue, grew
sales by 18% in the first half at constant exchange rates. Acquisitions, mainly
Nordic Info Group and the outstanding interests in Scorex, contributed 11% of
this growth. Underlying sales in the UK continued to grow at double-digit rates.
Excluding acquisitions, Credit Information and Credit Solutions sales both
achieved strong growth, driven by high demand for value-added products
throughout the region and for credit information in Spain and France in
particular. Activities within Marketing Information and Marketing Solutions also
grew strongly, especially in business-to-business marketing and the insurance
sector. Outsourcing sales remain below those of last year, caused by the
previously anticipated completion of a three-year contract with one client in
France.
Experian recently signed a five-year contract with Marks & Spencer to support
the national launch of its '&more' credit and loyalty card, in addition to
renewing a four-year partnership with Morgan Stanley for credit card account
processing services. Experian has also recently launched CreditExpert, the UK's
first direct-to-consumer on-line credit report service. This provides an alert
service for the early detection of identity theft and unlimited on-line credit
report monitoring.
Burberry
Following the partial IPO of Burberry Group plc, GUS retains a 77% stake in
Burberry. The following is an abridged version of Burberry's Trading Update
released on 14 October 2003.
% change in sales year on year for the six months to 30 September 2003
Total 17
Total at constant exchange rates 17
Total sales in the first half increased by 17%, or by 16% on an underlying basis
(i.e. at constant exchange rates and excluding the impact of the Korea
acquisition in July 2002).
Total Retail sales increased by 25%, or by 20% on an underlying basis, driven by
new stores with a marginal contribution from existing stores. Burberry opened
three stores in the period in Milan, Tyson's Corner (Virginia) and a second
store in Las Vegas.
Total Wholesale sales increased by 14%, or by 13% on an underlying basis,
reflecting double-digit gains for the Autumn/Winter 2003 season, including a
resumption of growth in Spain. On the basis of orders received to date, Burberry
anticipates mid to high single-digit wholesale sales growth for the Spring/
Summer 2004 season.
Total Licensing revenues in the first half increased by 13%, or by 15% on an
underlying basis. Licensing revenues from the Japanese market reflected
increases in certain royalty rates and single-digit volume gains. Licensing
revenue also benefited from strong sales gains by global product licensees,
including fragrances, eyewear and childrens' apparel.
Future announcements
GUS will announce its interim results for the six months to 30 September 2003 on
20 November 2003. Its Third Quarter Trading Update will be on 14 January 2004.
Enquiries
GUS
David Tyler Finance Director 020 7495 0070
Fay Dodds Director of Investor Relations
Finsbury
Rupert Younger 020 7251 3801
Rollo Head
GUS announcements are available on its website www.gusplc.com.
There will be a conference call to discuss this update at 3pm today, with a
recording available later on the GUS website.
Certain statements made in this Trading Update are forward looking statements.
Such statements are based on current expectations and are subject to a number of
risks and uncertainties that could cause actual results to differ materially
from any expected future results in forward looking statements.
APPENDIX
Homebase - Split of sales and operating profit by half
#m Seven months to Five months to Year to 28
30 September 28 February February 2003
2002 2003
Sales 896 548 1,444
Operating profit 77.4 24.2 101.6
ARG - Restated sales and operating profit
The Home shopping and Reality businesses were sold in May 2003. The tables below
restate sales and profits for the six months to 30 September 2002 between
continuing and discontinued activities.
Sales
Six months to 30 September 2002 As reported Restated
#m
Argos 1,284 1,218
Home Shopping UK & Ireland 704 -
Financial Services 14 14
Home Shopping Continental Europe 128 107
Continuing activities 2,130 1,339
Discontinued activities - 791
Total 2,130 2,130
Operating profit
Six months to 30 September 2002 As reported Restated
#m
Argos 52.1 58.0
Home Shopping UK & Ireland 9.5 -
Financial Services 2.2 (6.2)
Home Shopping Continental Europe 12.4 10.7
Continuing activities 76.2 62.5
Discontinued activities - 13.7
Total 76.2 76.2
GUS - Restated sales and operating profit
Six months to 30 September 2002 Sales Operating
#m profit
ARG 1,339 62.5
Experian 578 118.1
Burberry 274 55.1
Other 56 19.8
Continuing activities 2,247 255.5
Discontinued activities (ARG) 791 13.7
Total 3,038 269.2
Net interest (22.4)
Profit before amortisation of goodwill, exceptional 246.8
items and taxation
This information is provided by RNS
The company news service from the London Stock Exchange
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