Annual profits at the UK parent of the Argos and Hombase chains fell by 60 per cent as consumer electronic and kitchen sales declined.

Home Retail Group Plc said it would not be paying a final dividend as pre-tax profit fell to £102 million pounds in the 52 weeks to February 25th.

The retailer will pay a full-year dividend of 4.7 pence a share, down from 14.7 pence a year earlier, with no final dividend.

Chief executive Terry Duddy said the retailer would focus on its multi-channel offer after a "particularly difficult trading environment," last year and said prospects for 2012 were "uncertain."

Former Sears executive John Walden took over as managing director of its Argos division in February, where profit slumped 57 per cent.

"The group's performance in the short term cannot be immune from the economic environment," chairman Oliver Stocken said in the statement.

"Against this economic backdrop, the board has decided not to recommend a final dividend this year. Future dividends will be set at a level which is sustainable and which reflects the trading prospects and financial position of the Group."

Home Retail Group shares fell 5.2 per cent to 101 pence in London trading yesterday, paring this year's gain to 21 per cent.

Agencies