DFS profit plunges by more than half

Image copyright DFS

Sofa and living room furniture specialist DFS has reported a fall in both sales and pre-tax profits for the six months to 27 January amid "challenging market conditions".

The firm said revenue before acquisitions was down by 3.5% to £366.5m, on profits 58.1% lower at £7m.

But when the group's recent acquisition of the Sofology chain was taken into account, revenues were 4.3% higher.

The company added that more recent performance had improved.

DFS, which owns the Sofa Workshop and Dwell brands as well, also has brand partnerships with French Connection and House Beautiful.

DFS chief executive Ian Filby said: "We have seen a strengthening trading performance across the first half of the financial year and through February into March.

"We therefore remain confident that, despite the current challenging market conditions, the group will deliver modest growth in EBITDA and generate strong cashflow across this financial year, in line with our expectations."

In December, DFS Furniture paid £1.2m for store leases and other assets from failed rival Multiyork, which went into administration in late November blaming difficult trading conditions.