PROFIT jumped at furnishings firm Dunelm in the first half of its latest financial year, it said yesterday, as likefor-like sales also improved. Profit before tax leapt 19.4 per cent year on year to £83.6m as revenue rose six per cent to £585m. Like-for-like sales climbed 5.6 per cent.

However, free cash flow dropped 29.4 per cent from the same period a year ago to £91.2m. Dunelm trimmed net debt by seven per cent to £67.7m.

Basic earnings per share leapt 21.4 per cent to 33.5p while Dunelm posted an interim dividend of 8p per share, almost seven per cent up from this time last year.

Dunelm delivered on Christmas guidance for higher sales after also posting solid numbers last September. The home furniture business has enjoyed a robust performance despite the struggles of many other retailers.

Dunelm also said it has seen "no material hit" to its supply chain from coronavirus. Chief executive Nick Wilkinson said his company was monitoring the outbreak carefully. "We continue to build strong foundations for future growth," he added. "The successful launch of our digital platform accelerates our ability to innovate our customer proposition and we remain focused on operational improvements." Shares rose 8.7 per cent to 1,306p.

(c) 2020 City A.M., source Newspaper