Trading update and AGM statement
4 November 2022
DFS Furniture plc
Trading update and AGM statement
DFS Furniture PLC ("the Company" or "the Group"), provides an update on trading in advance of its Annual General Meeting later today.
Trading performance
In our FY22 full year results announcement on 15 September 2022, we noted that the upholstery market had softened markedly since April 2022, and had been in significant decline during July and August.
Since early September we have observed a more positive trend, with Group order volumes growing relative to FY22 and also relative to the pre pandemic FY19 financial year. We have also seen continued evidence of positive market share gains from the latest Barclays / CACI market data. Our overall performance is in line with our mid case scenario (c.£36m PBT) for the full year. We would expect profits to be weighted towards the second half given the order intake profile we have seen year to date, our made to order business model and revenue being recognised on the delivery of orders to customers.
Whilst the macroeconomic outlook is uncertain and inflationary pressures remain high, we remain focussed on executing our strategy to lead furniture retailing in the digital age. Our business has proven to be resilient, and given our inherent strengths, we are well positioned to maintain our trend of market share gains across the economic cycle.
The Board will provide further details on Group performance at the post close announcement in mid January 2023.
Share buyback
In March 2022 the Board commenced a share buyback programme of up to £25m and in September 2022 the Company announced its intention to purchase a further £10m of shares. To date c.£25m of shares have been purchased under the programme. The general authority for the programme expires at today's AGM, where a resolution to renew the authority will be considered by shareholders and subject to approval of that resolution, it is the Board's intention to continue the programme for the balance of the £10m of shares.
Board Change
As previously announced, Ian Durant will step down as Chair from the Board on 4th November 2022. Steve Johnson, currently Chair of the Remuneration Committee, will replace Mr Durant as Chair with effect from the close of the AGM Meeting.
Tim Stacey, Chief Executive, commented :
"We are pleased to report that since mid September we have seen positive year-on-year order volume growth. While we continue to be watchful of the macro economic environment, we continue to take market share and our market leading position, inherent scale and proven strategy give us confidence in our future prospects."
Enquiries:
DFS (enquiries via Tulchan)
Tim Stacey (CEO)
Emma Stephenson (Group Commercial Finance Director)
Phil Hutchinson (Investor Relations)
Tulchan
James Macey-White
Jessica Reid
+44 (0)20 7353 4200
dfs@tulchangroup.com
About DFS Furniture plc
The Group is the clear market-leading retailer of living room furniture in the United Kingdom. Our Group purpose is to bring great design and comfort into every living room, in an affordable, responsible and sustainable manner. We operate an integrated physical and digital retail network of living room furniture showrooms and web sites in the United Kingdom and Republic of Ireland, trading through our leading brands, DFS, Sofology and Dwell. We attract customers through our targeted and national marketing activities and our reputation for high quality products and service, breadth of product offer and favourable consumer financing options. We fulfil orders for our exclusive product ranges through our own three UK finished goods factories, and through manufacturing partners located in the UK, Europe and Far East, and delivered with care through our expert final-mile delivery service "The Sofa Delivery Company"
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