DFS to take seat on stock exchange
FURNITURE manufacturer and retailer DFS plans to take a seat on the London Stock Exchange.
The Doncaster-headquartered company, which says it has a 25.7% share of the £3bn UK upholstered furniture market, is looking to raise £105m through an IPO.
It said it would use the funds to reduce its financial borrowings and provide access to a lower cost of financing.
Ian Filby, chief executive, said: “DFS is firmly established as the UK’s leading retailer in upholstered products across all customer segments. We aim to offer our customers the widest range of sofas in the market with the best value at every price point, whilst also providing an exceptional customer service proposition. The success of our model is proven by our 45 year track record, during which we have increased our market share and sales.”
He said the company’s vision is to take DFS from being a “great British business to a world class business”.
“This is an exciting time for us as we continue to drive growth initiatives that are already underway against a backdrop of an improving macroeconomic environment. We see significant opportunity to further increase the group’s penetration in the UK, strengthen our position as the market leader for online upholstered furniture sales and we recently entered Continental Europe with the opening of our first store in the Netherlands.
“In recent years and under Advent’s ownership we have invested substantially in the infrastructure of our business to create a robust platform to support our future growth plans. We have a track record of strong financial performance, including consistently strong cash generation, which has enabled us to deliver outstanding shareholder returns.”
He added: “We look forward to continuing to grow profitably in a new period of public ownership.”
DFS had revenues of £675m and adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) of £85m in the 12 months to November, the company said, while in the 26 weeks to January 15, total sales rose 9%.
Since opening its first store in 1969, DFS has developed a national footprint with 105 stores in the UK, the Republic of Ireland and the Netherlands.
