REG - DFS Furniture PLC - FY24 Preliminary Results
25/09/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240925:nRSY5215Fa&default-theme=true
RNS Number : 5215F DFS Furniture PLC 25 September 2024
25 September 2024
Immediate release
DFS Furniture plc ("DFS" and the "Group")
Preliminary Results
Successful gross margin and operating cost improvements partially mitigate
exceptionally low market demand
Well placed to capitalise on anticipated demand recovery given strong market
leadership position
DFS Furniture plc (the "Group"), the market leading retailer of living room
and upholstered furniture in the United Kingdom, today announces its
preliminary results for the 53 weeks ended 30 June 2024 (prior year
comparative period is the 52 weeks ended 25 June 2023).
£m FY24 FY23 Change
Gross sales from continuing operations¹ 1,311.8 1,423.6 (7.9%)
Revenue from continuing operations¹ 987.1 1,088.9 (9.3%)
Gross margin¹ 55.8% 54.4% 1.4%pts
Underlying PBTA from continuing operations¹ ² 10.5 30.6 (65.7%)
Reported (LBT)/PBT (1.7) 29.7 n/a
Basic underlying EPS from continuing operations¹ ² 1.5p 9.6p (84.4%)
Reported EPS (1.9p) 11.1p n/a
Dividends per share (pence) 1.1p 4.5p (75.6%)
Underlying free cash flow (10.0) (7.0) (42.9%)
Net bank debt² 164.8 140.3 (17.5%)
Leverage² 2.5x 1.9x (0.6x)
Strategic and operational highlights:
● Achieved record high post purchase and post delivery net promoter
scores
● Consolidated our clear market leadership position (up 4% vs 2020)
supported by:
○ DFS brand broadening its appeal to a wider potential customer base
○ Evolving Sofology's proposition through H2 driving a return to order
intake growth in Q4
● Good progress improving the efficiency of our operations, resulting
in cost savings that partially mitigated record low market volumes
○ £27.5m cost efficiencies in the current year through reducing our
operating cost base and lowering cost of goods
○ On track to deliver at least £50m of targeted annualised savings by
FY26
Financial overview:
● Revenue down -9.3% / £101.8m YoY due to:
○ Lower order intake (down -1.8% YoY(4))
○ Delivered sales in the comparator period benefitting from the
unwinding of an elevated opening order bank
○ Red Sea shipping delays deferring Q4 sales recognition to future
periods
○ Higher Bank of England rates increasing the cost of providing
interest free credit
● Continued gross margin rate progression (+140bps YoY) and operating
efficiency cost savings, partially offset the impact of the weaker market
demand
● Reported loss before tax of £1.7m. Adjusted PBTu of £10.5m, down
£20.1m YoY and below our start of year expectations due to record low market
demand and Red Sea shipping disruption deferring sales and profits to future
periods
● Closing net bank debt of £168.4m comfortably within £250m facility
● Prudent, temporary widening of covenants secured in September 2024
provides extra headroom in the unforeseen event of a severe market downside
scenario
● No final dividend proposed; interim dividend covers the lower than
anticipated full year profit based on our dividend cover policy
Outlook
● FY25 trading to date is in line with the Board's expectations; order
intake in YoY growth over the first 12 weeks
● Expect a gradual market recovery over the course of the year and for
the Group to grow profits in line with market consensus(5) supported by recent
housing market recovery and real household disposable income growth
● The Board remains confident in delivering our £1.4bn revenue and 8%
PBT medium-term targets as the market recovers
Tim Stacey, Group Chief Executive Officer said:
"I want to sincerely thank all our colleagues for their enthusiasm and
continued commitment to delivering a great service to our customers in what
has been a very challenging period for the Group given the market conditions.
Despite the challenges that the business has seen, we are optimistic for the
future and see signs that market growth could soon return. We expect recent
improvements in housing transaction data and strengthening consumer balance
sheets to lead to increased upholstery market demand across the FY25 financial
year. In addition, thanks to the success we have had growing our gross margin
and improving our operational efficiency we expect to deliver profits in line
with market consensus, weighted to the second half.
It is clear that the upholstery market has a long road to recovery given the
20% decline on pre-pandemic levels that we have seen. Despite the challenges
we have faced, we remain confident that the business is well positioned to
capitalise on market recovery. Given our strong market leadership position,
the operational leverage in the business, our well invested asset base and
negative working capital cycle we expect to deliver strong returns for our
shareholders."
(1) Excludes the discontinued Netherlands and Spain businesses
(2) Definitions and reconciliations of KPIs including Alternative Performance
Measures ("APMs") are provided at the end of this statement in Note 13 to the
condensed consolidated financial statements.
(3) Banking covenant leverage calculated using IAS17 calculated EBITDA
(4) Calculated by comparing first 52 weeks of the 53 week FY24 period to the
52 week FY23 period
(5) Company compiled market consensus underlying profit before tax and brand
amortisation £23.2m
Enquiries:
DFS (enquiries via Tulchan)
Tim Stacey (Group CEO)
John Fallon (Group CFO)
Phil Hutchinson (Investor Relations)
investor.relations@dfs.co.uk
Teneo
James Macey-White
Ayo Sangobowale
Victoria Boxall
+44 (0)20 7353 4200
85fs.dfs@teneo.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, Republic of Ireland,
trading through our leading brands, DFS and, 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 Limited".
CHAIR'S STATEMENT
This past year has seen continued and sustained improvements in the
operational capabilities of the Group to a level that the business has not
seen before. Building for the future, we have optimised our cost base and
delivered improved levels of customer satisfaction.
We believe that the outlook for DFS remains positive despite the extremely
challenging global and domestic environment that we are operating in. As
expected, our revenue performance has been impacted by the significant fall in
market volumes year on year and on pre-pandemic levels. In addition, the
business has had to absorb significantly higher costs due to high levels of
international freight rates and continued elevated interest rates. We have
responded well to these challenges by progressing with our cost action plan
and achieving significant savings of £27.5m to underlying costs. The savings
achieved to date demonstrate our ability to remain agile and reshape our
operations in light of prevailing market conditions.
The medium term prospects for the upholstered furniture market remains strong
and we are confident that our market leading position and long term growth
strategy will ensure the business is well positioned to take advantage of the
market recovery.
We view the recent acquisition of both ScS by the Italian company
Poltronesofà and Anglia Home Furnishings, which trades as Fabb Furniture, by
the Australian company Nick Scali Furniture as further evidence of confidence
that in the medium to long term the UK market will see strong growth as the
economy recovers and consumer confidence returns.
The ability of our colleagues across the business to continue to innovate and
to deliver in this challenging environment has been invaluable and my thanks
on behalf of the Board go to all of them.
Financial results
Whilst overall our financial results are disappointing, we recognise they are
an inevitable result of the market backdrop during the year being
significantly more challenging than we expected before the year began.
The focus of the Board and the Executive team has been between achieving the
best possible short term results and ensuring that the business is still well
positioned to take advantage of the inevitable market rebound.
This has meant balancing our approach to costs and operational capability as
well as to talent recruitment and retention, being very judicious with capex
at the same time as ensuring that the business remains primed to respond to a
better market, and it means balancing the need to retain cash in the business
to invest for the future with the expectations of our shareholders.
Leverage at year end was 2.5x which remains above our stated target level,
although ample liquidity headroom remains. Bringing the level down towards our
target remains a key focus using the twin levers of absolute debt reduction
and profit improvement.
As detailed in the Financial review we are pleased that the business has been
able to work with its lenders to amend the terms of its debt facilities to
provide sufficient flexibility and headroom going forward.
Strategic focus
Inevitably when performance is under pressure, hard choices have to be made on
which strategic options to prioritise and this has meant that we have
temporarily deprioritised our focus on growing our wider Home offering. The
Board is determined to achieve the right balance between justifiable caution
given the short term environment and the need to ensure that the business
continues to invest and improve for the future.
We have carried out a detailed review of our strategy during the year. We are
confident that our pillars and platforms strategy remains the right long term
strategy for the Group and we have continued to make good progress on our
areas of focus.
We continue to leverage our two market-leading complementary brands, DFS and
Sofology - they appeal to different customer segments and allow us to target
the majority of the market with creative direction managed by each brand team.
Each brand curates its own ranges, supported by specialist in-house design
teams.
We continue to innovate in partnership with a small group of specialist
suppliers and brands. Over the last 12 months we were excited to bring our new
Cinesound™ range to market. This cinema sofa turns home entertainment into a
4D immersive experience, packed with state-of-the-art features - a 3D audio
system, vibration pads and powered head and foot rests.
We continue to invest in our national network of showrooms across the UK and
the Republic of Ireland and in our websites to ensure they continue to inspire
our customers and provide a leading customer experience.
During the period, we were proud to announce that we have entered into an
exclusive agreement with Ted Baker. The range has been incredibly well
received by our customers looking for that extra bit of luxury.
As a business with our customers at its heart the ongoing evolution of our
product range across both our brands is a critical component of what we do. I
am proud of the progress that our teams have made working with our suppliers
and brand partners such as Ted Baker and La-Z-Boy as well as with our in-house
factories to continue to improve our product proposition.
We will continue to assess the pace and priorities of all our strategic
objectives as market conditions evolve over the next 12 months.
Culture and purpose
We strongly believe that our colleagues and their contribution to our culture
and values is what makes DFS great. Our colleagues across the Group have yet
again played a pivotal role in the progress we continue to make and I would
like to thank them for their continued outstanding contribution.
