27th Oct 2016 06:33
LONDON (Alliance News) - Debenhams PLC on Thursday reported a fall in profit in its recently ended financial year due to exceptional costs it booked, but revenue rose slightly as it works to increase sales of its non-clothing items.
The department store operator said its pretax profit in the year ended September 3 fell to GBP105.8 million from GBP113.5 million the year before, as it booked exceptional costs of GBP12.4 million relating to the restructuring of its Irish business and head office, as well as an IT system write-off following the launch of its new international website.
Excluding the exceptional costs, Debenhams' underlying pretax profit grew in line with market expectations to GBP114.1 million.
Revenue rose slightly to GBP2.34 billion from GBP2.32 billion, as like-for-like sales increased by 0.6% and gross transaction value was up 2.7% to GBP2.90 billion.
Debenhams said it achieved a strong performance over the peak period in the first half, but trading was tougher in the second half. Sales were helped by its strategy to rebalance the business towards non-clothing categories, with strong progress in beauty, gifting and food.
Debenhams will pay a total dividend of 3.425 pence for the year, up from 3.400p the year before.
"Our diversified business model together with good cash generation and reducing debt means that Debenhams is in good shape to withstand a market background that remains uncertain. Our executive team, supported by all our colleagues, are actively managing the business to increase its resilience and flexibility, which will stand us in good stead to deliver long term sustainable growth," Chairman Ian Cheshire said in a statement.
Debenhams' new Chief Executive Sergio Bucher joined the company earlier this month, following the resignation of Michael Sharp in June.
Debenhams said it will update the market in the spring on its longer-term plans for the next phase of the store chain's development.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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