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Annual Results

Dunelm revenues rise

13 September 2017 08:23

Dunelm's revenues rose to £955.6m in the 52 weeks to 1 July - up from £880.9m last time.

Reported gross profits rose to £467.1m from £438.5m but operating profits fell to £94.8m from £129.3m.

The group's underlying operating profits were £111.7m.

Highlights: - Sales growth of 8.5% (2.3% excluding Worldstores) in challenging and subdued Homewares and Furniture markets - Share of Homewares market increased to 7.9% (2016: 7.8%) - Acquisition of Worldstores in November 2016 creates a springboard for online growth and range development; business plan for accelerated growth established and integration is well under way - EBITDA of £142.2m (pre-exceptional items), down 7.8% year on year reflecting investment for growth and consolidation of Worldstores trading losses - Earnings per share reduced to 36.1 pence (fully diluted), reflecting primarily the costs of the Worldstores acquisition, both expected trading losses and exceptional costs - 3.6% increase in full year dividend to 26.0 pence per share Chairman Andy Harrison said: "Dunelm has made good strategic progress over the year, most notably with the acquisition of Worldstores, which moves us closer to our goal of being the biggest and best multichannel homewares retailer in the UK.

"Over the medium-term we are aiming to double our sales to £2bn, with 30%-40% from our increasingly important online channel.

"The Worldstores acquisition provides a step change in our online scale, product range and capability.

"Our reported profit for the year reflects an investment of nearly £28m in the acquisition.

"The integration is going well and we remain confident in the benefits that it will generate.

"We expect the trading climate to remain challenging with the disposable income of UK consumers under pressure.

"Nevertheless, we have a full programme of management actions underway to further improve the Dunelm customer proposition, both online and in-store, increase our business efficiency and support our colleagues.

"Sales in the first two months of the new financial year have started positively, with good LFL sales boosted by favourable weather comparatives. We expect to open a total of 8 new stores in the first half of the year of which 4 are already open. An encouraging start."

At 8:23am: (LON:DNLM) Dunelm Group PLC share price was +25.75p at 636.25p

Story provided by StockMarketWire.com

Related Company: DNLM

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