Dfs Furniture Share Discussion Threads

[zodaz42] 11/12/2003 13:16

What's happening to DFS?
SCS roughly following FTSE350, CRTO soaring, DFS dipping badly - down 4% today.
If it's not the market and DFS is the leader what is it?
Anyone any clues?

[shayna] 04/12/2003 10:35

Doh !! You don't say - must remember that next time....
Ofcourse i wnet there cause its cheap, and with two rugrats, investing in a quality end sofa would only end in unmitigated disaster.

Very happy at the mo having picked up the divi and sitting pretty with price returning to my original buy price.

Unlike their goods, always believe that a quality company will shine through the dross that makes up 90% of the FTSE. IMHO place DFS in the same league as Tesco, Barclays, RBS and Voda.

[verynervy] 04/12/2003 09:46

As to the quality of sofas sold;-
1)they do not make them.
2) you went there as its cheap

may I suggest that you shop at a more expensive and upmarket store.
the old saying goes " you get what you pay for."

[verynervy] 04/12/2003 09:42

after yesterdays profit increase at scs (which was unforseen)it would not be unexpected for dfs to do better than the experts have predicted. This stock is lowly rated aswell. With its strong cash flow and high yield, I am going to top up - happy trading!

[ydderf] 03/12/2003 13:08

well i paid 361 for mine and am sitting pretty!

[xyllyx] 19/11/2003 17:13

What on earth have you been up to on the sofa shayna?

[shayna] 19/11/2003 12:51

Totally agree on the quality of the operation, having experienced it first hand a while ago.
Unfortunately my enthusiasm went a little too far ands bought a sofa there last year. I regret that move every time I cast my eyes on the bedraggled, misshappen object it has quickly become !

Good movement today, given the general downturn. And rates are not going to shift upward until new year earliest.

400 for xmas , with the right consumer spending noises is on the cards.

[xyllyx] 19/11/2003 09:30

shayna:-

increase in interest rates

threat of downturn in consumer spending

negative comments re the likes of MFI and SCS and others

increasing competition highlighted by the chairman

rumours of a bid for SCS

You can take your pick from all the above!

Notwithstanding, DFS is a well managed, highly efficient and cash healthy company . Cheap and good dividends to boot. DYOR

[shayna] 18/11/2003 16:33

Anyone caught any news on why the price has caught a cold recently ? Apart from recent sell notes against MFI, i'm surprised by the continued weakness. Expected it to bottom around 375....

[shayna09] 07/11/2003 13:48

I despair ! I can hold more financially riveting conversations with my cat...

[spob] 05/11/2003 18:36

Of course.... Thanks IKC

Final Dividend 17p.... ex date 5th November.... pay date 5th December

[ikc] 05/11/2003 09:20

Ex Div today

[spob] 05/11/2003 08:34

What is the reason for the fall ? someone downgraded this morning ?

[chartman69] 24/4/2003 07:17

Results




RNS Number:3134K
D.F.S. Furniture Company PLC
24 April 2003


24 April 2003

INTERIM RESULTS FOR THE 26 WEEKS

ENDED 1 FEBRUARY 2003

"Well placed to meet the continuing challenge"

* Record profit before tax #26.1 million up 1.6%*
* Turnover #241.9 million up 14.3%
* Like-for-like sales up 3.5%
* Earnings per share 16.8 pence up 2.4%*
* Dividend per share 7.0 pence up 4.5%


* before prior year exceptional profit relating to the Primback case

"We are pleased to have achieved our targets for the first half, in an uncertain
and increasingly competitive trading climate. Our strong overall sales growth
and the positive response to our new store openings demonstrate our capacity to
go on winning market share.

Our balance sheet remains strong, with no debt and free cash of #19.4 million at
the end of the first half, together with a further #18.6 million relating to the
Primback case.

We have created more than 300 new jobs over the last twelve months through our
continued retail and manufacturing expansion - additional staff that will enable
us to improve our service levels still further.

UK consumer confidence has undoubtedly been affected by the international
political and economic uncertainties, and we have yet to see the impact of the
increases in national insurance contributions that came into effect this month.

