DFS

Thursday, 4th October 2018 09:19 - by Rajan Dhall

This morning sofa maker DFS reported its preliminary results for the 52 weeks ended 28 July 2018. Here are the highlights from the report:

·     Group revenue including acquisitions up 14.1% to £870.5 million (FY17: £762.7 million)

·     Revenue before acquisitions down 2.0% to £747.7m (FY17: £762.7m)

·     Underlying EBITDA down 7.6% to £76.1 million (FY17: £82.4 million)

·     Underlying profit before tax and brand amortisation down 23.7% to £38.3 million (FY17: £50.2 million)

·     Reported profit before tax down 48.5% to £25.8 million (FY17: £50.1 million)

DFS Chief Executive Officer Ian Filby commented saying "We have continued working to develop the Group's strategic and market position; however financial results for the year reflected the exceptional downturn in market demand we saw in the fourth quarter''.

He went on to say ''we expect the market to remain subdued into 2019''

I'm slightly confused by this one, the RNS starts with ''SOLID OPERATIONAL AND STRATEGIC PROGRESS WITH TRADING PERFORMANCE IMPACTED BY EXCEPTIONALLY HOT WEATHER IN FOURTH QUARTER'' and then says profit before tax down 48.5%. I think we will struggle here. The daily chart looks neutral but recent price action has held above the 200p level. Today we could be under pressure at the open. The only saving grace for the company is that the online sales are improving and group revenue rose 14%. Keep an eye on the price action and volume around the 185p and 170p levels as we may find some support there.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.