Doncaster-based DFS Furniture plc said it made a profit before tax of £32.9 million in the 52 weeks ended June 29, 2025, compared to a £1.7 million loss in the prior year, as its revenue rose 4.4% to £1.03 billion.
However DFS said it will not pay a dividend.
“Given the continuing economic uncertainty the board has concluded that to build further resilience the focus should be on further reducing net debt and has therefore concluded that it would not be appropriate to propose a final dividend,” said DFS.
“We recognise that this decision may be disappointing for some of our shareholders. However, we believe that it is in the best long-term interests of the group.”
DFS said net bank debt has been reduced to£107 million from £164.8 million.
On current trading and outlook, DFS said: “Trading through the first 12 weeks of the new financial period is in line with our expectations …
“We are comfortable with consensus and are planning for profit growth in FY26, despite our expectation for a subdued market in the near term, driven by our compelling customer proposition, further gross margin progression and continued cost discipline
“A decision will be made at our FY26 interim results on the payment of an interim dividend based on profit and leverage outturn for the full year and future outlook
“Longer term the board remains confident in achieving our medium term £1.4bn full year revenue and 8% PBT targets.”
DFS Furniture CEO Tim Stacey said: “I believe that our customer proposition has never been in better shape and that all elements of our vertically integrated business model are working efficiently and effectively, leading to record net promoter scores.
“Through focusing on what we can control and executing our strategy we have grown profits and cash flows in a weak market environment. This would not have been possible without the passion and dedication of our colleagues and I would like to sincerely thank them all for their hard work and support for our business.
“The market demand drivers for the upholstery sector remain delicately balanced. Consumer confidence remains below the long term average and inflation remains elevated but housing transactions have been recovering, consumer savings levels are relatively high and interest rates look set to fall.
“Given the market share gains that we have made in the last few years, the recovery in our gross margins and the significant reduction in our cost base, despite inflation, I am optimistic about the future.
“We will continue to focus on what we can control and, even in a subdued market, we expect to grow our profit before tax in FY26 and further strengthen our balance sheet.
“When the market recovers we are well positioned to achieve strong growth and importantly profit and cash conversion and remain committed to achieving our medium term targets of £1.4bn revenue and 8% PBT margins.”