DFS profits leap following store openings and IPO

Five months after completing its IPO, upholstered furniture retailer DFS has seen its pre-tax profits jump by more than £7m.

The year to August 1 saw the Doncaster-headquartered firm’s adjusted EBITDA increase by 8.4% to £89.2m, while its gross profit before tax rose to £10.7 against 2014’s £3.6m.

During the 12-month period, DFS opened five new UK stores and launched a nationwide programme to expand the retail space in 12 existing locations, where it converted in-store warehouses and consolidated warehouse operations off site to add a further 70,000 sq ft of space.

Richard Baker, a chairman at DFS, said: “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.”

In the year to August, DFS also saw its online operations strengthen, with dfs.co.uk attracting 40% of web traffic in the upholstery sector.

Mr Baker continued: “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.”