It is important that the Board stays close to the views of our colleagues and
Directors devote significant time to activity that lets them hear first-hand
what is on our people's minds. Visits to our showrooms, manufacturing sites,
customer distribution centres and Group Support Centre, as well as attendance
at our Voice Forums equip Directors to understand the practical implications
of our plans and the challenges faced by our colleagues.
Environmental, social and governance ('ESG')
We continue to make excellent progress on our environmental goals, and we were
delighted to be named a Climate Leader by the Financial Times earlier this
year. This is a testament to our commitment to sustainable performance. In
June 2024 we took the next step on our journey and submitted our plan for Net
Zero for validation to the Science Based Targets initiative.
Board changes
At the end of July we gave our thanks to Loraine Martins who stepped down from
the Board. Loraine has made a significant contribution to our People Strategy
and has worked with the team to develop the Group's wider approach to equity,
diversity and inclusion.
In August we welcomed Bruce Marsh to the Board. Bruce is a seasoned retailer
and is currently the Chief Financial Officer at Currys plc. He brings
expertise in retail, finance, financial markets, investors and governance and
will provide fresh insight as to how the Company should address the ongoing
challenges facing UK retailers. The approach to any appointment to the Board
is on ensuring we have the right blend of skills for the current and likely
future environment and that we have the right experience and tenure to deliver
continuity and succession over time.
Governance and reporting
The Board generally meets eight times per year when we have a formal agenda
and additional meetings are arranged as required for specific items or such
matters are delegated to ad hoc committees and reported upon at subsequent
meetings. More details of the Board's activities, and key decisions taken
during the year are set out in the Governance section of our Annual Report.
I am pleased to say that we were compliant with the UK Corporate Governance
Code (2018) ('the Governance Code') throughout the year, and further details
are set out in our Annual Report. I invite you to consider that alongside the
report on how the Directors have fulfilled their duties in accordance with
section 172 of the Companies Act 2006.
Dividend
At the time of the interim results in March 2024 the Board declared an interim
ordinary dividend of 1.1 pence per share (2023: 1.5 pence per share).
Given the challenging trading conditions described above, the Board concluded
that it would not be appropriate to propose a final dividend. Whilst this may
be disappointing for some of our shareholders, we believe it is in the best
long term interests of the Group.
We continue to encourage all shareholders to attend our 'in person' annual
general meeting, which will be held in Doncaster on 22 November 2024. This
provides a great opportunity to hear from and speak with members of the Board
and Group Leadership Team.
Looking ahead
I am proud of the Group's achievements in 2024 and remain confident in the
plans that we have for the year ahead. Our clear strategy, great team,
market-leading position, innovative products and the strength of our brands
all bode well for the future.
STEVE JOHNSON
Chair of the Board
25 September 2024
CHIEF EXECUTIVE'S REVIEW
In financial year 2024 the Group has made good progress improving our gross
profit margin rate and reducing our operating costs whilst achieving record
NPS scores. This progress has been delivered against a backdrop of very
challenging market conditions.
Market update and financial overview
Consumer demand fell significantly in the financial period driven by the cost
of living crisis. The level of decline was beyond our initial expectations
with overall demand levels reaching record lows. In addition, supply chain
disruption in the Red Sea that emerged in the second half of the period
extended our made-to-order product lead times delaying the recognition of
revenues.
We took decisive action through the period as the scale of market decline, now
over 20% below pre-pandemic levels in volume terms, became apparent. We
accelerated a number of initiatives across our Cost to Operate efficiencies
programme reducing our costs by £27.5m year on year. Despite these actions,
the Group's profits were unfortunately impacted by the extent of the market
decline and the supply chain disruption. Underlying profit before tax and
brand amortisation reduced from £30.6m in our FY23 financial period to
£10.5m in FY24 and reported profit before tax reduced from £29.7m to a loss
of £1.7m.
When formulating our cost-out action plans we have been resolute in protecting
and improving our customer facing resources to continue to deliver good
outcomes for our customers and record high post purchase and post delivery NPS
scores were achieved. With our retail brands clearly positioned and operations
now leaner and more effective than ever, the Group is in a strong position to
capitalise when the market recovers and deliver strong returns for our
shareholders.
Progress on our three focus areas
The Group has consolidated its position as the clear market leader having
added 4ppts to our market share(1) since 2020.
We have improved our gross margins by 140bps to 55.8% as we target our
historical level of 58%. The growth has been supported by redistributing goods
across our supplier base to optimise the cost and quality of production as
well as from retail price increases in the final quarter of the prior year.
We have reduced operating costs across all areas of the business, be it by
operating segment or expense type. This has been accomplished by undertaking a
rigorous review and reappraisal of the cost base to ensure it is appropriate
for both today's market environment and future, stronger market environments.
This programme is ongoing with examples of cost reductions to date achieved
via improved operating models, utilising AI, enhanced procurement activities,
and utilising data/MI to improve operational performance. The savings achieved
in FY24 will provide a further uplift into the following year in addition to
new initiatives that we have planned. I'm pleased with the progress we have
made which has had the end customer impact core to decision-making to ensure
we do not hamper our ability to capture demand when the market recovers.
(1.)GlobalData August 2024
Strategic update
Our strategy is to profitably and sustainably grow our core upholstery brands,
DFS and Sofology, utilising all channels to create a seamless experience for
our customers and to grow our share of the £5bn non-upholstery Home market.
This growth is supported by utilising and enhancing our enabling platforms;
technology and data, logistics, sourcing and manufacturing, and people and
culture.
Our pillars
The DFS brand, which has a broad appeal offers a market-leading choice of
products. Its trusted, friendly service and digital approach to connect our
showroom, web and telesales channels enabling customers to shop their
preferred way has continued to improve with post purchase NPS scores reaching
record highs of 92.8%.
We have successfully broadened DFS's appeal to a wider range of customers over
time. This has been facilitated, for example, by the addition of exclusive
brand partnerships and through adapting our marketing strategy to focus more
on improved product showcasing supported by improved showroom formats. Our
exclusive brand sales now account for over 41% of total sales. The most recent
addition to our exclusive brand partnerships in the period was Ted Baker and
the three ranges launched have performed very well. We continue to develop new
ranges to add to our existing exclusive brands such as the new Carlisle French
Connection range. All these factors have supported the brand in consolidating
recent market share gains. I'm also pleased to announce that we have recently
launched a new exclusive partnership with La-Z-Boy which will be a great
addition to our existing brand partnerships.
We adopt good governance practices to ensure our brands play to their relative
strengths, targeting their customer segments accordingly to reduce the risk of
cannibalising one another's sales.
Our Sofology brand offers an inspiring and exciting range of well targeted
products that bring quality, style and luxury within reach and targets a
slightly older demographic than the DFS brand.
Sofology over the year as a whole performed broadly in line with the wider
market. Following a relatively tough start to the year we adapted the brand's
retail pricing and introduced a number of new product ranges to provide an
overall refresh to the Sofology proposition. These changes have had an almost
instantaneous impact with the brand returning to order intake growth in the
final quarter of the year.
To further bolster the brand's potential we plan to commence a refurbishment
programme of the Sofology showroom estate in calendar year 2025 to modernise
some of the older sites within the portfolio. These will be the first
refurbishments carried out across the estate and we will adopt a test and
learn approach to ensure we optimise the returns available. When we see a
prolonged period of improving like for like performance and as our balance
sheet strengthens we plan to continue our showroom roll out to grow the estate
from the current 58 showrooms to 65-70 showrooms and have our target locations
lined up.
The Home market represents a great opportunity for the Group to expand its
addressable market to the wider £5bn Home (non-upholstery) market, first
targeting the £3bn beds and mattress sub segment. As announced in our half
year update we have completed the development of supporting infrastructure
including a drop ship solution and warehouse management system that provide
the foundations for growth. We have also expanded some of our exclusive brand
partnerships to include beds as well as upholstery. We have decided to
temporarily pause further investment into marketing to drive sales and instead
focus our investments into our core upholstery offer in this period of weak
market demand. Profitability in our Home offer has however stepped up,
increasing year on year due to improved gross margins and lower operating
costs. We continue to see great potential for the Group to drive incremental
profits with limited further incremental investment as we target a 4% share in
this market.
Our platforms
Our enabling platforms play a pivotal role in supporting the Group to deliver
value. This is achieved through a number of means such as sourcing efficiently
utilising the Group's scale, developing our market-leading delivery services
and providing our highly motivated colleagues with data to drive insight and
improved decision-making across the business.
Sourcing and manufacturing: We are aiming to improve our gross margins to our
long term historical pre-pandemic level of 58% following a reduction across
2021 and 2022. This reduction resulted from rising input costs, freight rates
and Bank of England base rates that were not fully passed on with a profit
mark up. In addition, lower market volumes impacted the efficiency of our own
and external manufacturing operations. We expect to deliver cost of goods
savings through redistributing goods to optimise the cost and quality across
our supplier base and in addition we expect further uplifts through reducing
interest rates over time. We took the decision to close the smallest of our
three manufacturing sites and one of our two wood mills in the first half of
the financial period and redistributed production across the remainder of our
supplier base. This resulted in cost savings that contributed to the 140bps
gross margin improvement in the period. These types of decisions are never
straightforward and have significant impacts on our colleagues and other
stakeholders. Following a consultation with 215 colleagues, we were able to
retain 44 colleagues including at our recently formed sewing hub and we
supported the remaining workforce through a comprehensive outplacement support
service.
