Debenhams expects its full year pre-tax profit before exceptional items to come in at around £33 million. The department store also anticipates that EBITDA will be around £157 million.
The announcement has been 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.
