Debenhams announcement today that its guidance of full year profits (to August 2019) in line with market expectation no longer being supported by the company leaves the markets view of the company even more in limbo than it was previously in our view.
DEB has announced a new 12month £40m bank facility agreed with certain of its existing Revolving Credit Facility (RCF) lenders and Noteholders and waiver of some existing RCF covenants. This facility with a coupon of LIBOR +5% which can be increased during 2Q calendar 2019 as an incentive to complete a wider re-financing. It has also announced agreement in principle with Li & Fung to develop a strategic sourcing partnership.
Debenhams has reported Group LFL sales down 5.7% (same % change at constant currencies) for the first 18 weeks of the year. Within this, online sales grew by 4.6% implying UK in-store sales declined by nearly 10% LFL on our calculation. Market expectation was for Group LFL to decline by 2-3%. DEB’s UK in-store LFL decline was in our view similar to Next’s and worse than M&S’s Clothing & Home in-store LFL which have calculated at minus 6-7%. So Debenhams’ in-store sales performance was not materi
The fact that the shares have not rebounded materially on well-trailed news that Debenhams has secured cash savings over two years equivalent to its current debt indicates continuing concern over nearterm volatility and reservations that there will be a medium term here.
This was an odd occasion heavily attended for what has become a small company by capitalisation. The sign-up for this store was four years ago and the lease term 25 years (we believe with some break provisions). The applicability of some of what was seen was limited across the broader estate and the management present were sufficiently new in many cases that they will not have been involved in buying or conceiving much of what was presented. The store presentation appeared to be to a high standa
Path Investments (PATH) -RTO of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Offer TBA. Due late Aug.
Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa
Companies: GDR YU/ NTOG KOD RBN PHD HEAD HSTN DEB SML
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Further UK market weakness has resulted in another profit downgrade and Debenhams (DEB) moving more overtly into a defensive mode. Our 8/18 PBT forecast (pre-exceptionals) has been reduced by 29% to £34m. The company expects to be able to grow profit from its guided 8/18 level of £35-40m. But there is clearly above average uncertainty attaching to its forecasting because of its record in these matters and macro.
Having sat on the fence as Debenhams has struggled through a very difficult Autumn/Winter sector-wide we now believe there are grounds for a more positive view.
1H Results: PBT £42.2m v consensus £44m (2016/17), PBT guidance reduced to bottom and consensus (£50-61m) v previous range £55-65m (2016/17 £95m), modernisation programme accelerated. Regard this mix as positive against apocalyptic expectation expect share price bounce.
Following the pre-announcement of its Christmas trading we have cut our DEB PBT estimates for 2017/18E, 2018/19E and 2019/20E by 33%, 28% and 28% respectively. We have also cut our DPS estimates for these years by 35%, 25% and 22%.to achieve 2x cover in 2018/19E.
Shareholders would have been hoping for better results, especially after NEXT's positive Christmas trading results yesterday.
Debenhams becomes the first Profit Warning of 2018 guiding 8/18 PBT to £55-65m around 20% below consensus at the mid-point. This highlights the operational gearing here with the main financial variance being a 150bps 1H gross margin decline against previous guidance for Full Year gross margin to fall 25bps. This has resulted from tactical promotion to maintain clean stock and weaker than expected start to the Clearance Sale.
In the first volume in our series on the changing face of the British High Street, we look at retailers.
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The final results are in line with forecasts, confirming exceptional growth in the year. The group has also announced a second special dividend of 50p per share taking the total special dividend for the year to 90p per share.
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Loungers has re-opened with a flourish, recording LFL
sales growth +26.6% since 17 May (vs 2019) and adding five new sites. This
stronger than expected restart leads us to upgrade FY21E Group EBITDA by 22%
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out and capitalise on the availability of premium sites. W
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Unprecedented times over the past 12 months have seen ScS Group deliver an exceptional set of H1 2021 results, dominated by the surge in orders post Lockdown 1.0. Group revenue grew 14.4%, with an incremental gross margin, tight cost control and UK government support (£6.6m) underpinning EBITDA* of £19.5m (£3.8m in H1 2020). We believe the average net cash through the period was c£97m (c£60m excluding customer balances). H2 2021 visibility remains low, with post Lockdown 3.0 demand uncertain, th
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AVO’s goal is to deliver an affordable and novel PT system, called LIGHT, based on state-of-the-art technology developed originally at the world-renowned CERN. Over the past two years, important technical milestones have significantly derisked the project. Now, AVO is working on the verification and validation phase, prior to LIGHT being used on the first patients to support CE marking. In its recent technical update, the company highlighted progress made over the past three months towards a ful
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HeiQ announced the acquisition of Life Material Technologies, Hong Kong, (LIFE) on 15 June, a move which will strengthen its antimicrobial technologies platform. The initial consideration is $6.45m with a potential earn-out consideration payable in 2022 of up to $2.8m. LIFE’s antimicrobial technologies are applicable not only to textiles, with some notable retailers in its customer base, but also to polymers and other coatings, thereby complementing HeiQ’s push into materials beyond textiles and
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The final results revealed adjusted PBT up 99% year-on-year, which was 10% better than forecast despite four upgrades during the financial year. This strong performance reflects the financial benefits that have accrued following the shift in the business model to online only, as well as management’s strategic decision to significantly increase marketing spend. A second special dividend for the 2020 financial year has also been announced, reflecting the strong cash flow characteristics of the bus
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Today’s news includes several exciting milestones. 1) The formal sale process/offer period has concluded, with Education sold for £30m. 2) This successfully pivots STU to focus entirely on its fast growing online Studio business, which has traded strongly in Q4. 3) FY adj PBT is c10% better than pre-restricted forecasts as a result, and 4) strong FCF/sale proceeds catapult it into a small net cash position (excl. securitisation). Along with a pension scheme surplus, this is transformational and
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