Debenhams' chief Michael Sharp quits as profits start to rise

Debenhams’ chief executive Michael Sharp has revealed he is to leave the department store group next year, after investors exerted pressure for a change in strategy.

Sharp, who is now in his fifth year with the company, said it had always been his intention to do the job for five years and now was the right time to begin finding his successor, so that he could leave in 2016.

“I hope being transparent about my intentions will stop recent speculation becoming a distraction, allowing me and the Debenhams team to focus on delivering our strategy and the important Christmas period,” Sharp said.

Shares in the business rose 3.35p, or 4.13%, to 84.5p.

Shareholders, including Schroders, were thought to be unhappy with the retailer’s performance and strategy.

It has struggled in recent years to increase profits, despite huge investment in its Oxford Street flagship store and its online offering.

Two years ago it suffered a string of profit warnings and parted company with its finance director Simon Herrick.

Pre-tax profits for the group rose slightly £105.8 million to £113.5 million in the year to August.

Same-store sales increased by 0.6%, including currency fluctuations.