Homewares retailer Dunelm Group Plc reported modest full-year top-line growth on Monday as it continued to progress on its digital and store expansion strategy.
Dunelm said revenues had risen 3.8% to £1.77bn in the year ended 28 June, while pre-tax profits ticked up 2.7% to £211.0m. Gross margins improved by 60 basis points to 52.4%, supported by disciplined buying and strong sell-through of seasonal ranges. Diluted earnings per share increased 3.2% to 76.8p.
The FTSE 250-listed firm said digital sales made up 40% of total revenues, up from 37% a year earlier, driven by growth in Click & Collect and enhanced online capabilities. However, net debt, on the other hand, increased to £102.0m from £55.6m, following investment in new stores, the acquisition of Home Focus in Ireland, and the purchase of the Designers Guild brand and archive.
Dunelm proposed a final dividend of 28.0p per share, taking its FY ordinary payout to 44.5p, up 2.3%. Including a special dividend of 35.0p paid in April, total dividends declared for the year were 79.5p per share.
Chief executive Nick Wilkinson said: "In my final set of results at Dunelm, I'm pleased to report another successful year, marked by growth in sales and profits, increased market share and meaningful strategic progress.
"As I move on, I leave behind a special business, with a strong business model, well positioned for the future."
Reporting by Iain Gilbert at Sharecast.com