Belfast Telegraph

DFS profits soar as sales rise 7.4%

Profits at sofa chain DFS have soared as the firm pledged to weather any economic turbulence from Brexit.

The Doncaster-based group said full-year pre-tax profits rose from £10.7 million to £64.5 million in the year to July 30 after sales rose 7.4% to £980.4 million, which the group said was a record set of results.

Chairman Richard Baker said: "DFS has weathered many forms of political and economic turbulence during its 47 years of operating history, and I have confidence that we will continue to be well positioned despite the uncertainties inevitably surrounding the EU referendum."

DFS said there has not been any weakening demand since the vote on June 23, but chief executive Ian Filby warned that the furniture sector faces an "increased risk of a market slowdown" in 2017.

He added that additional cost pressures from foreign exchange movements and an "intensely competitive" environment could dampen growth.

Caroline Gulliver, equity analyst at Jefferies, said: "Consumer incomes have not changed and consumer confidence has recovered (for now).

"Although that could change given the risk to UK consumer confidence from the fallout from the EU, the impact of rising inflation next year and the threat to UK unemployment from technology substitution."