Dunelm Profits Up 15%

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

LONDON -- Dunelm Group (LSE: DNLM.L  ) , the leading specialist out-of-town homewares retailer, announced preliminary end-of-year results showing a profit before tax of 96.2 million pounds, an increase of 15.1%. The Group, which owns the Dunelm Hill chain of stores, posted total revenues of 603.7 million pounds, up 12.1%, and an operating profit of 95.2 million pounds, a rise of 14.3%.

Dunlem, which competes with Home Retail Group for the homewares market, announced an earnings per share of 35.3 pence, up 18.9% on the previous year, and revealed a final dividend of 10.0 pence per share, resulting in a full-year dividend of 14.0 pence, an increase of 21.7%.

Year-end net cash was 65.2 million pounds against 35.1 million pounds last year despite opening 14 new superstores. With 127 stores already open and four units opened since the year-end plus another nine in the pipeline, the Group’s steady expansion is set to continue for some time to come.

Nick Wharton, chief executive, commented:

Dunelm has delivered robust trading results in a demanding retail environment, with our strong focus on retailing excellence leading to increased market share on a like for like basis. We have also made good progress with our strategic development, scaling our business through new stores, multi-channel, and strengthened infrastructure, while continuing to improve our specialist customer proposition. I would like to thank all my colleagues for their hard work and commitment in achieving this.

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 32.5 pence per share.

Looking ahead, we remain cautious of the U.K. 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.

With Dunelm performing admirably, is this a sign the homewares market is ripe for investment, or could other sectors have an edge? Find out what sectors we like in our special report "Three Top Sectors for 2012." It’s absolutely free and provides some interesting insights.

If you would prefer to take a cue from one of the U.K.'s most successful fund managers, we have another cracking report available right now: "8 Shares Britain's Super-Investor Owns." Again, it's free, and will be with you right away.

Further Motley Fool investment opportunities:

Barry James does not own shares in any of the companies mentioned. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2015430, ~/Articles/ArticleHandler.aspx, 10/28/2016 10:16:38 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,201.11 31.43 0.17%
S&P 500 2,132.01 -1.03 -0.05%
NASD 5,215.62 -0.36 -0.01%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes