Sofa, so good: DFS' shares climb as it hikes dividend

Helen Cahill
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The brand has done well in a tough trading environment (Source: DFS)

DFS' share price was up 2.5 per cent in morning trading after the company announced it will increase its final dividend this year.

The sofa seller said the final dividend for the year will be 7.5p per share, up 6.2p from last year, a jump of 21 per cent.

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

The company's gross sales were up 7.4 per cent, reaching £980m, and revenue grew 7.1 per cent to £756m.

Profit before tax almost doubled in the year to 30 July, hitting £64.5m.

The positive news comes after the company upgraded its full year forecast this summer, saying its results will be at the top end of expectations.

Richard Baker, DFS' chairman said:

DFS has weathered many forms of political and economic turbulence during its 47 years of operating history, and I have confidence that we will continue to be well positioned despite the uncertainties inevitably surrounding the EU referendum.

The company's share price has also been holding up well since the EU referendum. The shares fell on the day after the Brexit vote, but were back at their pre-referendum levels about a week later.

DFS' chief executive Ian Filby said the company's results showed "the robustness of our business model".

The home furnishings store has been expanding over the past year, with three new large stores opening in the UK and the Republic of Ireland. A third store in the Netherlands was also opened this year.

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