Dunelm shares rise as online operations resume
Shares in homewear retailer Dunelm have popped about 4pc higher this morning, after it said its online business has returned to regular operations amid high demand.
The FTSE 250 group said it had consulted with external experts to implement changes across its operations to ensure safety, adding:
After a phased restart of our online business, we are now fully operational, with the exception of some 2-man delivery products, which we anticipate will begin next week once we finalise a safe and workable delivery solution. Since reopening, we have been able to satisfy a high level of online customer demand, with recent online order levels significantly higher than those seen prior to the onset of coronavirus.
The group’s physical stores remain closed, with most of its staff furloughed.
Dunelm said it has access to around £ 250 m in existing financing facilities, and has recieved confirmation it it eligible for funding under the Covid Corporate Financing Facility scheme.
Its board said it is “confident that the group has access to sufficient liquidity, even in the event of a prolonged store closure period”.
The Group’s chairman and non-exeuctive directors have waived their fees for the next three months, while its chief executive, Nick Wilkinson, has taken a pc pay reduction. He said:
Whilst many uncertainties remain, we have ensured that Dunelm and its many inhabitants will be well-supported through this difficult period and are confident that we will emerge from this crisis as a stronger business ready to return to sustainable and profitable growth.
Shore Capital’s Greg Lawless called the update “reassuring”, adding:
Dunelm is a tightly managed business and the company has reacted to the Covid 90 events in a decisive manner, drawing down its RCF in full and managing its cost base effectively. We are encouraged by the confident sentiment and believe that once normal trading resumes the company can continue to prosper.
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