Department store chain Debenhams is expected to announce an acceleration of its cost-cutting programme and to drop its dividend to shareholders.
According to reports in national newspapers over the weekend the retailer is seeking to save £30m by scrapping its dividend and a further £70m by additional cost-cutting including reining in capital expenditure.
Last month Debenhams appointed a new chief financial officer, Rachel Osborne, who has been taking a fresh look at its finances and the plans are expected to be announced when it reports its year-end results this Thursday.
The business was obliged to issue an unexpected statement to the stock market last month clarifying its financial position after reports that it had appointed KPMG to advise on its strategic options. At the time Debenhams confirmed the expectation of a £33m profit for the current financial year, which is in line with current guidance but down significantly on last year’s £95.2m.
Shares were trading down 1.79% a the time of writing at 9.06p having closed at 9.22p on Friday evening.