The DFS Furniture Plc Directors recommend a final dividend of 3.0p in respect of the financial period ended 25 June 2023, resulting in a total proposed dividend of £6.9m. Subject to shareholder approval it is intended that this dividend will be paid on 29 December 2023. DFS Furniture plc shares will trade ex-dividend from 30 November 2023 and the record date will be 1 December 2023. This dividend has not therefore been recognised as a liability in these financial statements.
Other financial highlights include:
● Group revenue from continuing operations was £1,088.9m, a decrease of 5.3% from prior year however 13.8% ahead of the pre-pandemic FY19 pro-forma period
● Group gross margin continues to recover in line with expectations, up 170 bps year on year to 54.4%, with an FY24 entry rate of 56.5%.
● Underlying PBTa from continuing operations of £30.6m in line with guidance at their interims, down year on year as anticipated given strong post-pandemic sales in prior year and very weak market demand in FY23, combined with inflationary pressures.
● Cost efficiencies programme established across their product, property and operating cost models targeting c£50m annualised savings by FY26.
● Free cash flow, excluding working capital normalisation, of £29.4m.
● Increase in net bank debt from £90.0m to £140.3m with working capital now normalised after inflows across the high demand pandemic years, and special shareholder returns associated with cash generated in those prior periods.
● Successful refinancing of debt facilities in September 2023 is a strong positive endorsement of the Group, securing additional liquidity for an extended period and flexibility to execute future growth plans.