Technology and data: Our investments continue to centre heavily on utilising
technology and data to improve the efficiency of our operations and the
customer experience. We have recently undertaken the process of moving away
from a number of legacy systems and implementing Google's contact centre AI
platform in Sofology. This will help enable us to utilise AI in the future to
further improve our customer service levels and optimise costs. To date we
have automated the process to take customer payments over the phone as well as
deliver a full self service customer delivery proposition. We see numerous
opportunities ahead to reduce the number of customer contacts to enable our
teams to focus on the more complex service situations. In the second half of
the year we also successfully launched our proprietary Intelligent Lending
Platform used in DFS, into Sofology. This has broadened the number of lending
partners available to Sofology, increasing the probability of customers
obtaining the credit that is right for them, reducing the time taken to deal
with credit applications and reducing the cost to the Group of providing
credit to customers.
Logistics: Last year we completed the remaining integration activities to
combine and rationalise the logistics assets from the DFS and Sofology brands.
Now the Sofa Delivery Company, which fulfils deliveries for both brands
through utilising the same systems, distribution centre network, fleet and
workforce is performing very strongly with key performance indicators such as
vehicle fill, labour productivity and delivery failure rates all improving.
This has both driven down costs significantly and improved the customer
experience with post delivery NPS scores reaching record highs. We believe
that we have created a valuable asset and there are additional opportunities
available to further refine and improve performance.
People and culture: Our colleagues are the Group's most important asset.
Ensuring the Group is a great place to work that has an open, collaborative
and inclusive culture where people can be their best is key to our future
success. We are constantly looking to evolve and improve our colleague
experience and we have been focusing over the last year on colleague
development. We have launched a number of programmes to help our people thrive
and grow, for example by running a management academy programme within the
Sofa Delivery Company to upskill over 150 colleagues, launching a Group
leadership academy programme with monthly workshops attended by over 300
aspiring leaders and via developing finance academy courses led by subject
matter experts. To help ensure everyone feels welcome we have established six
colleague networks and partnered with Diversity in Retail, enabling us to
collaborate with other businesses and benefit from adopting best practices. We
are constantly seeking to raise standards and I'm pleased to say we have
achieved accreditation in the Inclusive Employers Standard.
Sustainability
In June this year we submitted our Net Zero strategy to the SBTi. We decided
to shift our Net Zero target to before 2050, aligning with climate science and
the UK government targets. I'm pleased to say that this year we have secured
commitments from our manufacturing partners that cover 59% of our scope 3
emissions to commit to developing their own science-based Net Zero plans.
Whilst making up a relatively low proportion of our total emissions I'm
nevertheless proud that the consolidation of our delivery fleets, AI route
planning tools, and driver efficiency training, as well as removing gas from
our retail estate has delivered a significant reduction in our scope 1
emissions. We are already making great strides to ensure our business can make
the most of the opportunities of a circular economy to deliver sustainable
performance for the Group.
Conclusion and outlook
I want to sincerely thank all of our colleagues for their enthusiasm and
continued commitment to delivering a great service to our customers in what
has been a very challenging period for the Group given the market conditions.
Despite the challenges that the business has seen, we are optimistic for the
future and see signs that market growth could soon return. We expect recent
improvements in housing transaction data and strengthening consumer balance
sheets to lead to increased upholstery market demand across the FY25 financial
year. In addition, thanks to the success we have had growing our gross margin
and improving our operational efficiency, we expect to deliver profits in line
with market consensus(1), weighted to the second half.
It is clear that the upholstery market has a long road to recovery given the
20% decline on pre-pandemic levels that we have seen. Despite the challenges
we have faced, we remain confident that the business is well positioned to
capitalise on market recovery. Given our strong market leadership position,
the operational leverage in the business, our well invested asset base and
negative working capital cycle we expect to deliver strong returns for our
shareholders.
TIM STACEY
Chief Executive Officer
25 September 2024
(1.)Company derived market consensus for underlying profit before tax £23.2m.
FINANCIAL REVIEW
The Group's financial performance in FY24 has been heavily impacted by the
decline in market demand levels and in the second half by Red Sea related
shipping disruption. This has required decisive actions to protect
profitability and cash flow, whilst maintaining our position as the clear
market leader.
We saw order intake decline by 1.8% for the year in challenging market
conditions, with market order volumes down over 20% compared with the
pre-pandemic period.
After positive growth in our first quarter summer sale trading period, we saw
customer footfall and order intake decline year on year through the second and
third quarters, including the important winter sale trading period (January to
mid-March). However, within this period we did record good positive order
intake growth across our guaranteed Christmas delivery campaign, supported by
increased customer choice on 7-10 day express delivery ranges. In the final
quarter of the period, we were pleased to see order intake growth improve to
+8.4% as we annualised weaker comparatives and following actions in Sofology
to strengthen product ranging and pricing, and in DFS to reintroduce 4 years
interest free credit at select times.
Basis of preparation
The reporting period covers 53 weeks to 30 June 2024 (FY24). As a result of
the adverse impact from Red Sea shipping delays in quarter four, the net
effect of the additional week on reported revenues in FY24 is relatively low
(+c.£7m year on year) and the profit impact is not significant. Consequently,
other than order intake growth metrics we have not included 52 week pro forma
numbers for FY24. Year on year order intake has been calculated by comparing
the first 52 weeks of the 53 week financial period to the 52 week comparator
period.
Revenue and gross sales
£m FY24 FY23 YoY
Gross sales
DFS (incl. Dwell) 1,047.0 1,125.5 (7.0%)
Sofology 264.8 298.1 (11.2%)
Total gross sales 1,311.8 1,423.6 (7.9%)
Digital sales % 24.3% 24.0%
Revenue 987.1 1,088.9 (9.3%)
Total gross sales, which are recognised on delivery of orders to customers,
decreased by 7.9% year on year to £1,311.8m with both brands reporting a
decline on prior year. The broader appeal of the DFS proposition supported a
relatively better sales performance, whilst Sofology sales were more closely
aligned with the market.
Gross sales saw a higher rate of decline than order intake as a result of Red
Sea disruption deferring £12m of deliveries into FY25 and the higher order
bank at the start of the comparative period converting into sales.
Digital sales mix increased slightly by 0.3ppts year on year to 24.3%. Our
market research consistently indicates the majority of consumers utilise both
channels in their shopping journey and we have a well-invested asset base
across both physical and digital sales channels enabling a seamless customer
experience.
Group revenue of £987.1m was 9.3% lower than the prior year (£1,088.9m). The
rate of decline is greater than the gross sales reduction due to the higher
cost of providing interest free credit.
Interest free credit remains an important part of our overall customer value
proposition. The increased cost is a result of higher Bank of England base
interest rates and to a lesser extent an increase in the mix of sales made on
credit, all partially offset by the impact of reducing our maximum every day
interest free credit offer from 48 months to 36 months from March 2024.
Gross profit
Gross profit of £550.8m was £41.4m (7.0%) lower year on year, primarily due
to the revenue shortfall.
We delivered good further progress on gross margin rate in the year, whilst
continuing to offer customers market-leading quality, choice and value. As a
percentage of revenue, gross margin in the period was 55.8% (FY23: 54.4%), an
increase of +140bps year on year (in addition to the 170bps increase in FY23).
The margin improvement was supported by our decision to close our smallest
manufacturing facility and woodmill in the first half of the year, which
enabled us to shift production volumes across our supplier base and reduce our
cost of goods, contributing to an overall product margin improvement of
c.£9.8m. This decision was disclosed as a post balance sheet event in our
FY23 annual report.
In addition, average freight rates across the period were significantly lower
than the prior year which helped to partly offset the adverse impacts of
higher interest free credit costs and a lower USD rate applied to our Far East
purchases. The net impact across these items was a net reduction to gross
margin of c.£5.1m. Despite being lower year on year, freight costs were
higher than we expected in the final quarter of the year as a result of Red
Sea disruption related increases.
The margin rate in the second half was below our expectations as we responded
to the weak market conditions with additional promotional activity, together
with the Red Sea related freight cost increases noted above.
Whilst the near term freight market is expected to remain volatile and hard to
forecast, we are confident that our scale and buying processes will enable us
to continue to secure market-leading rates.
We continue to see opportunities to grow gross margin rate, supported by
further cost of goods efficiencies across our supply chains and as lower Bank
of England rates reduce interest free credit costs (on an annualised basis a
1% change in base rates equates to £7m-£8m cost impact).
We hedge our USD FX requirements with 90% of our expected USD spend currently
hedged at a rate that is 4 cents favourable to the FY24 average rate paid.
Every 1 cent movement in the USD rate equates to a c.£1.1m change in costs to
the Group.
Selling, distribution and administration costs
Underlying selling, distribution and administration costs totalled £408.8m
(2023: £434.8m), representing 31.2% of gross sales (2023: 30.5%).
We continue to work hard to bring down our operating costs across the
business, and we are making good progress towards the £50m operating
efficiencies target we set at the end of FY23. Whilst this requires some
difficult decisions, it has helped to protect profitability in the current
period and sets the business up for stronger future returns.
The £26.0m reduction in costs included £8.8m of volume related variable
costs and £22.0m of savings from more efficient operating models across our
stores and online sales teams, logistics and manufacturing operations,
customer service teams and across other central support functions. This
includes the Sofa Delivery Company, where we are seeing strong improvements in
customer and operational KPIs, at the same time as significantly lowering
costs through a combination of productivity improvements, a reduction in
third-party fulfilment partners and further consolidation of operational
distribution centres. In addition, we reduced marketing by £3.8m in the
period, principally through reducing our investment in driving the awareness
of our Home ranges until market conditions recover.
Inflationary cost increases were contained to c.£12.0m (3%), mainly relating
to wages. This increase was partly offset by £4.7m of cost avoidance and
one-off savings including rebates on historical business rates, and through
not paying a financial performance-related bonus to senior management and our
central support teams.
