Doncaster-based DFS Furniture plc said its full year underlying profit “before tax and brand amortisation” is expected to be slightly above the top end of its guidance of £25 million-£29 million and up around £20 million year on year.

DFS shares rose about 6%.

In a trading update for the 52 week year ending June 29, 2025, DFS said: “Profit performance driven by strong trading, gross margin rate progression and continued cost discipline …

“Strong H1 trading performance continued in the second half. H2 Group order intake +10% year on year (in line with the growth achieved in H1), demonstrating significant outperformance of the market that remains subdued …

“Financial position has further strengthened. Net bank debt reduced to around £107m (FY24 year end £165m) and leverage further reduced to around 1.4x (FY24 year end 2.5x).”

DFS CEO Tim Stacey said: “We are pleased to report that we expect profit for the full year to be slightly above the top end of our guidance.

“Our excellent first half performance set the foundation for our success, with strong trading through the rest of the year with both our DFS and Sofology brands outperforming the market.

“We have continued to maintain a strong focus on disciplined cost management and improved our gross margins, leading to significant year on year profit growth. In addition, cash flow was healthy and our balance sheet is strengthening as we progress towards our target leverage range.

“Whilst the macro environment remains challenging our business is in great shape and I would like to thank our amazing colleagues for their support and commitment as we relentlessly focus on delivering against our strategy together.

“Looking forward, we are confident that the Group is well positioned to drive attractive returns for shareholders as the market recovers and we remain focused on delivering our medium term ambition of £1.4bn revenue and 8% PBT margins.”