Takeover Panel
14 October 2003

2003/23

OFFERS BY

LARAGROVE LIMITED ('LARAGROVE')

AND

BARONESS RETAIL LIMITED ('BARONESS')

FOR

DEBENHAMS PLC ('DEBENHAMS')




On 4 August, Laragrove posted an offer to Debenhams' shareholders. On 29 September, Baroness posted an offer to
Debenhams' shareholders, such offer to be implemented by way of a scheme of arrangement. Neither offer has yet been
declared final and either offer may therefore be increased or otherwise revised.

In order to provide an orderly framework for resolution of the competing offers and in accordance with Rule 32.5, the
Panel Executive has ruled, following discussions with the parties, that except with the consent of the Panel
Executive:


if either Laragrove or Baroness wishes to revise or increase its offer (other than in
accordance with the following procedure) after 5.00 p.m. on Thursday 30 October then that
bidder must lodge any increased offer with the Panel Executive by 4.00 p.m. on Friday 31
October (the 'Auction Start Date'), such increased offer to be announced at approximately 5.00
p.m. that day;


if the bidder with the lower offer at 5.00 p.m. on Thursday 30 October, or if both bidders,
announce(s) an increased offer by approximately 5.00 p.m. on the Auction Start Date then an
open auction procedure shall begin and the bidder with the lower offer following such
announcement(s) shall have until 4.00 p.m. on Saturday 1 November to lodge an increased offer
with the Panel Executive, such increased offer to be announced at approximately 5.00 p.m. that
day;


if the bidder with the lower offer after the announcement(s) at approximately 5.00 p.m. on the
Auction Start Date, or if both bidders, announce(s) an increased offer on Saturday 1 November,
the bidder which then has the lower offer outstanding shall have until 4.00 p.m. on Sunday 2
November to lodge an increased offer with the Panel Executive, such increased offer to be
announced at approximately 5.00 p.m. that day. If the bidder with the lower offer after the
announcement(s) at approximately 5.00 p.m. on Saturday 1 November, or if both bidders,
announce(s) an increased offer on Sunday 2 November, the lower bidder shall have until 4.00
p.m. on Monday 3 November to lodge an increased offer with the Panel Executive, such increased
offer to be announced at approximately 5.00 p.m. that day;


if such an increased offer is announced on Monday 3 November, then the open auction procedure
shall cease to operate. Both bidders shall be invited to submit sealed bids to the Panel
Executive by 1.00 p.m. on Tuesday 4 November specifying a fixed maximum price that each bidder
is prepared to pay. Formula offers will not be permitted. An announcement by the bidder
with the highest offer will, unless otherwise agreed by the Panel Executive, be released by
5.00 p.m. that day;


if, during the open auction, the bidder with the lower offer does not lodge an offer with the
Panel Executive by 4.00 p.m. the next day or if a party is the under-bidder in the sealed bid
process (as appropriate) then that bidder will not be able to amend its offer thereafter;


a further announcement will be made regarding the offer timetable once the above process has
been completed; and


the Panel Executive reserves the discretion to amend the above procedure as appropriate.



Each of the parties has accepted this ruling.

14 October 2003

Interim Management Statement.

DEBENHAMS PLC - INTERIM MANAGEMENT STATEMENT

-- Group gross transaction value +4.2%

-- Like-for-like sales +0.3% inc VAT

-- Like-for-like sales -1.3% ex VAT

-- Continuing market share gains

-- Gross margin improvement

-- Debt and financing costs improved

Trading Update.

.

.

Debenhams will post its full-year results on Thursday and something less rocky is expected. Things have been pretty much "steady as she goes" at Debenhams of late, with the shares, priced at 66p on a P/E of around 7. And since payments were resumed, the dividend looks like ticking along at a nice 5%.

Although the share price has recovered of late -- it has dipped as low as 51p this year -- it's still looking like a pretty reasonable bargain to me, and is presumably unloved mainly because it's "retail" and "high street".

Debenhams stays optimistic after sales and profits growth
StockMarketWire.com
Department store group Debenhams said gross transaction value was up 4.5% in the year to 3rd September. Like-for-like sales were up 1.2% including VAT, down 0.3% excluding VAT. Headline PBT was up 10% at 166.1m.

Net debt at 3rd September was 383.7m, down 133.1m from a year ago.

Basic earnings per share were up 21.3% to 9.1p (2010: 7.5p).

A final dividend 2p will be paid, giving a total dividend of 3p (last year: nil).

Debenhams intends to commence a share buyback programme in the second half of 2012 financial year.

