Dunelm revenues up 8.5%

The out-of-town specialist homewares retailer, announces its Interim Results for the 26 weeks to 1st January 2011.

Revenues are up 8.5% to £275.7m (2010: £254.2m) with like-for-like sales down by 1.2% (2010: 15.4% increase, or 13.4% underlying). Gross margin is up 110 basis points to 49.1% (2010: 48.0%).

The company’s operating profit showed growth of 5.4% to £48.4m (2010: £45.9m). Profit before taxation is up by 5.0% to £48.5m (2010: £46.2m). Dunelm had a positive net cash of £34.3m at the period end.

7 new superstores were opened in the period (including one relocation) and 3 further units committed this financial year. For next financial year 7 units are already committed (including 2 relocations). The company continues its investment in multi-channel operations and has had strong growth in on-line sales through Dunelm Direct.

Also taking effect today is the appointment of Nick Wharton who becomes Chief Executive. Will Adderley, Deputy Chairman of Dunelm, said,“After exceptional growth in sales and profits in the equivalent period last financial year, the most recent half year has been a period of consolidation. In this context it has been a substantial achievement for the business to record another profit increase as well as continuing its record of strong cash generation.

“I am delighted to welcome Nick to his role as our new Chief Executive and look forward to working closely with him as we continue to grow the business in the months and years to come.” Nick Wharton, incoming Chief Executive said,“These half year results once again demonstrate Dunelm’s many strengths and are a credit to everyone involved with the business. “We have a clear and proven strategy for growth through ongoing store portfolio development. The addition of a more ambitious multi-channel dimension represents a further exciting and achievable opportunity to continue the success of recent years.

“We naturally remain cautious regarding the fragility of consumer confidence but believe we are well posi-tioned, thanks to our market leading proposition and financial strength, to trade successfully through this period while enhancing our strategic position.”

Source : The Retail Bulletin