Although our trading has been volatile, order intake since our AGM in December
and sales for the first 11 weeks of the second half have both exceeded the
comparable period last year by around 3% on a like-for-like basis.

DFS is the UK market leader in upholstered furniture, with increasing brand
recognition and the best and most comprehensive product range displayed in
outstanding stores. We believe that this leaves us well placed to meet the
continuing challenge of an uncertain and increasingly competitive market place.
We are on track to achieve our targets for the current year and the fundamental
strength of our concept and finances enables us to look forward to growing our
business safely and profitably in the future."

Graham Kirkham
Executive Chairman


Enquiries

DFS Furniture Company plc Hudson Sandler
Graham Kirkham, Executive Chairman Keith Hann
Jon Massey, Chief Operating Officer Noemie de Andia
Ian Bowness, Finance Director Tel: [phone]
Tel: [phone] (on 24 April 2003)


CHAIRMAN'S STATEMENT

We are pleased to have achieved our targets for the first half, in an uncertain
and increasingly competitive trading climate. Our strong overall sales growth
and the positive response to our new store openings demonstrate our capacity to
go on winning market share. The consistent strength of our operating cash flow
and balance sheet, and our substantial freehold store base, leave us well
positioned to weather short term uncertainties and to maximise opportunities for
profitable growth in the future.

RESULTS

Sales for the 26 weeks to 1 February 2003 grew by 14.3% to #241.9 million (2002:
#211.7 million), with like-for-like sales through our core of comparable stores
increasing by 3.5%. As noted in my AGM Statement in December, order intake
softened in the autumn as consumer spending lost some of its previous buoyancy
in response to global political and economic uncertainty.

Operating profit was #25.9 million (2002: #25.7 million before the exceptional
credit relating to the Primback case), an increase of 0.7%. Our operating
margin was 10.7%, compared with 12.1% in the comparable period last year,
reflecting increased costs in a number of areas. Store pre-opening costs
increased in the first half and we continue to bear additional expense relating
to the development of our new Redhouse distribution centre, which is
progressively building volumes and improving our service. Other store overheads
also rose as the result of rent reviews and our continued investment in extra
staff to enhance our customer service.

Interest receivable increased to #253,000, compared with #29,000 before the
exceptional item last year.

Profit before taxation was a record #26.1 million (2002: #25.7 million before
exceptional item), a rise of 1.6%. Earnings per share on the same basis were
16.8 pence (2002: 16.4 pence), an increase of 2.4% reflecting a lower estimated
effective tax charge of 32.0% (2002: 33.0%) as a result of the reduction in our
Primback provisions.

There were no exceptional items in the current period, compared with the credit
of #17.4 million relating to the Primback case in 2002. In consequence, after
exceptional items, profit before taxation for the period was #26.1 million
(2002: #43.2 million) and earnings per share were 16.8 pence (2002: 30.5 pence).

FINANCES

Our balance sheet remains strong, with no debt and free cash of #19.4 million at
the end of the first half, together with a further #18.6 million relating to the
Primback case. This compares with free cash of #32.9 million and Primback
balances totalling #55.9 million at 26 January 2002. The reduction in free cash
since then reflects our substantial capital expenditure programme, including
investment in freeholds, and a special dividend of #14.8 million paid to our
shareholders on 10 May 2002.

DIVIDENDS

The Board has declared an interim dividend of 7.0 pence per share (2002: 6.7
pence), an increase of 4.5%. DFS remains committed to a progressive dividend
policy that will provide shareholders with increases in their income that
broadly reflect the growth of earnings per share over the medium term. We will
also continue to ensure that our shareholders derive full benefit from any
future cash balances surplus to business requirements.

STORES

Our store opening programme remains on track, in line with our stated objective
of expanding the business at the rate of some 15 - 20 stores over a three year
period. New leasehold stores opened in Hull on 27 August, at Birstall (Leeds)
and Watford on 7 December, and in Aberdeen on Boxing Day. In the second half we
opened our new leasehold store at Tunbridge Wells on 5 April, while our former
Hull upholstery store will shortly reopen as the fourth outlet in our Dining
Centre format. Our freehold store at Tollcross (Glasgow) is planned to open
around the end of our financial year. Other stores in the pipeline include
Carlisle, Cambridge and Inverness.

