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DFS Furniture expects its full-year profits before tax to be “slightly above” the top end of its £25m to £29m guidance range, and up by about £20m year-on-year, for the year to 29 June.
The retailer of upholstered furniture attributed its performance to a combination of strong trading and tighter cost control during the year.
During the period, DFS’ order intake rose by 10% year-on-year in both halves of the financial year, outpacing what it described as a subdued market. Sales in the second half matched the growth achieved in the first, while gross sales for the year, recognised on delivery, rose 5.8%.
Meanwhile, Sofology’s order intake rose 16.2% and DFS’ rose 8.7% on the year, the company revealed, as it continued to gain market share.
As a result, DFS’ financial position also improved, with net bank debt at the year end narrowing to about £107m from £165m a year earlier.
Tim Stacey, chief executive of DFS, said: “We are pleased to report that we expect profit for the full year to be slightly above the top end of our guidance. Our excellent first half performance set the foundation for our success, with strong trading through the rest of the year with both our DFS and Sofology brands outperforming the market.
“Whilst the macro environment remains challenging our business is in great shape and I would like to thank our amazing colleagues for their support and commitment as we relentlessly focus on delivering against our strategy together.”
He added: “Looking forward, we are confident that the group is well positioned to drive attractive returns for shareholders as the market recovers and we remain focused on delivering our medium term ambition of £1.4bn revenue and 8% profit margins.”
DFS said it would publish its full-year results on 25 September.
