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.
Nick Wharton, Chief Executive, commented:
"Dunelm delivered robust trading results over the year, in a demanding retail environment. We have strengthened our specialist proposition, improved customer service in store and increased the profile of our brand. Each of these, together with our traditional product strength, has enabled us to increase sales on a like-for-like basis. We have also made good strategic progress, scaling our business through new stores and multi-channel, and strengthening our infrastructure. I would like to thank all my colleagues for their hard work and commitment in achieving this.
While recent economic data, particularly the volume of housing transactions, may suggest some improvement in consumer confidence, a degree of caution in relation to the broader UK economic environment remains appropriate. Furthermore, the unusually warm summer weather has had a temporary dampening effect on recent trading.
With strong plans in place to improve brand awareness and to grow Dunelm further through new stores and multi-channel expansion, we remain confident in the future prospects for the business. Combined with our very strong financial position, this enables us to pay a special dividend equal to 25p per share as well as proposing an increase in the ordinary dividend in line with earnings."