Looking forward, we are confident we have line of sight to additional cost
efficiencies that can help us to offset future expected inflationary cost
pressures.
Depreciation, amortisation, impairment and underlying net finance cost
Depreciation, amortisation and underlying interest charges have increased by
£4.7m to £132.9m (2023: £128.2m).
Underlying net interest increased by £7.0m to £41.1m (2023: £34.1m) as a
result of the higher cost of debt servicing due to the higher average SONIA
rates and a higher average net debt level through the period.
Depreciation, amortisation and impairment costs reduced £2.3m. Lower
depreciation charges and impairment on right of use assets arose as a result
of the consolidation of our distribution centre network and associated lease
exits in the prior period and renegotiating property leases approaching expiry
to lower rent levels.
Non-underlying costs
FY24 (£m) Income statement Cash outflow
Restructuring costs 6.5 4.1
Land slippage costs 3.1 0.2
Release of lease guarantee (0.7) -
Refinancing costs 1.9 0.8
Total 10.8 5.1
Non-underlying costs for the year were £10.8m (2023: benefit of £0.5m),
including £5.1m of cash outflows in the year.
£6.5m of costs were incurred in relation to the restructuring of our
manufacturing operations and central support functions in response to lower
demand and to enable productivity improvements. This consists of redundancy
and termination costs totalling £4.1m, non-cash write-off losses totalling
£2.0m and other closure costs totalling £0.4m.
£1.9m of costs were incurred upon refinancing our banking facilities in
September 2023, with the majority of this cost covering the write off of
unamortised issue costs. The cash outflows associated with these activities
totalled £0.8m.
£2.9m of non-cash costs and £0.2m of cash costs relate to a provision made
for expected remediation works required to an area of land slippage identified
at one of our remaining manufacturing sites. We expect the necessary works to
be carried out and paid for in FY25.
£0.7m of non-cash lease guarantee provision release associated with former
subsidiary companies partly offsets the above costs.
Profits, tax and earnings per share
Reported loss before tax for the 53 week period to 30 June 2024 was £1.7m
(FY23: profit of £29.7m). Reported loss after tax for the period was £4.4m
(FY23: profit of £26.2m).
The tax charge recognised in the financial statements was £3.0m (FY23:
£7.1m) despite there being a reported loss for the period. This is primarily
due to disallowable depreciation on non-qualifying assets. The Group updates
its Tax Strategy Statement each year, which is published on the Group's
website, in compliance with its duty under the Finance Act 2016, which sets
out details of the Group's attitude to tax planning and tax risk.
Underlying profit before tax and brand amortisation was £10.5m, which is
£20.1m lower than the comparable period (FY23: £30.6m). This reflects record
low market demand levels and higher interest costs, partly offset by gross
margin improvements and operating cost savings.
Basic underlying earnings per share from continuing operations was 1.5 pence
(FY23: 9.6 pence).
Cash flow, net debt and lending facilities
Net bank debt in the period increased from £140.3m to £164.8m.
£m FY24 FY23
Underlying EBITDA 142.0 157.4
Other* 1.2 6.6
Capital expenditure (21.6) (34.9)
Interest (18.4) (10.3)
Tax (3.0) (0.7)
Principal and interest paid on lease liabilities (92.4) (85.1)
Working capital (17.8) (40.0)
Underlying free cash flow (10.0) (7.0)
Non-underlying items (5.1) (0.3)
Free cash flow (15.1) (7.3)
Shareholder returns (9.4) (43.0)
Cash flow (24.5) (50.3)
Closing net bank debt (164.8) (140.3)
*Other includes discontinued operations, gains on disposal of right of use
assets, profit on disposal of fixed assets, FX revaluations and share based
payments expense.
Cash capital expenditure of £21.6m in the period reduced from £34.9m in FY23
and £25-£30m guided at the start of FY24, as the business took a more
disciplined approach to capital spend prioritisation in response to the more
challenging market conditions and our lower profit expectations. Approximately
50% was incurred on maintenance activities. Growth investment was
predominantly incurred on technology investments to enhance the customer
experience and support our operational efficiency. In addition, one new DFS
showroom was opened in Greenwich and we refurbished one DFS showroom (59
showrooms completed over the last five years). £9.8m of capital expenditure
was also incurred on leased motor vehicle additions (FY23: £8.7m) which
includes company cars and commercial vehicles.
Cash interest paid increased £8.1m year on year and non-underlying cash costs
of £5.1m were incurred due to the reasons provided above.
Total working capital outflow in the period was £26m inclusive of additional
rent payments included in the lease liabilities line. £13m of the outflow is
due to additional VAT(£5m) and rent (£8m) payments in this 53 week
accounting period relative to 52 week periods. These outflows will reverse in
future periods. The remaining working capital outflow is due to the lower
level of trading activity in the period. We expect our negative working
capital model to result in working capital cash inflows when market demand
recovers.
In September 2023 we successfully completed the refinancing of our debt
facilities, increasing the total amount available from £215m to £250m. The
facilities comprise a £200m revolving credit facility with a syndicate of
banking partners which is in place until September 2027, with a further
16-month extension option, and £50m of US private placement notes with
redemption dates split equally between September 2028 and September 2030.
The facility is subject to half yearly covenant tests of 3.0x maximum leverage
net debt/EBITDA and 1.5x minimum fixed charge cover (both measured on an IAS
17 basis), which we have fully satisfied during FY24, ending the period with
leverage of 2.5x(1) and fixed charge cover of 1.57x.
Whilst the Group expects to stay within the existing facility covenants, in
September 2024 we agreed a widening of covenants with our lenders, which
provides additional headroom in the event of unanticipated downside scenarios
that result in a further decline in market volumes and lower EBITDA.
The amended leverage covenant widens to 3.9x at H1 FY25 and 3.7x at FY25,
before returning to 3.0x at H1 FY26. The amended fixed charge cover covenant
widens to 1.3x at H1 FY25, 1.3x at FY25 and 1.4x at H1 FY26, before returning
to 1.5x at FY26. The revised covenant agreement includes some limited
restrictions on the payments of future dividends as detailed in the note
below(2).
Dividends
The Board does not propose a final FY24 dividend. Our interim dividend of 1.1
pence per share was predicated on delivering a higher full year underlying
profit than we achieved. Based on our dividend cover policy of 2.25x-2.75x
underlying EPS, the interim dividend has already covered the implied full year
total dividend. Furthermore, this is consistent with our current leverage
position and our focus on reducing leverage and net debt over time to our
0.5x-1.0x target range.
Outlook
After two challenging years of market and Group revenue declines, we see
increasing reasons to be optimistic about a return to top line growth over the
course of the year ahead. However, we are planning prudently with a focus on
generating increased profits and free cash flow through improved commercial
and operating performance, additional cost efficiencies and disciplined
management of our working capital and capital expenditure. In the medium term
as the market recovery accelerates, we are confident of generating strong
returns for our shareholders.
JOHN FALLON
Chief Financial Officer
25 September 2024
(1.)Refer to APM definitions.
(2.)Covenant amendment dividend terms:
A maximum £2.0m dividend may be declared in respect of H1 FY25 performance
(i.e. FY25 interim dividend) subject to:
- Leverage at the December 2024 assessment being less than 2.50x and
fixed charge cover being greater than 1.50x; and
- For the future two tests, leverage is forecast to be less than 2.50x
and fixed charge cover is forecast to be greater than 1.60x (after dividend
payments).
Any subsequent dividends declared during the remainder of the covenant
amendment period are subject to:
- Leverage being less than 2.50x at the last test and is forecast (after
the payment of such dividend) to remain below 2.50x at each of the next two
tests; and
- Fixed charge cover being greater than 1.60x at the last test and is
forecast (after the payment of such dividend) to remain above 1.60x at each of
the next two financial covenant tests.
Subject to lender consent we retain the right to revert to the previous
covenant terms at any time.