We'll hear how Christmas sales at Debenhams went on Tuesday, and hopefully the year to August 2012 will have got off to a decent start. Current forecasts are suggesting a full-year dividend of around 5.5% on the current price of 58p, so the shares might be worth considering.

RNS Number : 2499V

Debenhams plc

10 January 2012

10 January 2012

DEBENHAMS PLC

INTERIM MANAGEMENT STATEMENT FOR 18 WEEKS TO 7 JANUARY 2012

-- Group gross transaction value +0.5% for 18 weeks
-- Group like-for-like sales for 18 weeks
o +1.4% inc VAT

o flat exc VAT

-- Strong December like-for-like sales; up 6.5% inc VAT
-- Gross margin guidance for full year remains flat
Debenhams plc, the leading department stores group, today announces its interim management statement for the 18 weeks to 7 January 2012.

Note: all comparisons relate to the 18 weeks to 7 January 2012 versus the 18 weeks to 8 January 2011 unless otherwise stated.

Group gross transaction value for the 18 weeks to 7 January 2012 increased by 0.5%. Group like-for-like sales increased by 1.4% including VAT and were level with last year excluding VAT. The online business, which is a key component of our multi-channel offer, delivered another strong performance with like-for-like sales increasing by 34.8%.

Overall, we are pleased with this good performance given the difficult trading conditions which have been experienced during the period. Warmer weather throughout October and November impacted the sales of seasonal product lines and uncertainty in the wider economy continues to have an adverse impact on consumer confidence. December trading was notably stronger with growth in Group like-for-like sales for the five weeks to 31 December of 6.5% including VAT.

Debenhams has continued to take a pragmatic approach to trading throughout the 18 weeks, focusing on maximising cash gross margin through management of promotional events and product mix. As a result, stock levels are firmly under control across all departments and terminal stock at the end of the first half is expected to be in line with historic levels. At this stage, gross margin guidance for the financial year is unchanged at flat.

One new store opened in Newbury during the 18 weeks taking the total to 170 stores in the UK, Ireland and Denmark. Two new international franchise stores were also opened, both in the Philippines, giving a total of 66 stores in 25 countries.

Except as detailed above, there have been no material events or transactions which have impacted the Group's strong financial position since the previously announced balance sheet dated 3 September 2011.

Michael Sharp, Chief Executive of Debenhams, said:

"I am pleased with this performance. We traded well despite the difficult environment as evidenced by strong sales in December, including record sales in the final week before Christmas.

"Looking forward, we are cautious about the strength of the economy and its impact on consumer behaviour over the remainder of the financial year. We will continue to manage the business tightly with an ongoing emphasis on cost and margin management. We are confident that the design, quality and value offered by our spring/summer 2012 product ranges will find favour with customers and expect to see some benefit from lower input prices in the second half of the year."

- Ends -

Gone short here this morning. Technical trade. Chart to follow.

DEB Debenhams

System chucked this out as a short yesterday. Seems to have a range of 76p to 56p.

Wed article re to Robbie Burns
short on DEB

I've shorted Debenhams (DEB). The ladies in the audience at the seminar were very critical to say the least but a look at the chart shows it always peaks around 75 and falls back to 60. So my plan is to short here for a fall back and then go long hopefully at 60. Well that's the plan anyhow and of course if it doesn't work out I'll take a small loss instead.

http://www.nakedtrader.co.uk/

Half Year Results.

Financial Highlights

· Group gross transaction value up 1.4%
· Group like-for-like sales up 1.4% including VAT, up 0.3% excluding VAT
· Group gross margin down 30 basis points, in line with guidance
· Profit before tax ahead of market expectations, up 1.4% at £127.1m
· Earnings per share up 4.2% to 7.4p
· Interim dividend of 1.0p per share
· Net debt reduced by £71.9m during half to £311.8m
· Long-term share buyback programme to commence with initial £20m over next 6 months

Operational Highlights

· Experienced management team in place under leadership of CEO Michael Sharp
· Investment in UK store estate: pipeline now at 14 stores up to 2017
· On target to complete 45 store modernisations in next 2 years
· Multi-channel business continues to grow strongly; online sales up 34.7%*
· Awarded Multi-Channel Retailer of the Year at Oracle Retail Week Awards 2012
· 3 new international franchise stores opened; pipeline now at 13 stores
· Solid performance by Magasin du Nord: like-for-like sales up 0.9%
· International online delivery expanded to 40 countries
· Ongoing cost, stock and capital discipline
*excluding Magasin

