Bid target Home Retail (LON:HOME) has cautioned profits this year will be at the bottom end of its range of expectations and little changed from last year.
"We expect that group benchmark profit before tax for the financial year ended 27 February will be in line with the current consensus of market expectations of £93mln,” said John Walden, chief executive.
The retailer has already agreed to sell DIY chain Homebase to Aussie firm Wesfarmers while J Sainsbury (LON:SBRY) and Steinhoff are battling to buy Argos and the rest of the business.
Argos saw sales dip by 1.1% on a like-for-like basis in the eight weeks to 27 February as new stores came on stream, though margins improved.
Electrical product sales were weak though mobiles continued to see good growth. For the full year, sales were £4.1bn or 2.6% lower on a LFL basis.
Sales at Homebase rose by 3.3% LFL to £183mln in the last eight weeks.
Group cashflow was better than expected and with £340mln from the Homebase sale cash would have been £625mln at the year end.
Sainsbury’s made an approach worth 165.3p per share, while Steinhoff’s terms tot up to 175p.
The UK supermarket giant has until 18 March to make a firm offer.