DFS maiden results show profits and a dividend

Pretax profit for the 52 weeks ended August. 1 rose to 10.7 million pounds ($16.2 million) compared with GBP3.6 million in the same period previous year.

The furniture retailer, which was valued at over £500m when it was listed in March, said the gross sales of £913.1m were driven by new stores and growth in its Dwell and Sofa Workshop brands. This acquisition follows its first European launch in the Netherlands past year.

But it said there was strong demand for “big ticket” items, spurred on by increasing numbers of house moves and as consumers have been boosted by cheap credit and low inflation.

DFS is trialling smaller stores to attract shoppers in cities where there is not space for a full showroom, as well as opening five new full-sized shops during the year.

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 United Kingdom and global markets under our current strategy”.

The group added there was strong potential to keep growing as the furniture market remains around 20% below its peak before the financial crisis.

The group’s share price has risen by more than a fifth since floating, despite initially failing to catch the imagination of investors.

Shares in DFS were up 3.4% to 319.2078 pence just after the open on Thursday.

Analysts at Jefferies said the results “reassure DFS can deliver growth on several fronts”.

There was a 75 per cent growth in branded upholstery orders through DFS.

DFS returned to the London stock market in March this year after a ten-year absence when the group’s founder, Lord Kirkham took it back into its hands in 2004.

The sofa retailer was bought in 2010 by private equity firm Advent global, now its majority shareholder.