DFS defies the downturn

The Doncaster-based company reported record earnings of £80m in the year to July 30, up 11.4 per cent on the previous year.

This was despite a 2.2 per cent decline in sales to £638.4m.

DFS chief executive Ian Filby said: “I am pleased to report good results for the financial year ended July 2011, despite the very challenging trading environment.

“Our focus on driving market share and improving efficiency has delivered record EBITDA and continued strong cash generation. We have also made excellent progress with our store rollout programme, with 12 new leaseholds secured and 10 new stores scheduled to open during the current financial year.

DFS said that, like all UK retailers, it is operating in a climate of great economic uncertainty and falling consumer confidence.

“This slowed our sales performance through the second half of 2010/11, and we expect that it will continue to affect same stores sales in the current financial year,” said Mr Filby.

“Our plans have been made on the assumption that there will be no early improvement in the trading environment, and are once again focused on the areas within management’s control.”