GUS, whose main brands are Argos and Burberry, made pre-tax profits of �642m ($1bn) in the year to end-March, up 16% year on year and well above analysts' expectations.

Part of Lewis Stores, its South African retail chain, will be floated on the Johannesburg market in 2004.

This is the latest in a series of moves to slim down GUS's portfolio of businesses: on Tuesday, GUS sold its home shopping arm, and it floated part of Burberry on the London market last summer.

Aside from Lewis, Argos and Burberry, GUS controls DIY retailer Homebase, and Experian, information services provider.

The firm trumpeted sound performances at all its units, with record profits at Argos, Burberry and Experian.

Homebase, which GUS acquired at the end of last year, is being smoothly integrated into the Argos retail group, GUS said.