7th Jul 2016 06:56
LONDON (Alliance News) - Dunelm Group PLC Thursday said it expects profit for the recently ended financial year to meet expectations after reporting more than a 7% rise in revenue and a better gross margin.
The FTSE 250-listed UK homewares retailer said total sales in the financial year to July 2 rose by 7.1% year-on-year to GBP880.9 million, driven by new stores and a large rise in sales within the Home Delivery unit.
New stores contributed GBP90.0 million worth of sales in the year that were not present in the previous year and total like-for-like sales rose by 2.5% to GBP790.9 million from GBP771.8 million a year earlier.
Like-for-like stores reported a 1.0% rise in sales growth in the year to GBP729.0 million from GBP721.6 million whilst Home Delivery like-for-like sales increased by more than 23% to GBP61.9 million from GBP50.2 million.
Dunelm said it expects pretax profit for the financial year to meet market expectations whilst its gross margin is expected to be around 60 basis points higher than the previous year.
The company said the business remains "strongly cash generative," stating net debt is expected to stand at around GBP80.0 million after the GBP108.0 million spent on ordinary and special dividends for the year.
"The current uncertainty makes the future trajectory of the economy and consumer confidence unclear; however, we are confident that Dunelm, as market leader, will continue to strengthen its position through its low cost operating model, everyday value, consistent cash generation and strong balance sheet," said Chief Executive John Browett.
"We remain focused on delivering key projects across the business and are excited about substantially improving the business for our customers, both in store and online, over the medium term, and continuing to develop Dunelm into a truly national homewares brand," he added.
By Joshua Warner; [email protected]; @JoshAlliance
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