The pressure on Argos and Homebase owner Home Retail Group intensified last week when Panmure Gordon slashed forecasts for the group's profits performance this financial year and next ahead of an update on Thursday. Panmure has a sell rating on the stock and said that without store closures at Argos it would be downgrading profit forecasts by 34 per cent and 45 per cent respectively for the next two years. It believes Argos sales will continue to fall in both years, with resulting pressure on margins. Cost reductions have kept it on course to meet City forecasts for profits of £100million to February 28, but Panmure warned investors the dividend will be lower.