Furniture retailer DFS is feeling cushy as its half-year results showed that revenues have risen.
The furniture retailer's group revenue rose 6.8 per cent to £379.9m in the 26 weeks ended 28 January 2017.
While profit before tax was up 3.1 per cent to £16.7m from £16.2m in the same period last year, earnings before interest, tax, depreciation and amortisation (Ebitda) rose 4.5 per cent to £32.4m.
DFS also upped its interim dividend by 5.7 per cent to 3.7p per share and announced an additional special dividend of 9.5p per share
Why it's interesting
DFS has attributed its sales boost to opening new stores in the UK and abroad. It opened two new 10-15,000 sq ft DFS stores opened in the UK with one further opening planned for early April.
It also added two new stores in The Netherlands and opened another one in Spain.
What DFS said
DFS chief executive officer Ian Filby said:
"I am pleased to report continued good sales growth and strong cash generation reflecting the successful implementation of our proven growth strategy. This strong performance underpins our announcement today of our first special dividend for shareholders.
"The scale of our business, which is larger than our next four UK competitors combined, gives us significant advantages that allow us consistently to offer outstanding value to our customers. We are confident that our size, combined with the flexibility of our cost base and vertically integrated business model means that DFS is particularly well positioned to respond to economic headwinds and cost pressures while continuing to grow our share of the UK retail furniture market.
"Our expectations for profit before tax over the full year accordingly remain unchanged, and we believe that DFS continues to enjoy excellent prospects to deliver long-term profitable growth."