Table of Contents

Introduction:...............................................................................................................2
 Focus Company: NEXT PLC.........................................................................2
 Competitor Company: DEBENHAMS PLC...................................................2
Debenhams PLC Financial and Operational Highlights............................................4
 Financial Highlights........................................................................................4
 Operational Highlights...................................................................................4
 Daily Basis Stock Exchange Graph.................................................................5
Compare and contrast the stock market flexibility of NEXT PLC with one
DEBENHAMS PLC........................................................................................................6
Quarterly Graphs and their stock exchange comparison:.......................................6
Debenhams Plc Directors’ Report.............................................................................18
Principal Activities.................................................................................................18
Business Review....................................................................................................18
Events since the Year End.....................................................................................18
Profit and Dividends..............................................................................................18
Major Shareholders...............................................................................................18
Share Capital and Control.....................................................................................19
Management and Governance..............................................................................19
Market Value of Properties....................................................................................19
Essential Contracts................................................................................................20
Financial Instruments............................................................................................20
Disclosure of Information to Auditors....................................................................20
Auditors.................................................................................................................20
Conclusion:...............................................................................................................21
References...............................................................................................................21
Reflection Report:.....................................................................................................22
Appendixes...............................................................................................................23
Appendixes

1
Introduction:
➢ Focus Company: NEXT PLC
➢ Competitor Company: DEBENHAMS PLC

Next plc is a British retailer, with its headquarters in Enderby, Leicestershire,

England. The company, which has employed some of the biggest names in the
fashion world including Alessandra Ambrosio, Noémie Lenoir, Yasmin Le Bon,
Gabriel Aubry and Paul Sculfor, has over 550 stores throughout the UK and the
Republic of Ireland, and 50 franchise branches in Europe, Asia and the Middle East.
Next have also recently made available their online directory service to places such
as the United States and New Zealand, allowing customers in those countries to
purchase next products online though no retail stores have opened up in those
areas as of yet. It is listed on the London Stock Exchange and is a constituent of the
FTSE 100 Index.
The company was founded by Joseph Hepworth in Leeds in 1864 as a tailor under
the name of Joseph Hepworth & So. The first NEXT shops opened on 12 February
1982, with the Kendall's conversion complete by the end of 1983. Based around
"the total concept look," it encouraged customers to mix and match within a style,
resulting in customers having both trend and buying more. The average NEXT
customer would buy five items, as opposed to the one they had entered the shop
originally to buy.
Made chief executive in 1984, Davies then converted the 50 Hepworths stores to
the NEXT format, extending the total concept look at the same time to cover
menswear. This allowed the development mini department across the entire
footprint, selling women's and men's and clothes. This was added to by the
introduction of NEXT interiors to stores which were deemed in the "right
demographical areas." In 1986, Davies moved the group’s headquarters from Leeds
to Leicester, to be closer to the main garment manufacturers. The groups name
changed to NEXT plc.
In 1987, the group acquired Combined English Stores and the Grattan catalogue
company. Extending first to introduce NEXT childrenswear, Davies then introduced
the NEXT Directory. At the same time, Davies launched the NEXT account card. In
Autumn 2009, Next launched an online catalogue for the United States offering
clothing, shoes and accessories for women, men and children.
Debenhams PLC and its Background
Debenhams Plc is a UK dealer in service under a department store format in UK,
Ireland and Denmark, and franchise store in other nations. The company was
founded in eighteen century as a single store in London and has now grown-up to
around 160 outlets. It is listed on the London Stock Exchange and is a part of FTSE
250 Index. The company main head office is located in London. Clothing,
accessories, cosmetics and house wares and health and beauty are Debenhams
main products.

