Dunelm Regulatory News (DNLM)

9 Jan 2007 07:01

Dunelm Group plc09 January 2007 9 January 2007 DUNELM GROUP PLC TRADING UPDATE Following the end of the first half of its financial year Dunelm Group plc("Dunelm" or the "Company"), the specialist homewares retailer, today makes thefollowing comments on first half trading. The Board is pleased to confirm that sales for the 26 weeks to 30 December 2006have continued to demonstrate the strength of Dunelm's "Simply Value For Money"customer offer: Total sales: £178.4m (2005: £157.6m)Total sales growth: + 13.2%Like for like sales growth: + 5.0% The Company's store expansion programme has continued and in the period to 30December 2006 new superstores were opened in Stevenage and Colchester. Inaddition the superstore in Swansea was relocated to a larger unit. At the periodend, the Company was trading from 83 stores under the Dunelm Mill fascia, ofwhich 66 are out-of-town superstores. 73 stores are included in the like for like ("LFL") population; stores opened orre-sized since 3 July 2005 will not be included until financial year 2007/8 inline with Dunelm's LFL definition. As explained at the time of its IPO, the Company has been implementing itstransition to a new central warehouse facility in Stoke. Non-recurring costsarising from this transition totalled approximately £1.0m in the period. Inaddition the rental cost for the new facility amounted to £0.6m in the halfyear; there was no such rental cost in 2005/6 when the Company's warehouseoperations were run from its freehold facility in Burton-on-Trent. The first half of 2006/7 also includes an amortisation charge of £0.7m inrespect of the new IT systems implemented last March. There was no such chargein the first half of 2005/6. Non-recurring costs associated with the IPO amount to £3.0m. Despite these anticipated changes in the cost base, the underlying profitabilityof the business remains strong and is in line with management's expectations.The Board remains confident in Dunelm's financial and trading prospects for theyear as a whole. Will Adderley, Chief Executive of Dunelm, commented: "The last six months have seen a significant milestone in the development of theCompany, with our successful IPO in October. Just as importantly, the businesshas delivered a strong performance in the first half as customers have continuedto respond favourably to our "Simply Value For Money" proposition, backed up bytremendous choice and good, friendly service. "We are pleased with the customer reaction to our new stores and remainconfident that we will achieve a total of at least six new superstore openingsin this financial year, in line with the guidance given at the time of the IPO." Dunelm will announce its interim results on 7 March 2007 (not 6 March aspreviously communicated). There will be a presentation for analysts at 9.30am onthat date in the offices of UBS, 1 Finsbury Avenue, London EC2M 2PP. Thoseanalysts who wish to attend are requested to contact Charlie Field or NatashaJobling of Hogarth Partnership at the number below. A copy of the presentationwill be made available on the Company's website. UBS Limited acts as financial adviser and joint corporate broker to the Company.Bridgewell Limited acts as joint corporate broker. - Ends - For further information please contact: Dunelm Group plc 0116 2644 356Will Adderley, Chief ExecutiveDavid Stead, Finance Director Hogarth Partnership 020 7357 9477John Olsen / Fiona Noblet Notes to editors Dunelm is one of the top 10 retailers operating in the £12bn UK homewaresmarket. The Group has 83 stores, branded Dunelm Mill, of which 66 areout-of-town superstores and 17 are high street shops. The majority of the storesare located in the Midlands or north-west of England. Dunelm employs over 5,000full 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 madecurtains. The first shop was opened in Leicester in 1984 and over the followingyears the business developed into a successful chain of high street shops in theMidlands specialising in soft furnishings. The first Dunelm superstore wasopened 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 anextensive range of up to 18,000 products across a broad spectrum of categories,including bedding, curtains, gifts and seasonal items, cushions, bathroomproducts, kitchenware, quilts, pillows and rugs. Dunelm also specialises inoffering a wide range of fabrics, made to measure curtains and a frequentlychanging series of special buys. The directors are passionate about ensuringthat all ranges live up to Dunelm's philosophy of offering customers "SimplyValue for Money". Dunelm listed on the London Stock Exchange in October 2006 (DNLM.L) and has acurrent market capitalisation of over £400 million. This information is provided by RNS The company news service from the London Stock Exchange