Dunelm half year profit up 7.8 per cent

Specialist homewares retailer Dunelm has reported a 7.8% rise in pre-tax profit for the half year ended December 31st.

As expected, profits for the year came in at £52.2m, compared to £48.4m the same period the previous year, on revenues of £299.9m, up 8.8% compared to the year before (2010: £275.7m).

During the six months the firm continued to increase its market share, opening 10 new superstores, and launching an on-line sales option.

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Sales growth was seen during the half year, with like-for-like sales up by 1.1%, compared to the previous year which saw a 1.2% decline.

"Thanks to competitor weakness, cash rich Dunelm may be able to surprise on the upside in terms of space growth, and possibly in the short and medium term," Panmure Gordon said recently.

The interim dividend was increased by 14% from 3.5p to 4p per share. Net cash at the end of the half year was £49.9m, compared to £34.3m the previous year.

In a statement the firm said: "Whilst we remain cautious about the impact of the UK consumer environment on our trading in the near term, we will continue to focus on the disciplined execution of our growth strategy and on tight operational management. We remain confident in the future growth prospects for the business."

NR