DFS grows annual profit by a third but reports weaker early-year orders

DFS Furniture ($DFS) increased annual pre-tax profit to £43.7 million from £32.9 million, while revenue rose 2.6% to approximately £1.06 billion. The company proposed a 2-pence final dividend, bringing the annual total to 3 pence after no payout in the prior year. Net bank debt fell to £69 million from £107 million, reducing leverage to 0.9 times from 1.4 times.

The start of the new financial year was less buoyant: orders were down 2.5% over the first 12 weeks, with hot weather affecting demand. DFS nevertheless maintained expectations for moderate profit growth. The update therefore combines a stronger completed year and improved balance sheet with a softer current order trend, rather than demonstrating an uninterrupted acceleration in furniture spending.

Sources:

• Alliance News / AJ Bell — DFS results and current trading