Britain's second-largest department stores chain, Debenhams, said it was considering acquisitions as it forecast full-year profit in line with its previous expectations.
CEO Rob Templeman said the group, which in June raised £323m sterling in a share sale, would elaborate on its plans for the cash when it publishes year to August 29 figures on October 22. He said the cash could be used for potential acquisitions or to further reduce debt.
Templeman declined to comment on whether any talks with possible takeover targets were under way. Speculation over the summer linked Debenhams with a possible move on privately-owned House of Fraser, Britain's third-largest department store chain, which posted results last Wednesday.
Analysts also mentioned Aurora Fashions, a company owned by Icelandic Bank Kaupthing Bank and the former management of Mosaic Fashions, as a possible target. Aurora owns brands such as Coast, Karen Millen, Oasis and Warehouse.
However, analysts think it most likely Debenhams will pay down more debt, possibly even before October 22, with the prospect of acquisitions merely raised by the firm so it can attain the best price for debt repurchases.
The group, which trades from 154 stores in Britain and Ireland plus 52 international franchise stores, said total sales increased 0.2% over the year.
'Profit before tax and EBITDA are expected to be ahead of last year and in line with management's expectations,' Templeman said.
Separately, British homewares specialist Dunelm, reported a surge in recent sales growth, while a survey showed house prices in England and Wales were rising for the first time in more than two years.
A procession of UK retailers have posted better-than-expected sales in recent weeks, while official data have also pointed to a recovery from recession.
John Lewis, the UK's number one department store retailer, posts its first-half results on Thursday.
