The DFS group, the UK's leading retailer of upholstered furniture, has announced gross sales up 7% to £913.1m in preliminaries for its latest financial year, ended 1st August 2015.
Group revenue was up 7.5% to £706.1m, while adjusted EBITDA was up 8.4% to £89.2m, and profit before tax stood at £10.7m (up from £3.6m the previous year).
DFS CEO Ian Filby says: “The group delivered a good overall performance in FY15, outperforming the broader furniture market, and achieving record sales and operating profits. Furthermore we have made continuing progress across all strategic initiatives, giving me confidence that we will continue to deliver on our growth targets. The dividend we have recommended is a clear expression of our belief that we will continue to deliver both attractive earnings growth and cash returns for shareholders in the future.”
The years saw DFS execute an IPO, open five new stores opened in the UK and ROI, and trial a small store format in London. Branded upholstery orders through DFS increased by 75%, while the store base for both Sofa Workshop and Dwell were expanded.
DFS made international headway, opening two stores in The Netherlands. The retailer also reports 17% growth in web sales.
DFS chairman Richard Baker comments: “The group’s growth strategy is delivering positive results across multiple initiatives and there are still substantial further potential opportunities for DFS in both the UK and international markets under our current strategy. With the key macro-economic indicators for the upholstery sector all positive and our strategic initiatives on track, we can look to the future with confidence. We have an exceptionally strong management team, a leading customer proposition, a financial model that is well adapted for the volatility in demand that the sector can experience, and a proven long-term growth strategy. DFS is well positioned to build upon its excellent progress in the year ahead.”
Connor Campbell, market analyst at www.spreadex.com, adds: "It may have only had its stock market debut in March, but DFS Furniture has quickly made itself more than comfortable, hitting new highs on Thursday after posting a 7% rise in sales for the year ending August 1st. The company’s first release since its IPO couldn’t have gone much better, with that sales rise joined by tripled pre-tax profits, increasing to £10.7m, and the promise of further growth in 2016 as DFS eyes the Rio Olympics as a key part of its branding strategy."
