6th Oct 2016 06:39
LONDON (Alliance News) - DFS Furniture PLC on Thursday reported a big jump in profit in its recently-ended financial year thanks to good growth in revenue, and it said it is well-positioned despite uncertainties caused by the UK's vote to leave the European Union.
The furniture retailer said pretax profit in the year ended July 30 multiplied to GBP64.5 million from GBP10.7 million the year before, as revenue increased to GBP756.0 million from GBP706.1 million.
DFS said its Exclusive Brands ranges performed "well ahead of expectations", with a 35% rise in total sales orders over the year. Highlights included the introduction of a number of new models under the House Beautiful brand, and the "continued outstanding success" of the French Connection Zinc range.
The Dwell and Sofa Workshop ranges and DFS's own brand sales also performed well, the company said.
DFS will pay a total dividend of 11.0 pence, up from 9.3p the year before, and said a further special capital return will be paid to shareholders later in the current financial year "given the strong progress in reducing financial leverage and current positive trading".
"DFS has weathered many forms of political and economic turbulence during its 47 years of operating history, and I have confidence that we will continue to be well-positioned despite the uncertainties inevitably surrounding the EU referendum. Our business model, scale, vertical integration and highly flexible cost base all provide resilience against potentially weaker trading conditions, relative to the market," Chairman Richard Baker said in a statement.
"We will continue to pursue our proven long-term growth strategy, leveraging our excellent cash flow to invest in the business for the future, and I am confident that this will continue to deliver long-term profitable growth and cash returns for the benefit of all our stakeholders," Baker added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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