Half-year profits rise at Dunelm

Dunelm saw revenues rise 8.5% to £275.7m in the half year to January 1 2011, while pre-tax profit increased 5.0% to £48.5m.

Operating profit also put on growth of 5.4% to £48.4m, but the group saw like-for-like sales dip 1.2% – having increased 15.4% in the same period in 2010.

Deputy chairman Will Adderley said that after exceptional growth in sales and profits in the equivalent period in the last financial year, “the most recent half year has been a period of consolidation. In this context it has been a substantial achievement for the business to record another profit increase as well as continuing its record of strong cash generation.”

Dunelm had 110 stores at January 1, 100 of them out-of-town superstores and 10 on high streets. The retailer opened seven more superstores during the period, and its online channel, Dunelm Direct, is also showing strong growth.

The company’s incoming chief executive, Nick Wharton, said that it regarded the future with caution but believed that it was “well positioned to trade successfully through this period”.