Dunelm Group plc (LONDNLM) , the UK’s leading homewares retailer, today announced its preliminary results for the 52 weeks to 30 June 2018.
|
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Year ended 30 June 2018
Underlying |
Year ended 30 June 2018
Exceptional items |
Year ended 30 June 2018
Reported |
Year ended 1 July 2017
Underlying |
Year ended 1 July 2017
Exceptional items |
Year ended 1 July 2017
Reported |
Year on year change
Underlying |
Year on year change
Reported |
|
Total revenue |
£1,050.1m |
– |
£1,050.1m |
£955.6m |
– |
£955.6m |
+9.9% |
+9.9% |
|
Gross margin |
48.0% |
– |
48.0% |
48.9% |
– |
48.9% |
-90bps |
-90bps |
|
Profit before tax |
£102.0m* |
-£8.9m |
£93.1m |
£109.3m* |
-£16.9m |
£92.4m |
-6.7% |
+0.8% |
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EBITDA |
£139.6m |
-£4.9m |
£134.7m |
£142.2m |
-£14.0m |
£128.2m |
-1.8% |
+5.1% |
|
Free cash flow |
– |
– |
£52.9m |
– |
– |
£14.2m |
– |
+272.5% |
|
Net debt |
– |
– |
£124.0m |
– |
– |
£122.1m |
– |
-1.6% |
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Basic EPS |
40.1p |
– |
36.3p |
43.1p |
– |
36.3p |
-7.0% |
0.0% |
|
Fully diluted EPS |
40.0p |
– |
36.2p |
42.8p |
– |
36.1p |
-6.5% |
+0.3% |
|
Ordinary dividends |
– |
– |
26.5p |
– |
– |
26.0p |
– |
+1.9% |
*Includes net negative impact of Worldstores estimated at £8.4m for the 52-week period in FY18, and £10.7m for the period post-acquisition in FY17 (from 28 November 2016 to 1 July 2017).
Highlights
· Group revenue of £1,050.1m (FY17: £955.6m), an increase of +9.9%. LFL sales were +4.2%
· Growth in unique customer numbers both online (+18%), and in-store (+5%)1
· Strong growth in LFL online, with home delivery sales up 37.9%
· Continued development of multichannel proposition with total Dunelm.com sales (including Reserve and Collect) now representing 13.5% of total Dunelm sales in FY18 (FY17:11.2%)
· Opening of ten new superstores in the year (including one relocation) adding 6.1% new space, and completion of six refits
· Clear plan to leverage the technology acquired with Worldstores; profitable Worldstores products transferred to Dunelm.com
· Underlying PBT of £102.0m (pre-exceptional items), down 6.7% year on year, inclusive of an estimated £8.4m of net profit dilution from Worldstores (FY17: £109.3m underlying PBT including £10.7m negative impact from Worldstores)
· PBT of £93.1m (FY17: £92.4m) including £8.9m (FY17: £16.9m) of exceptional costs relating to the acquisition, integration and/ or disposal of the Worldstores businesses
· Improved free cash flow year-on-year to £52.9m (FY17: £14.2m)
· 1.9% increase in full year dividend to 26.5 pence per share, reflecting strong cash generation and robust balance sheet
1 Unique customer numbers reflects internal analysis based on unique payment card transactions within the financial period
Dunelm Group, Nick Wilkinson, Chief Executive Officer, commented:
“Following healthy sales growth over the past year, we are now taking steps to simplify the business under the core Dunelm brand, with one web platform and an integrated supply chain. This will allow us to respond more quickly to the changing consumer environment and drive future profitable growth.
“Dunelm’s purpose is to help everyone create a home they love. Our committed colleagues, our great products, and our increasingly integrated in-store and online offer, mean we are well placed for success as a leading multichannel specialist.
“The Worldstores acquisition has given us the key ingredients for a step change in our digital capabilities. We are preparing to launch Dunelm.com on our new proprietary technology to give us much greater agility in improving our customer proposition. This is a new and exciting chapter for Dunelm as we fully embrace digital retailing.
“The UK retail environment remains challenging, but against this difficult background we have traded in line with expectations during the current financial year to date.”
