Home Retail Group has reported full year pre-tax losses of £804m following a £852m exceptional goodwill impairment charge in connection with Sainsbury's purchase of Argos.
The exceptional impairment charge relates to Argos' former ownership by Great Universal Stores, which bought the business in 1998. Sainsbury's agreed to purchase Argos earlier this year for £1.4bn, with the deal expected to complete before September.

The financial year report - an update to its former announcement for the same 52 weeks ending February 27, 2016 - showed sales down 1% across the group, flat at Argos and down 3% at Homebase. Cash gross margin was down 3% to £1,978m.

Benchmark profit before tax decreased by 28% to £94.7m, and basic benchmark earnings per share decreased by 28% to 9.3p. The year-end cash balance was £623m.

HRG chief executive John Walden said: "The past year has been a landmark period for the group, during which we have completed the sale of Homebase and recommended the shareholders the offer from J Sainsbury plc for the acquisition of the remaining group, principally Argos.

"I am pleased that, with its offer for Home Retail Group, Sainsbury's has recognised the good progress we have made in transforming Argos into a digital retail leader."