Business
AGM and Interim Management St
AGM and Interim Management St.
About this update from Dunelm Group Plc
[{"type":"text","content":"\n RNS Number : 4810H Dunelm Group plc 06 November 2008 \n \n\n\n\n6th November 2008\n\nAGM AND INTERIM MANAGEMENT STATEMENT\n\n18 weeks to 1st November 2008\n\nDunelm Group plc, the leading out-of-town specialist homewares retailer, issues its Interim Management Statement in advance of its Annual General Meeting to be held today at 10.30am.\n\nSales\n\nFor the 18 weeks to 1st November 2008, total sales grew by 4.3% and like for like (\"LFL\") sales declined by 3.9%. We estimate that we continue to gain share in a market which has contracted in the last 12 months.\n\nThis LFL sales performance represents an improvement since our last trading update, when we reported an LFL sales decline of 5.7% after 10 weeks. This reflects the strength of our \"simply value for money\" proposition as well as a softening of comparatives which continues through the rest of this financial year. \n\nWe have continued to see a small reduction in average transaction values compared with last year but the year on year decline in footfall has been less marked in September and October.\n\nGross Margin\n\nWe have retained our consistent approach to pricing and have not invested in unplanned discounts or promotions. We have experienced a year-on-year strengthening of gross margin so far in this financial year of 100bps, principally driven by a continuing change in mix in favour of special buy merchandise. \n\nNew Stores\n\nSince the start of the financial year we have opened a new superstore in Huddersfield and today we are opening a new superstore in Newtownabbey, Northern Ireland.\n\nWe are fitting out a further superstore in Plymouth which will open in early December. This will take us to a total of 79 superstores at the end of the half-year. \n\nWe remain committed to expanding the business to at least 150 superstores in the UK and we continue to seek new store opportunities, in a property market which features increasingly limited occupier demand. We currently have a further two stores under contract which will open in the second half of the current financial year and four more which will open after the year-end. \n\nFinancial position\n\nAs at 1st November net debt was £6.2 million. Committed bank facilities amounted to £50 million.\n\nPurchase of own shares\...