GUS has unveiled annual pre-tax profits ahead of expectations at £642m and announced a partial flotation of its South African retailing business.

The Argos-to-Homebase company, which yesterday announced the sale of its catalogue home shopping business to the millionaire Barclay brothers, reported a 16 per cent rise in pre-tax profits, before one-off costs.

GUS said record profits at its Argos retail chain, Experian credit checking business and luxury fashion brand Burberry had driven growth in the year to March 31.

Argos saw sales rise 11 per cent to exceed £3bn for the first time, with profits up 12 per cent in the period.

Last month, GUS forecast annual profit towards the top end of expectations after better-than-expected sales at Argos.

Meanwhile, Burberry, best known for its distinctive check pattern, reported sales ahead by 21 per cent in the year with profits up 34 per cent at constant exchange rates.

The brand, which was partially floated by GUS in July, acquired the operations of its main distributors in Asia outside Japan during last year, driving growth in the region.

Beside the flotation and disposals, restructuring of the GUS portfolio also saw the company buy DIY retailer Homebase for about £900m last December.

In a statement, GUS said the integration of Homebase was on track, with sales of £251m in the year.