Comet and Homebase add to High-Street cheer

The flow of good news from the High Street continued today, with upbeat numbers from the Home Retail Group and electricals firm Kesa, which owns Comet.

Home Retail — which owns Argos and DIY store Homebase — has had a tough time in the last year as its customer base turned cautious during the downturn.

Today it said that sales at Argos rose 1.7% in the half year to the end of August and Homebase rose 4.4%.

Chief executive Terry Duddy said: "We are a bit more optimistic but I don't think we are through it. We are a long way from recovery," adding that he remains focused on keeping costs down.

Profit for the first half should hit £121 million — the same as last year. Home Retail shares have bounced back by a third in the past three months. But today they fell 22.8p to 306.9p.

Kesa Electricals also posted better-than-expected trading. Sales in the three months to the end of July were up 0.3% at Comet, though they fell overall because of tougher conditions in France.

"All of the businesses have maintained a strong focus on protecting retail profit and have prepared themselves for the more significant trading period ahead," Kesa said.