11th Sep 2014 07:03
LONDON (Alliance News) - Dunelm Group PLC Thursday upped its full-year dividend by 25% after recording a year of "solid" growth, with rises in pretax profit and revenue supported by the opening of new stores and improvements in its multi-channel offerings.
In its full-year results for the 52 weeks to June 28, the homewares retailer said pretax profit rose 7.3% to GBP116.0 million from GBP108.1 million the previous year. Revenue was up 7.8% for the year to GBP730.2 million from the GBP677.2 million reported for 2013.
Like-for-like growth also showed encouraging gains, up 2.1%, compared to 1.7% last year.
Buoyed by a year of growth, Dunelm Group has increased its full-year dividend by 25%, upping its final dividend to 15.0 pence per share, compared to the 11.5 pence per share declared last year, resulting in a full-year dividend of 20.0 pence per share, up on the 16.0 pence paid for 2013.
In a separate statement Thursday the company said Nick Wharton has resigned from his position as chief executive and is stepping down from the board. Will Adderley, currently serving as executive deputy chairman, has been appointed to resume the role of chief executive with immediate effect.
Adderley joined the board in 1992, took over the running of the Group in 1996 and remained as CEO through its initial public in 2006. He moved into the full-time role of executive deputy chairman in 2011.
Commenting on the results, newly-appointed Adderley said, "Dunelm has delivered solid trading results in the last financial year. We have again 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 and to continue to gain market share. We have also made good strategic progress, growing our business through new stores and multi-channel, and strengthening our infrastructure."
During the year the company said it opened 12 new stores, including three relocations - resulting in the closure of two existing superstores and two high street shops - increasing Dunelm's footprint to 136 superstores. The retailer has also contractually committed to opening 11 more superstores in 2015, it said.
Dunelm said it saw growth of more than 60% in multi-channel revenues, which now represents more than 6% of its total business. The company has also committed to increase its investment in brand awareness activities, including its first national television advertising campaign and has "continued investment in product range, service proposition, multichannel, infrastructure, IT systems and people, to underpin long-term growth."
Looking ahead, "We will continue to invest in a range of exciting development initiatives that will strengthen our brand and increase the scale of our business through both new stores and multi-channel operations. We remain confident in the Dunelm proposition and look forward to further growth in the years ahead," said Chairman Geoff Cooper.
By Alice Attwood; [email protected]; @AliceAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Dunelm