Dunelm full-year profit up as market share grows

FTSE 250 homeware retailer Dunelm reported a rise in full-year profit as revenue increased and the company grew its market share despite the growth of new competition, particularly online.

In the 52 weeks to 2 July, pre-tax profit rose to £128.9m from £121.4m in the 52 weeks to 27 June 2015, on revenue of £880.9m, up 7.1% from the year before.

The company recommended a final dividend of 19.1p per share compared to 16p in 2015 and giving a full-year dividend of 25.1p per share, up 16.7% from the prior year. In addition, the company paid a special dividend of 31.5p per share during the year.

Chief executive John Browett said: "The business has performed well over the year. Shoppers tell us that they genuinely appreciate the unrivalled depth and value of the Dunelm homewares offer. This has meant we have further cemented our leading position through market share gains, driving sales and profits growth, and increasing returns to shareholders.”

Dunelm said it opened six new superstores in the year and this will be ramped up in the current year, with nine planned openings, three of which are in London.

In addition, the group said it has reduced hours worked on certain tasks in the business, partly to mitigate the cost of introducing the National Living Wage.