GUS has delivered another strong set of results, with all of our businesses contributing to this success.

Sales in the year to March 2004 increased by 6% and profit before amortisation of goodwill, exceptional items and taxation by 29% to £827m. Argos, Experian and Burberry each reported record profits.

Continuing strategic focus

It has been a year of both strategic and operational progress, which has seen significant investment throughout the Group.

We have continued to reposition the Group around three major businesses – Argos Retail Group, Experian and Burberry – and to focus on fewer activities.

At the start of the year, we disposed of the home shopping businesses in the UK, Ireland and Sweden, together with Reality, the UK logistics and customer care business, for approximately £590m. We also sold GUS’ 50% stake in the property joint venture with British Land for £163m.

In November 2003, we reduced the Group’s holding in Burberry by a further 11.5%, in order to improve liquidity in its shares. GUS remains a committed investor in Burberry through its 66% holding.

In calendar year 2004, subject to market conditions, we are planning a partial flotation of The Lewis Group, our South African Retailing business. The transaction will enable GUS to release value for shareholders, while enhancing the development opportunities for Lewis.

Investing across the Group

The release of capital from disposals enabled us to make significant investments during the year in our major businesses.

Argos continued its £120m supply chain programme with the opening of a new central distribution centre, enabling it to buy more from low cost regions such as China and the Far East. There were also 33 new Argos stores opened during the year.

Homebase invested in a range of measures to improve retail disciplines across the chain, including better stock availability and enhanced customer service. All 17,000 staff participated in a culture change programme called The Homebase Way. Further mezzanine floors were also introduced to create additional space for kitchens, bathrooms and home furnishings.

ARG Financial Services made further investment in its loan book, almost doubling the amount lent to customers during the year. The Argos store card was in strong demand and now funds 9% of all Argos sales. The year also saw the launch of the Homebase store card and a range of personal loan products.

Experian continued to invest successfully in new solutions for clients and to expand its reach, both geographically and by industry sector. It also undertook a number of infill acquisitions of high growth businesses to leverage its assets and skills around the world. In North America, Experian continued to acquire its affiliated regional credit bureaux, spending $118m during the year in order to gain a greater share of the value chain for credit products.

Burberry opened nine new directly operated stores, including its first in Italy, increasing its overall selling space by about 12%.

Positioned for growth

GUS is building a strong and consistent track record of profitable growth. Each of our major businesses is pursuing a clear strategy and is well positioned in its markets.

Argos Retail Group is the largest general merchandise retailer in the UK. Its multi-brand, multi-channel approach and central infrastructure continue to open up new market opportunities and to deliver significant cost efficiencies.

Experian is the largest company in the information solutions marketplace, offering the broadest range of services. Its worldwide infrastructure and global product development programme are enabling it to support clients wherever they do business and to deliver wide-ranging solutions.

Burberry has become a global leader in the market for accessible luxury fashions and accessories. Its continuing geographical expansion and product diversification are supported by the brand’s international recognition and broad appeal.