Consolidated income statement
53 weeks to 30 June 2024 52 weeks to 25 June 2023
Underlying Non- underlying Total Underlying Non- underlying Total
Note £m £m £m £m £m £m
Gross sales(1) 2 1,311.8 - 1,311.8 1,423.6 - 1,423.6
Revenue 2 987.1 - 987.1 1,088.9 - 1,088.9
Cost of sales (436.3) - (436.3) (496.7) - (496.7)
Gross profit 550.8 - 550.8 592.2 - 592.2
Selling and distribution costs (342.9) - (342.9) (364.6) - (364.6)
Administrative expenses 3 (65.9) (8.9) (74.8) (70.2) 0.5 (69.7)
Operating profit before depreciation and amortisation 142.0 (8.9) 133.1 157.4 0.5 157.9
Depreciation 3 (77.8) - (77.8) (80.5) - (80.5)
Amortisation 3 (13.7) - (13.7) (11.6) - (11.6)
Impairment 3 (0.3) - (0.3) (2.0) - (2.0)
Operating profit/(loss) 2, 3 50.2 (8.9) 41.3 63.3 0.5 63.8
Finance income 4 0.4 - 0.4 0.2 - 0.2
Finance expenses 4 (41.5) (1.9) (43.4) (34.3) - (34.3)
Profit/(loss) before tax 9.1 (10.8) (1.7) 29.2 0.5 29.7
Taxation (5.7) 2.7 (3.0) (6.6) (0.1) (6.7)
Profit/(loss) for the period from continuing operations 3.4 (8.1) (4.7) 22.6 0.4 23.0
Profit/(loss) for the period from discontinued operations - 0.3 0.3 (0.3) 3.5 3.2
Profit/(loss) for the period 3.4 (7.8) (4.4) 22.3 3.9 26.2
Earnings per share
Basic 5
- from continuing operations 1.5p (3.5)p (2.0)p 9.6p 0.2p 9.8p
- from discontinued operations - 0.1p 0.1p (0.2)p 1.5p 1.3p
Total 1.5p (3.4)p (1.9)p 9.4p 1.7p 11.1p
Diluted 5
- from continuing operations 1.5p (3.5)p (2.0)p 9.5p 0.2p 9.7p
- from discontinued operations - 0.1p 0.1p (0.2)p 1.5p 1.3p
Total 1.5p (3.4)p (1.9)p 9.3p 1.7p 11.0p
(1) Refer to note 13 to the condensed consolidated financial statements for
definitions and reconciliations of alternative performance measures
Consolidated statement of comprehensive income
53 weeks to 30 June 2024 52 weeks to
25 June 2023
£m £m
Profit for the period (4.4) 26.2
Other comprehensive income
Items that are or may be reclassified subsequently to profit or loss:
Effective portion of changes in fair value of cash flow hedges 5.1 (8.7)
Net change in fair value of cash flow hedges reclassified to profit or loss
Recognised in cost of sales (1.3) (13.7)
Income tax on items that are/may be reclassified subsequently to profit or (1.3) 5.9
loss
Other comprehensive expense for the period, net of income tax 2.5 (16.5)
Total comprehensive income for the period (1.9) 9.7
Total comprehensive income for the period attributable to owners of the parent
- from continuing operations (2.2) 6.5
- from discontinued operations 0.3 3.2
(1.9) 9.7
Consolidated balance sheet
Note 25 June 2023 25 June 2023
£m £m
Non-current assets
Property, plant and equipment 83.8 97.4
Right of use assets 315.0 312.6
Intangible assets 9 532.9 536.7
Deferred tax assets 10.8 15.5
942.5 962.2
Current assets
Inventories 59.0 55.8
Other financial assets 0.1 0.7
Trade and other receivables 12.0 11.1
Current tax assets 6.1 2.7
Cash and cash equivalents 26.8 26.7
104.0 97.0
Total assets 1,046.5 1,059.2
Current liabilities
Bank overdraft (2.6) -
Trade payables and other liabilities (209.3) (224.9)
Lease liabilities (75.1) (84.1)
Provisions 10 (9.7) (6.2)
Other financial liabilities (1.2) (6.7)
(297.9) (321.9)
Non-current liabilities
Interest bearing loans and borrowings 11 (187.4) (165.8)
Lease liabilities (326.6) (327.3)
Provisions 10 (5.6) (6.9)
Other financial liabilities - (0.2)
(519.6) (500.2)
Total liabilities (817.5) (822.1)
Net assets 229.0 237.1
Equity attributable to equity holders of the parent
Share capital 23.6 24.1
Share premium 40.4 40.4
Merger reserve 18.6 18.6
Capital redemption reserve 360.1 359.6
Treasury shares (2.9) (10.1)
Employee Benefit Trust shares (5.9) (6.6)
Cash flow hedging reserve (1.1) (4.9)
Retained earnings (203.8) (184.0)
Total equity 229.0 237.1
Consolidated statement of changes in equity
Share Share Merger reserve Capital redemption reserve Cash flow hedging reserve Retained Total
capital premium Treasury shares Employee Benefit Trust shares earnings equity
£m £m £m £m £m £m £m £m £m
Balance at 26 June 2022 25.9 40.4 18.6 357.8 (4.9) (6.9) 17.5 (179.5) 268.9
Profit for the period - - - - - - - 26.2 26.2
Other comprehensive income/(expense) - - - - - - (22.4) 5.9 (16.5)
Total comprehensive income for the period - - - - - - (22.4) 32.1 9.7
Dividends - - - - - - - (12.1) (12.1)
Purchase of own shares - - - - (30.9) - - - (30.9)
Employee Benefit Trust shares issued - - - - - 0.3 - (0.3) -
Settlement of share based payments - - - - - - (0.3) (0.3)
Share based payments - - - - - - - 1.8 1.8
Shares purchased for cancellation (1.8) - - 1.8 25.7 - - (25.7) -
Balance at 25 June 2023 24.1 40.4 18.6 359.6 (10.1) (6.6) (4.9) (184.0) 237.1
Profit for the period - - - - - - - (4.4) (4.4)
Other comprehensive income/(expense) - - - - - - 3.8 (1.3) 2.5
Total comprehensive income for the period - - - - - - 3.8 (5.7) (1.9)
Dividends - - - - - - - (9.4) (9.4)
Employee Benefit Trust shares issued - - - - - 0.7 - (0.7) -
Share based payments - - - - - - - 3.2 3.2
Cancellation of treasury shares (0.5) - - 0.5 7.2 - - (7.2) -
Balance at 30 June 2024 23.6 40.4 18.6 360.1 (2.9) (5.9) (1.1) (203.8) 229.0
Consolidated cash flow statement
53 weeks to 30 June 2024 52 weeks to
25 June
2023
£m £m
Profit for the period (4.4) 26.2
Adjustments for:
Income tax expense 3.0 7.1
Finance income (0.4) (0.2)
Finance expenses 41.5 34.3
Exceptional financing costs 1.9 -
Depreciation of property, plant and equipment 22.0 22.1
Depreciation of right of use assets 55.8 58.4
Amortisation of intangible assets 13.7 11.6
Impairment of assets 0.3 2.0
Loss/(gain) on sale of property, plant and equipment 2.0 (0.8)
Gain on disposal of right of use assets (0.6) (1.2)
Settlement of share based payments - (0.3)
Share based payment expense 3.2 1.8
Foreign exchange impact on cash flow hedges (1.3) 1.4
(Increase)/decrease in trade and other receivables (0.9) 13.2
(Increase)/decrease in inventories (3.2) 8.6
Decrease in trade and other payables (15.9) (55.8)
Increase/(decrease) in provisions 2.2 (6.0)
Net cash from operating activities before tax 118.9 122.4
Tax paid (3.0) (0.7)
Net cash from operating activities 115.9 121.7
Investing activities
Proceeds from sale of property, plant and equipment 1.4 1.3
Interest received 0.4 0.2
Acquisition of property, plant and equipment (11.6) (20.4)
Acquisition of other intangible assets (10.0) (14.5)
Net cash used in investing activities (19.8) (33.4)
Financing activities
Interest paid (18.8) (10.5)
Interest paid on lease liabilities (24.8) (23.5)
Payment of lease liabilities (67.6) (61.6)
Net (repayment)/drawdown of borrowings (28.0) 72.0
Drawdown of senior secured notes 50.0 -
Purchase of treasury shares - (30.9)
Ordinary dividends paid (9.4) (12.1)
Net cash used in financing activities (98.6) (66.6)
Net increase/(decrease) in cash and cash equivalents (2.5) 21.7
Cash and cash equivalents at beginning of period 26.7 5.0
Cash and cash equivalents (including bank overdrafts) at end of period 24.2 26.7
Notes to the condensed consolidated financial statements
1 Basis of preparation
The condensed consolidated financial statements have been prepared and
approved by the Directors in accordance with UK adopted international
accounting standards and applicable law. The financial information is derived
from the Group's consolidated financial statements for the period ended 30
June 2024. The financial statements are prepared on the historical cost basis
except for certain financial instruments and share based payment charges which
are measured at their fair value. The financial statements are for the 53
weeks to 30 June 2024 (last year 52 weeks to 25 June 2023) and were approved
by the Directors on 25 September 2024.
The financial information set out above does not constitute the Company's
statutory accounts for the periods ended 30 June 2024 or 25 June 2023 but is
derived from those accounts. Statutory accounts for the period ended 25 June
2023 have been delivered to the registrar of companies, and those for the
period ended 30 June 2024 will be delivered in due course. The auditor has
reported on those accounts; their reports were (i) unqualified, (ii) did not
include a reference to any matters to which the auditor drew attention by way
of emphasis without qualifying their report and (iii) did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006.
Going concern
The financial statements are prepared on a going concern basis, which the
directors believe to be appropriate for the following reasons.
The Company heads a group which has a £200.0m revolving credit facility with
a consortium of lending banks maturing in September 2027 with a further 16
month extension option for £175.0m of the facility, and £50.0m of private
placement debt, £25.0m of which matures in September 2028 and £25.0m in
September 2030. At 18 September 2024, £63.0m of the revolving credit facility
remained undrawn, in addition to cash in hand, at bank of £5.7m.
Covenants applicable to both the revolving credit facility and the private
placement debt are: 3.0x net debt / EBITDA and 1.5x fixed charge cover, and
are assessed on a six-monthly basis at June and December. Recent discussions
with the consortium of lending banks have resulted in a modification to the
covenants to 3.9x net debt/EBITDA and 1.3x fixed charge cover for the half
yearly assessment at H1 FY25, 3.7x and 1.3x for the FY25 year end assessment,
with leverage returning to 3.0x and fixed charge increasing to 1.4x for the H1
FY26 assessment.
The Directors have prepared cash flow forecasts and performed a going concern
assessment for the Group covering a period of at least twelve months from the
date of approval of these financial statements (the 'going concern assessment
period'), which indicate that the Group will be in compliance with the agreed
covenants. These forecasts include a number of assumptions in relation to:
market size (assumed to grow by 2% in FY25, from an already low base relative
to pre-pandemic levels) and the resulting order intake volumes for the Group;
inflationary impacts on gross margin and other costs; sector-wide
manufacturing and supply chain capacities; and achievement of cost savings in
line with the Group's strategic plans.
