DFS Furniture PLC has unveiled stronger profit for the first half of the year but issued caution on wider pressure ahead following the likes of October’s Budget.
Interim pre-tax profit was expected to be around £16 million to £17 million, DFS said on Friday, marking an increase of as much as £8 million year-on-year.
Order intake had climbed by 10.1%, though delivered sales were anticipated to be up 1.4% due to ongoing Red Sea shipping delays.
Full-year profit was still on course to meet consensus of £22.7 million, however this was now set to be first-half weighted following the Budget.
DFS flagged caution on demand due to the UK’s sluggish economic performance since and pointed to cost pressures around hiked employer national insurance and wages.
“While the market remains relatively subdued, we are continuing to deliver on our self-help initiatives,” chief executive Tim Stacey commented.
He pointed to improved gross margin and reduced operating costs as having helped deliver year-on-year profit growth.
“We remain focused on executing our plan, and are cautiously optimistic despite the increased inflationary pressures and less positive market outlook for 2025.”