DFS Furniture (DFS) has defied the desperate state of UK retail to post like-for-like sales growth across all its brands during its first half to 31 December 2018. Management did admit, however, that the group benefited from sales deferred from the final quarter of 2018 by hot weather, along with "port-related issues" which delayed deliveries into the first half of the current financial year.
DFS expects the ports to cause further trouble, too. The group imports over half of its finished products into the UK from mainland Europe or China, and while these won’t 'spoil' as a result of delays, the group expects a deferral in revenues under its made-to-order model. Imported goods account for about £10m of revenue each week, so the group hasn’t ruled out an increase in lead times harming profits and cash generation. The group’s order intake for the second half has, so far, fallen short of the first, although this hasn’t affected full-year expectations as yet.
Analysts at Peel Hunt forecast adjusted full-year pre-tax profits and earnings per share of £50.7m and 18.6p, respectively, against £37.2m and 13.9p in the year to June 2018.
| DFS FURNITURE (DFS) | ||||
| ORD PRICE: | 232p | MARKET VALUE: | £492m | |
| TOUCH: | 232-233p | 12-MONTH HIGH: | 250p | LOW: 170p |
| DIVIDEND YIELD: | 4.8% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 119p* | NET DEBT: | 63% | |
| Half-year to 30 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 327 | 6.2 | 2.3 | 3.7 |
| 2018 | 422 | 14.1 | 5.2 | 3.7 |
| % change | +29 | +127 | +126 | |
| Ex-div: | 30 May | |||
| Payment: | 19 Jun | |||
| *Includes intangible assets of £537m, or 253p a share | ||||
