A better-than-feared trading statement, although cash gross profits are still down for both businesses. We remain negative, as we believe that Argos has too many stores, too high a fixed cost base and is close to making losses.
SIMON IRWIN LIBERUM CAPITAL
Like-for-like sales are notably better than our forecasts...Our preference would be to play the modest improvements in underlying trends through companies with more leverage and self help like Kingfisher and potentially Dixons.
KEITH BOWMAN HARGREAVES LANSDOWNE
In all and with expectations low, share price reaction has been positive. Management confidence in the Argos store base appears likely to receive a boost, with investors potentially happier to await an expected strategic review.