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Dunelm

February 2013

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DNLM
  • Price:
  • 767p
Dunelm's astonishing share price ascent continues unabated with the shares hitting a new high and having gone ex-the special dividend.During the month, Dunelm issued a solid-looking Q2 update with very strong gross margin guidance (up 30 basis points) whilst like-for-like sales were +2.2%. Overall, including new space, with 10 new stores opened in the period, total revenue in H1 was up 13.4% at £340.1m. Despite the £65.8m paid out as the special dividend net cash stands at £50m. In the light of the update broker Peel Hunt has upgraded by £2m to £109m for the full year, for eps of 40.2p. More highs look assured;Strong hold. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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