2
Debenhams is a well-built and outstanding British department store group which
was recognized 200 years ago. Debenhams deals in a variety of commodities. In
order to serve its customers, Debenhams has its own brand, International Brand
and Designers. It’s started in 1778 when William Clark established a drapers store
at West End by selling a high class fabrics, bonnets, gloves and parasols. In 1813 it
becomes Clark and Debenhams when William Debenhams provided capital in the
firm. In 1851 the name changes again to Debenhams and Freebody when Clement
Freebody invested in the firm. They acquire so many retailers, wholesalers and they
also managed to open some of their offices internationally in Australia, Canada,
China and South Africa. In 1905 it becomes the Debenhams Ltd. In 1919the merger
was announced with Marshall & Snellgrove and in 1920 they also purchase Harvey
Nichols.

Debenhams was the part of Burton group from 1985 to 1998, in this period the
designers was established in 1993 and significant increases in the number of stores.
In 2003 Debenhams was listed in London Stock Exchange which was the result of
Demerger from the Burton Group. In 2007 they also acquired Magasin du Nord,
which was the leading department store in Denmark.
As a group we have to write a complete report about;
1. Analyse the ratios of your company – (NEXT PLC)
2. Identify the (NEXT PLC )stock market flexibility over 2-5 years (shown in
chart) and explain the main reasons for the changes in the price (i.e. identify
the main news items)
3. Evaluate whether any sharp change in the stock market had influenced the
financial stability of the company
4. Compare and contrast the financial status of the company (NEXT PLC ) with
one of the competitors (DEBENHAMS PLC)
5. Compare and contrast the (NEXT PLC)stock market flexibility with one of the
competitors (DEBENHAMS PLC)
My Group names and their ID are given below and they have finished their
parts respectively as tasks are given.
Mohammad Mallick 0923809
Anastasia Krutova 1001381
Mohammad Rizvi 0921655
Isha Tangri 0920915
Muhammad Waqas 0923644

3
Debenhams PLC Financial and Operational Highlights

Looking at the financial side of the company, they have the latest reported revenue
of 2119.90 and net income of 97 Million. They have a current market capital of
922.64 and the recent share price is £72.

➢ Financial Highlights
• Gross transaction value up 9.6%
• Revenue up 10.7%
• Gross margin up 70bps
• Headline profit before tax up 20.6%
• Net debt reduced by £73.5 million
• Bank facilities refinanced

➢ Operational Highlights
• Good performance from own bought product ranges
• Further progress in market share, especially menswear and children’s wear
• Acquisition of Denmark’s leading department store chain Magasin du Nord
• Six new UK stores opened, creating 800 new jobs
• Eleven new international franchise stores opened in ten countries

4
➢ Daily Basis Stock Exchange Graph

Daily
02 NEXT/d
Price
16 01 16 04 18 01 16 01 16 01 16 04 17 01 16 01 16 02 16 01 16 01 18 01 19/10/2009
16 - 17/12/2010
01 16 (LON)
Line,GBp
NEXT/d, Last Trade(Last)
Nov 09
14/12/2010, 2,019 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10
2,200

2,100

2,000

1,900

1,800
.12

(NEXT PLC – Nov 09 to Dec 10)

Daily
02 DEBENHAMS/d
Price
16 01 16 04 18 01 16 01 16 01 16 04 17 01 16 01 16 02 16 01 16 01 18 19/10/2009
01 16 - 17/12/2010
01 16 (LON)
Line,GBp
DEBENHA MS/d, Last Trade(Last)
Nov 09
14/12/2010, 72 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10

80

75

70

65

60

55
.12

(DEBENHAMS PLC – Nov 09 to Dec 10)

5
Compare and contrast the stock market flexibility of NEXT
PLC with one DEBENHAMS PLC

Quarterly Graphs and their stock exchange comparison:

November-December 2009 and January 2010

Source- www.reuters.co.uk

Debenhams, FTSE, NEXT

November 2009

Next Plc share price and market position started from lower level and ended at
quite high level. Next plc announces £18,960,000 of its 5.25% bond purchased & also
total of £36,209,000 bonds which had been purchased for cancellation representing 12.1%.
At the end of November 2009, Next plc's registered share capital consists of 197,096,687
shares at 10 pence each. All ordinary shares have equal voting rights and no shares in
Treasury. This figure can be used by shareholders to determine whether they are obliged to
notify their interest in, or a change to their interest. Next share price started from 17.95 and
ended at 19.76.

