DFS suffers fall in half year profits

DFS Furniture has suffered a fall in its half year profits but insisted its financial performance remains on track,

Ian Filby of DFS Picture Scott Merrylees SM1005/17a

DFS has reported a 4.3% rise in revenue to £396.1 million for the six months to January 27, which it said reflected increasing scale and “relative market leadership” following its acquisition of Sofology.

However, revenue before acquisitions was down 3.5% to £366.5 million.

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Pre-tax profits at the Doncaster-based company came in at £7 million, down 58% from £16.7 million a year earlier.

DFS chief executive Ian Filby said: “We have seen a strengthening trading performance across the first half of the financial year and through February into March.

“We therefore remain confident that, despite the current challenging market conditions, the group will deliver modest growth in EBITDA and generate strong cashflow across this financial year, in line with our expectations.”