Dunelm Group plc – Annual report – 28 June 2025
Industry: retail
18. Financial risk management (extract)
Capital management
The Group considers equity plus debt as capital. There are no externally imposed capital requirements on the Group.
The Board’s objective with respect to capital management is to ensure the Group continues as a going concern in order to optimise returns to shareholders. The Board regularly monitors the level of capital in the Group to ensure that this can be achieved.
The Company has a syndicated RCF of £250m which is committed until 6 September 2029. There is also an optional accordion facility of £100m. The terms of the RCF are consistent with normal practice and include covenants in respect of leverage (Group net debt to be no greater than 2.5x Group EBITDA before exceptional items) and fixed charge cover Group Earnings before interest, tax, depreciation, amortisation and restructuring (EBITDAR) before exceptional items to be no less than 1.75x Group fixed charges), both of which were met comfortably as at 28 June 2025 as shown below. In addition, the Company maintains £10m of uncommitted overdraft facilities with one syndicate partner bank.
The gearing ratio and banking covenants were as follows:
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