Key performance indicators (KPIs) are used by the board and throughout Dunelm to monitor business performance.

The KPIs set out in this summary are those considered to be most relevant to understand the performance of Dunelm over time.

Link to Business Goals:

1 Reaching more customers with our brand

2 Create new reasons for customers to shop with Dunelm

3 Easy and inspiring multichannel shopping for our customers

4 Simple and low cost - good housekeepers

5 A great place to work for colleagues

New Store Frontage

 

Total Revenue

£m and growth %

Total Revenue

Commentary

Growth of 9.9% includes LfL growth of 4.2% from both stores and online and reflects the full-year impact of Worldstores sales and the benefit of ten new stores which opened in the first half.

Why this measure is important

Sell More is a Business Principle and our strong record of continued sales growth reflects the ambition and culture of Dunelm.

This measure, which coincides with market share growth, is central to our vision as we become the customer's number one choice for Homewares and Furniture.

Link to business goals:

123

Total LfL Revenue

growth %

Like for like

Commentary

Good LfL growth of +4.2% reflects improved store performance (+1.0% store LfL), supported by strong online Home Delivery growth (+37.9%).

Why this measure is important

Creating more reasons for customers to shop with Dunelm is a Business Goal which is core to our strategy of driving sales growth. It also allows us to monitor the performance of our existing store estate and high growth online channel.

Link to business goals:

123

Home Delivery Sales

£m and participation %

Home Delivery

Commentary

Home delivery sales now exceed 16% of total sales including the benefit of the consolidation of Worldstores sales for the full year. Extensions to online ranges and improved user experience have also contributed to growth.

Why this measure is important

Our digital growth ambition to offer a seamless multichannel experience to customers means that monitoring growth in this KPI is important to understand our progress and success over time

Link to business goals:

123

 

EBITDA*
 

£m and % sales

Kpi Ebitda

Commentary

EBITDA has declined modestly this year as a result of Worldstores losses, higher depreciation from recent investments and wage inflation. We are focusing on improving operating leverage and this measure is expected to improve in FY19.

Why this measure is important

EBITDA is a good indicator of the cash generation capability of business operations before working capital and capital investment decisions. It is important to monitor to ensure that Dunelm maintains its operating cost leadership position.

Link to business goals:

1234

* EBITDA is presented before exceptional costs

Free Cash flow and EBITDA Conversion

£m/% sales

Free Cash Flow

Commentary

Free cash flow has improved this year due to lower capital investment and corporation tax payments. This was partially offset by increased working capital driven by a reduction in inventory purchases towards the end of year.

Why this measure is important

Dunelm is highly cash generative, and has the ability to make investment decisions for the long term to support growth, or to make capital distributions to shareholders. This KPI allows the Board to monitor cash flows carefully throughout the year as these decisions are made.

Link to business goals:

1234

† Free Cash Flow and EBITDA Conversion % are presented after exceptional costs

Earnings Per Share
 

Diluted, pence and growth %

Earnings Per Share

Commentary

There was a modest increase in diluted Earnings Per Share (EPS). Before exceptional items this measure decreased to 40.0p (FY17: 42.8p). EPS is expected to improve again in FY19.

EPS is expected to improve again in FY19.

Why this measure is important

EPS is a key measure for shareholders and employees and is a component of remuneration calculations. It monitors Dunelm's ability to grow profitably over the long term.

Link to business goals:

12345

 

Dividend Per Share
 

growth %

Dividend Per Share

Commentary

The Board has recommended a 1.9% increase in dividend per share reflecting confidence in the long term cash generation capability of Dunelm and in the strategic plan. Dividend per share has increased each year since flotation in 2006.

Why this measure is important

With so many colleagues owning shares in Dunelm, dividend per share is an important metric for both external shareholders and for our people as we continue to make Dunelm a great place to work.

Link to business goals:

45

CO2 Emissions (-7.4%)

 

tCO2e /£1m Group Revenue

Co2 Emissions

Commentary

A continued reduction in both absolute emissions and emissions/revenue highlights the progress made on a range of environmental initiatives including LED lighting, solar power generation and lower emission vehicles.

Doing the right thing for the environment is something we take seriously and invest in. We recognise it is important for our colleagues and customers too. It also helps us reduce waste and keep our cost structures lean.

Why this measure is important

This KPI allows us to assess our progress in reducing our impact on the environment.

Link to business goals:

45

Tax Contributions (£142.3m)

£m

Commentary

We aim to comply with all relevant tax legislation and keep our tax affairs transparent and sustainable for the long term. In line with business performance our total tax contributions have increased to £142.3m in 2017-18.

Why this measure is important

This measure highlights our contribution to
society and conservative tax planning.

Link to business goals:

45