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Investing.com -- Shares of DFS Furniture plc surged by 11% on Thursday following the company’s announcement of a significant increase in first-half profit before tax (PBT), which nearly doubled from the same period last year.
The uptick to £17.0 million in H1 PBT, up from £8.7 million in the first half of the previous year, was attributed to a 10% rise in order intake as market declines slowed and DFS successfully captured market share, particularly amid disruptions faced by competitor ScS.
The positive momentum continued into early H2 trading, with year-to-date order intake accelerating to 11%. As a result, DFS has provided an upbeat profit outlook, expecting to deliver an underlying PBT of £25-£29 million, surpassing the consensus estimate of £22 million.
The midpoint of this guidance represents a 19% increase from the consensus. Furthermore, the company anticipates an improvement in consensus expectations for FY25 net debt, thanks to a robust cash performance in the first half.
Jefferies analysts have commented on the results, stating, "An encouraging upgrade from DFS, even if it is of limited surprise given the strong H1 trading already reported. While the company flags a tougher shape to H2 (Sofology refresh annualised, less ScS disruption, harder comps, NIC (NASDAQ:EGOV) headwind), we continue to see upside to FY25 estimates."
Jefferies retained its positive stance on DFS with a Buy rating.
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