DFS Furniture PLC (LSE:DFS) reported a 70% slump in interim profits and said cut its guidance range for the full year due to ongoing supply chain and productions issues.
The furniture maker also said it is to return approximately £80 mln to shareholders as it announced an interim dividend of 2.7p and a special dividend of 10p.
"Recent order intake has been in line with our forecast expectations," Tim Stacey, the chief executive officer said.
"However compared to our previously shared trading outlook scenarios, that showed a FY22 PBT(A) range of £66m-£96m, we have narrowed our outturn range to £66m-£85m reflecting the disruption to production and logistics flows seen in the year-to-date."
In the 26-week period ended December 26, 2021, profit before tax fell to £21.6mln from £72.1mln. The figure however was 36% higher than the £15.9mln profit recored in the pre-Coronavirus (COVID-19) 2020 six-month results.
The owner of the Dwell and Sofology brands also announed a new strategy to counter inflation and grow revenues to £1.4bn.
DFS said it also took a £21mln hit to its net margin and operating costs due to the pandemic as revenues fell 2% to £561mln.