Debenhams shares return when the chairman returns to & # 39; noisy neighbors & # 39; and the & circus & # 39; around the department store
- President Ian Cheshire said that speculation as a circus & # 39; and & # 39; curious neighbors & # 39; used to be
- Debenhams shares 7% in the morning trade after the dive yesterday
- Department store expects the profit for the entire year to be around £ 33 million
Camilla Canocchi for Thisismoney.co.uk
Debenhams shares recovered this morning after the group shrank from speculation during the weekend that it was preparing emergency plans to save the company.
The chairman of the department store, Ian Cheshire, said today that the company is not insolvent & # 39; was in response to speculation about conversations with a company on a voluntary basis with accountants KPMG.
In the Today program of BBC Radio 4, Cheshire said that speculation is a circus & # 39; had become and added: "The only analogy I can have is if a bunch of curious neighbors look at your house. Someone sees someone in a suit going to a room.
Income from the share price: the shares of Debenhams have been reclaimed today and increase by about 7%
The second person concludes that it is a doctor, the third person concludes that it is a funeral director and by the time it comes to the end of the day that you have a cause of death and everyone is looking forward to the funeral. 39;
Debenhams shares rose by 7 percent or 0.9p to 12.32p in the morning trade.
The share price recovery comes after shares fell by more than 10 percent yesterday, removing £ 15.9 million from the value. This reports that it is considering a restructuring plan in which a number of the 165 High Street stores are sloping.
But Cheshire turned back today to such statements when he said to the radio program: "We have always said that we would view every option in the longer term.
The implications of the newspapers were that we actively drive a CVA with KPMG and that it simply is not true. & # 39;
His comments came when the group decided to announce its trading statement yesterday.
It indicates that Debenhams will report the pre-tax profit for the year ahead, excluding exceptional items, within a pipeline of £ 31 million to £ 36.5 million.
Underlying revenue is expected to reach £ 157 million, with a net debt of around £ 320 million.
Cheshire said in a statement: "As we stated in June, the board continues to work with its advisors on longer-term options, including strengthening our balance sheet and reviewing non-core assets.
& # 39; This activity is aimed at maximizing shareholder value and protecting other stakeholders, including our employees. & # 39;
Five years ago, Debenham's earnings of £ 150 million boasted, but half a decade of falling sales and heavy discounts led to margins.
It issued three profit warnings this year, removed about 400 jobs and closed two stores. In January, plans were announced to increase efficiency savings, with another £ 10 million reserved for this fiscal year and £ 20 million extra per year.