DFS and Dunelm report strong performances

A ‘very strong performance’ in furniture has helped Dunelm to a record quarter. Sales rose by £46m to £407m in the quarter to 25 December 2021.

The chain says the growth in furniture reflected better availability and extended ranges, helping it to increase market share.

It continues to invest in stock to ensure availability. It has £204m of stock, up from £157m in 2020 and £167m in 2021.

‘We continue to expect that we will largely mitigate the impact of inflation on commodity costs and freight rates by working closely with our suppliers to create sourcing benefits, managing the mix of products across our price bands whilst maintaining choice throughout the range, and increasing retail prices where appropriate. We feel that we are relatively well placed to address these challenges whilst continuing to focus on providing great value and quality for our customers.’

Thanks to the increased sales and improved margins, it expects pre-tax profits to be about £140m for the half – £28m higher than in 2021 – and full-year profits to be ‘materially’ higher than market expectations of £181m.

‘Current order intake performance remains strong, with the important post-Christmas trading period starting well. This sustained performance reflects a positive customer response to our initiatives to drive higher average order values that help mitigate the inflationary trends that we continue to experience,’ says DFS.

The group says orders remain £200m higher than pre-pandemic levels.

Completed deliveries were up 10% on pre-pandemic levels but 2% lower than the second half of 2020.

‘Covid-related absences, supplier manufacturing capacity and logistics performance have affected both the furniture and wider retail industry, particularly in the first quarter. We have, however, seen a strong increase in deliveries across our second quarter, with overall gross sales in Q2 23% higher than in Q1.

‘Looking forward, as a result of the significant recent operational investment in The Sofa Delivery Company, combined with the additional production capacity from new manufacturing partners, we have confidence that delivery levels will continue to grow across H2 FY22.’

It says it expects previous profit forecasts of £66m-£96m to be achieved for 2022.

Tapi cuts losses, welcomes first EBITDA profit

Tapi saw its losses cut dramatically in 2020, to £5.2m.

Pre-tax losses fell from £17.55m in the year to 26 December 2020, although three-quarters of the difference was thanks to the rent concessions and furlough payments introduced to ease the impact of the pandemic. In common with other retailers Tapi also benefited from the business rate holiday. Rent concessions and furlough payments totalled £8.22m.

Turnover rose 2.4% to £99.8m.

During the year a further £10.1m of shares were issued.

‘Much has been written about the unprecedented events seen in 2020 continuing into 2021, so I will not expand on the context of the year unnecessarily. Needless to say, a significant number of challenges have been weathered by our teams through the year, and our continued focus on our core value of “treating every customer like they are our

Charity golf tournament tees up for return

The Kidderminster Carpet Manufacturers’ National Charity Golf Tournament is set to return this spring.

After the 2020 and 2021 events were cancelled because of the pandemic, the 64th edition of the tournament will take place at its traditional home of Kidderminster Golf Club from 24-25 May. It will be sponsored by Manx Tomkinson.

The opening day will be a four-ball format and twoball on the second. Entry fees are £75 per person for day one, £60 per person for day two, or £100 per person for both days, while there is also the opportunity to sponsor a hole. The event will support Macmillan Cancer Research and a number of smaller charities in the area.

For more information contact Shaun Lewis (shaun. carpetman@gmail.com) or Mike Dobson (mnjdobson@ yahoo.com). nan”, as well as supporting our Tapi colleagues, has put us in a great position for future growth,’ says James Sturrock, Tapi ceo.

‘The tailwind of home improvement in consumer shopping trends in the second half of 2020 helped Tapi to record a strong underlying revenue growth rate and a modest maiden EBITDA profit for the first time, despite disruptions throughout the year,’ he continued.

‘Revenue was 2.4% above 2019, which is a positive performance given the disruption of 16 weeks of full or partial store closures in the year.’

Gross margin grew 3.3%pts compared to the previous year, to 59.5%.