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		</div><p>Debenhams boss Michael Sharp announced plans to step down in 2016 to end speculation over his role at the group amid shareholder pressure for a boardroom shake-up.</p>
<p>The department store chain said Mr Sharp, who became chief executive in September 2011, will remain in the role throughout the key Christmas trading season, but plans to step down &#8220;some time in 2016&#8221; after helping find his successor.</p>
<p>Mr Sharp insisted he had always intended to serve a five-year term at the retailer and refused to be drawn on whether his decision came as a direct result of recent pressure from institutional investors.</p>
<p>He said: &#8220;I accepted the job of chief executive with the intention of spending five years in the role and although it will be difficult to leave a fabulous company like Debenhams, now is the right time for the board to begin the process of identifying my successor.&#8221;</p>
<p>He added: &#8220;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 trading period.&#8221;</p>
<p>Details of his planned departure came as the retailer reported a 2.9% rise in underlying pre-tax profits to £113.5m for the 12 months to August 29 &#8211; its first rise in annual profits for four years.</p>
<p>Profits were 7% higher on a bottom line basis and Mr Sharp said the retailer&#8217;s turnaround strategy was &#8220;clearly working&#8221;.</p>
<p>Results showed UK like-for-like store sales fell 0.3% over the full-year, although this was offset by a 1.3% rise in like-for-like online trade as it boosted its web and mobile app offer.</p>
<p>International like-for-like sales lifted 1.1%, including an 8.1% surge for its Magasin du Nord chain.</p>
<p>Debenhams cautioned the market remained competitive, but Mr Sharp said the group had made an encouraging start to the new financial year and was in &#8220;excellent shape&#8221; for Christmas.</p>
<p>Reports last month suggested some of the major investors in Debenhams were unhappy with its performance and were seeking a board shake-up after disappointing results in previous years.</p>
<p>It is thought City broker Cenkos was one of those pushing for change at the top.</p>
<p>Debenhams, which has 161 UK stores out of 248 internationally, has struggled in recent years to keep pace with the likes of House of Fraser and resurgent rival Marks &#038; Spencer, with one retail expert recently saying it had &#8220;clearly lost its way&#8221;.</p>
<p>But chairman Nigel Northridge paid tribute to Mr Sharp and said the latest figures showed his turnaround efforts were paying off.</p>
<p>He said: &#8220;I would like to thank Michael for continuing to lead Debenhams through a crucial time of change in retailing and for the good progress the company has made under his leadership.</p>
<p>&#8220;He has worked enormously hard to develop the company&#8217;s strategy and the benefits of this are really starting to show in the results.&#8221;</p>
<p>The City gave a thumbs up to its annual results, which mark a sharp reversal of the 24% plunge in profits in the previous year.</p>
<p>But Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers, said Debenhams remains a &#8220;work in progress&#8221;.</p>
<p>&#8220;The middle ground it occupies between discount and high end clothing retailers continues to be challenging, with rival Marks &#038; Spencer still cultivating its own recovery programme,&#8221; he added.</p>
<p>Debenhams has been refreshing its ranges, cutting back on sale days and launching more concessions at its stores to revive sales.</p>
<p>It said it reduced sale days by 17 days over the year, bringing the total cut out to 42 since spring 2014.</p>
<p>The group plans to take part in the Black Friday discount day this year after trading &#8220;successfully and profitably&#8221; on the day before last Christmas.</p>
<p>It also confirmed an expected hit from the incoming national living wage, estimating it will cost it an extra £3 million in the new financial year and £8 million the following year.</p>
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