DFS profits fall 58pc

DFS blamed the cost of buying a rival for dragging down profits but claimed that trading is starting to improve.

The furniture company’s profits tumbled 58pc to £7m in the six months to January 27, down from £16.7m a year earlier, after a hit from acquisitions, including its £25m deal to buy Sofology last year. Over the half-year, DFS saw a 4.3pc rise in revenues to £396.1m.

Chief executive Ian Filby said: ‘We remain confident that, despite challenging market conditions, the group will deliver modest growth and generate strong cashflow across this financial year.’