Dunelm is the UK's leading specialist out of town homewares retailer, operating in the 12bn homewares market. The Group currently operates 161 stores, branded Dunelm Mill, of which 157 are out-of-town superstores and 4 are high street shops. The majority of the stores are located in the Midlands or north-west of England. Dunelm employs over 5,000 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 Group's expansion into the broader homewares market.

The superstores provide an average of 28,000 sq ft of selling space and offer an extensive range of around 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 operates an on-line store, to be found at www.dunelm-mill.com.

Dunelm listed on the London Stock Exchange in October 2006 (DNLM.L) and has a current market capitalisation of approximately 750 million

Final results

Highlights

· Continuing market share gains; now market leader with 6.9% of UK homewares market (source: Verdict Research);

· 14 new openings in the year (including two relocations and one re-opening) increasing footprint to 126 superstores;

· Contractually committed to 10 more superstores;

· 80% growth in multi-channel revenues, now representing over 4% of total business;

· Increasing investment in brand awareness - "There's no place like Dunelm";

· Continued investment in customer proposition, infrastructure, IT systems and people,to underpin long-term growth;

Dividends

· Recommended final dividend of 11.5p per share (2012: 10.0p), giving full year dividend of 16.0p (2012: 14.0p);

· Special dividend of 25.0p per share to be paid in October, returning a further £50.7m of excess cash to shareholders.

Verb Sap

Cantor Fitzgerald Buy 942.50 940.00 900.00 1,020.00 Upgrades

Citigroup Buy 942.50 940.00 1,200.00 1,200.00 Retains

Nomura Neutral 942.50 940.00 990.00 990.00 Reiterates

Deutsche Bank Hold 942.50 940.00 925.00 960.00 Reiterates

Dunelm goes ex special dividend [25p] tomorrow

Listen to Nick Wharton, CEO & David Stead, FD of Dunelm Group plc (DNLM)

Preliminary results presentation, click the link below to listen:

Click here

Sharecast -

Buy homewares retailer Dunelm, the Sunday Times’s Danny Fortson advised. The company has quietly powered its way through the long period of economic gloom and is about to launch its first national TV advertising campaign. Its October 2nd trading update is likely to feature a sales dip caused by unusually hot weather but investors shouldn’t be deterred. With opportunities to expand through stores, catalogues and online, Dunelm’s winning streak has some way to go, Fortson wrote in the Inside the City column.

Good find dc

Interim Management Statement

Trading was volatile during the quarter with a marked reduction in footfall during the unusually warm weather reflecting Dunelm's status as a destination visit for discretionary homewares shopping. Accordingly the first four weeks of the period showed a significant decline in sales on a LFL basis. We returned to LFL growth over the remainder of the quarter.

As anticipated, gross margin has continued to increase year on year, with an estimated 70 basis points rise compared with the equivalent quarter last year. This reflects the benefit of increased direct sourcing compared with last year, as well as the cleaner inventory position at the start of the financial year following margin investments made in the second half of the previous year.

Store Portfolio

The estate currently comprises 126 superstores across the UK. Having committed to two further stores since our preliminary results announcement, a total of 12 further openings are now under contract, including two relocations. Six new stores are anticipated to commence trading prior to Christmas.

Financial Position

As at 28th September 2013 net cleared funds amounted to £75.4m. Daily average net cleared funds over the quarter were £57.1m. As recently announced, a special dividend amounting to £50.7m (25.0p per share) will be paid on 11th October 2013.

Still holding, the TV advert campaign might encourage more footfall

Rather than a share buyback, the board paid a special dividend which I much prefer

Burgeoning golden cross.

Skinny
The GC has changed to Black Cross; may come good though !

Have you seen any of Dunelm's TV advertising over this Christmas period ?

No I haven't as yet - Black cross?

Yes BC
The GC era has ended
Note the lines have crossed back to bearish signal

Jal; still holding

Look

If using afn 2 year chart, I prefer this :-

free stock charts from uk.advfn.com

Update tomorrow.

Trading Update

Total revenue for the half year grew by 4.8%, benefitting from our continuing portfolio development programme which included six new store openings (one of which was a relocation).

Like for like (LFL) revenue for the half declined by 0.9%. After a first quarter which, as previously reported, was negatively impacted by the unusually warm weather in the period, the second quarter saw LFL growth of 2.9%, supported by our second autumn catalogue and our first ever TV advertising campaign.

Gross Margin Percentage

Gross margin for the half year is estimated to have improved by 100 basis points compared with the prior year as our direct sourcing programme continued to bring benefits and as we annualised the impact of clearing slow-moving promotional lines.

Strategy Progress

The total number of superstores trading at the period end was 131. With three leases signed in the last quarter, there were nine new stores committed as at the period end, including two relocations. Our current expectation is that four of these new stores will open in the remainder of this financial year, taking our total anticipated openings for the financial year to ten, including three relocations2. Our medium term target remains to operate from around 200 superstores across the UK.

We have seen continued progress in our multi-channel business following the successful transition to a new fulfilment centre in October, giving us further capability in home delivery and the capacity for additional growth going forward. In the most recent quarter multi-channel represented approximately 6% of total revenues.

Financial Position

The Group remains strongly cash generative with closing net cleared funds at bank of £43.9m. Daily average cleared funds since payment of our special dividend in October amounted to £37.4m.


Commenting on Dunelm's performance, Nick Wharton, Chief Executive, said:

"Dunelm traded robustly during this key period with our trusted "every day low price" positioning retaining a strong appeal for customers. Our home delivery proposition has become much stronger as a result of our new fulfilment centre, and we are beginning to see the benefits from our increased advertising investment to drive brand awareness. These investments have been funded through continued gross margin expansion and with continuing profitable growth from new stores, the Board anticipates that profit before tax for the first half of the year will be approximately £61.5m.

"With a strengthening customer proposition, increasing brand awareness, a significant new store growth opportunity and an exciting multi-channel agenda in place, the Board remains confident in the long term growth prospects for the business."

Cantor Fitzgerald Buy 942.75 1,020.00 1,020.00 Reiterates

N+1 Singer Hold 942.75 950.00 950.00 Reiterates

talk about selling on results! ..... all the way up yesterday and all the way down today - tho i do not hold

Numis Add 943.50 979.00 1,000.00 1,000.00 Reiterates

Any thoughts following the Interim Results on 11th Skinny please?