Profits more than double at half way mark for DFS Furniture

Doncaster-based DFS Furniture has reported both a rise in turnover and profits across the group in the first five months of the financial year.

For the 22 weeks ending 30 December 2018, the retailer of living room and upholstered furniture posted pre-tax profits of £14.1m from £6.2m a year before. Group revenue also rose by 29% to £422.3m from £327.1m.

This growth was significantly impacted by £25m acquisition of Sofology, which was completed back in November 2017. Excluding the contribution of Sofology, DFS’ revenue was up 7.1% to £329.9m from £307.9m.

During this period, like-for-like revenue across the group was also up 6.6%, online revenue rose by 23% and three new showrooms opened.

DFS noted that order intake for the second half of the year has been lower than the first half, and assuming the market doesn’t weaken any further, the board’s profit expectations for the financial year have not changed.

Tim Stacey, DFS chief executive officer, said: “We are pleased with the performance for the first five months of the financial year across the Group, with all four of our brands achieving like-for-like revenue growth.

“The benefits of our investments in our online channels, delivery networks and the development of our brands help mitigate the impact of a market which we expect to remain particularly challenging in 2019 given the current political and economic uncertainty.

“Notwithstanding a softer start to 2019, and assuming no weakening of this environment, our profit expectations for the financial year remain unchanged.”