Debenhams profits climb

The UK department store chain, Debenhams, has reported its full-year profit to have more than doubled. Debenhams was taken private last year in a GBP 1.72 billion deal by the Baroness Retail Consortium, a group of venture capitalists. The company has now posted pre-tax profits if GBP 330.5 million, up from GBP 137.5 million in the same period last year.

Debenhams revealed that the enormous rise in profits for partially due to an improved stock turn - the rate at which products are converted into cash - and minimized price cutting. The company plans on opening 20 new stores in the coming four years, and will be trying out a mini-Debenhams format. Shareholders in Baroness will receive a GBP 130 million cash pay-back.