Homewares retailer Dunelm said pre-tax profit climbed a better than expected 15.1 per cent in the 52 weeks to 30 June 2012 and while it remains cautious of the UK consumer environment it is confident in the future prospects of the business.
The out-of-town retailer, which opened 14 new superstores in the year, said pre-tax profit rose to £96.2m during the group's financial year from £83.6m before. Total revenues grew to £603.7m, in line with analyst forecasts and up from £538.5m the year before. Analysts had predicted pre-tax profit of £95.56m.
Like-for-like sales grew 3.1% compared to a 0.6% decline in 2011. Operating profit increased 14.3% to £95.2m while gross margin was up 30 basis points to 48.3%.
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Chief Executive Nick Wharton said the group delivered robust trading results in a demanding retail environment. "We have also made good progress with our strategic development, scaling our business through new stores, multi-channel, and strengthened infrastructure, while continuing to improve our specialist customer proposition."
Wharton added: "Looking ahead, we remain cautious of the UK consumer environment and its impact on our trading in the near term. However, with a strong new store pipeline, good momentum in multi-channel and a "Simply Value for Money" proposition that continues to resonate with a wide range of customers, we remain confident in the future growth prospects for the business."
Year-end net cash increased to £65.2m from £35.1m in 2011.
A final dividend of 14p has been recommended, up from 11.5p last year. Dunelm announced additional proposed capital return of £65.8m or 32.5p per share.
CJ
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