Dunelm rises to £340m empire

Shares in the family-run business, once a curtain stall in Leicester, opened today at 170p but quickly rose by 10p to 180p, further boosting the fortune of the Adderley family.

Jean Adderley, one of the founders of the firm, which has grown to a home furnishings empire of 82 budget homeware stores named Dunelm Mill, has cashed in her 30 per cent stake.

That takes her psersonal fortune to £102 million.

Her husband Bill, who is non-executive director, has retained his 50 per cent stake while Jean, who retired six years ago, still has 7.5 per cent.

The couple started the business in 1979 and opened their first store in 1984 in Leicester. Their first superstore was opened in 1991.

Their son Will Adderley, who became chief executive of the firm in 1996, today said he was delighted with the positive response from investors.

Dunelm Mill now has stores throughout the West Midlands and Staffordshire, including Wolverhampton, Oldbury, Walsall, Birmingham Cannock, Stafford, Tamworth and Burton-on-Trent.

Mr Adderley said: "Dunelm has been rapidly growing."

He said the floating of the company would help it expand further, adding: "We believe we have the systems, team and culture in place to enable us to achieve this."

Mr Adderley holds a 12.5 per cent stake in the business. Last week it emerged the family paid themselves a £50 million dividend ahead of the float.

The 34-year-old, who joined the firm at the age of 21 straight out of university, has ambitious plans to open 150 superstores across the country.

The firm reported record results for the year to July 1. Revenue increased 11.6 per cent to £315.2 million despite a tough retail environment, while operating profits lifted 5.3 per cent to £38.1 million.

Earnings before interest, tax, depreciation and amortisation climbed 8.6% to £46.5m.

Since the period end, the company has continued to trade satisfactorily, it said, with like-for-like sales up 4.7%.

By Christine Dyer