Profits bonanza fuels chance of Dunelm flotation

Soft furnishings retailer Dunelm posted a pre-tax profits leap of 50 per cent last year, reinforcing speculation that it plans to float.

In the year to June 30, Companies House figures pre-tax profits surged from£17.5 million to£26.3 million. Sales rose nearly 40 per cent from£135 million to£185 million.

Dunelm is run by the publicity-shy Adderley family, whose fortune was valued at£105 million in the Sunday Times Rich List. Chairman Bill Adderley founded the retailer as a market stall with his wife Jean. Son Will is the managing director.

In recent years, the retailer has pushed beyond its Midlands heartland and now has 65 UK stores. It is on the expansion trail, seeking edge- or out-of-town locations in catchment areas of 75,000 or more.

Dunelm is understood to have appointed investment bank UBS as advisors.