TIDMDNLM
RNS Number : 5471S
Dunelm Group plc
09 July 2015
9 July 2015
Dunelm Group plc
Year-end Trading Update
Appointment of Chief Financial Officer
Dunelm Group plc ("Dunelm" or "the Group"), the UK's leading
homewares retailer, provides an update on trading for the final
quarter and for the financial year ended on 4(th) July 2015.
The Group also announces that Keith Down, currently Chief
Financial Officer of The Go-Ahead Group plc, will succeed David
Stead as CFO in December. David will retire from the Board in early
2016 following a suitable handover period.
Year-end Trading Update
Sales - 52 weeks to 27th June 2015
Sales growth remained strong in the final quarter of the
financial year. Total sales grew by 12.1% to GBP200.1m, with
like-for-like ("LFL") sales growth (combining LFL stores and Home
Delivery) of 5.8%.
13 weeks to 27(th) 52 weeks to 27(th)
June 2015 June 2015
---------------- ---------------------------------- ----------------------------------
Sales YoY Growth YoY Growth Sales YoY Growth YoY Growth
(GBPm) (GBPm) (%) (GBPm) (GBPm) (%)
---------------- -------- ----------- ----------- -------- ----------- -----------
LFL stores 157.6 +5.3 +3.5% 674.8 +21.9 +3.4%
---------------- -------- ----------- ----------- -------- ----------- -----------
Home Delivery 13.7 +4.1 +43.4% 50.3 +17.9 +55.1%
---------------- -------- ----------- ----------- -------- ----------- -----------
Total LFL 171.3 +9.4 +5.8% 725.0 +39.7 +5.8%
---------------- -------- ----------- ----------- -------- ----------- -----------
Non-LFL stores 28.9 +12.2 - 97.7 +52.9 -
---------------- -------- ----------- ----------- -------- ----------- -----------
Total 200.1 +21.7 +12.1% 822.7 +92.6 +12.7%
---------------- -------- ----------- ----------- -------- ----------- -----------
In-store LFL sales grew by 3.5% benefiting from a strong Summer
Sale performance, and continued growth in particular from our Made
to Measure curtains and blinds service and from our Furniture
department.
Home Delivery sales grew by 43.4% during the quarter and
represented 6.8% of sales compared to 5.4% in the prior year. Over
the financial year as a whole, Home Delivery sales represented 6.1%
of total sales (FY14: 4.4%).
Non-LFL store performance includes sales from four new stores
opened in the quarter, taking the total superstore openings in the
financial year to twelve, including one relocation (FY14: twelve,
including two relocations). We ended the financial year with 148
superstores, compared with our medium-term target of 200.
Sales - 53 weeks to 4th July 2015
Total sales for the statutory financial period of 53 weeks to
4(th) July 2015 were GBP835.8m.
Gross Margin Percentage
Gross margin for the final quarter was down by an estimated
70bps on the prior year, impacted by higher than usual clearance
activity on both excess furniture stock and end of season lines. As
a result, gross margin for the financial year as a whole is
expected to be 20bps below the prior year. On an underlying basis,
excluding the impact of abnormal clearance activity, gross margin
for the year was stable.
Profit before tax
Given the strong trading performance in the final quarter
together with increased levels of revenue investment during the
year (which will continue into the next financial year), the Board
anticipates that profit before tax for the 52 weeks ended 27th June
2015 will be within the range of GBP119 -123m and for the 53 weeks
ended 4(th) July 2015, within the range of GBP121-125m.
Strategy Progress
Our pipeline of legally committed new store opportunities stands
at eight, of which at least two are expected to open in the first
half of the new financial year. The pipeline includes one committed
freehold acquisition which is conditional on planning consent.
We are pleased to confirm that our new web platform went live
for customers with effect from 1(st) July 2015.
Financial Position
The Group remains strongly cash generative. After payment of
both ordinary dividends and a special distribution during the last
twelve months (GBP183m in total), our cleared net debt balance at
4(th) July 2015 was GBP78.2m. Daily average net debt since the
special distribution on 20(th) March 2015 has been GBP75.4m.
Will Adderley, Chief Executive, commented:
"We have continued to achieve good like for like growth in the
final quarter of our financial year, across physical stores as well
as our home delivery channel. I would like to thank all colleagues
for their efforts in delivering this strong result.
"With a newly strengthened senior team, a recently upgraded
website, a sound pipeline of new stores and an ongoing programme of
capital and revenue investments in place, I am confident that we
will continue to deliver further growth across all our channels
going forward."
Appointment of Chief Financial Officer
The Board is pleased to announce that Keith Down will join the
Board of Dunelm as Chief Financial Officer in December 2015. Keith
will succeed David Stead who will retire after a short handover
period, having served on the Board since 2003.