Debenhams share price and market position started from lower level, went up in the
middle of month and then again went down at the end of November 2009.
Debenhams were preparing their selves for another promotion-led Christmas
trading period. As there were about 40% of same retailers were already confirmed
they going to do the same promotion and Debenhams Plc were one of them. This
action of Debenhams encourages shareholders to buy more shares and this lead to
more valuable share price and market position. And the second reason Debenhams
had announced to acquire 100% of the shares of A/S Th. Wessel & Vett. Magasin du

6
Nord (“Magasin”) from Magillum A/S. Debenhams share price started from .779 and
ended at .818.

Comparison:

Both companies share price started from lower level but Next Plc shares price
ended at high level and on the other hand Debenhams share price ended at a bit
lower than Next. Debenhams gets the higher level in the middle but Next gets the
higher level at the end of November.

December 2009

Next share price seems at constant in December 2009. A slightly fluctuation seems
but not too much difference in price between started and ending of December.
Next gets the higher sales in December 2009 due to Christmas and even after
Christmas they have encouraged sales promotion. Next plc's registered share
capital consists of 197,096,687 ordinary shares of 10 pence each. Next share price
started from 19.76 and ended at 20.83.

Debenhams share price started from higher level and ended with low price. Even
though Deutsche Bank raises Debenhams price target to 120P as previously it was
115P. Debenhams gets notably high sale in December due to their sales promotion
and posted a 27% rise in department store sales for last week. Moreover second
reason were cold weather had impacted purchases, with sales of snow boots
trebling, sales up 160 percent, and sales of high tog duvets up 42%. Debenhams
share price started from .818 and ended at .675.

Comparison:

By comparing both companies share price, it’s clearly identify that Debenhams
share price keep going at low price until end of December and on the other hand
Next Plc share price remains almost constant.

January 2010

Next share price started from high and ended at lower level in January 2010. In
January 2010 another same retailers Mark & Spencer gets the higher sale than Next
and Debenhams and also comparatively high than all other competitors due to their
sales promotional strategies. Next could not succeed to get targeted business. Next
share price started from 20.83 and ended at 19.66.

7
Debenhams share price also started from high level and ended at lower level in
January 2010. Debenhams get good sale by selling their fur coats and swimsuits in
the starting days but could not maintain this until end of January 2010. Debenhams
share price keep going towards down even more than previous month.

Comparison:

Both companies share price move towards lower level since January 2010 started.
Debenhams get fluctuation in their share price at the middle of the January 2010
due to rise in sales of fur coats and swim wears. But on the other hand Next share
price constantly keep going towards lower level.

February, March and April 2010

Source- www.reuters.co.uk

Debenhams, FTSE, NEXT

February 2010

Next share price started from high level and ended at most lower level of the year
at the end of February 2010. Next share price went to worst level. Due to fewer
sales of their shares Next declares in the middle of February that it has purchased
120,000 shares of its ordinary shares for cancellation at 1909.8800 Pence per
share. And again after 2 days Next declared its has purchased 120,000 shares of its

8
ordinary shares for cancellation at 1940.7051 Pence per share. Furthermore after 6
days Next again declared that it has today purchased 120,000 shares of its ordinary
shares for cancellation at 1851.0907 Pence per share. Next share price started from
19.66 and ended at 18.75.

Debenhams share price remains constant overall in the month of February 2010.
There were a slightly fluctuation identified in Debenhams share price in February
2010. Debenhams said it had seen a 76 percent surge in online sales of the 18
pounds-a-pair ($28) under wearing the past week. Due to increase in online sale
Debenhams did not lost much value as compare to Next.

Comparison:

Both companies share price started from slightly high price and ended with lower
price. But Next share price keep moving towards down constantly and on the other
hand the share price of Debenhams has been fluctuating over the month of
February 2010 and then ended at lower price.

