Dunelm increases its 2015 full year dividend by 7.5%

DividendMax Ltd.

Dunelm increases its 2015 full year dividend by 7.5%


Another strong year, maintaining our record of growing sales and profit every year since IPO

Progress achieved in all three areas of the re-launched growth strategy:

o In store like-for-like growth of 3.4% (52 week basis);

o 55% growth in home delivery sales (52 week basis), now accounting for 6.1% of total revenue (FY14: 4.4%);

o 12 new openings in the year (including one high street relocation), increasing footprint to 148 superstores; one  store opened since period end; nine further stores contractually committed (including two relocations).

Continued investment in people, infrastructure, IT and marketing to support growth ambition:

o John Browett joined Board on 1 July and will become CEO in January 2016; Keith Down to join Board as CFO in December (both as previously announced);

o Additional warehouse and distribution centre to be operational in Spring 2016;

o New customer-facing web platform launched in July, improving customer experience and providing scalability;

o Investment in marketing to be maintained, with increased focus on digital channels going forward.

Special distribution during the period of 70.0p per share (£141.7m)

Recommended final dividend of 16.0p per share (FY14: 15.0p), increasing the full year dividend to 21.5p (FY14: 20.0p).

Will Adderley, Chief Executive, commented:

"It has been a busy and very successful year at Dunelm and the business is in better shape than ever with good momentum and clear plans for further growth.

"Customers continue to respond well to our specialist homewares offer and we have made strong progress in all elements of our growth strategy - achieving good like-for-like sales, opening 12 superstores and significantly increasing revenues from our home delivery offer. At the same time, we have made a number of important changes to prepare the business for its next phase of growth.

"I look forward to supporting John Browett, when he takes over in January, and the whole executive team to deliver Dunelm's full potential."

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