The Directors have also prepared severe but plausible downside sensitivity
scenarios which cover the same going concern assessment period as the base
case. These scenarios include significantly reduced customer spending, impacts
on gross margin and other costs from inflationary cost pressures, and a
combination of these scenarios. The Directors have also performed reverse
stress testing analysis to confirm that circumstances resulting in a covenant
breach were beyond those considered plausible.
As part of this analysis, the Directors have considered mitigating actions
within the Group's control which could reduce the impact of these severe but
plausible downside scenarios. These mitigating actions include reducing
discretionary operating expenditure, a pause on expansionary capital
investment, a reduction or pause in dividend payments, and other measures to
protect cash balances. These forecast cash flows, considering the ability and
intention of the Directors to implement mitigating actions should they need
to, indicate that there remains sufficient headroom in the forecast period for
the Group to operate within the committed facilities and to comply with all
relevant revised banking covenants during the going concern assessment period.
1 Basis of preparation (continued)
The Directors have considered all of the factors noted above, including the
inherent uncertainty in forecasting the impact of the current economic and
political environment, and are confident that the Group has adequate resources
to continue to meet all liabilities as and when they fall due for at least
twelve months from the date of approval of these financial statements.
Accordingly, the financial statements are prepared on a going concern basis.
2 Segmental Analysis
The Group's operating segments under IFRS 8 have been determined based on
management accounts reports reviewed by the Group Leadership Team. Segment
performance is assessed based upon brand contribution. Brand contribution is
defined as underlying EBITDA (being earnings before interest, tax,
depreciation, amortisation, impairments and non-underlying items) excluding
property costs and central administration costs.
The Group reviews and manages the performance of its operations on a retail
brand basis, and the identified reportable segments and the nature of their
business activities are as follows:
DFS: the retailing of upholstered furniture and related products through DFS
and Dwell branded stores and websites.
Sofology: the retailing of upholstered furniture and related products through
Sofology branded stores and website.
Other segments comprises the manufacture of upholstered furniture and the
supply of contract logistics.
2 Segmental Analysis (continued)
Segment revenue and profit - continuing operations
External gross sales Inter-segment sales Total gross sales
53 weeks to 30 June 2024 52 weeks to 53 weeks to 30 June 2024 52 weeks to 53 weeks to 30 June 2024 52 weeks to
25 June 2023 25 June 2023 25 June 2023
£m £m £m £m £m £m
DFS 1,047.0 1,125.5 - - 1,047.0 1,125.5
Sofology 264.8 298.1 - - 264.8 298.1
Other segments - - 198.2 215.6 198.2 215.6
Eliminations - - (198.2) (215.6) (198.2) (215.6)
Gross sales 1,311.8 1,423.6 - - 1,311.8 1,423.6
53 weeks to 30 June 2024 52 weeks to
25 June 2023
£m £m
Total segments gross sales 1,311.8 1,423.6
Less: value added and other sales taxes (207.3) (226.2)
Less: costs of interest free credit and aftercare products (117.4) (108.5)
Revenue 987.1 1,088.9
Of which:
Furniture sales 935.1 1,033.3
Sales of aftercare products 52.0 55.6
Revenue 987.1 1,088.9
53 weeks to 30 June 2024 - continuing operations
DFS Sofology Other Eliminations Total
£m £m £m £m £m
Revenue 786.5 200.6 198.2 (198.2) 987.1
Cost of sales (376.0) (90.5) (56.1) 86.3 (436.3)
Gross profit 410.5 110.1 142.1 (111.9) 550.8
Selling & distribution costs (excluding property costs) (224.3) (58.8) (114.1) 81.3 (315.9)
Brand contribution (segment profit) 186.2 51.3 28.0 (30.6) 234.9
Property costs (27.0)
Underlying administrative expenses (65.9)
Underlying EBITDA 142.0
2 Segmental Analysis (continued)
Segment revenue and profit - continuing operations (continued)
52 weeks to 25 June 2023 - continuing operations
DFS Sofology Other Eliminations Total
£m £m £m £m £m
Revenue 858.5 230.4 215.6 (215.6) 1,088.9
Cost of sales (424.8) (106.8) (61.6) 96.5 (496.7)
Gross profit 433.7 123.6 154.0 (119.1) 592.2
Selling & distribution costs (excluding property costs) (229.0) (64.5) (129.3) 88.4 (334.4)
Brand contribution (segment profit) 204.7 59.1 24.7 (30.7) 257.8
Property costs (30.2)
Underlying administrative expenses (70.2)
Underlying EBITDA 157.4
53 weeks to 30 June 2024 52 weeks to
25 June 2023
£m £m
Underlying EBITDA 142.0 157.4
Non-underlying items (8.9) 0.5
Depreciation & amortisation (91.8) (94.1)
Operating profit 41.3 63.8
Finance expenses (41.1) (34.1)
Non-underlying financing costs (1.9) -
Profit before tax (1.7) 29.7
A geographical analysis of revenue is presented below:
53 weeks to 30 June 2024 52 weeks to
25 June 2023
£m £m
United Kingdom 967.4 1,067.7
Europe 19.7 21.2
Total revenue 987.1 1,088.9
2 Segmental Analysis (continued)
Additions to non-current assets Depreciation, amortisation and impairment
53 weeks to 30 June 2024 52 weeks to 53 weeks to 30 June 2024 52 weeks to
25 June 2023 25 June 2023
£m £m £m £m
DFS 35.5 42.7 67.5 70.1
Sofology 12.2 11.4 18.0 17.6
Other segments 7.9 6.0 6.3 6.4
Total Group 55.6 60.1 91.8 94.1
Additions to non-current assets include both tangible and intangible
non-current assets.
3 Operating profit - continuing operations
Group operating profit is stated after charging/(crediting):
53 weeks to 30 June 2024 52 weeks to
25 June 2023
£m £m
Depreciation on tangible assets (including depreciation on right of use 77.8 80.5
assets)
Amortisation of intangible assets 13.7 11.6
Impairments 0.3 2.0
Net gain on disposal of property, plant and equipment - (0.8)
Net gain on disposal of right of use assets (0.6) (1.2)
Cost of inventories recognised as an expense 435.9 509.1
Write down of inventories to net realisable value 0.3 2.0
Other cost of sales 0.1 (14.4)
Release of provisions (note 10) (3.4) (0.9)
Government grants received (business rates relief) - (0.2)
Operating lease rentals - 0.2
Non-underlying items 53 weeks to 30 June 2024 52 weeks to
25 June 2023
£m £m
Restructuring costs 6.5 -
Land slippage costs 3.1
Release of lease guarantee provision (0.7) (0.5)
8.9 (0.5)
The release of the lease guarantee provision relates to the property
provisions detailed in note 10.
4 Finance income and expense - continuing operations
53 weeks to 30 June 2024 52 weeks to
25 June 2023
£m £m
Finance income
Interest income on bank deposits 0.4 0.2
Total finance income 0.4 0.2
Finance expense
Interest payable on senior revolving credit facility (12.6) (10.4)
Interest payable on senior secured notes (3.5) -
Bank fees (0.4) (0.4)
Unwind of discount on provisions (0.2) (0.1)
Interest on lease liabilities (24.8) (23.4)
Total underlying finance expense (41.5) (34.3)
Non-underlying items:
Refinancing costs (1.9) -
Total finance expense (43.4) (34.3)
Non-underlying finance costs of £1.9m relate to the refinancing of the
Group's credit facilities in September 2023. This includes the write off of
unamortised underwriting fees associated with the old revolving credit
facility and professional fees incurred in relation to the arrangement of the
new revolving credit facility and senior secured loan notes.
5 Earnings per share
53 weeks to 30 June 2024 52 weeks to
25 June 2023
pence pence
Basic earnings/(loss) per share
- from continuing operations (2.0) 9.8
- from discontinued operations 0.1 1.3
Total basic earnings per share (1.9) 11.1
Diluted earnings/(loss) per share
- from continuing operations (2.0) 9.7
- from discontinued operations 0.1 1.3
Total diluted earnings per share (1.9) 11.0
53 weeks to 30 June 2024 52 weeks to
25 June 2023
£m £m
(Loss)/profit attributable to equity holders of the parent company
- from continuing operations (4.7) 23.0
- from discontinued operations 0.3 3.1
(4.4) 26.1
30 June 2024 25 June 2023
No. No.
Weighted average number of shares for basic earnings per share 230,566,306 235,470,857
Dilutive effect of employee share based payment awards - 1,783,365
Weighted average number of shares for diluted earnings per share 230,566,306 237,254,222
Where a loss has been recorded, the potential ordinary shares would be
anti-dilutive, and therefore in this situation the weighted average number of
shares used does not include the dilutive effect of share based payment
awards.
5 Earnings per share (continued)
Underlying earnings per share
Underlying basic earnings per share and underlying diluted earnings per share
are calculated by dividing the profit for the period attributable to ordinary
equity holders of the parent company, as adjusted to exclude the effect of
non-underlying items, by the applicable weighted average numbers of ordinary
shares.
53 weeks to 52 weeks to
30 June 2024
25 June 2023
Continuing operations £m £m
(Loss)/profit for the year attributable to equity holders of the parent (4.7) 23.0
company
Non-underlying (profit)/loss after tax 8.1 (0.4)
Underlying profit for the period attributable to equity holders of the parent 3.4 22.6
company from continuing operations
53 weeks to 30 June 2024 52 weeks to
25 June 2023
Discontinued operations £m £m
Profit/(loss) for the year attributable to equity holders of the parent 0.3 3.1
company
Non-underlying loss after tax (0.3) (3.5)
Underlying loss for the period attributable to equity holders of the parent - (0.4)
company from discontinued operations
30 June 2024 25 June 2023
No. No.
