The out-of-town homewares retailer announced its preliminary results for the 52 weeks ended June 30, 2012, revealing sales up from £538.5m to £603.7m, a like-for-like increase of 3.1%.
Operating profit was up 14.3% to £95.2m, and profit before tax also increased by 15.1% to £96.2m. Gross margin leapt 30 bps to 48.3%, and the retailer reported year-end net cash of £65.2m, up significantly on last year's £35.1m.

The year included 14 new superstore openings, with a further four having opened in the interim, bringing Dunelm's total offering to 118. Nine more units and one relocations have been contracted, and the retailer's UK target of 200 stores has been confirmed.

Multi-channel growth was strong, contributing 2.5% of revenues across the year, 3% in the final quarter. The store continues to invest in store refits, with 50% of superstores either new or having benefited from a major refit in the past three years.

Dunelm Mill's chief executive Nick Wharton said: "Dunelm has delivered robust trading results in a demanding retail environment, with our strong focus on retailing excellence leading to increased market share on a like for like basis. We have also made good progress with our strategic development, scaling our business through new stores, multi-channel, and strengthened infrastructure, while continuing to improve our specialist customer proposition. I would like to thank all my colleagues for their hard work and commitment in achieving this.

"Our financial position remains extremely strong which, together with the Board's confidence in Dunelm's future growth prospects, enables us to propose an increase in the dividend ahead of earnings, together with a return of excess capital equal to 32.5p per share.

"Looking ahead, we remain cautious of the UK consumer environment and its impact on our trading in the near term. However, with a strong new store pipeline, good momentum in multi-channel and a 'Simply Value for Money' proposition that continues to resonate with a wide range of customers, we remain confident in the future growth prospects for the business."