Dfs Furniture Share Discussion Threads

[castleford tiger] 19/3/2024 14:52

Strip out intangibles and this is short of cash

tiger

[castleford tiger] 19/3/2024 07:13

BIG WARN i think 90p open?

[castleford tiger] 18/3/2024 21:42

Tomorrow results

[castleford tiger] 24/10/2023 11:02

out all of them at 1.11

13p in 10 days will do for now

[dan_the_epic] 24/10/2023 07:49

Brother SCS acquired by big European sofa company at a fat premium today.

[castleford tiger] 13/10/2023 12:05

in for a large chunk under 100p

tiger

[strollingmolby] 11/10/2023 09:33

That spike at the end of July seems a long time ago now...

[deadly] 27/7/2023 16:15

...and up another 9% today!?

[strollingmolby] 27/7/2023 09:39

Yes, that was quite the jump at the end of day yesterday.

Poor results elsewhere from HEAD and SFE today, for their big-ticket items. SCS is down 2% in sympathy...

[deadly] 26/7/2023 16:42

7% rise at the end....something afoot?

[strollingmolby] 18/7/2023 12:56

Agree with all of the above, DFS is having to service a higher debt now, possibly at higher interest rates (I haven't checked). The lending bank/s must be comfortable with DFS' definition of EBITDA though for the 3x debt/EBITDA covenant - we'll see...

Undertaking a £27m buyback and paying a £7m interim divi does seem reckless in the circumstances, though presumably the buyback won't recur this year given the level of debt.

Interesting that the price slid back after the buyback ceased in January, after lifting the share price from 110 to 150+. Am seeing the same at IAG now, though that has only been a week.

I also noticed DFS stated it would pay out a special divi under the terms of its new capital distribution policy if average net bank debt remains below its target leverage range for a sustained period - which is quite optimistic!

[fevertreeman] 04/7/2023 11:55

StadiumCapital is a value investor and no coincidence in my mind that they see value here now. Debt is still too high, and trading must be weaker than when they cut forecasts in March. Not a happy scenario: consumer under pressure with more interest rates likely meaning winter selling season may be tough and inventory could be an issue. Debt remains too high etc etc etc

[castleford tiger] 21/6/2023 13:30

higher interest rates will not help.

tiger

[maverick67] 20/6/2023 21:17

Maybe you are right? £1.00 is getting closer

[castleford tiger] 17/5/2023 18:02

I feel sure this is going sub £1.

The chart looks awful

tiger

[castleford tiger] 16/3/2023 12:25

cant disagree with much there

[patsyluck] 16/3/2023 11:50

this company is unfortunately a poster boy for appalling capital management decisions...average price paid for stock buybacks in some cases double current price...meanwhile debt balloons ...bunch of idiots in charge...heads need to roll here.

[castleford tiger] 16/3/2023 08:56

I cannot see them making 12p eps now.

bank debt well up

tiger

[onjohn] 16/3/2023 07:43

'softening in order intake in recent weeks'

[castleford tiger] 13/1/2023 08:43

will that be about eps of 12p ?
in 2023 forecast

tiger

[cwa1] 13/1/2023 07:18

Reasonably positive all things considered:-

Interim Trading Update

Good start to the winter sale trading period

Profit guidance reiterated

DFS Furniture plc, the market leading retailer of living room and upholstered furniture in the United Kingdom, today announces a trading update for the twenty six week financial reporting period to 25 December 2022, together with an update on recent trading.

Summary:

-- +10.6% order intake growth* relative to the FY19 pre pandemic period
-- Strong second quarter performance supported by further market share gains
-- Good start to the important winter sale trading period
-- Reiterate our mid case profit guidance of GBP36m profit before tax and brand amortisation (range GBP30m-GBP40m)

Trading overview

Group order intake for the period* was +10.6% compared to the pre pandemic FY19 period (-4.8% Vs FY22).

Following low market wide demand levels at the start of the financial year, trading improved in the second quarter* with order intake growth relative to FY19 increasing to +16.3% (+18.8% Vs FY22). We continue to observe further market share gains based on our proprietary Barclaycard data set.

Group gross sales, which are recognised on delivery of orders to customers, are up +9.6% on the FY19 comparator period (-1.1% Vs FY22).

Outlook

Current order intake performance remains strong, with the important winter sale trading period starting well. Whilst the macroeconomic and consumer outlook remains hard to predict, our mid case FY23 guidance remains unchanged at GBP36m profit before tax and brand amortisation, with the range narrowing to GBP30m-GBP40m.

This assumes the improved momentum we have seen in order intake continues through the second half, alongside delivery of planned margin improvements and normalisation of the order bank which remains elevated at the end of the first half due to the weighting of order intake. Profit delivery will be second half weighted with first half profits expected to be in mid-single digit GBP millions.

We remain committed to our strategy to lead furniture retailing in the digital age. Our scale, trusted brands, innovation, final mile two-man logistics platform, digital capabilities and integrated retail strategy give us significant advantages in our market and will allow us to maintain our track record of market share gains whilst driving attractive returns for our shareholders.

The Group will announce its interim results for the period ending 25 December 2022 on 16 March 2023.

Comment from Tim Stacey, Group Chief Executive

"The Group has traded well through the second quarter and the start of the important winter sale trading period. Whilst the macroeconomic environment remains challenging and hard to predict, we reiterate our full year profit guidance supported by the positive current trading momentum.

As always, we continue to invest for the long term success of the business, to further strengthen our market leading position and with our established platforms, scale and expertise we believe we are well set up for growth over the medium term"

*Order intake growth for the period calculated using weeks 1-25 of the financial period (and for the second quarter using weeks 14-25) to remove the impact of the different number of days in each financial year falling into the post Christmas sale trading period. International and Sofa Workshop have been excluded from the order intake and gross sales growth calculations given the closure of these operations.

[cwa1] 29/12/2022 15:10

Pelham Cap. increasing:-

[castleford tiger] 22/12/2022 09:24

I am in the process of selling 30% of my trading stock purchased at what now appears to have been the bottom.

Probably too soon but I had too much weighting in these as I could not stop buying them.

tiger