Dunelm chief executive steps up

By Rupert Steiner for the Daily Mail
Updated: 05:52 EDT, 17 September 2010

The 37-year-old boss of cushions-to-curtains retailer Dunelm is stepping back from running the chain his parents started as a market stall in 1979.

Change: It started with a curtain stall in Leicester market 30 years ago

William Adderley announced yesterday he will relinquish his role as chief executive after becoming tired of the administrative tasks involved with running the low- cost homewares business.

The firm has experienced phenomenal growth since his parents Bill and Jean opened their curtain stall in Leicester market thirty years ago.

It was situated close to a stall Gary Lineker's family used to sell vegetables from.

Adderley, who with his parents still control 59% of the business, will become deputy chairman after 15 years at the helm. He'll be replaced by Halford's finance director, Nick Wharton, who joined as a non-executive last year.

Adderley said he remains 'totally committed, both emotionally and financially' to Dunelm, but is keen to concentrate on purchasing and merchandising rather than dealing with staffing and the city.

He said: 'I feel invigorated by my forthcoming new role which will allow me to spend much more time on the areas where I believe that I can add the most value.'

The surprise announcement wiped 3.5% off the value shares which fell 14p to 382p.

The Adderleys have a reputation for an unconventional way of doing business. They came to the stock market in 2006 but not to raise cash or the profile of the business.

The family wanted to expose the firm to the rigours of public scrutiny-to prevent them from becoming-lazy, a spokesman claimed.

They also cashed in about £150m when the firm floated at 170p a share in november 2006 and have since taken out fortunes by way of share sales and dividends.

In October 2009 Bill Adderley pocketed almost £50m selling a 7.8% stake and the family made a combined £25m from a special dividend in february this year.

Adderley announced his job swap while reporting a 46% rise in pre-tax profits to £76.8m from £53.5m for the year to 3 July and underlying sales of 8%. This was in line with analysts' expectations of £76m.

Total sales rose to £492.8m from £423.8m and there is a final dividend of 5p-a-share, up from 4p in 2009.

Adderley said: 'Whilst we are clearly operating in challenging economic conditions and we expected to see continuing pressure on consumer spending, performance in the early weeks of our new financial year has been pleasing.'