DEBS has sublet its mothballed US DC for c$9.5m p.a. over the remaining 8.5 years of the lease, equating to c£40m NPV vs its £380m MCAP. The group rent costs will drop to £6m p.a. from FY29 (vs £13m p.a. currently) which will directly add to the improving FCF dynamic. This deal will create an exceptional credit to PBT of c£40m this year and eliminates a major legacy liability. It gets the thumbs up from us. FY26 results are due within the next week or so.
