Homewares retailer Dunelm (DNLM) ran into major difficulties in late 2016 when it acquired Worldstores out of administration for £1. The online retailer proved more difficult to integrate than anticipated. But following a board room overhaul, the group appears to be moving in the right direction again, prompting a jump in profits, a raft of analyst upgrades and the potential for regular special dividends, perhaps starting as soon as this autumn.
IC TIP:
Buy
at
920p
Tip style
Income
Risk rating
Medium
Timescale
Long Term
Bull points
Improving margins
Falling debt
Consistent forecast upgrades
Special dividend prospects
Bear points
Turbulent recent history
Wider market challenging