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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Dunelm - Shares have soared 300p this year

April 2019

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DNLM
  • Price:
  • 860p
Dunelm’s interims triggered a spectacular 150p price rise over the month and 300p gain this year. Pretax profit soared almost 17% to £70m, while eps gained 15.5% to 27.5p, driven by strong like-for-like revenue growth of 6.9%, with stores +3.8% and online up a massive 35.8%! Also improving sentiment was a jump in free cash flow from £27.8m to £91.2m, which reduced period end net debt to £73m (0.48x net debt / EBITDA) from £124m last June.Dunelm’s growth reflects the migration of the acquired Worldstores (online home and garden) and Kiddicare (furniture) product lines onto Dunelm.com, with the latter benefiting from a new advertising campaign on TV, radio and social channels, an ad-funded TV ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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