Coronavirus Update

Dunelm Group Plc - Latest Interim Results

This content has been sourced from: https://www.investegate.co.uk/dunelm-group-plc/rns...

Dunelm Group plc

Interim Results for the 26 weeks ended 26 December 2020

Strong performance, strategic progress and well positioned for the future

Dunelm Group plc ("Dunelm" or "the Group"), the UK's leading homewares retailer, today announces its interim results for the 26 weeks to 26 December 2020.

 

 

FY21 H1

FY20 H1

YoY

Total sales

£719.4m

£585.0m

+23.0%

Gross margin

52.0%

51.5%

+50bps

Profit before tax (PBT)

£112.4m

£83.6m

+34.4%

 

 

 

 

Digital % total sales1

35.0%

20.4%

+14.6%pts

 

 

 

 

Free cash flow 2

£98.0m

£63.9m

+£34.1m

Net cash/(debt) 3

£140.9m

(£67.7m)

+£208.6m

 

 

 

 

Diluted earnings per share

44.1p

33.2p

32.8%

Interim dividend

12.0p

-

+12.0p

Highlights

  • Very strong sales growth of 23%, despite the impact of store closures in the second quarter
  • Continued market share growth, with sales growth significantly ahead of the homewares market
  • Digital sales growth of 111%, with ongoing development of digital capabilities and successful scaling of technology and operations to respond to growth in peak volumes
  • Growth in total active customers4 of 4.4%, driven primarily by growth in online customers, with clear opportunities to grow customer numbers and frequency
  • Continued focus on the health and wellbeing of our customers and colleagues; customer perceptions of safety in our stores and via our Click & Collect offer at 97%5
  • Gross margin +50bps, driven mainly by sourcing gains
  • PBT of £112.4m, +34.4% (FY20 H1: £83.6m), after the commitment to repay the £14.5m Job Retention Scheme (JRS) monies claimed in FY20
  • Free cash flow of £98.0m, with net cash at period end of £140.9m (FY20 H1: net debt £67.7m)
  • Resuming dividends with an interim of 12.0 pence (FY20: nil paid), reflecting our strong H1 performance and confidence in the medium-term outlook

Nick Wilkinson, Chief Executive Officer, commented: 

"In light of another strong performance, I would like to express my sincere thanks to the whole Dunelm team, and our committed suppliers, who have continued to work tirelessly throughout these extraordinary times to ensure the highest safety standards for ourselves and our customers, and also for their dedication and commitment to continuing to improve our customer proposition.

"Sales were particularly strong in the first quarter, before we had to navigate the various restrictions which impacted the remainder of the period. These restrictions have become more severe in the second half of our financial year, with all but one of our stores currently closed, although we continue to serve customers through our digital channels, which have significantly advanced during the last year.

"Beyond the near-term uncertainty, we have never been more confident about the future. Dunelm is a market leader with a challenger brand mentality, in a large and growing segment. We have a clear runway to grow active customers and their frequency across our total retail system and to realise our long-term ambitions."

1 Digital includes home delivery, Click & Collect (or Reserve & Collect before October 2019) and tablet-based sales in store

2 Free cash flow is defined as net cash generated from operating activities less capex (net of disposals), net interest paid, interest on lease liabilities and repayment of lease liabilities

3 Excluding lease liabilities

4 Unique active customers who have shopped in the last 12 months, based on management estimates using Barclays data

5 Customer survey response to question: "Did you feel that you were able to visit the store in a way that put both you and our store colleagues' health and safety first?"