Notes to the Consolidated Financial Statements For the 52 weeks ended 26 June 2021 1 Revenue The Group has one reportable segment, in accordance with IFRS 8 ‘Operating Segments’, which is the retail of homewares in the UK. Customers access the Group’s offer across multiple channels and their journey often involves more than one channel. Therefore, internal reporting focuses on the Group as a whole and does not identify individual segments. The Chief Operating Decision-maker is the Executive Board of Directors of Dunelm Group plc. The Executive Board reviews internal management reports on a monthly basis and performance is assessed based on a number of financial and non-financial KPIs as well as on profit before taxation. The list of our financial and non-financial KPIs can be found on pages 32 to 33. Management believes that these measures are the most relevant in evaluating the performance of the Group and for making resource allocation decisions. All material operations of the Group are carried out in the UK. The Group’s revenue is driven by the consolidation of individual small value transactions and as a result, Group revenue is not reliant on a major customer or group of customers. 2 Operating costs 2021 2020 52 weeks 52 weeks £’m £’m Selling and distribution costs 423.9 330.6 Administrative expenses 98.6 85.8 522.5 416.4 3 Operating profit Operating profit is stated after charging the following items: 2021 2020 52 weeks 52 weeks £’m £’m Cost of inventories included in cost of sales 638.5 519.3 Amortisation of intangible assets 7.3 7.3 Depreciation of ownedproperty, plant and equipment 24.5 25.9 Depreciation of right-of-use assets 45.7 45.1 Loss on disposal and impairment of property, plant and equipment and intangible assets 2.3 1.5 Impairment of right-of-use assets 1.0 0.4 Expense related to short-term leases 1.8 2.3 The cost of inventories included in cost of sales includes the impact of a net increase in the provision for obsolete inventory of £5.3m (2020: £0.5m increase). DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021 197 FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE OTHER INFORMATION