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The year under review has been another very
successful one for GUS. We have delivered strong financial performance,
while making significant operational and strategic progress.
Strong financial performance
Sales from our continuing businesses increased by
10% in the year to March 2002, despite difficult trading conditions in
some markets. Profit before amortisation of goodwill, exceptional items
and taxation from continuing businesses grew by 17% – or 20% if restructuring
costs of £12m are excluded. This was achieved after substantial revenue
investment throughout the Group, which will be to the benefit of future
profits.
Experian, Argos and Burberry all reported record sales and profits. The
biggest success story was at Argos, where like-for-like sales were up
13%. Since GUS acquired the business in 1998, annual sales at Argos have
increased by over £1bn to £2.8bn and operating profit by over £80m to
£204m.
Major areas of investment included the Argos store card, new Experian
products and new stores for Burberry. We also continued to invest in strengthening
the management teams, particularly at Experian North America and Burberry.
Strategic progress
The major businesses of GUS today have very clear
strategies for growth and are well positioned in their respective markets.
They have highly focused management teams and have developed strong propositions
for their customers.
- Experian is a global leader in the information services marketplace.
- Argos Retail Group is the UK’s leading multi-channel retailer.
- Burberry is a major international luxury brand.
We have continued to reposition the
Group around these major businesses.
During the year we disposed of further non-core businesses, including
our Swiss home shopping activities and our small UK stationery and printing
interests. We also continued to run down our property and vehicle financing
operations.
At the same time, we made a number of ‘infill’ acquisitions to strengthen
our main businesses.
We have also confirmed our plans to pursue a partial IPO of Burberry,
subject to market conditions, as a further step towards providing greater
strategic focus within GUS.
Future prospects
GUS remains committed to creating long-term shareholder
value by focusing on businesses with above-average growth potential and
by establishing leadership positions in our chosen markets. Our objective
is to achieve sustained top quartile performance.
We have set ambitious growth targets for our major businesses and are
confident about their future prospects. We shall continue to invest strongly
in them and, where appropriate, undertake acquisitions and partnerships
to support their growth strategies.
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Sales
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Profit
before taxation |
|
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|
|
|
|
2002 |
2001 |
|
2002 |
2001 |
|
for the years ended 31 March |
£m |
£m |
|
£m |
£m |
|
|
|
|
|
|
|
|
Experian |
1,092 |
1,018 |
|
229.1 |
216.6 |
|
Argos Retail Group |
4,629 |
4,250 |
|
254.7 |
212.1 |
|
Reality |
471 |
476 |
|
0.5 |
5.1 |
|
Burberry |
499 |
425 |
|
90.3 |
69.5 |
|
Other |
154 |
265 |
|
44.0 |
57.8 |
|
Inter-divisional turnover |
(387) |
(393) |
|
– |
– |
|
|
|
|
|
|
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Total |
6,457 |
6,041 |
|
618.6 |
561.1 |
|
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Net interest |
|
|
|
(66.5) |
(74.3) |
|
|
|
|
|
|
|
|
Profit before amortisation of goodwill,
exceptional items and taxation |
|
|
|
552.1 |
486.8 |
|
Exceptional items |
|
|
|
(72.6) |
(84.7) |
|
Amortisation of goodwill |
|
|
|
(99.4) |
(92.3) |
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Profit before taxation |
|
|
|
380.1 |
309.8 |
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EPS before amortisation of goodwill
and exceptional items |
|
|
|
41.7p |
37.2p |
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Reported EPS |
|
|
|
25.7p |
20.3p |
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