Current Trading 

The UK retail market has been weaker in April and May 1999 than in the comparable period a year ago, and sales of our UK Home Shopping and Argos businesses showed a like for like decline of 4%. However, margins at Argos are firm and we outline later in this report a number of significant opportunities and synergies for this business. Other divisions achieved results broadly in line with plan in this two month period.

LORD WOLFSON OF SUNNINGDALE

Chairman