Debenhams Regulatory News (DEB)

10 September 2018

This announcement contains inside information

DEBENHAMS PLC

Response to media speculation

Following recent media speculation, Debenhams plc, the international department store group, is providing the following update:

Recent trading performance

Debenhams will issue preliminary results on 25 October 2018. Subject to audit, we expect to report pre-exceptional pre-tax profit for FY2018 of around £33m, within the current market range of £31m to £36.5m1, and EBITDA of around £157m. Consistent with our focus on managing cost and cash generation, we anticipate year end net debt will be approximately £320m, in line with guidance and retaining significant headroom on our £520m medium term facilities. We have continued to strengthen our financial position, including increasing headroom on our fixed charge covenant as announced on 1 August 2018, in order to give us comfortable liquidity through the peak borrowing period, ensuring maximum flexibility amidst volatile market trading conditions. The early weeks of the new season have shown more positive trends and any sustained upturn would result in a rebound in our profit performance.

We continue to focus on our priority actions to mitigate current market conditions and drive progress in FY2019 and shareholders will have an opportunity to see the Debenhams Redesigned strategy in action at our new Watford store on 24 September 2018. 

Sergio Bucher, CEO, commented:

"The market environment remains challenging and underlying trends deteriorated through the summer months. Nevertheless the product and format improvements we have tested are gaining traction and we are ready to scale up some of our strategic activity ahead of peak. Having put in place a leaner operational structure and strong leadership team, and taken action to strengthen our financial position, we are well equipped to navigate these market conditions and take advantage of any trading opportunities that emerge."

Sir Ian Cheshire, Chairman, noted:

"As we stated in June, the board continues to work with its advisers on longer term options, which include strengthening our balance sheet and reviewing non-core assets. This activity is in order to maximise value for shareholders and protect other stakeholders, including our employees."

[ENDS]

Enquiries

Analysts and Investors

Katharine Wynne, Debenhams plc 020 3549 6304

Media

Tim Danaher/Helen Smith, Brunswick Group 020 7404 5959