Homewares chain Dunelm said former boss Will Adderley has resumed day-to-day running of the firm his parents started from a market stall in 1979.

Mr Adderley oversaw its rapid growth between 1996 and 2011 before handing over the reins to former Halfords director Nick Wharton so he could work on specific aspects of the business as executive deputy chairman.

Announcing a 7% rise in full-year profits to £116 million, Dunelm said it had made "great strides" under Mr Wharton's leadership and that following a search of external and internal candidates Mr Adderley was the best person to lead Dunelm "into its next chapter of growth".

Mr Wharton said he was proud of his achievements at Dunelm but that the time was right for a new challenge.

The financial year to June 28 saw Dunelm launch its first national TV advertising campaign while it also opened 12 new stores, including three relocations. Like-for-like sales grew by 2.1% despite a disappointing start to the year due to very hot weather in July 2013.

From a Leicester curtain stall in 1979, the business now has a 7.4% share of the homewares market with 136 superstores. It continues to believe there is room for an estate of 200 shops.

Dunelm joined the London stock market in 2006 and reaped a major windfall for the Adderleys after they sold a 31% stake in the £340 million flotation. The company's market value is currently £1.7 billion.

Mr Adderley said: "We are the UK's leading homewares retailer, with an outstanding customer offer, and my job now is to lead the team in making the most of the opportunities that this creates."