Debenhams, Britain's second-biggest department store chain, posted a 16 per cent drop in annual profit today, 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 sterling (€143 million) in the year ended August 30th.
Debenhams, which runs 145 stores across the UK 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 per cent and were down a further 4.2 per cent 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 at August 30th.
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 about 13 per cent in Debenhams, while Milestone Resources, an investment group linked to Dubai-based retailer Landmark, has 10 per cent.
Reuters