March 2010

Next share price started from much lower level and ended at quite high level. Next
gets the nearly highest level of their share price in year 2010. As a result of a
divorce settlement dated 9 March 2010 and confirmed on 15 March 2010, the
beneficial interest of Andrew Varley, Group Property Director, in the Company's
ordinary shares of 10p each has reduced by 3,254 to 57,754, which represents
0.03% of the Company's issued share capital. And second reasons Next Plc had
boosted their sales value, this encourage shareholder to buy Next shares. Next
share price started from 18.75 and ended at 21.64.

Debenhams share price also started from lower level and ended at higher level.
Debenhams gets the second higher level of share price of year 2010 in February
2010. Debenhams has announced in the middle of February 2010, gross transaction
value (excluding magasin du nord) for the 26 weeks was 1.7% higher than the same
period last year. Shares in Debenhams, which have nearly doubled over the past
year as worries eased about its debt, were down 0.4% at 70.7% and Gross
transaction value increased 1.7%. Debenhams share price started from .628 and
ended at .757.

Comparison:

9
Both companies share price started from lower price and ended at higher level.
Next succeed to get their nearly second best share price of year 2010 in March
2010. On the other hand Debenhams also gets the second higher level of their
share price of year 2010 in March 2010. Both of them started from very low price
and ended with boosted their share prices.

April 2010

Next share price started from high level and in the middle of April 2010, Next has
got highest level of their share price and then again move towards down. Share
price wise April 2010 was more excellent month for Next. Even The BRC said UK
retail sales rose at their fastest pace since March, but was satisfied with the figures
earlier in the timing of the Easter Holiday this year. Next share price started from
21.64 and ended at 22.95.

Debenhams share price started from high level but ended at lower level.
Debenhams share price continuously going towards downside since April 2010
started. UK department store Debenhams falls 1.4%, underperforming other
retailers after a forecast-beating first half profit does little to impress analysts who
focus more on what they say are disappointing current earnings. Debenhams share
price started from .757 and ended at .718.

Comparison:

In April 2010, there were an enormous difference in share price of Next and
Debenhams. Next share price went up since April 2010 started and Next kept this
momentum going until end of April 2010. On the other hand since April 2010 the
share price and market position of Debenhams keep going down. Next share price
gets the higher level of the year in April 2010.

10
May, June and July 2010

Source- www.reuters.co.uk

Debenhams, FTSE, NEXT

May 2010

Next share price started from high rank and ended at low price. Next could not
succeed to maintain their business in retail sector and online sales also decreased
in May 2010 as compare to April 2010. And second reason Next has found an error
in reported diluted earnings per share figure and the related note to the financial
statement. Even though this does not affect basic earnings per share and basic
earnings per share, our prime measure of performance, is correctly stated at
188.5p. Next share price started from 22.95 and ended at 20.79.

Debenhams share price also started from high rank and ended at lower prices.
Debenhams business in May 2010 went down and they could not succeed to
maintain the level of their share price even they hosting visit for investors and
analysts to its Danish business Magasin du Nord.

Comparison:

Next and Debenhams share prices started from higher rank but both companies
share price ended with lower price in stock exchange market. Next share price did
not go lower in a sudden as compare to Debenhams. Debenhams share price keep
going down since May started but there were a fluctuation in Next share price.

11
June 2010

Next share price remains slightly constant in June 2010 until 25th and then went
down in sudden. There were fluctuations in Next share price over the time period of
June 2010. Next has announced in June 2010, their registered share capital consists
of 184,539,796 ordinary shares of 10 pence each. All of the ordinary shares have
equal voting rights and there are no shares held in Treasury. Next share price
started from 20.79 and ended at 20.09 in June 2010.

Debenhams get the worst and lower share price of the year 2010 in June 2010.
Morgan Stanley cuts Debenhams Plc price target to 72P from 85P. Debenhams
started their share price from .592 and ended at .53 in June 2010.

Comparison:

Both companies share price started from a bit higher price and ended at lower
price. Next maintain their share price until 3 weeks of June 2010 then its share price
went down. On the other hand Debenhams share price went to worst level of year
2010.

