DFS Furniture hikes divi after record results

DFS Furniture reports record financial results and positive operational progress in 52 weeks to 30 July.

Gross sales were up 7.4% at £980.4 million and revenue rose by 7.1% to £756.0 million.

Underlying EBITDA rose by 5.8% to £94.4 million and profit before tax was £64.5 million (FY15 underlying: £33.3 million).

Other highlights:

- Continued strong cash generation: 1.45x net debt / adjusted EBITDA

- Adjusted underlying EPS up 28.1% to 23.7p (FY15: 18.5p)

- Final dividend of 7.5p per share proposed giving a total of 11.0p for the year (+18.3%; FY15: 9.3p)

- Further special capital return to shareholders expected later in FY17

DFS chairman Richard Baker said: "The tried and tested DFS growth strategy has delivered another set of record results and puts us in an excellent position, as the market leader, to continue to generate shareholder value. Our unique and flexible business model, the quality and commitment of our people, our family culture and our focus on customer satisfaction remain the key factors behind our continuing success."

Chief executive Ian Filby added: "It is naturally pleasing to again report record results that demonstrate the robustness of our business model, the effectiveness of our growth strategy and the excellence of our products and our people. Together these unique assets give DFS the proven ability to achieve consistent outperformance of the retail furniture market over the long-term."