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Dunelm pays out £64mln special divi and targets London

Published: 11:38 10 Feb 2016 GMT

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Special dividend wil cost £64mln

Dunelm (LON:DNLM) has rewarded investors with a chunky special dividend after half year profits jumped almost 11%.

The household goods retailer will pay 31.5p alongside an ordinary half year dividend of 6p, itself a 9% raise.

John Browett, the new chief executive, said solid trading prior to Christmas was followed by a strong sale afterwards.

All told, sales rose by 10.3% to £448mln in the half year to 2 January, with like-for-like sales 4.6% better.

Profits rose by 10.7% to £75.5mln.

The group operates 157 stores, nearly all of which are in out-of-town locations, though Browett said building a presence in London will be a key focus going forward.

Dunelm currently has eight stores in the capital but Browett wants to build this number to 50.

"It is a really exciting time to be at Dunelm - a business built on a strong foundation of exciting product and design, unrivalled knowledge of the homewares market, “ he said.

Shares rose 7% to 881p.

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