We are the UKs leading home and general merchandise retailer. Argos and Homebase are two of the

Question:

We are the UK’s leading home and general merchandise retailer. Argos and Homebase are two of the UK’s leading retail brands, with large customer bases across the UK and Ireland. Between them, our retail brands have more than 60 years of market heritage and consumer awareness. Argos was founded in 1973 and Homebase in 1981. They have been shaping modern retailing ever since.

Group four-year summary image text in transcribed

Extracts from notes Pro forma information The change in both the year-end and the Group’s capital structure on demerger in 2006 resulted in statutory reported results that are non-comparable. To assist with analysis and comparison, certain pro forma information has therefore been provided in respect of the comparative periods to eliminate the distortions of these two impacts on the performance of the Group (p. 119).
Benchmark profit before tax (PBT) The Group uses the term benchmark PBT as a measure which is not formally recognized under IFRS.
Benchmark PBT is defined as profit before amortization of acquisition intangibles, store impairment and onerous lease charges, exceptional items, costs related to demerger incentive schemes, financing fair value remeasurements, financing impact on retirement benefit balances, the discount unwind on non-benchmark items and taxation. This measure is considered useful in that it provides investors with an alternative means to evaluate the underlying performance of the Group’s operations (p. 81).

Discussion points

1 Which activity are the main contributors to the profit of the Home Retail Group?
2 What does the four-year summary tell us about the group?

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