ARGOS owner Gus posted record full-year profits of £827m after seeing sales soar at its three flagship brands.

Gus said catalogue retailer Argos outperformed its market, increasing like-for-like sales by five per cent to £3.38bn following strong demand for products, including consumer electronics and toys.

In a move that could signal the demerger of credit checking operation Experian, the group announced a strategic review of its business.

Gus said the review was the logical extension of a series of changes since 2000 that had seen a partial flotation of fashion brand Burberry, in which Gus has a 66 per cent stake. The company has also abandoned low-growth businesses such as home shopping.

It also pledged to spend £200m on buying its own stock this year to build better value for its shareholders.

Store expansion plans are to be accelerated at DIY retailer Homebase, with ten branches due to open this year and up to 60 outlets over the following three years.

Experian increased sales by 14 per cent at constant exchange rates to £1.22bn after winning major contracts.