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Dunelm

October 2011

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:
  • 483p
Astonishingly, Dunelm's shares have proved immune to the rout hitting the rest of the retail sector and stand close to their highs for the year.  John Lewis and Next have been making negative noises in relation to homewares and yet Dunelm shares have been shifting up on the down days in the market!During the month the company reported its 2011 results with pretax profits ahead by 9% to £83.6m and eps up similarly to 29.7p. Sales were also up 9% to £539m, a like-for-like decline of 0.6%. Net cash at the year end more than doubled to £35.1m, possibly paying the way for another special dividend this year. Despite significant headwinds, the gross margin was ahead by 120 basis points to 48%.As was the case last year, Dun ...

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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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