Sales growth demonstrates brand strength at DFS
FURNITURE manufacturer and retailer DFS today announced increased half year sales and said it had completed a major business refinancing.
The Doncaster-headquartered business reported sales up 7.6% to £319.4m for the 26 weeks ended January 26.
EBITDA was up 9.9% to £31.1m.
Four new stores have been opened across the group’s portfolio in the group’s financial year to date taking the total to 93.
Chief executive Ian Filby said: “We are pleased with our progress in the first half of 2012/13, continuing the positive performance of the second half of last year. In a difficult economic period, we have grown our sales by 7.6% to £319.4m. This is testimony to the strength of our brand, the effectiveness of our marketing and the success of our expansion strategy, both online and through profitable new store development.”
Mr Filby added: “During the first half we signed a long term contract with a major UK financial institution to provide a significant proportion of our requirements for customers’ interest-free credit.
“This provides additional security of supply for this important part of the DFS offer
to consumers.
“Since the end of the half year we have completed a successful refinancing of the business through a £310m bond issue on 8 March 2013. This has permitted us to refinance in full the outstanding 9.75% bond due 2017, as well as making a payment to our shareholders and reducing our blended cost of borrowing to circa 7.50%. This establishes a more efficient capital structure for the business going forward.”
