Reflecting Dunelm Group's strong performance in the year and confidence in future growth, the Board has proposed a final dividend of 23 pence per share. This takes the full year ordinary dividend to 35 pence per share. They did not pay any dividends in respect of FY20.
Additionally, reflecting their stated intention to return to their published capital policies, the Board has announced a special dividend of 65 pence per share.
They remain committed to their published policies. This total dividend of 100 pence in respect of FY21 returns us to the bottom of their published target leverage range, reflecting a prudent approach given the current macro-outlook.
Other financial highlights include:
Very strong sales growth of 26% (21% vs FY19), despite stores being closed to customers for more than a third of the financial year, reflecting the strength of their total retail system
Significant market share gain, with FY21 UK homewares market share up 1.6%pts to 9.1%
Active customer growth of 8.5%, driven by strong growth across digital channels
Digital sales grew by 115%, with successful scaling of technology and operations to respond to the increase in demand, including significant expansion of their Click & Collect offer
Gross margin +130bps, benefiting from a smaller Winter Sale due to store closures, sourcing gains and the delayed timing of their Summer Sale (into FY22)
PBT of £157.8m, +45% (FY20: £109.1m, FY19 £125.9m) reflecting ongoing focus on operational grip, despite the impact of store closures
Free cash flow of £108.5m, including working capital outflow of £35.0m (FY20 working capital inflow £80.1m), with net cash at period end of £128.8m (FY20: £45.4m)
Commitment to a Net Zero Pathway, targeting a 50% reduction in greenhouse gas emissions by 2030