We have also continued our programme of investment in established outlets, to
ensure that these reflect our latest standards of design, layout and visual
merchandising and so deliver the full impact that consumers have come to expect
from the market-leading DFS brand. Total refurbishments were carried out during
the first half at Peterborough and Colchester, while the Bristol store has
received this treatment during the second half.

MANUFACTURING AND DISTRIBUTION

We continue to derive an important competitive advantage from our unique
integrated approach to manufacturing and retailing, with three factories
focusing on different parts of the furniture market and supplying some 15% to
20% of what we sell. Over 33 years in business, we have found that this
provides the optimum level of in-house production within a hugely flexible
multi-sourcing strategy including our own factories and supplier partners in the
UK, and other manufacturers in the low-cost economies of Eastern Europe and
China.

All our factories continue to set new production records. The extension of our
Berkeley Magna factory at Long Eaton has been completed and is fully
operational, and we have invested in new, state-of-the-art cutting machinery to
enhance productivity, quality and output at our Lincoln House factory in
Alfreton.

Our new Redhouse distribution centre, adjacent to a major motorway intersection
on the outskirts of Doncaster, opened in October and its throughput has been
built up progressively. The final transfer of operations from our existing
distributors is due to be completed this month. Our objective in taking direct
control of this aspect of our supply chain is to enhance customer service and
the planned benefits are already beginning to be achieved.

INVESTMENT

Capital expenditure during the first half totalled #12.4 million (2002: #20.3
million, including one long leasehold and two freehold purchases). Major items
in this half included the acquisition of additional freehold land associated
with our Carlisle store development, the fitting out of four new stores and the
total refurbishment of two others. We also made significant investments in
equipment and vehicles as we developed our new Redhouse distribution centre.
Capital expenditure for the full year is expected to be around #22 million
(2002: #29.0 million), though this may increase if suitable freehold acquisition
opportunities are identified.

PRODUCTS, BRAND AND MARKETING

Fashion and design remain of great interest to the public, as the news stands
and TV schedules testify. Our furniture styles and designs are evolving and
developing at a faster rate than ever before. This ensures that we keep pace
with current fashion and can offer customers, from a wide range of age and
socio-economic groups, furniture that is in tune with their tastes.

Our marketing continues to project the core DFS brand values across a
multiplicity of media. The key points of difference we seek to emphasise are our
unique 'factory to customer' approach as a combined manufacturer and retailer,
our unrivalled choice of products, and our commitment to excellent service and
consistently good value for money. These principles have been the key to
building our position as the UK leader in our category, and will continue to
drive our market share growth in the future.

PEOPLE

We have created more than 300 new jobs over the last twelve months through our
continued retail and manufacturing expansion - additional staff that will enable
us to improve our service levels still further. At a time of almost full
employment, it is more important than ever that we possess the capability to
recruit and retain people of the calibre required to achieve customer
satisfaction through the delivery of outstanding products and service. Training
is critical to our success in this area, and we look forward to the future
benefits from our recently opened purpose-built training centre.

OUTLOOK

UK consumer confidence has undoubtedly been affected by the international
political and economic uncertainties, and we have yet to see the impact of the
increases in national insurance contributions that came into effect this month.
Competition in our sector is increasing and there are relentless upward
pressures on rental costs. Against this very demanding background, consumer
recognition of the strength of the DFS brand has been key to our continued
success in winning business.

Although our trading has been volatile, order intake since our AGM in December
and sales for the first 11 weeks of the second half have both exceeded the
comparable period last year by around 3% on a like-for-like basis.

DFS is the UK market leader in upholstered furniture, with increasing brand
recognition and the best and most comprehensive product range displayed in
outstanding stores. We believe that this leaves us well placed to meet the
continuing challenge of an uncertain and increasingly competitive market place.
We are on track to achieve our targets for the current year and the fundamental
strength of our concept and finances enables us to look forward to growing our
business safely and profitably in the future.

