Boots denies sale-and-leaseback deal

HIGH Street chemist Boots today denied a report that is is about to embark on a sale-and-leaseback deal to raise cash - but did not rule out such a move in the future.

The Financial Times newspaper today said Boots hoped to raise about £300m from the a sale and leaseback of some of its 1,400-strong stores chain. About a third are freehold.

'We periodically review our strategic options, but there is no deal imminent,' a Boots spokesman said.

The health and beauty company, which recently reported a 2.6% rise in third-quarter same-store UK sales and said full-year profits would be broadly in line with market forecasts, is ploughing cash into expansion and lower prices as it tries to face down increasing competition from the supermarket majors.

Chief Executive Richard Baker has been revamping the supply chain and improving in-store efficiencies. Boots is devoting £250m to capital expenditure in the current financial year, with price-cuts across 3,300 lines accounting for a further £140m.