July 2010

Next share price started from lower price and went to higher level in the middle of
July 2010. Then its moved towards down at the end of July 2010. Next plc
announced that it has a purchase of 94,472 ordinary shares for cancellation price of
1963.0765 pence per share. After purchase, the company's share capital registered
consists of 184445324 ordinary shares of 10 pence per share. The reason for go to
this transaction were lower level of share price at the started of July 2010. And at
the end of July 2010, Next announced that it has started to not irrevocable, non-
discretionary program to purchase shares on its own behalf, to cancel during the
close.

Debenhams started their share price from the worst price of the year 2010 and
ended at quite better level in July 2010. They have achieved much better price level
from their recession period. At very beginning of July 2010, Debenhams said a fall in
underlying quarterly sales was offset by rising profit margins as it gained share in a
tough retail market it expected to get tougher. And then operator Debenhams is
seeking to extend a portion of its existing debt through a 550 million pound forward

12
start facility. Barclays, Lloyds and Royal Bank of Scotland are coordinating the
financing that has gone out to existing lenders and a few others that have shown an
interest in doing the deal, the source added. In addition, Debenhams said it had
bought back a total of 84.7 million pounds of debt at an aggregate discount of
around 4 percent. Debenhams Plc - refinancing a new £650 million credit facility
comprises a £250 million term loan and a £400 million revolving credit facility.
Expects to continue program of net debt reduction over the coming years. Interest
cost net of fees will fall from 7.0% in the current FY to circa 4.5% during the first full
year. Debenhams has completed a refinancing of its debts, signing a new 650
million pound ($997 million) agreement that will cut its interest bill. Shares in
Debenhams gain 1.6% as Investec raises its earnings forecasts and repeats its
"buy" rating on Britain's No.2 department store group after the firm completed a
refinancing of its debts on Monday. Investec says the refinancing will reduce the
weighted average cost of debt to around 4.5 percent from about 7%, resulting in
earnings per share upgrades of 2% in 2011 and 4% in 2012.

Comparison:

Next share price started form lower price then it went to higher level then again its
moved towards down at the end of July 2010. There were a fluctuation in Next share
price but ended with lower price. On the other hand Debenhams share price started
from the lowest price of the year 2010 and ended with higher price. Its
outstandingly notified in Debenhams graph that they have covered from their
recession period and got higher price at the end of July 2010. While Next ended July
2010 with lower price even though there were a fluctuation in their share price.

13
August, September and October 2010

Source- www.reuters.co.uk

Debenhams, FTSE, NEXT

August 2010

Next Plc market share prices started from higher value and ended at lower value in
August 2010. At the start of August 2010, Next were following the policy of using
surplus cash generated by the business to buy back shares. As a result of this
policy, earnings per share went rise 6% faster than profits. In the context of our
buyback program, we reiterate that our first use of cash is to invest in the
business. And in the last 10 days of August 2010 Next plc has purchased 50,000 of
its ordinary shares for cancellation at a price of 1970.5377 pence per share.
Following the purchase, the Company's registered share capital consists of
183,639,796 ordinary shares of 10 pence each. Next share price started from 21.5
and ended at 19.8.

Debenhams market share prices also started from higher value and ended at lower
value in August 2010. In previous month, Debenhams has had gain 1.6% raises it’s
earning. That’s why share price were high in August 2010. But with the passage of
time Next could not maintain the share price in stock market and ended at lower
price. Due to this, Investec had also cuts Debenhams price target to 83P from 92P.
Debenhams share price started from .615 and ended at .578.

14
Comparison:

In August 2010, both companies share price started from higher value and ended at
lower price. But Next tendency of going lower were quick as compare to
Debenhams. Next started with very good share price but ended the second worst
value of the year. On the other hand, Debenhams share price remains constant.

