GUS, set to split into two FTSE 100 companies next month, reported a slight slowdown in growth at its credit information business and continued mixed results from its retail operations on Thursday.

The firm, which said in July it had rejected bid approaches for both its units, said on Thursday sales at its Experian credit checking business were up 18 percent in the five months to August 31, down from a 23 percent increase after three months.

Like for like sales at general store chain Argos were up 5 percent in the five months to August 31, down from a 7 percent increase in the first three months of the period.

Same store sales at home improvement chain Homebase were down 3 percent in the six months to August 31, however, versus a 5 percent decline after four months.

Argos and Homebase together form the Argos Retail Group, which GUS said it was renaming Home Retail Group.

It's a little disappointing and the outlook statement for UK retail is cautious, said Evolution Securities analyst Nick Bubb, who has a reduce rating on GUS shares.

At 8:10 a.m., the stock was down 1.7 percent at 980 1/2 pence, the biggest fall on the benchmark FTSE 100 index and valuing GUS at 8.7 billion pounds.

Bubb was concerned about a slowdown in U.S. consumer spending hitting Experian and growing competition in Britain denting catalogue based Argos.

Tesco, the country's biggest retailer, is launching a catalogue to compete with Argos this month.

While remaining cautious on the outlook for the UK consumer in the near term, we look forward to continued success as a separately listed company, Home Retail Group Chief Executive Terry Duddy said in a statement.

GUS is in dispute with some of its bondholders who want compensation for their debt being transferred to Experian, a smaller company with fewer assets. The firm has said the stand-off will not derail its planned demerger on October 10.

Having already spun off fashion house Burberry, the demerger will mark the end of a conglomerate which traces its roots back to a mail order business founded in 1900.

GUS shares have lagged the retail sector by 12 percent this year, with a slowdown in consumer spending growth hitting its retail business in general and a faltering housing market hitting Homebase in particular.

United kingdom Retail