DFS celebrates record profits
Sofa retailer DFS achieved record profits in its full year as the business benefited from new store openings and improved margins.
In the year to 28 July 2012, EBITDA rose 2.5% to £82 million although sales fell by 2.1% to £624.7 million.
The company increased its sales by 6.6% in the second half year, from a decrease of 10.3% in the first half.
DFS said its performance was enhanced by a growing sales contribution from new stores, which also began to contribute to profit. In addition, improved margins over the year reflected an increase in manufacturing capacity and efficiency improvements across the business.
"We are pleased to have delivered a good result for the year, despite the tough trading environment," said chief executive Ian Filby.
DFS invested £5.9 million in new store openings during the year and opened its first store outside of the UK in Dublin. In addition, the company increased its manufacturing capacity by adding further production shifts at two factories and invested £400,00 in improving its website.
Filby added: "We are delighted that we are creating some 500 new jobs through our retail and manufacturing expansion, and have been pleased by strong demand for these positions. The strength of our performance, under exceptionally testing market conditions, is a testament to the hard work and commitment of the whole DFS team.
"We remain confident in the future prospects for DFS based on our clear strategy, excellent products and outstanding people, and our expanding store and online presence."
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