Debenhams' profit falls
Date:2008/10/22 Source:
DEBENHAMS Plc, Britain's second-biggest department store chain, posted a 16 percent drop in profit yesterday, in line with expectations, and halved its dividend amid worsening trading conditions.
The group, which returned to the stock market laden with debt in 2006 after two-and-a-half years in private equity hands, said it made profit before tax and one-off items of 110.1 million pounds (US$191.8 million) in the year ended August 30.
Forecasts ranged from 109 million pounds to 110 million in a poll of analysts.
Debenhams, which runs 145 stores across the United Kingdom and Ireland, proposed a final dividend of 0.5 pence a share, giving a total for the year of 3 pence, down from 6.3 pence the year before.
Like-for-like sales fell 0.9 percent and were down a further 4.2 percent in the first six weeks of the new financial year, although the group said it was gaining market share.
It also announced a series of measures aimed at accelerating the repayment of its debt, which stood at 994 million pounds on August 30.
These include a target for 10 to 15 million pounds of cost savings and the reduction of capital spending to 90 million this financial year from 129.1 million last year.
Icelandic investor Baugur has a stake of 13 percent in Debenhams, while Milestone Resources has 10 percent.
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