Expats in Spain are soon to be targeted with cut-price sofas after furniture retailer DFS announced it has bought a Spanish store amid strong sales for Britain’s biggest sofa retailer. The company operates 105 retail stores in the United Kingdom, Ireland and the Netherlands.
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DFS is trialling smaller stores to attract shoppers in cities where there is not space for a full showroom, as well as opening five new full-sized shops during the year.
The group, which floated again on the stock market last March after a ten year absence, said total sales soared 7 per cent in the year to the end of July, helping underlying profit rise by 8.4 per cent to £89.2million.
DFS chairman Richard Baker said: “The Group’s growth strategy is delivering positive results across multiple initiatives and there are still substantial further potential opportunities for DFS in both the United Kingdom and worldwide markets under our current strategy”.
Up to Wednesday’s close, the company’s shares had risen about 20 percent from the IPO price of 255 pence, giving it a market value of about 653 million pounds.
The group has declared an interim dividend of 3.1p per share, and recommended a final dividend of 6.2p, which finance director Bill Barnes said was a “strong statement of intent that we will deliver excellent returns to shareholders”.
DFS said orders of its exclusive branded ranges leapt by 75% as its new luxury leather ranges under the Iconica brand have proved popular. Online sales rose 17 per cent over the year, it added.
DFS was founded by Lord Kirkham from a single store in Doncaster in 1969.
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The firm sold a 38% chunk of the business to new investors in March, raising £ 98 million, which it says it will use to pay off debt and secure cheaper financing.
