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Dunelm

October 2010

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:
  • 388p
Supergroup's performance as a retail supremo has overtaken even that of Dunelm but then Supergroup's strategy as a fashion brand is multi-dimensional as it spans retail and wholesale (including overseas franchising, which is really accelerating growth) whereas Dunelm is a fairly straightforward UK rollout. But even so, this has not stopped Dunelm putting out fantastic 2010 numbers. Sales for the year to 30 June were up 18% to £493m, including like-for-like sales increases of 8%. Pretax profit went up 46% to £75.5m and eps by a similar amount to 26.9p. Net cash at the year end was £15.4m having returned £43.2m as a special dividend during the year. The gross margin was ahead by 190 basis points to 46.8% helped by successful man ...

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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.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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