Graham Kirkham
Executive Chairman


Consolidated Profit and Loss Account

26 wks ended 26 wks ended 53 wks ended
1 February 26 January 3 August
Notes 2003 2002 2002
#000 #000 #000

Turnover 241,869 211,689 462,154

Operating profit

Before exceptional item 25,896 25,712 53,131
Exceptional item 1 - 8,699 8,699
Total 25,896 34,411 61,830

Interest receivable
Before exceptional item 253 29 483
Exceptional item 1 - 8,723 8,723
Total 253 8,752 9,206

Profit before taxation

Before exceptional items 26,149 25,741 53,614
Exceptional items 1 - 17,422 17,422
Total 26,149 43,163 71,036

Taxation
Before exceptional item 2 (8,368) (8,495) (17,894)
Exceptional item 1 - (2,610) (2,610)
Total (8,368) (11,105) (20,504)

Profit for the financial period

Before exceptional items 17,781 17,246 35,720
Exceptional items 1 - 14,812 14,812
Total 17,781 32,058 50,532

Dividends 3 (7,441) (21,846) (38,936)

Retained profit for the financial period 10,340 10,212 11,596


Earnings per ordinary share

Before exceptional items 4 16.8p 16.4p 34.0p
Exceptional items 1 - 14.1p 14.0p
Total 16.8p 30.5p 48.0p

Dividend per ordinary share 7.0p 6.7p 22.7p


Special dividend per ordinary share - 14.1p 14.1p



Consolidated Balance Sheet


1 February 26 January 3 August
Notes 2003 2002 2002
#000 #000 #000

Fixed assets
Tangible assets 107,875 95,406 100,040

Current assets
Stocks 14,634 13,114 14,888

Debtors 7,725 8,976 7,149

Cash at bank and in hand 5 37,953 88,756 43,622

Current liabilities
Creditors: amounts due within one year 5 (94,131) (148,756) (103,737)

Net current liabilities (33,819) (37,910) (38,078)

Provisions for liabilities and charges (11,147) (9,833) (10,747)


Net assets 62,909 47,663 51,215


Capital and reserves
Called up share capital 5,314 5,249 5,291

Share premium account 9,997 6,540 8,666

Revaluation reserve 4,294 4,345 4,294

Capital redemption reserve 78 78 78

Profit and loss account 43,226 31,451 32,886

Equity shareholders' funds 62,909 47,663 51,215



Consolidated Cash Flow Statement


26 wks ended 26 wks ended 53 wks ended
1 February 26 January 3 August
Notes 2003 2002 2002
#000 #000 #000

Net cash inflow from operating activities 6 31,785 32,974 27,088


Returns on investments and servicing of
finance 7 268 219 588

Taxation (9,947) (6,951) (18,269)

Capital expenditure 8 (12,167) (19,998) (28,459)

Equity dividends paid (16,962) (15,191) (37,197)

Net cash outflow before financing (7,023) (8,947) (56,249)

Financing 9 1,354 501 2,669

Decrease in cash in the period (5,669) (8,446) (53,580)

Reconciliation of net cash flow to movement
in net funds

Decrease in cash in the period (5,669) (8,446) (53,580)

Net funds at the beginning of the period 43,622 97,202 97,202

Net funds at the end of the period 37,953 88,756 43,622


Notes to the Accounts

1. Certain amounts previously provided in respect of the Primback case were
released in the prior period. These comprised VAT no longer recoverable by
H.M. Customs & Excise and related interest accruals. The interest accruals
were not allowed for corporation tax and no charge was therefore incurred
on their release.

2. The tax charge for the half year period is based on the estimated effective
rate for the full year of 32.0% (2002: 33.0% before exceptional item).

3. An interim dividend of 7.0p per ordinary share will be paid on 19 June 2003
to shareholders on the register on 23 May 2003.

4. The calculation of earnings per share is based on the profit attributable
to ordinary shareholders and a weighted average of 106,038,945 shares in
issue during the period (2002: 104,964,824).

5. Cash at bank and in hand includes #18,644,000 (2002: #55,890,000)
associated with the Primback case. The same amount is included in
creditors (amounts due within one year) pending resolution with H.M.
Customs & Excise.

