Homeware retailer Dunelm has said that its plans for growing the business are paying off, with increased market share and continued growth online.

The company paid shareholders £63.9 million in dividends as “strong underlying sales growth” in the third quarter saw revenues increase 5.9% to £229 million.

Total like-for-like sales also increased by 1.1%, although this figure was reduced by approximately 4.9% (approximately £10m) in the third quarter having been hit by comparisons with the company’s winter sale period last year.

Dunelm currently trades from 152 stores and expects to relocate two more stores by the end of the financial year and opening a further five next year.

Commenting on Dunelm's performance, John Browett, chief executive, said: "We are pleased with the strong underlying sales growth during the last quarter following the unhelpful, mild conditions experienced in Q2. Overall we continue to increase our Homewares market share.

"We have enjoyed a good Easter, are looking forward to a successful final quarter and are confident of achieving our expectations for the full year.

"We continue to work hard on delivering our key projects across the business and remain excited about substantially improving the business for our customers, both in store and online, over the medium term, and developing Dunelm into a truly national homewares brand."