September 2010

Next Plc market share prices started from lower value but ended at higher value in
September 2010. In September 2010, Next reached at their second lowest market
value after January-February. Next Plc wasn’t getting targeted online sale even
SocGen says in a note that Next is lagging behind Marks & Spencer and ASOS in
online sales growth, due to this SocGen cuts its target price to 1764 pence, from
2335 pence. BERNSTEIN has also cuts NEXT PLC price target to 2300P from 2550P.
Next share price started from 19.8 and ended at 22.16.

Debenhams market share prices also started from lower value and ended at higher
value. Debenhams were at their third lower market value in September 2010. The
market share value was coming down continuously from previous month due to
recession in whole industry. Sales were not at encouraging level. To increase the
sale Debenhams cuts prices by up to 25 percent, in a sign retailers are increasingly
nervous about the outlook for consumer spending. Debenhams said on Tuesday it
was lowering prices on "tens of thousands" of goods now in a bid to attract wary
shoppers, rather than waiting to use discounting as a way of clearing stock at the
end of the season. Due to cuts in their price Debenhams’s succeed to improve their
stock exchange position. Debenhams share price started .578 and ended at .653.

Comparison:

Next Plc market share price slightly better than Debenhams in September 2010.
Even though there were not too much difference between market share prices and
market value of both companies. In September both companies were recovering
from recession. They have started from lower value but somehow both have
succeeded to find better value at the end of September 2010.

October 2010

In October 2010, Next’s market share prices were high. Next has got second highest
value in year 2010 after March-April. Share price of Next had notably increased their
sales value in month of October. Due to their higher value of share prices, SOCGEN

15
has also raises NEXT to hold from sell. At the end of October 2010 Next Plc’s
registered capital were consists of 183,321,387 shares of 10P each. Next share
price started from 22.16 and ended at 22.85.

Debenhams market share prices were also going up in October 2010 since its
started. Debenhams has got third best share price value/stock market position in
this month after January and March-April. Debenhams has also decreased their debt
value in October 2010. The reason for third best stock exchange market position
and shares price were best sale driven by Debenhams. And Debenhams Gross
transaction value up by 9.6%, Gross margin up by 70bps and profit before tax up by
20.6%. Debenhams share price started from .653 and ended at .763.

Comparison:

Next Plc market share price were much better than Debenhams in October 2010.
Next has got second best and Debenhams has got third best stock exchange
market position. Even Debenhams started from lower value and with the passage of
time this went up but not excellent as Next Plc achieved.

16
November 2010

Source- www.reuters.co.uk

Debenhams, FTSE, NEXT

November 2010

Talking about Next, its shares price/position going down as the passage of time in
this month. The share prices were high in October 2010 but going downwards in
November 2010. The reason for shares price going down is that sales were up 2.2%
until at the end of October but as soon as November started the sales of Next has
reduced. However Next plc announces that it has purchased a further £36,493,000
of its 5.25% bond due September 2013 since the previous announcement on bond
buybacks on 5 January 2010. To date, a total of £82,202,000 of these bonds has
been purchased for cancellation, representing 27.4% of the initial issue. Next share
price started from 22.85 and ended at 20.1.
On the other hand Debenhams shares price/position in November 2010 was also
fluctuating. At the start of this month it’s going towards down but in the last 10 days
its covers the spot and goes up but ended again by going down. But the shares
price/position of Debenhams in November 2010 is quite better than previous month
as sales increased significantly. Debenhams share price started from .763 and
ended at .705.

Comparison:

17
As it is clearly identified in above given monthly graphs of both companies, the
stock market position and share prices of Next is slightly high than Debenhams in
November 2010. As Next have had better sales in October 2010.

18
Debenhams Plc Directors’ Report

Principal Activities
Debenhams is a leading department stores group with a strong presence in key
product categories including women’s wear, menswear, children’s wear, home and
health and beauty. Debenhams is the second largest department store chain in the
UK. Debenhams operates 167 stores in the UK, Republic of Ireland and Denmark,
comprising 154 full department stores and 13 Desire by Debenhams stores, which is
a small store concept featuring an edited product range. Debenhams also has 60
international franchise stores in 23 countries. Debenhams trades over
approximately 12,250,000 sq ft of trading space and has around 29,000 employees.
Debenhams extends its customer reach via its online store at
www.debenhams.com.

