Celebrate our 150th anniversary with fantastic savings on a joint magazine and IC Advantage subscription.
Dunelm delivered solid full-year results as its budget kitchen and homeware attracted cash-strapped shoppers, but revealed that it had faced 'difficult trading conditions' coming into the new financial year.
Advertising
It said that like-for-like sales in the first 10 weeks had fallen by 5.7 per cent, compared with a 7.2 per cent rise last year. However, while it admitted that it was 'cautious' about the medium-term outlook, it also claimed that poor market conditions should allow it to grow at the expense of weaker competitors.
And its expansion plans are now showing signs of slacking, with up to seven new stores due to open this year. It believes that, because of weakness in the commercial property market, it will be able to accelerate new store openings, too. Dunelm also intends to enlarge its web presence by investing in new technology and expanding its online product range to 9,000.
Broker Landsbanki forecasts full-year pre-tax profits of £46.1m, and EPS of 15.8p. It said that the company should prove to be more resilient than others in the retail sector because of its low levels of debt.
DUNELM (DNLM) |
||||
|---|---|---|---|---|
| ORD PRICE: | 148p | MARKET VALUE: | £295.8m | |
| TOUCH: | 148-155p | 12-MONTH HIGH: | 218p | LOW: 112p |
| DIVIDEND YIELD: | 3.7% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 43p | NET DEBT: | 8% | |
| Year to 28 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 315 | 38.0 | 13.1 | * |
| 2007 | 355 | 37.8 | 12.3 | 3.8 |
| 2008 | 391 | 49.1 | 16.6 | 5.5 |
| % change | +10 | +30 | +35 | +45 |
Ex-div: 19 Nov Payment: 5 Dec *Prior to listing |
||||
Guide to the terms used in IC results tables.
More analysis of company results
More articles, comment and data on Dunelm
Times will certainly be hard for retail in 2009, but Dunelm looks well positioned to attract bargain-hunting consumers. The shares trade on a PE ratio of nine times 2009 earnings, which is 20 per cent below its sector peers, and are good value.
Last IC view: Buy, 147p, 28 Feb 2008
Free access to financial data, charts, portfolio tools and more - registration is quick, secure and free!
Profit from IC share tips; discover the benefits of IC Advantage and sign up for a free trial.
© The Financial Times Limited 2010. All rights reserved. "Investors Chronicle", "FT" and "Financial Times" are trademarks of The Financial Times Limited. No part of these web pages may be reproduced or transmitted to or stored in any other website or other form of electronic retrieval system, without prior permission in writing from the editor.
Warning: Do remember, particularly if you are new to stock market investment that the prices of shares and other investments can fall sharply. You may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. This site is aimed at UK residents only. To read more please see our Important Warning
v6.2.11.1 running on ftbwebw-sun-02-z1
