DFS Furniture PLC (LSE:DFS) said improving house market conditions and growing incomes should prompt a recovery over the coming months after reporting a loss for the year.
Reported pre-tax losses for the year sat at £1.7 million, against a £29.7 million profit in 2023, the furniture retailer said in an update on Wednesday.
This coincided with a 9.3% drop in revenue to £987.1 million, which DFS attributed to Red Sea shipping delays late in the year and lacklustre demand.
“Despite the challenges that the business has seen, we are optimistic for the future and see signs that market growth could soon return,” chief executive Tim Stacey commented.
“We expect recent improvements in housing transaction data and strengthening consumer balance sheets to lead to increased upholstery market demand across 2025.”
Underlying profit before tax from continuing operations sat 65.7% lower at £10.5 million, with DFS previously suggesting this would be closer to £20 million.
No dividend was declared as a result, as underlying cash outflows climbed by £3 million to £10 million and debt grew by 17.5% to £164.8 million.
DFS added orders had grown over the start of the new financial year and said it was on course to deliver medium-term targets of £1.4 billion in revenue and 8% pre-tax profit growth.