Business Review
This review has been prepared in accordance with The Companies Act 2006 which
requires the Company to set out in this report a fair review of the business of the
Group during the financial year ended 28 August 2010, including an analysis of the
position of the Group at the end of the financial year and the trends and factors
likely to affect the future development, performance and position of the business.
The purpose of the Business Review is to enable shareholders to assess how the
directors have performed their duty under section 172 of The Companies Act 2006.
The contents of this Directors’ Report, together with the Chairman’s Statement and
Chief Executive’s Review on pages 4 to 16, the Finance Director’s Review, the
Corporate Responsibility Review and The Board on pages 21 to 37, Risk
Management, the Remuneration Report and the Statement of Directors’
Responsibilities on pages 45 to 59 constitute the Business Review and are therefore
incorporated into this report by reference. Any liability is restricted to the extent
prescribed by the Companies Act 2006.

Events since the Year End

Since the year end Debenhams has opened a department store in Bath.
Additionally, the Group has disposed of the long leases on six stores and entered
into new lease contracts for these stores. Further details of this disposal can be
found in note 36 to the Financial Statements.

Profit and Dividends

The profit after tax for the financial year ending 28 August 2010 was £97.0 million
(2009: £95.1 million). The directors are not recommending the payment of a final
dividend. No dividends will therefore have been paid during the year (2009: nil).

19
Major Shareholders
As at 21 October 2010, Debenhams plc has received notification of the following
significant holdings of voting rights pursuant to the Disclosure and Transparency
Rules: Issued Number of share capital Shareholder shares % Bestinver Gestion, S.A.
155,250,436 12.1 Oz Management LP 148,222,891 11.5 Milestone Resources Group
Ltd 89,183,155 6.9 Standard Life Investments Ltd 69,060,939 5.4 Schroders plc
67,086,373 5.2 Artemis Investment Management Ltd 63,855,868 5.0 AXA S.A.
60,803,116 4.7 Legal & General Group plc 42,075,474 3.3

Share Capital and Control

The issued share capital of the Company is shown in note 29 to the Financial
Statements on page 98 and consist of ordinary shares of 0.01 pence each. All the
shares rank pari passu. The rights and obligations attaching to the Company’s
ordinary shares, in addition to those conferred on their holders by law, are set out in
the Company’s Articles of Association, a copy of which can be obtained by writing to
the Company Secretary. The Company was authorised by shareholders at the
January 2010 Annual General Meeting to purchase in the market up to 128,680,629
ordinary shares. Although this authority was not utilised by the Company during the
last financial year, approval will be sought from shareholders at the forthcoming
Annual General Meeting to renew this standard authority for a further year. It is the
Company’s present intention, should shares be bought back, for them to be
cancelled or retained in treasury pending a subsequent sale, cancellation or
transfer. The Company does not currently hold any shares in treasury. The
Company will only buy back shares if the directors believe that it is in shareholders’
best interests and will increase earnings per share.

Management and Governance

Debenhams Annual Report and Accounts 2010 Changes to the Articles of
Association must be approved by special resolution of the Company. New Articles
are being proposed at this year’s Annual General Meeting to include a provision that
will allow the Company to continue to function in circumstances where an
insufficient number of directors are elected or re-elected at one of the Company’s
general meetings, thereby leaving the board inquorate. Explanatory notes relating
to these changes are included in the appendix to the Notice of Meeting which
accompanies this report. The Debenhams Retail Employee Trust 2004 holds
1,413,536 ordinary shares in the Company (0.10 per cent); any voting or other
similar decisions relating to those shares are taken by the trustees, who may take
account of any recommendations of the Company. There are no significant
agreements to which the Company is a party which take effect, alter or terminate in
the event of change of control of the Company except that the supplier agreements
with certain major cosmetic suppliers contain termination provisions on change of
control and the Credit Agreement dated 19 April 2006 (as amended by
supplemental agreements dated 28 November 2007, 3 June 2009 and 19 August

20
2010) contains mandatory prepayment as does the new £650 million Senior Facility
which starts in April 2011. There are no agreements providing for compensation for
directors or employees on change of control. Details concerning the impact on
share options and share awards held by directors or employees in the event of a
change of control are set out on page 55 of the Remuneration Report.

