# Dunelm Group plc Strong like-for-like revenue growth, both in stores and online, demonstrates progress - Link: https://www.directorstalkinterviews.com/dunelm-group-plc-strong-like-for-like-revenue-growth-both-in-stores-and-online-demonstrates-progress/412767066 - Published: 2019-02-13T07:42:49+00:00 - Author: Charlotte Edwards **Dunelm Group plc** (LON:DNLM) today announced interim Results for the 26 weeks to 29 December 2018 | | FY19 H1       Reported | FY18 H1       Underlying^(1) |   FY18 H1       Exceptional items | FY18 H1       Reported | Year-on-year change   Underlying | Year-on- year change   Reported | | Revenue | £551.8m | £545.4m | | £545.4m | +1.2% | +1.2%^(2) | | Like-for-like revenue | £506.7m | £473.9m | | £473.9m | +6.9% | +6.9% | | Gross margin | 50.3% | 48.6% | | 48.6% | +170bps | +170bps | | EBITDA^(3) | £92.8m | £79.1m | (£2.7m) | £76.4m | +17.3% | +21.5% | | Profit before tax | £70.0m | £60.0m | (£3.7m) | £56.3m | +16.7% | +24.3% | | Free cash flow^(4) | £91.2m | | | £27.8m | | +228.1% | | Net debt | (£72.9m) | | | (£134.3m) | | +45.7% | | Net debt/LTM EBITDA | 0.48x | | | 0.96x | | | | Basic EPS | 27.6p | 23.9p | | 22.3p | +15.5% | +23.8% | | Diluted EPS | 27.5p | 23.8p | | 22.2p | +15.5% | +23.9% | | Interim dividend | 7.5p | | | 7.0p | | +7.1% |    **Highlights** · Strong like for like (LFL) revenue growth of 6.9%, with increases in both stores( 3.8%) and online (35.8%) · Growth in unique customer numbers, both instore (+4.3%) and online (+18.7%), combined with improved brand awareness · Multichannel proposition continues to develop and represents 15.7% of total revenues, up 3.9ppts on last year · Gross margin improvement of 170bps due to improved sourcing, FX benefits and removal of less profitable Worldstores lines · PBT of £70.0m, up 16.7% year on year (FY18: £60.0m before exceptional costs) · Strong cash conversion with free cash flow of £91.2m (FY18: £27.8m) · Interim dividend increased by 7.1% to 7.5 pence per share (FY18: 7.0p) > **Nick Wilkinson, Dunelm Chief Executive Officer, commented:** > “It’s been a good first six months with our strong performance reflecting the > focus we have placed back on the core Dunelm business. The like-for-like revenue > growth, both in stores and online, demonstrates the progress we are making in > improving our multichannel proposition whilst maintaining the breadth and depth > of our specialist customer offer in homewares. On top of this, good operational > discipline and keeping things simple, is driving a better financial performance.” > “We traded well through our key Winter Sale period and remain pleased with our > performance to date. As previously highlighted, we are cautious about the outlook > for the remainder of the financial year due to the continuing political uncertainty > in the UK. We are confident in delivering market expectations5 for the full year > assuming no material change in the macro-economic environment.” > “Looking to the future, we will continue to grow the business as we become a truly > multichannel homewares destination, making Dunelm the first choice for even more > customers, and further strengthening our market leading position.” 1 Underlying numbers exclude exceptional items associated with the acquisition, integration and subsequent disposal/ closure of the Worldstores businesses. 2 Growth in the continuing Dunelm business was +8.7%. 3 EBITDA is defined as the operating cash flows before exceptional operating costs and movement in working capital as presented in the Consolidated Statement of Cash Flows. 4 Free cash flow is defined as net cash generated from operating activities less net cash used in investing activities. 5 Management understand that updated FY19 PBT analyst estimates are in the range of £114m – £118m. Share on: