- Boohoo Group
- 10 September 2026 09:59:17
Source: Sharecast
The company, which trades as The Debenhams Group, said £76.5m was received on completion and the remaining £13.5m will be received on vacant possession early next year.
Boohoo also said it’s entering into an agreement with a global third-party logistics provider that will enable it to continue to fulfil its stocked product as efficiently as it does today and will allow the group to scale its Delivered by Debenhams fulfilment proposition beyond fashion.
It now expects net debt to be negligible at its year-end.
Going forward, depreciation will reduce by around £12m per annum, it said, interest will reduce by at least £10m per year and cash lease costs will reduce by approximately £4m.
Chief executive Dan Finley said: "The Debenhams Group turnaround continues at pace, and this transaction helps accelerate our progress. As a result of the disposal, net debt is now expected to be negligible at our year-end (Feb'27). We are also pleased to report that GMV growth has accelerated in Q2."
At 0940 BST, the shares were up 11.2% at 23.63p.
Broker Shore Capital, which rates the shares at ‘buy’ with a 35p price target, said: "We see this as a significant milestone for the turnaround story, moving the group from its previous target of net debt to adjusted EBITDA below 1x, to negligible by the year-end.
"In our last published model, we forecast FY27F net debt of £85m (1.4x leveraged falling to 0.7x in FY28F), meaning the transaction is materially ahead of our balance-sheet expectations."
See latest RNS on Investegate