Dunelm CEO steps down as annual profits rise

11th Sep 2014 07:51

Dunelm has announced the resignation of its chief executive officer (CEO) Nick Wharton, as the homeware retailer hiked its dividend by 25% after a solid set of annual results.Wharton said "the time is right for a new challenge" as he handed over the reins to executive deputy chairman and former CEO Will Adderley, who has been on the board since 1992."Having conducted a comprehensive search process involving external and internal candidates, the Board concluded that Will, with his innate retail flair, is the best person to lead Dunelm into its next chapter of growth," said chairman Geoff Cooper.Pre-tax profit in the year to 28 June increased 7.3% to £116m on revenues that rose 7.8% to £730.2m, hoped by a 2.1% increase in like-for-like (LFL) sales and a 5.7% contribution from new space.The company said that a strong second half with LFL sales up 5.3% offset a "disappointing start to the year". First-half LFL sales were down 0.9% due to the adverse impact of the summer heat wave in July 2013.Dunelm opened 12 new superstores during the period, including three relocations while its market share increased from 6.8% to 7.4%.The group has recommended a final dividend of 15p, giving a full-year payout of 20p, up 25% on last year.The stock was up 2.3% at 870p in early trading on Thursday.