Gusbourne Regulatory News (GUS)

13 Jan 2005 07:00

GUS PLC13 January 2005 13 January 2005 GUS plc Third Quarter Trading Update GUS plc, the retail and business services group, today issues its regular updateon trading. John Peace, Group Chief Executive of GUS, said: "Despite a challenging retail environment, Argos again outperformed its market,with sales up 6% and gross margin slightly ahead. Experian achieved a recordquarter for growth, with an exceptional increase in sales of 30% in NorthAmerica. Against this background, we remain comfortable with expectations forthe Group for the full year." Argos Retail Group % change in sales year-on-year for 15 weeks to 8 January 2005 %Argos - total 6 - like-for-like 1 Homebase - total 8 - like-for-like 4 ArgosIn a period where UK retail demand weakened significantly and competitionintensified, Argos again outperformed its market by offering consumers improvedchoice, value and convenience. Its sales grew by 6% in total, while gross marginalso increased. Of the 6% total sales growth in the period, 5% came from new stores, whichcontinue to perform well, and 1% from like-for-like growth. Toys and jewellerywere difficult markets; their contribution to sales in the third quarter isabout double that in the rest of the year. There were, however, particularlystrong performances from consumer electronics, photography, white goods, mobilephones and leisure. Argos achieved a slight increase in its gross margin in the period compared tolast year, while continuing to offer lower prices and increasing its promotionalactivity. This rise was funded by gains from its supply chain programme and theimpact of a weaker dollar. Argos Direct, the delivery-to-home operation, grew its sales by 15%,representing 18% of revenue compared to 17% in the same period last year. Ordersvia the Internet increased by about one third, contributing 5% of sales. TheArgos website was again the most frequently visited UK high street retailwebsite in December. The main Spring/Summer catalogue, which will be launched on 22 January,continues to offer customers better value and increased range with 13,300 lines,3% more than a year ago. The new Argos Extra catalogue will have 17,500 lines,also up 3%. Argos Extra traded to plan over the peak period and preparationscontinue for national roll-out. The offer, which is currently available in 157stores, will be extended to a further 30 stores and to the Internet by earlysummer. HomebaseAgainst a slowing market, Homebase increased its sales by 8% in total. Of this,4% came from new stores, with four new stores having opened in the quarter,bringing the total to 287. Like-for-like sales increased by 4%, boosted by thetiming of a "10% off" event included at the end of this period but in the fourthquarter last year. New ranges in paint, tiling and lighting continued to performwell, as did kitchens and bathrooms. Gross margin was in line with last year, with supply chain gains fundingincreased promotional activity, especially in seasonal ranges and big ticketitems. The in-store experience at Homebase continues to be enhanced through its focuson improving customer service, stock availability and retailing basics, asdemonstrated by regular customer surveys. Experian % change in sales year-on-year for the three months to 31 December 2004 Continuing activities only At actual exchange At constant rates % exchange rates % Experian North America 19 30Experian International 18 18Global Experian 19 24 Experian had a record quarter for growth, with total worldwide sales fromcontinuing activities up by 24% at constant exchange rates. This builds on fiveconsecutive six-month periods of double-digit sales growth. Experian North AmericaIn dollars, Experian North America sales growth from continuing activitiesaccelerated to 30% in the third quarter. Corporate acquisitions, most of whichwere completed in the second half of the last financial year, accounted for 13%of this. Exceptional growth was delivered by Consumer Direct and by MetaReward,its Internet lead-generation business acquired in November 2003. The latter hadan outstanding quarter, undertaking some large, but lower margin, clientprojects. Excluding acquisitions, Credit sales showed very strong growth, reflectingproduct innovation and market share gains. Business information, accountmanagement and other value-added solutions (such as online notifications, Scorexand fraud) all grew strongly, as did Consumer Direct. Sales to the mortgagesector were level with last year. Excluding acquisitions, the rate of growth inMarketing sales, which account for about a quarter of total revenue, wasmid-single digit. The first phase of the roll-out of the free credit report service, as requiredunder the FACT Act, took effect from 1 December 2004. The planned cost recoverycharge, initially at half its final level, contributed around 1% to total salesin the quarter. Experian InternationalExperian International, which accounts for about 45% of Experian's worldwiderevenue, grew sales from continuing activities by 18% at constant exchangerates. Of this, 12% came from acquisitions, predominantly QAS, the addressmanagement software company acquired in October 2004, which is trading to plan. Excluding acquisitions, broadly similar rates of sales growth were achieved byeach of Credit, Marketing and Outsourcing. Double-digit sales growth wasdelivered in many areas including UK credit information and value-addedproducts; in Business Strategies (micromarketing and economic forecasting); ininformation services in France; and from operations in Italy and in EasternEurope (particularly Russia). BurberryGUS has a 66% stake in Burberry Group plc. The following summarises the latter'sTrading Update released on 12 January 2005. % change in sales year-on-year for the third quarter ended 1 January 2005 %At actual exchange rates 3At constant exchange rates 7 Total revenues at Burberry in the third quarter increased by 7% at constantexchange rates. Retail sales, which accounted for approximately 59% of total revenue in theperiod, increased by 6% at constant exchange rates, driven by contributions fromnewly opened and refurbished stores. Wholesale sales increased by 5% at constantexchange rates. With Spring/Summer merchandise shipments concentrated in thefourth quarter, Burberry continues to anticipate mid to high single-digit growthfor the Spring/Summer 2005 season. Licensing revenues increased by 14% atconstant exchange rates, reflecting strong gains by global product licensees. Future announcements GUS will announce its Preliminary Results for the 12 months to 31 March 2005 on25 May 2005. The Second Half Trading Update will be on 14 April 2005. Enquiries GUSDavid Tyler Finance Director 020 7495 0070Fay Dodds Director of Investor Relations FinsburyRupert Younger 020 7251 3801Rollo Head GUS announcements are available on its website, www.gusplc.com. There will be aconference call to discuss this update at 3pm today, with a recording availablelater 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 ofrisks and uncertainties that could cause actual results to differ materiallyfrom any expected future results in forward-looking statements. This information is provided by RNS The company news service from the London Stock Exchange