A HOME furnishing specialist says it will continue opening stores after reporting increased revenues.

Dunelm Group, which sells bedding, blinds and curtains, says revenues lifted 4.8 per cent to £356.3m for the 26- week period to December 28, compared to £340.1m last year.

Operating profits also grew 4.5 per cent to £62m, with pretax profits rising from £59.8m to £61.6m.

Bosses, who have stores in Stockton, Hartlepool, Sunderland and Scarborough, say they opened six outlets in the period, and are committed to open at least five more this year.

Nick Wharton, Dunelm Group chief executive, said while consumer spending remains rather cautious, the company, which also sells furniture, mattresses and lighting, expected to continue its growth.

He said: “We have delivered strong trading results over the period, and made further important progress.

“We have strengthened our offers to customers, particularly through service, and improved our infrastructure, while expanding our stores.

“We have also invested significantly in increasing brand awareness, including through our first television advertising campaign, and we are encouraged by the early results from this.

“While we are cautious about consumer spending trends overall, the combination of our customer offers that continue to appeal to a broad spread of consumers and significant new store growth provides us with a high degree of confidence in the company’s future growth prospects.”

Dunelm, which started life as a Leicester curtain stall in 1979, now has 127 outlets across the UK.

It employs about 4,500 workers and has turnover of more than £400m.