Debenhams Share News (DEB)

LONDON (Alliance News) - The FTSE 100 just about managed to end Monday's session in the green, lagging European peers as an afternoon jump in the pound weighed on the foreign earnings-heavy index.While an acceleration in UK economic growth inspired only minor gains in the pound, which the currency swiftly gave back, encouraging comments from the EU's chief negotiator, Michel Barnier, saw sterling charge in the afternoon to surpass the USD1.30 mark.The FTSE 100 index closed broadly flat, just 1.60 points higher at 7,279.30. The FTSE 250 ended up 0.3%, or 50.22 points, at 20,259.83, and the AIM All-Share closed down 0.2%, or 1.96 points, at 1,098.36.The Cboe UK 100 ended flat at 12,329.76, the Cboe UK 250 closed up 0.5% at 18,397.40, and the Cboe Small Companies ended up 0.3% at 12,139.44.The pound was quoted at USD1.3022 at the London equities close Monday, higher compared to USD1.2949 at the close on Friday.In the morning, the Office for National Statistics revealed the UK economy expanded at a faster-than-expected pace in July.Gross domestic product grew 0.3% month-on-month in July, faster than the 0.1% rise in June and above expectations of a 0.2% gain. In three months to July, economic growth improved to 0.6% from 0.4% in three months to June.ONS Head of GDP Rob Kent-Smith said the dominant service sector again led economic growth in July with engineers, accountants and lawyers all enjoying a busy period, backed up by growth in construction, which hit another record high level."Following a rate rise from the BoE just last month, the central bank are not expected to take any action this month. However, a solid monthly GDP figure, plus evidence of the dominant service sector remaining resilient and now suggestions that a Brexit deal could be done within a matter of weeks could encourage a few more hawkish sounds from the BoE nest," commented Fiona Cincotta, senior market analyst at City Index.While this improved reading did little to boost the pound, the currency surged above USD1.30 in the afternoon following comments from the EU's Barnier."I think that if we are realistic, we are able to reach an agreement on the first stage of this negotiation, which is the Brexit treaty, within six to eight weeks," Barnier said at a conference in the Slovenian town of Bled on Monday."We must reach an agreement before the beginning of November. I think it is possible," he added.Brussels and London are working hard to wrap up discussions on the terms of Britain's departure from the EU in 200 days time, on March 29, 2019.The two sides had set a mid-October deadline to finalize the Brexit deal, but Barnier said that this date could slip. He has previously indicated agreement would be necessary by mid-November to allow time for the required ratification procedures. Up to 85% of the Brexit deal has been agreed on, Barnier told the Bled Strategic Forum.However, the negotiator did note that issues remain, such as the Irish border, geographical indications - which specify the origin of certain agricultural goods - and the role of the European Court of Justice.In European equities on Monday, the CAC 40 in Paris closed up 0.3% and the DAX 30 in Frankfurt both ended up 0.2%.The euro stood at USD1.1604 at the European equities close Monday, against USD1.1674 at the same time on Friday.Stocks in New York were higher at the London equities close, with the DJIA up 0.1%, the S&P 500 index up 0.4%, and the Nasdaq Composite gaining 0.3%.In commodities, Brent oil was quoted at USD77.26 a barrel at the London equities close Monday from USD76.48 late Friday.Gold was quoted at USD1,196.81 an ounce at the London equities close Monday against USD1,196.90 at the close on Friday.In London on Monday, Wm Morrison Supermarkets gained 1.7% after HSBC raised the grocer to Buy from Hold.Towards the other end of the FTSE 100 index was miner Glencore, declining 2.0% after JPMorgan downgraded the commodities broker to a Neutral rating from Overweight previously.Easing from earlier losses, Associated British Foods ended 0.8% lower. For the year ending September 15, AB Foods said it generated a "strong performance" from its Retail, Grocery, Agriculture and Ingredients businesses which offset lower sugar prices.The company said it expects Primark sales to be up 5.5% on the previous year at constant currency, on the back of increased selling space offset by a 2% decline in like-for-like sales. At actual exchange rates sales are expected to be 6% higher than last year.Comfortably the biggest gainer in the FTSE 250 on Monday was RPC, closing up 18% as it confirmed preliminary takeover talks with two companies.In a short statement, RPC said it is holding preliminary discussions with Apollo Global Management and Bain Capital regarding a potential offer. Both companies will have until October 8 to either make a firm offer for the London-listed plastic products maker or walk away.Elsewhere on the Main Market, Debenhams shares shed 11%.The Financial Times reported Debenhams has asked KPMG to explore restructuring options such as shutting shops as it looks to restructure.In response to press reports, the department store chain issued a statement in which it expects to post an annual profit in line with the current market range despite a deteriorating market environment. The company said it expects annual pretax profit of GBP33 million, in line with the market expectations of between GBP31 million and GBP36.5 million. Earnings before interest, taxes, depreciation and amortisation is expected to come in at GBP157 million. Looking ahead, Debenhams said that the early weeks of the new season "have shown more positive trends and any sustained upturn would result in a rebound in our profit performance". Funeral services provider Dignity declined 6.1% as Co-op "upped the ante" on the low-cost funeral price war.In an announcement on Monday, Co-op said it has now reduced the price of its Simple Funeral by GBP100, taking it to GBP1,895. The service will now cost GBP1,675 in Scotland.Dignity at the beginning of the year had unveiled plans to make its business more competitive by reducing its simple funeral service plan to GBP1,995 in England and Wales and GBP1,695 in Scotland.On AIM, Abcam - the fifth largest stock listed on London's junior market by market capitalisation - fell 15% as the company warned its margins will be lower in the year ahead.The life science research tools supplier said pretax profit grew to GBP69.1 million for the year to June 30 from GBP51.9 million, as revenue climbed 7.4% to GBP233.2 million from GBP217.1 million last year. On a constant currency basis, revenue rose 11%.In the coming year, the company said it plans to increase investment in a "number of strategically important areas" including R&D, China, Abcam Inside and data analytics.As a result of increased investment, Abcam expects an adjusted earnings before interest, taxes, depreciation and amortisation margin of around 36% for the year ahead, down from the 38% achieved for the recently-ended year."This is 2-3ppt lower than consensus, and likely to offset the stronger revenue outlook in the near term," commented analysts at Berenberg.In the corporate calendar on Tuesday are first quarter results from equipment rental firm Ashtead, while interims are due from JD Sports Fashion, master franchisee of the Domino's Pizza brand in Turkey, Russia, Azerbaijan and Georgia DP Eurasia and pharmaceutical firm Vectura Group.In the economic calendar on Tuesday is UK unemployment and average earnings at 0930 BST. In Germany, the ZEW survey is at 1000 BST with the survey for the eurozone also due at the same time. In the afternoon is the US Redbook index at 1355 BST and JOLTS job openings at 1500 BST.