Debenhams, Britain's second-biggest department store chain, today posted a 16% drop in annual profit, in line with expectations. It also halved its dividend amid worsening trading conditions.
The company bought Roches Stores' outlets in Ireland in 2006.
The group, which returned to the stock market laden with debt in 2006 after two-and-a-half years in private equity hands, said it made profit before tax and one-off items of £110.1m sterling in the year ended August 30.
Debenhams, which runs a total of 145 stores across the UK and Ireland, proposed a final dividend of 0.5 pence a share, giving a total for the year of 3 pence, down from 6.3 pence the year before.
Like-for-like sales fell 0.9% and were down a further 4.2% in the first six weeks of the new financial year, although the group said it was gaining market share.
It also announced a series of measures aimed at accelerating the repayment of its debt, which stood at £994m at the end of August. These include a target for £10-15m pounds of cost savings and the reduction of capital spending to £90m this financial year from £129.1m last year.
Icelandic investor Baugur has a stake of about 13% in Debenhams, while Milestone Resources, an investment group linked to Dubai-based retailer Landmark, has 10%.
