DFS Furniture posts a sharp drop in revenues and income

30.10.2020 − 

DFS Furniture has reported a 20% downturn in revenues to £724.5m for the 2019/2020 financial year (30 June), which was a month shorter than the prior-year period. Revenues were also 27% lower than the pro forma figure reported for the last twelve months to the end of June 2019. According to DFS Furniture, this sharp downswing is chiefly connected to measures imposed in late March to stem the spread of the coronavirus. The company reported that activities in the UK had to be ceased for around three months. Order intake via online channels had soared by 77% between April and the middle of June in a year-on-year comparison, but the lockdown meant that it could only serve customers to a very limited degree.

Based on the IAS 17 accounting principles used in the past, EBITDA was in negative territory at -£13.8m. DFS Furniture had booked substantial positive pro forma EBITDA of £90.2m for the previous year. When using the IFRS 16 accounting standards for the first time, EBITDA did not decrease as much, falling to £56.5m. However, losses had to be recorded further down the balance sheet in accordance with IFRS 16. DFS Furniture announced an operating loss of £43.7m and a pretax loss of £81.2m.

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