DFS remains confident of its success
FURNITURE manufacturer and retailer DFS today said it remains confident it will deliver a satisfactory result for the full year and drive sustained outperformance of the market, despite seeing a drop in sales.
In its half year results for the 26 weeks ended January 25 2014, the Doncaster- headquartered group reported sales were down to £315.3m from £319.4m, which the group said reflects weakness in demand. EBITDA shrunk to £23.8m from £31.1m last year.
DFS chief executive officer, Ian Filby, said: “As we anticipated when we announced our first quarter results in December, footfall and trading remained relatively weak throughout the autumn period, which together with the transition of our website is reflected in our first half sales. However, I am pleased to report that we have seen a significant uplift in current trading since the launch of our Winter Sale in December, and our strong performance in this key period will contribute to a positive start to the second half.
“Importantly, our key financial measure of cash generation remained very strong, delivering cash balances at the end of the period of £33.9m (2013: £22m) after the payment of a £20m dividend to our shareholders during the first quarter. The business continues to generate a consistently excellent cash flow and is well placed to provide further cash returns to stakeholders in the medium-term.
“Our strategy remains focused on broadening our appeal, enhancing our service and making our products more accessible to customers than ever before. This has been achieved both through new store openings, the continued expansion of our multichannel offer and enhancements to our product range.
“We remain confident that our strategy will deliver a satisfactory result for the full year and drive sustained outperformance of our market. DFS continues to enjoy excellent prospects for long-term profitable growth as the UK market leader in upholstered furniture.”
