Argos and Burberry star at GUS

RECORD results from Argos, Burberry and its Experian credit checking arm helped GUS push its profits up by an impressive 44% to £354m over the first half-year.

Shareholders are rewarded with a 16% increase in the interim dividend payment, to 8p.

Chief executive John Peace said each of the group's main businesses had continued to perform strongly and there had been 'considerable progress' at the Homebase DIY operation.

'Although we face some challenges in the second half, we remain confident in the outlook for the future,' he added.

Group sales for the six months to 30 September were up by 24% to £3.77bn and the 44% profits rise was achieved before goodwill and exceptional items. Even after adjusting for acquisitions and disposals, GUS said the profits increase was 27%.

Argos continued its stellar performance, with a 14% increase in sales, or 7% like-for-like, to £1.39bn and a 27% profits jump to £73.9m.

Earlier this week Burberry reported doubled profits and GUS yesterday cut its stake in the luxury goods business by 10% to 67%, raising £180m in the process.

The cash will initially be used to reduce debt but GUS raised the prospect of a cash return to shareholders.

GUS said it remained 'a committed investor in Burberry', but did not rule out further sales of the luxury retailer's shares.

It also signalled the prospect of a further windfall from elsewhere within the group, indicating that the flotation of its South African Retailing business should occur next year.