Buxton and Shah pick Home Retail sees profits plunge 60%

Home Retail Group - the UK domestic stock backed by Schroders' Richard Buxton and Fidelity's Sanjeev Shah - has reported a 60% drop in profits at its Argos chain, sending shares lower this morning.

The group blamed weak demand for electrical goods for the dive in profits and hinted it could close a number of Argos and Homebase stores over the next few years. For the year to 25 February, Home Retail's pre-tax profits were £90.2m, down from £265.2m the year before, according to the BBC. Operating profits at catalogue firm Argos plummeted 60% to £94.2m, and profits were also lower at its Homebase DIY stores. Shares in Home Retail plunged almost 7% on the news (6.98%) to 93.95p. Over the past year the stock is down 57.28%. Richard Buxton has held the stock in his £3bn UK Alpha...