6. Reconciliation of operating profit to net cash inflow from operating
activities.


26 wks ended 26 wks ended 53 wks ended
1 February 26 January 3 August
2003 2002 2002
#000 #000 #000

Operating profit 25,896 34,411 61,830

Depreciation 4,349 3,622 7,468

Profit on sale of fixed assets (17) (149) (168)

Decrease/(increase) in stocks 254 240 (1,534)

Increase in debtors (591) (2,555) (643)

Increase/(decrease) in creditors and provisions 1,894 (2,595) (39,865)

Net cash inflow from operating activities 31,785 32,974 27,088


The increase in creditors and provisions includes a net increase of #456,000
(2002: decrease of #11,527,000) associated with the Primback case.


7. Returns on investments and servicing of finance

26 wks ended 26 wks ended 53 wks ended
1 February 26 January 3 August
2003 2002 2002
#000 #000 #000

Interest received 268 219 588


Notes to the Accounts continued


8. Capital expenditure
26 wks ended 26 wks ended 53 wks ended
1 February 26 January 3 August
2003 2002 2002
#000 #000 #000

Purchase of tangible fixed assets (12,439) (20,292) (28,998)

Sale of fixed assets 272 294 539

Net cash outflow for capital expenditure (12,167) (19,998) (28,459)


9. Financing
26 wks ended 26 wks ended 53 wks ended
1 February 26 January 3 August
2003 2002 2002
#000 #000 #000

Issue of ordinary share capital 1,354 501 2,669




10. The results for the 26 weeks to 1 February 2003 and 26 January 2002 are
unaudited. The results for the period ended 3 August 2002 are derived from
the full accounts for that period which have been filed with the Registrar
of Companies. The report of the auditors was unqualified and did not
contain a statement under section 237(2) or (3) of the Companies Act 1985.

11. The results for the 26 weeks to 1 February 2003 have been approved by the
directors and are prepared using the same accounting policies as were used
in the 2002 statutory accounts

12. The interim report will be posted to shareholders on or about 5 May 2003
and will be available on request from the Secretary, DFS Furniture Company
plc, Bentley Moor Lane, Adwick-le-Street, Doncaster, South Yorkshire DN6
7BD.


This information is provided by RNS
The company news service from the London Stock Exchange
END
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[dil] 26/2/2003 18:22

Chart looks awful.

[dil] 26/2/2003 18:21

Chart looks awful.

[pacman88] 19/2/2003 14:23

charts looking very -ve. short 323, tight stop.

[southgate4] 12/2/2003 14:53

The Mutual.Net (TMN)
A profitable Stock Exchange listed company gives free shares to its'
members.
You receive 500 Free shares just for registering and a chance to gain
thousands more following.

[johnel] 03/12/2002 17:21

The electrical retailers problems are to do with the profits from extended guarentees which I believe the put offshore for tax reasons. It is the offshore element that the chancellor is addressing

[xyllyx] 30/11/2002 13:34

The repayments potentially due to Customs and Excise ("the Primback case")have been properly accounted for in the Company's accounts and amounts released into the profit and loss account only when confimed safe to do so. The legal arguments are ongoing.
Regarding the(unrelated) recent proposals by the Chancellor on extended warranties, which will impact profitability on the likes of Dixons and other electrical retailers: I am not sure whether there is any significant effect on the furniture retailers. Can anyone shed some light on this?

[maximillian] 26/11/2002 16:20

Any body now anything about a black hole in the accounts due to eec court judgement against them . Regarding the the repayment of vat on the finance.They will be liable to pay millions in arrears on finance agreements over the last three years and return a multi million lump sum the customs paid them about 3 years ago.
Check this out with the Vat office .

[horse19] 21/11/2002 15:13

Veg Man,
I think anytime is good as it has recently fallen, i think it will follow the general market until the next set of results.

If you are in for the long haul, this is a good company with strong fundamentals. Good for dividends

[veg man] 20/10/2002 09:58

I am considering buying into this co,does anyone have any idea of a price to start and buying at.
Regards Veg Man.

[honiton] 17/10/2002 09:04

Try SUY as well.

[the dart] 17/10/2002 07:42

No further news. But the intrim results are execelent, what more do potential investors want ? Shares worth £4.50at least.