Weighted average number of shares for basic earnings per share 230,566,306 235,470,857
Dilutive effect of employee share based payment awards 452,561 1,783,365
Weighted average number of shares for diluted earnings per share 231,018,867 237,254,222
6 Dividends
Pence per ordinary share 53 weeks to 30 June 2024 52 weeks to
£m
25 June 2023
£m
Final dividend for FY22 3.7p - 8.6
Interim ordinary dividend for FY23 1.5p - 3.5
Final dividend for FY23 3.0p 6.9 -
Interim ordinary dividend for FY24 1.1p 2.5 -
9.4 12.1
The Directors do not recommend the payment of a final dividend in respect of
the financial period ended 30 June 2024.
7 Financial instruments
All derivatives are categorised as Level 2 under the requirements of IFRS 7 as
they are valued using techniques based significantly on observed market data.
The Directors have reviewed for expected credit losses and consider the amount
of any such losses to be immaterial.
The Directors consider that the fair values of each category of the Group's
financial instruments are materially the same as their carrying values.
8 Capital expenditure
For the 53 weeks to 30 June 2024, additions of property, plant and equipment
(including those acquired under finance leases) totalled £42.3m (2023:
£45.6m).
At 30 June 2024 the Group had contracted capital commitments of £7.9m (2023:
£9.1m) for which no provision has been made in the financial statements.
9 Intangible assets
Computer software Brand Goodwill Total
names
£m £m £m £m
Cost
Balance at 26 June 2022 55.3 14.8 509.3 579.4
Reclassification 0.9 - - 0.9
Additions 14.5 - - 14.5
Disposals (0.1) - - (0.1)
Balance at 25 June 2023 70.6 14.8 509.3 594.7
Additions 10.0 - - 10.0
Disposals (0.2) - - (0.2)
Balance at 30 June 2024 80.4 14.8 509.3 604.5
Amortisation and impairments
Balance at 26 June 2022 37.6 7.0 1.0 45.6
Reclassification 0.9 - - 0.9
Amortisation charge for the period 10.2 1.4 - 11.6
Disposals (0.1) - - (0.1)
Balance at 25 June 2023 48.6 8.4 1.0 58.0
Amortisation charge for the period 12.3 1.4 - 13.7
Disposals (0.1) - - (0.1)
Balance at 30 June 2024 60.8 9.8 1.0 71.6
Net book value
At 26 June 2022 17.7 7.8 508.3 533.8
At 25 June 2023 22.0 6.4 508.3 536.7
At 30 June 2024 19.6 5.0 508.3 532.9
Goodwill
The carrying amount of goodwill is allocated to the following cash generating
units:
30 June 2024 25 June 2023
£m £m
DFS Trading Limited 479.9 479.9
Sofology 28.4 28.4
508.3 508.3
Goodwill is tested annually for impairment on the basis of value in use. The
key assumptions underlying the calculations are those regarding expected
future sales volumes, changes in selling prices and direct costs and the
discount rate applied. The inputs applied in respect of these key assumptions
are based on management experience and external inputs in relation to market
outlook.
Cash flow forecasts are prepared from the latest financial results and
internal budgets for the next four years, which take into account external
macroeconomic indicators as well as internal growth expectations for each cash
generating unit. Selling prices and related costs are based on past practice
and expected future changes in the market. The base case forecast assumes
market growth of 2% in FY25, followed by continued low single digit annual
growth in subsequent years. The base case also reflects a cautious assessment
of the anticipated growth in the Group's market share driven by delivery of
our strategic initiatives. Revenue is assumed in line with order intake,
keeping order bank levels relatively consistent across the assessment period.
Gross margin percentage for FY25 is expected to be ahead of FY24 through more
effective sourcing and the annualised impact of price increases already
implemented. Other costs reflect anticipated inflationary increases and
benefits from specific cost saving initiatives. Capital expenditure is assumed
to remain in line with planned investments and strategic initiatives.
9 Intangible assets (continued)
A terminal value was then calculated on the basis of the four year plan and an
estimated long-term growth rate for the UK upholstery furniture sector of 2.0%
(2023: 2.0%). These cash flow forecasts were then discounted at pre-tax
discount rates of 14.0% to 15.1% (2023: 13.3% to 14.6%). The discount rates
are estimated based on the Group's weighted average cost of capital (derived
from market indices of risk-free rates, market risk premia, peer group
analysis and the Group's own borrowing costs), risk adjusted for an individual
unit's circumstances. The Group incurs certain overhead costs in respect of
support services provided centrally to the CGUs. Such support services include
Finance, Human Resources, Legal, IT and central management support in respect
of stewardship and governance. These overhead costs have been allocated to the
CGUs using relative CGU EBITDA as a proxy for the time spent in supporting the
CGU.
For DFS and Sofology, the value in use calculations showed a significant
headroom between the calculated value in use and the carrying value of
goodwill in the financial statements. A number of sensitivities were then
applied to the base case model to assess whether any reasonably possible
changes in assumptions could cause an impairment that would be material to
these consolidated financial statements. This analysis applied a number of
challenging scenarios, including possible shortfalls in revenue or gross
margin compared to plan, a decrease in the long term growth rate of the UK
upholstery market and changes in applicable discount rates. On the basis of
this analysis the Directors concluded that a reasonably possible change in
these assumptions would not lead to an impairment being recognised.
Further analysis was then applied to consider simultaneous shortfalls in
revenue and in gross margin compared to plan at the reasonably possible levels
outlined above. The outcome of this simultaneous shortfall scenario was that
in the event of these reasonably possible scenarios occurring simultaneously,
an impairment to the DFS Trading Limited goodwill would result. Under the base
case, recoverable amount exceeds carrying value by £159.8m. If order intake
were to fall 4.0% below expectation, and gross margin were to fall 0.8% points
below expectation, an impairment of £44.7m would occur. No reasonably
possible scenarios result in an impairment of the Sofology Limited goodwill.
10 Provisions
Guarantee provision Property provisions Other Total
provisions
£m £m £m £m
Balance at 25 June 2023 7.5 4.6 1.0 13.1
Provisions made during the period 7.3 4.0 0.5 11.8
Provisions used during the period (5.3) (0.3) (0.3) (5.9)
Provisions released during the period (2.6) (0.8) (0.3) (3.7)
Balance at 30 June 2024 6.9 7.5 0.9 15.3
Current 5.8 3.3 0.6 9.7
Non-current 1.1 4.2 0.3 5.6
6.9 7.5 0.9 15.3
The Group offers a long-term guarantee on its upholstery products and in
accordance with accounting standards a provision is maintained for the
expected future cost of fulfilling these guarantees on products which have
been delivered before the reporting date. In calculating this provision the
key areas of estimation are the number of future claims, average cost per
claim and the expected period over which claims will arise (nearly all claims
arise within two years of delivery). The Group has considered the sensitivity
of the calculation to these key areas of estimation, and determined that a 10%
change in either the average cost per claim or the number of expected future
calls would change the value of the calculated provision by £0.5m. The
directors have therefore concluded that reasonably possible variations in
estimate would not result in a material difference.
Property provisions relate to potential obligations under lease guarantees
offered to former subsidiary companies, the majority of which expire in 2025,
and wear and tear costs for Group properties based on anticipated lease
expiries and renewals, which will predominantly be utilised more than five
years from the reporting date, and a provision for the best estimate of the
costs of rectification of an area of land slippage at one of the Group's
manufacturing facilities.
Other provisions relate to payment of refunds to customers for payment
protection insurance policies and other regulatory costs.
11 Net debt
25 June 2023 Cash flow Other non-cash changes 30 June 2024
£m £m £m £m
Cash in hand, at bank 26.7 0.1 - 26.8
Bank overdraft - (2.6) - (2.6)
Cash and cash equivalents 26.7 (2.5) - 24.2
Senior revolving credit facility (165.8) 28.0 0.4 (137.4)
Senior secured loan notes - (50.0) - (50.0)
Finance lease liabilities (411.4) 92.4 (82.7) (401.7)
Total net debt (550.5) 67.9 (82.3) (564.9)
26 June 2022 Cash flow Other non-cash changes 25 June 2023
£m £m £m £m
Cash in hand, at bank 17.3 9.4 - 26.7
Bank overdraft (12.3) 12.3 - -
Cash and cash equivalents 5.0 21.7 - 26.7
Senior revolving credit facility (93.5) (72.0) (0.3) (165.8)
Finance lease liabilities (445.4) 61.6 (27.6) (411.4)
Total net debt (533.9) 11.3 (27.9) (550.5)
Non-cash changes include the addition of leases within the period, lease
remeasurements, disposals of leases, lease interest and the prepayment of debt
issue costs net of amortisation.
11 Annual General Meeting
The Annual General Meeting will be held on 22 November 2023 at 1 Rockingham
Way, Redhouse Interchange, Adwick-le-Street, Doncaster, DN6 7NA. The Annual
Report and Accounts and Notice of Meeting will be sent to shareholders and
copies will be available from the Company's registered office: 1 Rockingham
Way, Redhouse Interchange, Adwick-le-Street, Doncaster, DN6 7NA and on the
Company's website at www.dfscorporate.co.uk (http://www.dfscorporate.co.uk) .
12 Subsequent events
Refinancing
As detailed in the Financial review, whilst the Group expects to stay within
the covenants applicable to its borrowing facilities, in September 2024 a
temporary widening of covenants was agreed which provides additional headroom
in the event of unanticipated downside scenarios that result in a further
decline in market volumes and lower EBITDA.
