Shares of Doncaster-based DFS Furniture plc rose about 5% after it said it expects to generate a modest year on year increase in profit for its current financial year.

DFS said that for the 52 weeks ended June 25, 2023, its revenue from continuing operations was £1.088 billion, a decrease of 5.3% from prior year — but 13.8% ahead of the pre-pandemic FY19 pro-forma period.

Reported profit before tax fell 49.2% to £29.7 million.

DFS is recommending a final dividend of 3p (2022: 3.7p), giving a total ordinary dividend for the year of 4.5p (2022: 7.4p).

DFS Furniture CEO Tim Stacey said: “The group is operating in one of the toughest economic climates we have experienced.

“Whilst we are confident the upholstery market will recover, forecasting the specific timing and pace of the recovery is challenging.

“We do, however, expect to generate a modest year on year increase in profit before tax in FY24 despite a relatively weak market in which we expect volumes will continue to decline across the next 12 months.

“Looking to the future as market volumes recover, we remain confident in achieving the financial performance set out at our capital markets day in 2022 of £1.4bn of revenues at an 8% PBT margin.”