Not a bad set of results

Department store group Debenhams is set to give a trading update on Thursday and broker Panmure Gordon thinks the positives should include the strong womens-wear collection at the recent autumn/winter 2012 show, and something described as 'a market-leading front end multichannel proposition.' That being said, the company is going up tough comparatives from a year ago at a time when the High Street is having a rough old time of it. On top of that, Debenhams has 20 of its stores undergoing refurbishment in the second half of its financial year, which is sure to disrupt sales. The statement is set to cover trading in the 16 weeks to June 23rd, with numbers also provided for a 42-week period to the same date. "For the 16 week period to be reported next week, we think that 1.4% GTV [gross transaction value] growth and 1.3% LFL [like-for-like] sales decline are reasonable estimates," Panmure Gordon said

http://www.moneyam.com/action/news/showArticle?id=4397153

..Debenhams beats forecasts despite wet weather

By Reuters | Telegraph – 12 minutes ago
Debenhams (LSE: DEB.L - news) , Britain's second largest department store group, showed its resilience in the economic downturn by beating forecasts for quarterly underlying sales and winning market share even though it faced a deluge of rain in April.

The company, ranked second in Britain after employee-owned John Lewis, said on Thursday sales at stores open over a year rose 3.1pc, excluding VAT sales tax, in the 16 weeks to June 23, which includes its fiscal third quarter.

That compares with a rise of 0.3pc in its first half and analyst forecasts in a range of down 3pc to up 1pc.

Debenhams has benefited from a broad width of product choice , a broad church of customers, multiple routes to market and a strategy to drive profits by investing some of its gross margin, through price cuts and promotions, into pushing sales.

The firm, which trades from about 170 stores in the UK, Ireland (Xetra: A0Q8L3 - news) and Denmark, about 70 franchise stores in 25 international markets and across the Internet, said it now expected gross margin for the full year to be around 30 basis points lower than 2010-11 compared with previous guidance of broadly flat.

"Taking the sales performance, revised gross margin guidance and higher marketing spend into account, we remain comfortable with the market's current expectations for reported profit before tax for the year as a whole," it added.

Debenhams returned to the stock market at 195p in 2006 after two and a half years in private equity hands. The shares have risen 44pc over the past six months and closed at 81.4p on Wednesday

..Debenhams steps up growth plan with German website

By Jamie Dunkley | Telegraph – 35 minutes ago

High street retailer Debenhams (LSE: DEB.L - news) has stepped up its international growth plans by launching its first foreign language website in Germany.

The company, which has 164 stores in the UK and Ireland (Xetra: A0Q8L3 - news) and the Magasin du Nord chain in Denmark, said it also planned to expand its overseas delivery service to another 34 countries across the world, including Brazil, Chile (Berlin: G4R.BE - news) and South Africa, taking the overall figure to 41. Debenhams expects to expand this to 67 countries this summer.

The new German site - http://www.debenhams.de - is launched at a time when British companies are struggling to export to the continent as the eurozone debt crisis hits demand. The website is entirely in German and transacts in euros.

Debenham’s international expansion will provide customers across the world with greater access to clothes by designers including Matthew Williamson, Jasper Conran, Julien Macdonald and Henry Holland.

Simon Forster, online director at Debenhams, said: “Our mix of famous British designers and heritage products is expected to attract thousands of new customers to Debenhams.de.

“With the second largest e-commerce market in Europe (Chicago Options: ^REURUSD - news) after the UK, Germany has consistently been one of our top performing countries online and now German shoppers will benefit from their own bespoke website.”

Debenhams reported a 1.4pc rise in pre-tax profits to £127.1m during the six months to March 3. However, the retailer has warned it could be hit by the Queen’s Diamond Jubilee, the Olympics and the Euro 2012 football championships, as customers divert spending on to barbecues, beer and televisions.

Lord Green, the trade and investment minister, welcomed Debenham’s announcement. He said the UK’s online retail market, the largest in Europe, is set to grow 13pc to £77bn this year.

“The launch of Debenhams.de shows the power of British brands and their popularity with consumers the world over. It will enable German shoppers easier access to unique British design-led products, boosting our exports with Europe’s largest economy.”

..

Debenhams shares are still hovering around their 52-week peak of 96.5p, just a couple of pence down on 94.2p, after a remarkable year that has seen shares in the department store gain more than 60%.

It all fits in with the start of a recovery in the retail sector, after a downturn that took the good down with the bad -- at their low point of 50p, Debenhams shares were horribly undervalued. And now, even after such a great performance this year, forecasts still suggest a decent dividend yield of 3.2% this year and 3.6% next, from shares on a P/E of around 10.