// DFS delivers revenues progressively over the second half
// The group remains in a “strong financial position” with significant available headroom
DFS has recorded a double digit growth its third quarter ending on March 27, despite “significant cost inflation and retail price increases”.
The furniture retailer saw a reduction in transaction volumes despite evidence of the group maintaining its recent market share gains.
“While we have increased our weekly production and delivered revenues progressively over the second half to record levels in the fourth quarter, the ongoing Covid linked supply-chain disruption, combined with lower order intake since April has led to lower levels of production and deliveries relative to our previous expectations,” DFS said.
It now expects UK & ROI full year revenues of approximately £1,150-1,160 million and underlying profit before tax and brand amortisation of £57-£62 million.
Following payment of the recent £25 million special dividend and the ongoing share repurchases, DFS expects to close the year with a net bank debt position of less than £100 million, in line with the upper end of its 0.5x-1.0x target leverage range.
The group remains in a “strong financial position” with significant available headroom under its £215 million bank facility.
“We believe that we will remain well-positioned against the market, given our scale, brand strength and our integrated retail strategy,” DFS said.