Homebase to post strong profits

DIY store Homebase is set to post strong annual profits this week, after the pressures of the downturn pushed consumers to spend on improvements rather than moving house. Homebase, owned by Home Retail, is set to report a 168 per cent rise in operating profit to £40m, according to consensus analyst forecasts. However, Argos – also owned by Home Retail – is likely to prove to be a sting in the tail for the group, pulling pre-tax profits lower to just £290m.