# Dunelm Group Business and liquidity update

- Link: https://www.directorstalkinterviews.com/dunelm-group-business-and-liquidity-update/412813084
- Published: 2020-04-16T07:30:53+01:00
- Author: Giles Arbor

**Dunelm Group plc** (LON:DNLM) today have provided the following updates.

**Operational update**

Following the government’s introduction of nationwide social restrictions, we announced
that we were temporarily closing all of our retail operations, across stores and
online, in order to understand and comply with the new measures.

Our priority has always been the health, safety and wellbeing of our colleagues 
and customers. In the days that followed our announcement, we took the time to fully
assess the health and safety measures required within our home delivery and logistics
operations to meet social distancing requirements1. We used external specialists,
including NHS professionals, to help us implement many changes across our operations
and only when we were satisfied that the operations were safe, and had received 
approval from Trading Standards, did we start to take orders again on Dunelm.com.

After a phased restart of our online business, we are now fully operational, with
the exception of some 2-man delivery products, which we anticipate will begin next
week once we finalise a safe and workable delivery solution. Since reopening, we
have been able to satisfy a high level of online customer demand, with recent online
order levels significantly higher than those seen prior to the onset of Coronavirus.

Our stores remain closed, as per government guidance and the majority of our store
colleagues have been furloughed under the government’s Job Retention Scheme. Our
Customer Engagement Centre colleagues are working effectively from home, responding
to customer emails and calls. In preparation for re-opening, we are currently working
on changes to our store operations that will help ensure colleague and customer 
safety.

During the last three weeks, our colleagues across the UK have offered support in
their local communities, helping people in vulnerable situations, care homes and
hospices, and sewing laundry wash bags for health care workers in local hospitals.
We are also pleased to support the NHS by working with them to produce medical gowns
in our curtain manufacturing centre in Leicester. As a small thank you to all NHS
and Emergency Service employees, we are currently offering all Blue Light Card members
15% off at Dunelm.com.

**Update on financial position**

As previously announced, the Group had existing financing facilities of £175m, consisting
of a committed RCF of £165m (maturing in March 2023), which the Group has decided
to draw down in full, and a £10m overdraft. As at 11 April 2020, net debt was approximately
£40m.

In addition, we have now received confirmation from the Bank of England that we 
are eligible to access funding under the Covid Corporate Financing Facility.

The Board is confident that the Group has access to sufficient liquidity, even in
the event of a prolonged store closure period. Currently, we would only anticipate
the need to issue paper under the CCFF scheme in the event that our stores remain
closed for a period greater than six months.

We continue to focus on reducing operating expenses and tightly managing our cash
flows. The executive management team have taken a voluntary 20% pay reduction. Nick
Wilkinson, our CEO, has taken a voluntary 90% pay reduction, and our Chairman and
Non-Executive Directors have waived 100% of their fees. These reductions will be
in effect for the three months from April to June.

> **Comment from Nick Wilkinson, Dunelm Group Chief Executive Officer:**
> “We remain focused on doing the right thing for our colleagues, customers and 
> the communities where we operate, and I am pleased that we have safely re-opened
> our online operations. I am immensely grateful for the dedication and commitment
> of our colleagues and supplier partners who have demonstrated great agility and
> determination in a dynamic and unprecedented situation.
> “Whilst many uncertainties remain, we have ensured that Dunelm and its many stakeholders
> will be well-supported through this difficult period and are confident that we
> will emerge from this crisis as a stronger business ready to return to sustainable
> and profitable growth.”

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