Market Value of Properties

The Group has a small number of properties for which it owns the freehold. The
directors are of the opinion that the market value of these properties at 28 August
2010 exceeded their net book value by approximately £23 million.

Essential Contracts
We have contractual arrangements with many organisations but no one contract is
as material as to be essential to our business, with the exception of our warehouse
operators.

Financial Instruments
Debenhams does not enter into financial instruments for speculative trade. Details
of financial instruments entered into for underlying risks are set out in note 23 on
page 91.Section 3 Management and Governance 40 Debenhams Annual Report and
Accounts 2010

Disclosure of Information to Auditors

Each of the directors of the Company at the time when the Directors’ Report was
approved confirms that: a) so far as the director is aware, there is no information
needed by the Company’s auditors in connection with preparing their report of
which the Company’s auditors are unaware; and b) s/he has taken all the steps that
s/he ought to have taken as a director in order to make themselves aware of any
information needed by the Company’s auditors in connection with preparing the
report and to establish that the Company’s auditors are aware of that information.

Auditors
PricewaterhouseCoopers LLP have indicated their willingness to continue in office
and a resolution dealing with their reappointment as auditors of the Company will
be proposed at the forthcoming Annual General Meeting.

21
Conclusion:

Next, Debenhams, FTSE 100

As it is shown above that the share price of Next has been increasing at a definite
pace as compared to the share price of Debenhams. In November 2009 the share
price of the Debenhams was a bit higher than Next Plc. As we move further from
November 2009 Next share price has been showing a positive result as we compare
to the Debenhams share price. Especially in the mid financial year Next Plc has
taken a positive boom in the share price and has started to move ahead. In April
2010 the share price of Next has shown definite positive share price and on the
other hand the graph of Debenhams share price has given a negative movement.
As we move further down from April the share price of the Debenhams has started
falling down which is completely negative which proves that Debenhams has lost a
major market share in the market, on contrary Next has grasped a major market
share onwards April 10. In June 2010 the share price has almost fallen to worst level
of Debenhams moment, as it has completely lost the market share at that and Next
has still got a positive share price as compared to Debenhams share price.

In the month of April-May 2010 and then October 2010 Next has reached at their
higher level of market and even in June-July 2010 Next remains stable and on the
other hand Debenhams market value been worst in the same period of time. We
can say the share price, stock exchange market and market position of Next over
the specific period of time has been better as contrast to Debenhams. Even though
there were fluctuation seems in both companies graphs but Next has not lost their
market value comparatively than Debenhams.

References
• http://www.reuters.com/

22
 • http://www.next.co.uk/
• http://www.debenhams.com/
• http://www.londonstockexchange.com/

Reflection Report:
Our Group major chosen company is Next Plc. My group member has already
explained the main reasons for the changes in price and identifies the main news
items of Next Plc. I have given explanation about Next’s competitors (Debenhams
Plc) in the same context and have compared and contrast the stock market
flexibility with Debenhams. I have given the main news and major events of
Debenhams Plc for the same period as my group member explained for her part. I
have identified the main news and major events occurred for Debenhams. I have
stated month wise price fluctuation in stock market. Furthermore I have explained
the reasons for share price going up and going down. In this report, I have given
the reasons for share price variation by analyzing and identifying the productive
news items. I have also given my own observation why share price and market
position of both companies going down or moving up.

By making this report I have learned how and why share price of companies go up
or go down. By accomplishment of this report I have come to know what is the
reason behind a company lose its market share. More importantly I am able to
explain what news or what event has an impact in company’s share price instability.

23
Appendixes

24