The amended leverage covenant widens to 3.9x at H1 FY25 and 3.7x at FY25,
before returning to 3.0x at H1 FY26. The amended fixed charge cover covenant
widens to 1.3x at H1 FY25, 1.3x at FY25 and 1.4x at H1 FY26, before returning
to 1.5x at FY26.
13 Alternative Performance Measures
In reporting the Group's financial performance, the Directors make use of a
number of alternative performance measures ("APMs") in addition to those
defined or specified under UK-adopted International Financial Reporting
Standards ("IFRS"). APMs are not IFRS measures, nor are they intended to be a
substitute for IFRS measures.
The Directors consider that these APMs provide useful additional information
to support understanding of underlying trends and business performance. In
particular, APMs enhance the comparability of information between reporting
periods by adjusting for non-underlying items. APMs are therefore used by the
Group's Directors and management for internal performance analysis, planning
and incentive setting purposes in addition to external communication of the
Group's financial results.
In order to facilitate understanding of the APMs used by the Group, and their
relationship to reported IFRS measures, definitions and numerical
reconciliations are set out below.
Definitions of APMs may vary from business to business and accordingly the
Group's APMs may not be directly comparable to similar APMs reported by other
entities.
APM Definition Rationale
Gross sales Amounts payable by external customers for goods and services supplied by the Key measure of overall sales performance which unlike IFRS revenue is not
Group, including aftercare services (for which the Group acts as an agent), affected by the cost of or the extent to which customers take up the Group's
delivery charges and value added and other sales taxes. interest free credit offering.
Brand contribution Gross profit less selling and distribution costs, excluding property and Measure of brand-controllable profit as it excludes shared Group costs.
administration costs.
Adjusted EBITDA Earnings before interest, taxation, depreciation and amortisation adjusted to A commonly used profit measure.
exclude impairments.
Non-underlying items Items that are material in size, unusual or non-recurring in nature which the Clear and separate identification of such items facilitates understanding of
Directors believe are not indicative of the Group's underlying performance. underlying trading performance.
Underlying EBITDA Earnings before interest, taxation, depreciation and amortisation from Profit measure reflecting underlying trading performance.
continuing operations, as adjusted for non-underlying items.
Underlying profit before tax and brand amortisation PBT(A) Profit before tax from continuing operations adjusted for non-underlying items Profit measure widely used by investors and analysts.
and amortisation associated with the acquired brands of Sofology and Dwell.
Underlying earnings per share Post-tax earnings per share from continuing operations as adjusted for Exclusion of non-underlying items facilitates year on year comparisons of the
non-underlying items. key investor measure of earnings per share.
Net bank debt Balance drawn down on interest bearing loans, with unamortised issue costs Measure of the Group's cash indebtedness which supports assessment of
added back, less cash and cash equivalents (including bank overdrafts). available liquidity and cash flow generation in the reporting period.
Cash EBITDA Net cash from operating activities before tax less movements on working Measure of the non-underlying operating cash generation of the business,
capital and provisions balances and payments made under lease obligations, normalised to reflect timing differences in working capital movements.
adding back non-underlying items before tax.
Underlying free cash flow to equity holders The change in net bank debt for the period after adding back dividends, Measure of the underlying cash return generated for shareholders in the period
acquisition related consideration, share based payment transactions and and a key financial target for Executive Director remuneration.
non-underlying cash flows.
Leverage (or gearing) The ratio of period end net bank debt to cash EBITDA for the previous twelve Key measure which indicates the relative level of borrowing to operating cash
months. generation, widely used by investors and analysts.
Underlying return on capital employed (underlying ROCE) Underlying post-tax operating profit, from continuing operations expressed as Represents the post-tax return the Group achieves on the investment it has
a percentage of the sum of: property, plant & equipment, computer made in its business.
software, right of use assets and working capital.
13 Alternative Performance Measures (continued)
Reconciliations to IFRS measures
Adjusted EBITDA FY24 FY23
Note £m £m
Operating profit from continuing operations 2 41.3 63.8
Depreciation 3 77.8 80.5
Amortisation 3 13.7 11.6
Impairments 3 0.3 2.0
Adjusted EBITDA from continuing operations 133.1 157.9
Underlying EBITDA FY24 FY23
Note £m £m
Adjusted EBITDA from continuing operations 133.1 157.9
Non-underlying operating items 3 8.9 (0.5)
Underlying EBITDA from continuing operations 142.0 157.4
Underlying profit before tax and brand amortisation - PBTa FY24 FY23
Note £m £m
(Loss)/profit before tax from continuing operations 2 (1.7) 29.7
Non-underlying items 3 10.8 (0.5)
Amortisation of brand names 9 1.4 1.4
Underlying profit before tax and brand amortisation 10.5 30.6
Net bank debt FY24 FY23
£m £m
Interest bearing loans and borrowings 187.4 165.8
Unamortised issue costs 1.6 1.2
Cash and cash equivalents (including bank overdraft) (24.2) (26.7)
Net bank debt 164.8 140.3
Closing net bank debt (164.8) (140.3)
Less: Opening net bank debt 140.3 90.0
Movement in net bank debt (24.5) (50.3)
Underlying free cash flow to equity holders FY24 FY23
Note £m £m
Movement in net bank debt (24.5) (50.3)
Dividends 5 9.4 12.1
Purchase of own shares - 30.9
Non-underlying cash items included in cash flow statement 5.1 0.3
Underlying free cash flow (from)/to equity holders (10.0) (7.0)
Exclude:
Working capital outflow 17.8 40.0
Operating result from discontinued operations (0.3) (3.6)
Underlying free cash flow to equity holders excluding operating result from 7.5 29.4
discontinued operations and working capital outflow
13 Alternative Performance Measures (continued)
Leverage FY24 FY23
£m £m
Net bank debt (A) 164.8 140.3
Net cash from operating activities before 118.9 122.4
tax
add back:
Pre-tax non-underlying items 10.5 (4.3)
less:
Movement in trade and other receivables 0.9 (13.2)
Movement in inventories 3.2 (8.6)
Movement in trade and other payables 15.9 55.8
Movement in provisions (2.2) 6.0
Payment of lease liabilities (67.6) (61.6)
Payment of interest on lease liabilities (24.8) (23.5)
Cash EBITDA (B) 54.8 73.0
Leverage (A/B) 3.0x 1.9x
IAS 17 bank covenant difference (0.5x) -
Bank leverage 2.5x 1.9x
FY24 cash EBITDA is materially different from bank covenant IAS 17-based
EBITDA due to week 53 cash flows
Underlying return on capital employed from continuing operations FY24 FY23
£m £m
Operating profit from continuing operations 41.3 63.8
Non-underlying items 8.9 (0.5)
Pre-tax return 50.2 63.3
Adjusted effective tax rate(1) 25.0% 22.6%
Tax adjusted return (A) 37.7 49.0
Property, plant and equipment 83.8 97.4
ROU assets 315.0 312.6
Computer software 19.6 22.0
418.4 432.0
Inventories 59.0 55.8
Trade receivables 6.7 7.7
Prepayments 4.0 3.0
Accrued income 0.1 0.1
Other receivables 1.2 0.3
Payments received on account (40.9) (39.1)
Trade payables (100.4) (97.6)
Working capital (70.3) (69.8)
Total capital employed (B) 348.1 362.2
Underlying ROCE (A/B) 10.8% 13.5%
1. Effective tax rate for FY24 has been adjusted to eliminate the
disproportionate impact of disallowable depreciation on non-qualifying assets
in the year.
This preliminary results statement, the full text of the Stock Exchange
announcement and the results presentation can be found on the Company's
website at www.dfscorporate.co.uk (http://www.dfscorporate.co.uk)
This report contains statements that constitute forward-looking statements
relating to the business, financial performance and results of the Company and
the industry in which the Company operates. These statements may be
identified by words such as "may", "will", "shall", "anticipate", "believe",
"intend", "project", "goal", "expectation", "belief", "estimate", "plan",
"target", or "forecast" and similar expressions for the negative thereof; or
by forward-looking nature of discussions of strategy, plans or intentions; or
by their context. No representation is made that any of these statements or
forecasts will come to pass or that any forecast results will be achieved.
All statements regarding the future are subject to inherent risks and
uncertainties and various factors that would cause actual future results,
performance or events to differ materially from those described or implied in
these statements. Such forward-looking statements are based on numerous
assumptions regarding the Company's present and future business strategies and
the environment in which the Company will operate in the future. Further,
certain forward-looking statements are based upon assumptions of future events
which may not prove to be accurate and neither the Company nor any other
person accepts any responsibility for the accuracy of the opinions expressed
in this interim report or the underlying assumptions. Past performance is
not an indication of future results and past performance should not be taken
as a representation that trends or activities underlying past performance will
continue in the future. The forward-looking statements in this interim
report speak only as at the date of this interim report and the Company
expressly disclaims any obligation or undertaking to release any updates or
revisions to these forward-looking statements to reflect any change in the
Company's expectations in regard thereto or any change in events, conditions
or circumstances on which any statement is based after the date of this
interim report or to update or to keep current any other information contained
in this interim report or to provide any additional information in relation to
such forward-looking statements. Undue reliance should not therefore be
placed on such forward-looking statements.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR USRURSNUKUURRecent news on DFS Furniture
See all newsREG - DFS Furniture PLC - Investor Presentation via Investor Meet Company
AnnouncementREG - DFS Furniture PLC - Directorate Change
AnnouncementREG - DFS Furniture PLC - Holding(s) in Company
AnnouncementREG - DFS Furniture PLC - Interim Results
AnnouncementREG - DFS Furniture PLC - Directorate Change
Announcement