21st Sep 2023 12:36
DFS Furniture PLC - Dunstable, England-based sofa retailer - DFS says it continues to win UK market share in a "very tough market" during its recent financial year, which ended on June 25, as it outlines a path to improving margins. Pretax profit drops by 49% to GBP29.7 million from GBP58.5 million the year before, as revenue from continuing operations declines 5.2% to GBP1.09 billion from GBP1.15 billion. Underlying pretax profit before brand amortisation is GBP30.6 million, which is in line with its interim guidance though also down 49%, from GBP60.3 million. DFS expects underlying pretax profit before brand amortisation to improve by a low single-digit percentage in financial 2024 to a GBP30 million to GBP35 million range. This assumes market volumes fall 5%, DFS notes. "We are confident the market will recover; however, we can't predict how quickly that will happen. We have a clear route to a 5% [profit before tax] margin without market recovery, supported by further margin improvement, new cost efficiencies, and continued growth in Home [category]," DFS says. When market volumes recover, DFS expects to achieve GBP1.4 billion in annual revenue and an 8% pretax profit margin. Read More
