DFS' share price jumps as the company upgrades full-year forecast

 
Helen Cahill
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The company said there is a risk of market slowdown due to the Brexit vote (Source: DFS)

DFS' share price was up over 13 per cent this morning after the company said its results for the full year would hit the top end of its expectations.

"In light of second half of trading, the board expects DFS to deliver record performance for the full year with results towards the upper end of market expectations," DFS said.

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For the financial year ending 30 July, revenue for the sofa-seller was up seven per cent on last year, and the revenue for the second half was also up by seven per cent compared to the second half of last year.

The company's shares are on course for the most successful day of trading since its IPO last year.

DFS said "retailing of furniture in the UK faces an increased risk of market slowdown with additional cost pressures from foreign exchange movements" due to the Brexit vote, adding: "It is likely that the retail environment will remain intensively competitive."

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"The group's trading since the referendum result has not indicated any weakening of demand, although the six weeks since 23 June is too short a period to permit a meaningful assessment of future furniture retail trends," DFS said.

The company said the margins of Dwell and Sofa Workshop subsidiaries were lower than the overall group margins due to the their "more limited scale" and the need for infrastructure investment.

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