Keith Down is currently Chief Financial Officer of The Go-Ahead
Group plc. He qualified as a Chartered Accountant with KPMG, and
held a number of senior finance roles in convenience retailing and
at Tesco Plc, where he was Commercial Finance Director from 2005 to
2007. He was then appointed Chief Financial Officer of JD
Wetherspoon Plc, before joining Go-Ahead in 2011. Keith is a
non-executive director at Topps Tiles Plc.
Andy Harrison, Chairman of Dunelm, said:
"Keith brings us a wealth of experience of financial management
in retail and other consumer-facing industries. His drive,
experience and character will make a significant contribution to
our growth, and will provide high quality support to John Browett
who, as recently announced, will assume the role of CEO in January
2016 and who has been fully involved in Keith's appointment.
On behalf of the Board, I would also like to thank David Stead
for the huge contribution he has made to Dunelm's success since he
joined the company in 2003. He has provided excellent leadership
and wise counsel to the Board."
Keith Down said:
"I am excited about the challenge of joining Dunelm at the start
of this new chapter in its growth, and look forward to working with
the Dunelm team."
Ends
For further information, please contact:
Dunelm Group plc 0116 264 9350
Andy Harrison, Chairman
Will Adderley, Chief Executive
MHP Communications 020 3128 8100
John Olsen / Simon Hockridge
Save as disclosed above, there are no disclosures to be made
pursuant to LR 9.6.13 in relation to Keith Down.
Announcement of Preliminary Results
Dunelm will make its preliminary results announcement on 10(th)
September 2015 and there will be a presentation for analysts in the
offices of UBS, 1 Finsbury Avenue, London EC2M 2PP. Those analysts
who wish to attend are requested to contact Naomi Lane of MHP on
020 3128 8100 or Naomi.lane@mhpc.com. A copy of the presentation
will be made available on the Dunelm website.
Notes
1. Like for like sales represent revenues from stores trading
for at least one full financial year prior to 28th June 2014 and
exclude stores with significant change of space in the current or
previous financial year.
2. For analysis purposes, the year to 27th June 2015 represents
a 52 week period. The annual report and financial statements for
2014/15 will be presented on a 53 week basis, with 52 week
comparatives provided for ease of interpretation.
3. Quarterly sales and margin analysis:
Year to 27(th) June 2015 (52 weeks)
------------------- ----------------------------------------------------------------------------------
Q1 Q2 H1 Q3 Q4 H2 FY
------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total sales GBP180.6m GBP225.8m GBP406.4m GBP216.2m GBP200.1m GBP416.4m GBP822.7m
------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total sales
growth +17.0% +11.8% +14.0% +10.7% +12.1% +11.4% +12.7%
------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
LFL sales
growth/decline +8.9% +4.2% +6.2% +4.9% +5.8% +5.4% +5.8%
------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Gross margin +40bps -30bps Level -10bps -70bps* -40bps* -20bps*
growth
------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(*) estimated
Year to 28(th) June 2014 (52 weeks)
------------------- ----------------------------------------------------------------------------------
Q1 Q2 H1 Q3 Q4 H2 FY
------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total sales GBP154.3m GBP202.1m GBP356.4m GBP195.4m GBP178.4m GBP373.8m GBP730.2m
------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total sales
growth +1.7% +7.3% +4.8% +9.9% +12.0% +10.9% +7.8%
------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
LFL sales
growth/decline -5.3% +2.9% -0.9% +5.0% +5.5% +5.3% +2.1%
------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Gross margin +70bps +120bps +90bps +90bps +50bps +70bps +80bps
growth
------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Notes to Editors
Dunelm is market leader in the GBP11bn UK Homewares market. The
Group currently operates 154 stores, of which 148 are out-of-town
superstores and 6 are located on high streets, and an on-line
store, to be found at www.dunelm.com.
Dunelm's "Simply Value for Money" customer proposition offers
industry-leading choice of quality products at keen prices, with
high levels of availability and supported by friendly service. Core
ranges include many exclusive designs and premium brands such as
Dorma, and are supported by a frequently changing series of special
buys. The superstore format provides an average of 30,000 sq. ft.
of selling space with over 20,000 products across a broad spectrum
of categories, extending from the Group's home textiles heritage
(bedding, curtains, cushions, quilts and pillows) to a complete
Homewares offer including kitchenware and dining, lighting, wall
art, furniture and rugs. Dunelm is one of the few national
retailers to offer an authoritative selection of curtain fabrics on
the roll, and owns a specialist UK facility dedicated to producing
made-to-measure curtains.
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 before expanding into broader
homewares categories following the opening of the first Dunelm
superstore in 1991.
Dunelm has been listed on the London Stock Exchange since
October 2006 (DNLM.L) and has a current market capitalisation of
approximately GBP1.8bn.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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