Retail group GUS forecast better-than-expected profits yesterday after a strong summer performance from its high street catalogue chain Argos.

GUS said sales at Argos in the six months to September 30 rose 14 per cent, with the figure on a like-for-like basis ahead by seven per cent.

Strong demand for consumer electronics, mobile phones, bedding, textiles and toys fuelled the growth, which came at a challenging time for the retail sector because of the high summer temperatures.

Across the business, which also includes DIY chain Homebase and the Experian credit checking department, GUS said it had performed well.

Chief executive John Peace said it was now likely that profits for the half-year period would be better than the City had been expecting.