September 14, 2012

British retailer Dunelm revenues up 12.1%

UK-based homeware and soft furnishings retailer Dunelm has reported a12.1% rise in revenues to £603.7m in 52 weeks to 30 June 2012, compared to £538.5m in the same period last year.

By Prasanth Katam

UK-based homeware and soft furnishings retailer Dunelm has reported a12.1% rise in revenues to £603.7m in 52 weeks to 30 June 2012, compared to £538.5m in the same period last year.

The company attributed this revenue growth to a 3.1% increase in like-for-like sales and contribution from net new space amounting to 9%.

The like-for-like sales performance strengthened through the year with H2 delivering an increase of 5.2% compared to a growth of 1.1% in H1.

Operating profit was up 14.3% to £95.2m, compared to £83.3m in the same period last year. Like-for-like sales in the final quarter climbed 10.4%.

Profit before tax was up by 15.1% to £96.2m, compared £83.6m, in the same period last year. Profit after tax increased by 19.1% to £71.2m, compared to £ 59.8m in 2011.

Content from our partners
Advanced analytics and predicting market trends in FMCG
How smart predictive analytics is shaping product development
Data analysis in the brave new world

Earnings before interest, tax, depreciation and amortization (EBITDA) was £113.9m, compared to £97.4m in 2011.

The company intends to continue to invest in and develop the business with focus on developing the store portfolio, growing multi-channel, developing and exploiting its infrastructure.

For the 52 weeks ended 30 June 2012, 14 new superstores were opened and four further units opened since year-end.

Dunelm chief executive Nick Wharton said that the company has delivered robust trading results in a demanding retail environment.

"Our financial position remains extremely strong which, together with the Board’s confidence in Dunelm’s future growth prospects, enables us to propose an increase in the dividend ahead of earnings, together with a return of excess capital equal to 32.5p per share.

"Looking ahead, we remain cautious of the UK consumer environment and its impact on our trading in the near term. However, with a strong new store pipeline, good momentum in multi-channel and a "Simply Value for Money" proposition that continues to resonate with a wide range of customers, we remain confident in the future growth prospects for the business."

Dunelm is a specialist homewares retailer. The group currently operates 127 stores, branded Dunelm Mill, of which 118 are out-of-town superstores and nine are located on high streets.