DFS full-year profits rise but recent order intake 'subdued'

DFS Furniture posted a rise in full-year profit on Thursday but said recent trading had been "subdued" amid political and economic uncertainty.

On a pro forma basis, pre-tax profit for the 52 weeks to the end of June rose 31.1% from the 52 weeks to 28 July 2018 to £50.2m on revenue of £996.2m, up 14.4% on the previous year. Like-for-like sales on a pro forma basis were 5.7% higher, with growth across all brands and the full year impact of the Sofology acquisition.

In the 48 weeks to the end of June, however, pre-tax profit fell 13.2% to £22.4m compared to the 52 weeks to 28 July.

Chief executive officer Tim Stacey said: "Our trading performance for the last financial year was good overall, as we continue to execute our new strategy to lead sofa retailing in the digital age."

However, he also warned that order intake levels in the first 12 weeks of the year have been "subdued" amid an "increasingly uncertain political and economic backdrop". The company highlighted lower levels of footfall across its brands. This was attributed to weaker consumer confidence and a drop in housing transactions, which it said are the two key drivers of the upholstery market.

"Our financial performance in the year ahead will inevitably be dependent on broader political and economic developments and at this stage it is difficult to predict what will happen specifically within the upholstery market," Stacey said.

At 1040 BST, the shares were down 1.3% at 223.53p.