AGM and IM Statement
Dunelm Group plc
05 November 2007
5 November 2007
AGM AND INTERIM MANAGEMENT STATEMENT
18 weeks to 3rd November 2007
Continued Progress
Dunelm Group plc, the leading out-of-town specialist homewares retailer, issues
its first Interim Management Statement in advance of its Annual General Meeting
to be held today at 3pm.
Sales
For the 18 weeks to 3rd November 2007, total sales grew by +10.9% and like for
like ("LFL") sales grew by +5.6%. As expected, these growth rates have eased
slightly from the high levels reported at the time of our preliminary results
announcement, but customers are still being attracted by our retail proposition.
Our offer continues to benefit from the increased focus given to our in-store
activities, following the successful completion of major projects in the early
part of last financial year: the implementation of major new IT systems,
commissioning of our new central warehouse, and our flotation.
Gross Margin
We have retained a consistent approach to pricing and have not invested in
unplanned discounts or promotions. We have experienced a year-on-year
strengthening of gross margin so far in this financial year.
New Stores
Since the start of the financial year we have opened new superstores in Aberdeen
and Shoreham and these are trading well.
We are now fitting out further superstores in Leeds (a freehold acquisition),
Eastbourne and Bournemouth, all of which were previously announced. Since our
last announcement we have also entered into lease agreements in Dumfries and
Peterborough and have begun fitting out these locations. All are expected to be
open for trading by early in next calendar year. Our existing high street shop
in Peterborough will close.
In addition to the stores already opened and those which we are now fitting out,
we have signed leases for superstores in Ebbw Vale and Sittingbourne. The former
is unlikely to open until our next financial year, but we anticipate that the
Sittingbourne unit will begin trading prior to June 2008. We will therefore have
a total of at least eight superstore openings in the current financial year
which will give us a total of at least 76 superstores trading by the year-end.
Opening all of the nine superstores detailed above will involve total cash
investment of approximately £20m through a combination of freehold purchase,
fit-out expenditure, working capital investment and pre-opening costs.
Purchase of own shares
At the AGM today we are seeking authority to buy back shares in the Company.
This authority will allow us to purchase shares to hold in treasury to satisfy
employee share options on exercise. We do not currently expect to purchase
shares for cancellation nor do we expect to purchase a material number of shares
overall.
Commenting on Dunelm's performance, Will Adderley, Chief Executive, said:
"Overall trading performance up to this point in the financial year remains
pleasing. We have also continued to make good progress with our pipeline of new
store openings. However, like many other retailers, we remain cautious about the
outlook for the coming months."
The next update to shareholders will be issued on 8th January 2008 in respect of
the 26 weeks to 29th December 2007.
For further information please contact:
Dunelm Group plc 0116 2644 356
Will Adderley, Chief Executive
David Stead, Finance Director
Hogarth Partnership 020 7357 9477
John Olsen / Fiona Noblet
Notes to Editors
Dunelm is amongst the top 10 retailers operating in the £12bn UK homewares
market. The Group currently operates 84 stores, branded Dunelm Mill, of which 70
are out-of-town superstores and 14 are high street shops. The majority of the
stores are located in the Midlands or north-west of England. Dunelm employs over
5,000 full and part time staff, the vast majority of whom work in the stores.
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 in the
Midlands specialising in soft furnishings. The first Dunelm superstore was
opened in 1991, leading to the Group's expansion into the broader homewares
market.
The superstores provide an average of 28,000 sq ft of selling space and offer an
extensive range of around 20,000 products across a broad spectrum of categories,
including bedding, curtains, gifts and seasonal items, cushions, bathroom
products, kitchenware, quilts, pillows and rugs. Dunelm also specialises in
offering a wide range of fabrics, made to measure curtains and a frequently
changing series of special buys. The directors are passionate about ensuring
that all ranges live up to Dunelm's philosophy of offering customers "Simply
Value for Money".
Last year Dunelm also introduced an on-line store, to be found at
www.dunelm-mill.com. Currently over 7,500 products are available through the
website.
Dunelm listed on the London Stock Exchange in October 2006 (DNLM.L) and has a
current market capitalisation of over £400 million.
Copies of this statement, the annual report and accounts and other press
releases are available on the investor section of the company's website
www.dunelm-mill.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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