27th Apr 2016 07:01
LONDON (Alliance News) - Home Retail Group PLC on Wednesday said it swung to a loss in its recently-ended financial as the company prepares for its takeover by J Sainsbury PLC and after offloading its Homebase business.
The struggling retailer, which recently sold its Homebase DIY business and is in the process of being taken over by Sainsbury's, said it made a pretax loss of GBP840.3 million in the year ended February 27, having made a pretax profit of GBP87.8 million the year before. This was primarily due to it booking an GBP852 million goodwill impairment charge relating to its takeover.
Revenue remained flat at GBP4.23 billion, with flat sales at Argos and a 3% decline at Homebase.
Home Retail sold Homebase to Australian conglomerate Wesfarmers Ltd in February for GBP340 million, with the rest of the business, comprising Argos, in the process of being bought by big four supermarket chain Sainsbury's for GBP1.2 billion.
Home Retail said Argos made progress under its 'Transformation Plan' during the year, adding that it believes the combination with Sainsbury's will create "significant business benefits".
"With leading digital capabilities, new Fast Track propositions, proven and flexible digital store formats and strong financial resources, we are well positioned for an exciting future," Chief Executive John Walden said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Sainsbury'sHome Reit