12th Sep 2013 09:59
LONDON (Alliance News) - Dunelm Group PLC Thursday reported higher revenues and profits for the financial year ending June 29, boosted by new store openings and strong growth in its multi-channel business.
The homewares retailer, which trades under the brand name Dunelm Mill, said that full year revenues rose 12% to GBP677.2 million from GBP603.7 million a year earlier, due to its strong store opening programme over the last two years, 14 of which were opened during the financial year.
On a like-for-like basis, total revenues rose at a slower pace of 1.7%, compared with 3.1% a year earlier.
Dunelm also said that it saw 80% growth in its multi-channel business revenues, which now represent over 4% of the total sales, and that growth in this area will be generated from a significant increase in the number of lines offered for home delivery, supported by a larger fulfilment centre, expected to be operational by October.
Dunelm declared a full-year dividend of 16.0 pence per share, a 14% increase on last year, and said it remains confident in the business outlook, with strong plans in place to improve brand awareness, new stores and multi-channel expansion.
The group said that it continued its investment in customer proposition, infrastructure, IT systems and staff, to help underpin long-term growth, and said it has increased its investment in brand awareness.
Pretax profit was GBP108.1 million for the full year, a 12% increase on GBP96.2 million a year earlier, and a net profit of GBP81.5 million. Gross margin, which rose 40 basis points, benefited from its direct-sourcing initiatives.
Dunelm said it ended the year with GBP44.7 million in net cash, down from GBP65.2 million at the end of last year.
Dunelm shares were down 6.85 pence or 0.7% mid-morning Thursday, trading at 923.15 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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