Debenhams issues statement to reassure investors
Debenhams has said it expects its full year pre-tax profit before exceptional items to come in at around £33 million.
In addition, the department store anticipates that EDBITA will be around £157 million.
The announcement was made to reassure investors following the news that Debenhams has appointed advisers from KPMG to help it consider options for the future of the business.
Debenhams is currently implementing a turnaround strategy which includes transforming the shopping experience for customers. Last week it announced that it had rebranded following a series of store modernisations.
In this latest statement, Debenhams stated that year-end net debt will be approximately £320 million, which it said is in line with guidance and leaves significant headroom on its £520 million medium term facilities. It has also increased the headroom on its fixed charge covenant to give it “comfortable” liquidity through the peak borrowing period.
Sergio Bucher, Debenhams chief executive, added: "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."
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