Dunelm boosted by new store openings

12th Sep 2013 07:04

UK homewares retailer Dunelm reported a 12.3 per cent increase in pre-tax profit for the year as it added new stores and saw improved demand for its products.The group, which opened 14 new stores in the year, bringing the total number to 126, said pre-tax profit increased to £108.1m for the 52 weeks to June 29th from £96.2m. Revenues increased to £677.2m from £603.7m.Chief Executive Nick Wharton commented: "Dunelm delivered robust trading results over the year, in a demanding retail environment. We have strengthened our specialist proposition, improved customer service in store and increased the profile of our brand. Each of these, together with our traditional product strength, has enabled us to increase sales on a like-for-like basis."Gross margin improved to 48.7% from 48.3% and basic earnings per share rose to 40.2p from 35.3p before. "While recent economic data, particularly the volume of housing transactions, may suggest some improvement in consumer confidence, a degree of caution in relation to the broader UK economic environment remains appropriate. Furthermore, the unusually warm summer weather has had a temporary dampening effect on recent trading," the group explained. Looking ahead, with plans in place to improve brand awareness and to grow Dunelm further through new stores and multi-channel expansion, the group said it remains confident in the future prospects for the business. The group has recommended a final dividend of 11.5p per share, up from 10.0p the prior year. A special dividend of 25.0p per share is to be paid in October.CJ