Dunelm dealt a blow as housing market slows

THE slowdown in the housing market has taken its toll on home furnishing retailer Dunelm.

Shares in the company, which sells everything from beds and sofas to lamps, rugs and plates, fell after it sounded the alarm over ‘ softness’ in demand and ‘increased political uncertainty’.

The firm also said the weaker pound would weigh on profit margins in the second half of the year.

The stock closed down 10.4pc, or 84.5p, at 730.5p but remains up 40pc so far this year.

The warning overshadowed a 7.5pc rise in sales in the first quarter of the year to £262.6m.

The figures came as it emerged chief executive Nick Wilkinson was handed store credit as part of a £50,000 package to pay for a second home 80 miles down the road.

Wilkinson was given £27,000 – or £520 per week – to travel from his Hertfordshire home, where he spends weekends, to the second home near Dunelm’s head office in Leicester.

In total his work perks alone came to £108,000 last year – more than six times his average employee’s £17,780 average salary.

His pension contributions, worth 10pc of his salary, were also higher than his workforce. These were granted on top of the £1.25m in salary and bonuses.

Finance chief Laura Carr was also entitled to massive benefits including a £50,000 relocation allowance and a £250,000 ‘golden hello’, in lieu of bonuses she lost when she quit her old job.

Fashion retailer N Brown fared rather better after a return to profit in the first half of the year.

The group behind brands Simply Be, Jacamo and JD Williams saw shares leap 7pc higher, or 7p, to 107p as it posted pre-tax profits of £18.8m for the six months to August 31, against losses of £27.1m a year ago.

With all eyes on crunch Brexit talks between Boris Johnson and his Irish counterpart Leo Varadkar, the FTSE 100 index edged up 0.3pc, or 19.86 points, to 7186.36, while the FTSE 250 closed up by 0.3pc, or 64.12 points, at 19235.72.

Sentiment was also boosted by an apparent easing of tensions between the US and China, with President Trump set to meet Chinese vice premier Liu He today to discuss trade.

It was another rollercoaster on the currency markets, with the pound jumping against the dollar and the euro after Downing Street said described the Johnson-Varadkar meeting as ‘constructive’ and said that both men can ‘see a pathway to a possible deal’.

A Brexit deal would be music to the ears of many business leaders, including, one would assume, On

The Market boss Ian Springett. The property website reported pre-tax losses of £7.1m for the six months to July 31, against £5.7m a year earlier, despite revenues lifting 14pc to £8m.

Springett said Brexit uncertainty was ‘ undoubtedly’ taking its toll with estate agents reporting fewer property sales, lower letting fee income and a ‘wait-andsee’ approach among sellers and buyers. Shares were flat at 85.5p.

It was another bleak day for investors in Sirius Minerals, with shares falling 7.2pc, or 0.27p, to 3.43p. The stock, which is held by some 85,000 retail punters, including many locals who have backed its plans to build a potash mine under the North York Moors, has lost more than 90pc of its value since August last year.

Aston Martin has proved to be another disastrous investment.

Shares in the luxury car maker fell another 3.3pc, or 14.6p, to a low of 422.7p. The firm floated on the stock market in London at 1900p a share last October.

And there was no respite for investors still patient enough to hold shares in Woodford Patient

Capital Trust, which sank another 4.6pc, or 1.75p, to a low of 36.25p.