Debenhams PLC – Full Year Results 2011

Today, Debenhams PLC has released full year results for the 53 weeks ended 3rd September 2011.

FINANCIAL HIGHLIGHTS:

• Group gross transaction value (GTV) up 4.5%

• Like-for-like sales up 1.2% including VAT, down 0.3% excluding VAT

• Headline profit before tax up 10.0% to £166.1m

• Net debt at 3 September 2011 £383.7m, down £133.1m from a year ago

• Basic earnings per share up 21.3% to 9.1p (2010: 7.5p)

• Final dividend 2.0p; total dividend 3.0p (last year: nil)

• Bank facilities refinanced; duration extended to Oct 2015, interest rate reduced by 0.5%

• Intend to commence share buyback programme in second half of 2012 financial year


OPERATING HIGHLIGHTS:

• Strategic review undertaken by new Chief Executive

• Market share growth in most key categories: women's casualwear, menswear, childrenswear and premium health & beauty

• Strong multi-channel growth; online GTV up 73.8%1 to £180.4 million

• Excellent performance from Magasin du Nord: EBITDA up 141.1% to £13.5m4

• Sales in international franchise stores up 16.5% to £77.0m1

• Continued investment in the estate - three new stores opened, creating 350 new jobs; 9 new stores contracted, and 11 store modernisations undertaken; 45 more over next 2 years

Michael Sharp, Chief Executive of Debenhams, said:

"Debenhams has had an excellent year with sales and profit before tax both increasing. We have demonstrated the resilience of the department store model by trading well in a challenging market.

"It is right to remain cautious about the strength of consumer confidence over the next 12 months given the uncertain economic outlook. We will therefore continue to run the business with tight management of costs and stocks, retaining as much flexibility as possible in the supply chain to enable us to deal with whatever the market presents. We will take a pragmatic approach to trading and continue to focus on maximising cash profit. Overall we are optimistic about our prospects and believe we have a clear strategy to build the business into a leading international, multi-channel retailer."

Source : Debenhams Press Release
www.debenhamsplc.com/phoenix.zhtml?c=196805&p=irol-newsArticle&ID=1619282&highlight=