DFS Furniture FY15 sales up 7.0% to £913.1 million YoY

Doncaster, England, 2015-10-8 — /EPR Retail News/ — DFS Furniture plc, (the “Group”), the market leading retailer of upholstered furniture in the United Kingdom today announces its preliminary results for the 52 weeks ended 1 August 2015 (prior year: 53 weeks ended 2 August 2014).

Financial Highlights:

  • Group gross sales up 7.0% to £913.1 million (FY14: £853.4 million)
  • Group revenue up 7.5% to £706.1 million (FY14: £656.8 million)
  • Group adjusted EBITDA up 8.4% to £89.2 million (FY14: £82.3 million)
  • Group profit before tax £10.7 million (FY14: £3.6 million)
  • Continued strong cash generation : 1.8x net debt / adjusted EBITDA
  • Adjusted underlying EPS of 18.5p
  • Successful IPO and refinancing significantly reduce debt and future interest costs
  • Total dividend of 9.3p per share proposed, twice covered by adjusted underlying EPS

Operational Highlights:

  • Proven growth strategy on track:
    • UK stores
      • ƒFive new 10-15,000 sq. ft. DFS stores opened in UK and ROI
      • ƒDFS small store format successfully trialled in London: two more planned
    • Broadening our appeal
      • 75% growth in branded upholstery orders through DFS
      • Sofa Workshop and Dwell store base expanded
    • International
      • First Continental European store opened in The Netherlands in November 2014ƒ
      • Opened Rotterdam store in September 2015, with one further store to be opened in FY16
    • Full utilisation of retail space
      • ƒSix Customer Distribution Centres now operating successfully, releasing circa 70,000 sq. ft. of additional selling space
    • Online
      • Strong 17% growth in web sales
      • New in-store and at home technology increasing customer engagement
  • Continued strong increases in customer satisfaction scores; post-purchase NPS now above 80%
  • Partnership with Team GB for Rio 2016 Olympics

DFS Chairman Richard Baker 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. “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.”

DFS Chief Executive Officer Ian Filby said:

“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.”

Note

Adjusted EBITDA means underlying profit before depreciation and amortisation, as adjusted for certain material, unusual or non-recurring items which the directors believe are not indicative of the Group’s underlying performance. In FY14, adjusting items totalled £2.3 million, principally the exclusion of initial trading losses associated with newly acquired businesses and the re-allocation of a discretionary incentive payment to the period to which it related.

Analyst Presentation

DFS will be hosting an analyst presentation at 9.00am today. There will be a listen only telephone dial-in facility available on +44 (0)1452 569 393. Callers should state that they wish to join the DFS Results Conference Call. The presentation slides will be made available on the Group’s website: www.dfscorporate.co.uk. A replay facility will be available for twenty-five days after the event. To access the replay please dial +44 (0)1452550000 and use pass code 48965391.

Enquiries:

DFS (enquiries via FTI)
Ian Filby (CEO)
Bill Barnes (Finance Director)
Mike Schmidt (Director of Corporate Affairs)

FTI Consulting
Jonathon Brill
Josephine Corbett
Tom Hufton
+44 (0) 20 3727 1000
dfsfurniture@fticonsulting.com

About DFS Furniture plc
DFS is the clear market leading retailer of upholstered furniture in the United Kingdom. We design, manufacture, sell and deliver to our customers an extensive range of upholstered furniture products. The business operates a retail network of upholstered furniture stores in the United Kingdom and Europe, together with an online channel. These have been established and developed gradually over more than 45 years of operating history. We attract customers to our stores and website through our substantial and continued investment in nationwide marketing activities and our reputation for high quality products and service, breadth of product ranges and price points and favourable consumer financing options.

SOURCE: DFS