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Dunelm Group plc (DNLM)

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Thursday 05 July, 2012

Dunelm Group plc

Trading Update

RNS Number : 9329G
Dunelm Group plc
05 July 2012
 



 

 5thJuly 2012

Dunelm Group plc ("Dunelm")

Year-end trading update

 

Following the end of its financial year on 30th June 2012, Dunelm, the leading UK specialist homewares retailer, announces the following trading update in respect of the 13 weeks to 30th June 2012 and the 52 weeks ended on that date.

 

Revenues

 


Fourth quarter

(13 weeks

to 30th June 2012)


Second half

(26 weeks

to 30th June 2012)


Full year

(52 weeks

to 30th June 2012)

Total revenues

£149.7m


£303.8m


£603.7m







Total growth

+21.2%


+15.7%


+12.1%

  LFL sales growth1

+10.4%


+5.2%


+3.1%

  Contribution from net new space

+10.8%


+10.5%


+9.0%







Prior year LFL sales growth

+1.9%


+0.1%


-0.6%

 

The attractiveness of our customer offer - based on deep choice and excellent value - enabled us to deliver robust underlying revenue growth in the final quarter of the financial year. Like-for-like sales growth was exceptionally strong, boosted by the unusually wet weather over much of the quarter which ensured consistently strong footfall into stores. We estimate that the net benefit to total revenues from the weather conditions was approximately £8m in the quarter.

 

Gross Margin

For the full financial year gross margin is expected to increase by approximately 20-30 basis points.

 

Profit before tax

The Board now anticipates that profit before tax for the year will be approximately £96m, ahead of current consensus expectations.  We estimate that approximately £2.5m of this outperformance is attributable to the exceptional weather benefit over the second half of the financial year.

 

Store Portfolio

One new superstore was opened in the quarter, at Greenford, bringing total openings in the financial year to 14, which includes two relocations. Our store in Cambridge, previously expected to be completed prior to year-end, will now open in August. At the end of the year the portfolio comprised 115 superstores.

 

The pipeline for new superstores remains strong, with a total of ten stores contractually committed (including Cambridge). One of these will be a relocation within an existing catchment.

 

Financial Position

The Group remains highly cash generative and had net cleared funds of £60.0m on 30th June 2012 (2011: £31.6m), with daily average net cleared funds over the year of £57.6m (2011: £35.9m). We have continued to invest in the future growth of the business through new and refitted stores and core infrastructure including our web platform, leading to capital investment of over £38m in the year.

 

Nick Wharton, Chief Executive, commented:

"The final quarter has seen further strong progress throughout the business, with robust like-for-like sales trends. In addition, we have continued to drive growth through new stores and our multi-channel offering, which now represents around 3% of revenue.  Our continued focus on developing our 'Simply Value for Money' proposition has seen further market share gains.

 

"Looking ahead, we anticipate that consumer spending will remain under pressure. Nevertheless, with ten further store openings committed, a strengthening multi-channel offering and with our unique proposition resonating with a wide range of customers, we remain confident in the future growth prospects for the business."

 

 

 

Notes.

1.     Like-for-like sales represent revenues from stores trading for at least one full financial year prior to 2nd July 2011.

 

Announcement of Preliminary Results

Dunelm will make its preliminary results announcement on 13th September 2012. There will be a presentation for analysts at 10.30am in the offices of UBS, 1 Finsbury Avenue, London EC2M 2PP. Those analysts who wish to attend are requested to contact Naomi Lane of MHP on 020 3128 8100 or Naomi.lane@mhpc.com . A copy of the presentation will be made available on the Dunelm website.

 

 

ENDS

 

For further information please contact:

 

Dunelm Group plc

0116 2644 356

Nick Wharton, Chief Executive


David Stead, Finance Director




MHPCommunications

020 3128 8100

John Olsen / Simon Hockridge


 

For photography, please contact MHP Communications.

 

 

 

 

Notes to Editors

 

Dunelm is the UK's leading specialist out of town homewares retailer, operating in the £12bn homewares market. The Group currently operates 124 stores, branded Dunelm Mill, of which 115 are out-of-town superstores and 9 are located on high streets, and an on-line store, to be found at www.dunelm-mill.com.

 

Dunelm's "Simply Value for Money" customer proposition offers industry-leading choice of quality products at keen prices, with high levels of availability and supported by friendly service. Core ranges include many exclusive designs and premium brands such as Dorma, and are supported by a frequently changing series of special buys. The superstore format provides an average of 30,000 sq ft of selling space with over 20,000 products across a broad spectrum of categories, extending from the Group's home textiles heritage (bedding, curtains, cushions, quilts and pillows) to a complete homewares offer including kitchenware and dining, lighting, wall art, furniture and rugs. Dunelm is one of the few national retailers to offer an authoritative selection of curtain fabrics on the roll, and owns a specialist UK facility dedicated to producing made to measure curtains.

 

Dunelm was founded in 1979 as a market stall business, selling ready-made curtains. The first shop was opened in Leicester in 1984 and over the following years the business developed into a successful chain of high street shops before expanding into broader homewares categories following the opening of the first Dunelm superstore in 1991.

 

Dunelm has been listed on the London Stock Exchange since October 2006 (DNLM.L) and  has a current market capitalisation of approximately £1.0bn.

 

 

 

 

Appendix

 

Quarterly information

 

 

FY12

 


13 weeks to

1st October

2011

13 weeks to 31st December

2011

13 weeks to 31st March

2012

13 weeks to

30th June

2012






Total revenues

£133.4m

£166.5m

£154.1m

£149.7m






Total growth

+ 5.3%

+11.7%

+10.7%

+21.2%

  LFL sales growth

-2.0%

+3.8%

+0.6%

+10.4%

  Contribution from net new space

+7.3%

+7.9%

+10.1%

+10.8%






Gross margin change yoy

+50bps

-20bps

+30bps

+40-80bps






 

 

 

FY11

 


13 weeks to 2ndOctober

2010

13 weeks to

1st January

2011

13 weeks to 2nd April

2011

13 weeks to

2ndJuly

2011






Total revenues

£126.7m

£149.0m

£139.0m

£123.8m






Total growth

+ 11.6%

+5.9%

+9.4%

+11.0%

  LFL sales growth

+2.1%

-4.2%

-1.3%

+1.9%

  Contribution from net new space

+9.5%

+10.1%

+10.7%

+9.1%






Gross margin change yoy

+100bps

+120bps

+150bps

+110bps

 

 

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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