The Dunelm Group Plc Board has proposed a final ordinary dividend of 27.5 pence per share, recognising our performance in the year and ongoing confidence in the business. This takes the full year ordinary dividend to 43.5 pence per share, 3.6% ahead of the 42.0 pence per share paid in FY23, with dividend cover of 1.71×. Whilst dividend cover is slightly below the range set out in the Group's policy, the Board considers the level of cover appropriate in light of the 6.6% year-on-year increase in PBT, with earnings impacted by the increase in effective tax rate, including a non-recurring impact. The final dividend will be paid on 26 November 2024 subject to approval by shareholders at the AGM on 21 November 2024. The ex-dividend date is 31 October 2024 and the record date is 1 November 2024.
Other financial highlights include:
Strong gross margin of 51.8% (FY23: 50.1%), benefiting from net freight tailwinds and operational grip
Profit before tax ("PBT") growth ahead of sales, up 6.6% to £205m (FY23: £193m)
Diluted earnings per share of 74.4p (FY23: 75.0p), with increased PBT offset by 520bps higher effective tax rate, given changes to the statutory rate
£132m free cash flow (FY23: £160m)2, year-on-year impacted by higher tax rate, working capital outflow and increased capex
£158m total dividends paid to shareholders during the year, including special dividend of 35p per share declared with the interim results and paid in April
