Last checked at 6 Oct 2010 07:00
6th October 2010
Dunelm Group plc ("Dunelm")
Interim Management Statement
Dunelm, the leading out-of-town specialist homewares retailer, today provides the following update on trading for the first quarter of its current financial year, comprising the 13 week period ended 2nd October 2010.
Sales
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| 13 weeks to 2nd October 2010 | 13 weeks to 3rd October 2009 |
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| Total sales value | £126.7m | £113.6m |
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| Total sales growth | +11.6% | +25.5% |
| LFL sales growth | +2.1% | +15.4% |
| Contribution from new space | +9.5% | +10.1% |
LFL sales growth in the quarter was very encouraging, given the context of an exceptionally strong performance in the comparative period last year. This reflects the continuing strength of Dunelm's Simply Value For Money proposition. The benefits from the continuing roll-out of Dorma centres within new and refitted superstores, and significant expansion of the kitchenware offer have been particularly pleasing.
Gross Margin
Gross margin has continued to increase year on year although, as anticipated, the rate of growth has slowed to 100 basis points for the quarter.
Store Portfolio
Three new superstores have been opened during the first quarter, including the relocation of an existing under-sized superstore in Hereford. Dunelm now trades from 96 superstore locations in the UK.
A further five new openings are anticipated in the second quarter. In addition, three more leases have already been signed and those stores are expected to commence trading in the second half of the current financial year.
For the longer term, Dunelm has completed the acquisition, for £8.0m, of two new freehold locations during the quarter.
Dunelm has completed two major, and a number of smaller, refits in the quarter. A further two major refits are planned prior to Christmas.
Financial Position
As at 2nd October 2010 Dunelm had net cleared funds of £18.4m, together with a committed undrawn revolving loan facility of £40m.
Daily average net cleared funds over the quarter were £20.4m.
These figures include the full impact of the investment in the two freehold acquisitions referred to above.
Will Adderley, Chief Executive, commented:
"We remain cautious about the UK consumer environment, but are encouraged by the strength of trading over the first quarter and we are pleased with our pipeline of new store openings."
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For further information please contact:
| Dunelm Group plc | 0116 2644 356 |
| Will Adderley, Chief Executive |
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| David Stead, Finance Director |
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| MHP Communications | 020 7357 9477 |
| John Olsen / Simon Hockridge |
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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 106 stores, branded Dunelm Mill, of which 96 are out-of-town superstores and 10 are high street shops. Dunelm employs over 6,000 full and part time staff, the vast majority of whom work in the stores.
Dunelm was founded by the Adderley family 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 30,000 sq ft of selling space and offer an extensive range of around 20,000 products across a broad spectrum of categories, including bedding, ready made 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".
Dunelm also operates an on-line store, to be found at www.dunelm-mill.com.
Dunelm listed on the London Stock Exchange in October 2006 (DNLM.L) and has a current market capitalisation of over £750 million.