Last checked at 27 Apr 2010 07:00
27th April 2010
Dunelm Group plc ("Dunelm")
Interim Management Statement - Continuing Growth
Dunelm, the leading out-of-town specialist homewares retailer, announces an interim management statement for the 42 weeks to 24th April 2010.
Sales
Total sales for the 42 week period were £405.7m, comprising the following changes over the previous year as follows:
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| Year to date (42 weeks)
| H2 to date (16 weeks)
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| Total growth | 19.9% | 10.9% |
| Like For Like ('LFL') stores growth | 10.0% | 1.6% |
| Contribution from new space | 9.9% | 9.3% |
Over the 9 week period since our last update LFL sales have benefited from a strong Easter promotion to show growth of just over 3%, having been up by around 1% in the comparable period last year. Looking ahead, prior year comparatives become significantly more demanding: LFL growth in the final 10 weeks of last financial year was 9.5%.
Gross Margin
Gross margin growth for the year to date stands at 180bps. As expected, the rate of growth has reduced over the most recent 9 weeks, but remains positive at 80bps.
Store Portfolio
New superstores have been opened so far this half in Dundee and Bolton. Stores in Taunton and Barrow in Furness will open during May, bringing total openings for the year to 10. One further opening was previously anticipated but has now been deferred to next financial year.
The total number of stores trading as at 24th April was 102, including 92 superstores. The Board has previously confirmed that it believes the UK can support a chain of at least 150-200 Dunelm superstores.
We have 8 new sites already committed and scheduled to open in our next financial year, plus we will be relocating an existing under-sized superstore.
We have completed major refits in two stores since Christmas and a further three are in progress. Trading in refitted stores continues to show growth of approximately 10% above trend.
Financial Position
It was announced with the interim results that £43m of excess capital (21.5p per share) would be returned to shareholders. This process is now virtually complete, with a small outstanding balance to be paid out via redemption of B shares in June.
The group remains financially very strong and has maintained a positive net cash position since the return of capital.
Will Adderley, Chief Executive, commented:
"We are satisfied with our overall performance so far this half, although trade has slowed somewhat after a good Easter. I am particularly pleased about the way customers continue to react to our new and refitted stores. This underlines the level of growth still available to us from new space as well as from upgrading our existing estate."
Dunelm will announce a trading update on 13th July 2010 and its preliminary results for the 52 weeks ending 3rd July 2010 on 16th September 2010.
- Ends -
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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| Hogarth | 020 7357 9477 |
| John Olsen |
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| Simon Hockridge |
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Notes to Editors
Dunelm is amongst the top 10 retailers operating in the £12bn UK homewares market. The Group has 102 stores, branded Dunelm Mill, of which 92 are out-of-town superstores. Dunelm employs over 5,500 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 Company's move into the broader homewares market.
The superstores provide an average of 28,000 sq ft of selling space and offer an extensive range of approximately 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".
Dunelm also has an on-line store (www.dunelm-mill.com) with over 12,000 products available.
Dunelm is listed on the London Stock Exchange (DNLM.L).