4th Sep 2019 09:00
(Alliance News) - Homeware retailer Dunelm Group PLC on Wednesday reported a double-digit profit rise but said it is cautious on its future outlook as a result of Brexit uncertainty.
For its financial year ended June 29, the FTSE 250-listed firm posted a 4.8% rise in revenue to GBP1.10 billion from GBP1.05 billion the year before. On a like-for-like basis, not including stores that have recently opened and websites that have been closed, it rose 11% to GBP1.02 billion from GBP924.7 million.
Pretax profit jumped 35% to GBP125.9 million from GBP93.1 million and on an underlying basis by 23% from GBP102.0 million. The latter figure does not consider 2018's exceptional cost of GBP8.9 million largely from efforts to integrate the Worldstores website, which subsequently was closed in the first quarter of financial 2019.
It also closed the Kiddicare website in the first quarter and sold the Achica website to BrandAlley UK Ltd during the last financial year for GBP600,000.
Dunelm increased its total annual ordinary dividend by 5.7% to 28.0 pence per share from 26.5p. It also declared a special payout of 32p, something it did not do last year.
The company said it is benefiting from selling more than just bedding and curtains, now stocking a wider range of homeware products.
Looking ahead, Dunelm said it will extend customer choice by adding 6,000 new products to its online-only range and will launch a new commercial digital platform which it plans to roll out to customers in the current financial year.
Dunelm will continue sponsoring ITV PLC's daytime television show This Morning, which it says broadens its customer base.
Although less than 1.0% of its imports come from European Union countries, Dunelm said it has identified potential disruption from "deep-sea" ports should Britain exit with no-deal.
Dunlem said it is cautious about its financial 2020 outlook as a result of Brexit uncertainty.
Chief Executive Nick Wilkinson said: "We are pleased to have delivered a strong performance during the year, with an improvement across all our customer, operating and financial metrics. In particular, the strong like-for-like revenue growth, both in stores and online.
"Recent trading performance has continued to be strong, reflecting both weak comparatives in the prior year and continued market share growth. However, we remain cautious about the full year outlook due to increased Brexit uncertainty and specifically the impact it may have on consumer spending as we enter our peak period."
In a separate announcement on Wednesday, the company said it has hired Paula Vennells as a non-executive director. Until February, she was the chief executive of Post Office Ltd, and she also has held senior commercial roles with retailer Argos Ltd, now part of J Sainsbury PLC.
She is currently a non-executive director at WM Morrison Supermarkets PLC.
Dunelm's shares were 0.5% higher at 885.00 pence each in London on Wednesday morning.
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