Dunelm's (DNLM) full-year results were overshadowed by news that chief executive Nick Wharton has resigned and will be replaced with immediate effect by executive deputy chairman Will Adderley. A statement from the board said that Mr Adderley - chief executive during Dunelm's flotation in 2006 - was the best candidate to "develop profitable growth plans for the next phase of development", given his "innate retail flair".
Unfortunately management was too busy to speak to us, but we gather that Mr Wharton's departure may not have been entirely voluntary. Analyst John Stevenson of broker Peel Hunt, for example, reckons the change reflected the need for a "more top-line driven agenda and a desire to trade the business harder."
The half-year results, meanwhile, were in line with expectations. Like-for-like sales rose 2 per cent and the gross margin improved - thanks to increased direct sourcing - leaving the operating profit 9 per cent higher at £116m. Dunelm also invested heavily in infrastructure, IT, the website, staff and launched its first ever nationwide television advertising campaign, which appears to have boosted brand awareness. The scale of the investment meant that operating costs grew faster than sales, a trend that will continue for at least the next financial year.
Broker Peel Hunt expects full-year pre-tax profit of £125m in 2015, giving EPS of 47.6p (from £116m and 43.6p).
| DUNELM (DNLM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 858p | MARKET VALUE: | £1.74bn | |
| TOUCH: | 858-859p | 12-MONTH HIGH: | 1,045p | LOW: 747p |
| DIVIDEND YIELD: | 2.3% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 94p | NET CASH: | £21.7m | |
| Year to 28 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 493 | 76.8 | 27.1 | 8 |
| 2011 | 539 | 83.6 | 29.7 | 11.5 |
| 2012 | 604 | 96.2 | 35.3 | 14 |
| 2013 | 677 | 108 | 40.2 | 16 |
| 2014 | 730 | 116 | 44.0 | 20 |
| % change | +8 | +7 | +9 | +25 |
Ex-div: 27 Nov Payment: 19 Dec | ||||
