Revenues at Home Retail Group, which owns Homebase and Argos, were reported as 'broadly flat' at £5.48bn for the 52 weeks ending March 2, 2013.
Homebase saw its benchmark operating profit drop by £12m, while Argos saw its figure rise to the tune of £6m. Overall, benchmark profit before tax for the group was down 10% to £91m.

It's the fifth consecutive year profits have dropped for the group, whose sales at Homebase were down 5%, largely due to the poor weather last summer. Argos, however, saw a boost to its like-for-likes for the first time in five years, up 2% for the year. And despite its rain-dampened profits, Homebase deliver its fourth consecutive year of market share gain.

Both retailers grew their multichannel sales penetration, with Argos' now accounting for 51% of total sales, and Homebase's 5%. Homebase's Reserve and Collect sales grew by 27% and its website visits increased by 23%.

HRG saw strong cash generation during the year of £202m, driven principally by a strong working capital performance, with a closing net cash position of £396m.

"The group delivered a sold sales performance and a very strong cash generation despite subdued consumer spending," said chairman of HRG John Coombe. "With the group's strong balance sheet and clear strategies for both businesses, the board is confident that it has the appropriate plans in place and is recommending a final dividend of 2 pence per share, which together with the interim dividend of 1 pence per share makes a full year dividend of 3 pence per share."

The year included several landmark achievements for the group, including the introduction of Habitat into both Argos and Homebase stores, and the ongoing development of Argos as a digital retail leader.

Plans were also announced to invest in Homebase store refits and accelerate its multi-channel capability.

Said the group's chief executive Terry Duddy: "This was an encouraging year with both businesses growing their market shares. Argos delivered like-for-like sales growth for the first time in five years and multi-channel sales broke through the 50% threshold.

"Our strong financial position enables Argos to deliver on its transformation plan to become a digital retail leader, and for Homebase to invest in the rollout of its new proposition."