DFS sitting comfortably as shares leap

Shares in furniture retailer DFS stood out yesterday after the firm said it had seen a strong start to its financial year.

In the last six weeks, the chain has received orders for £70 million more than during the same period last year as locked-down Brits prioritised investment in their homes.

The results, which are well ahead of what the company was exp ecting, will add to its already strong order book which DFS believes will result in a further in-year revenue benefit of £100m.

The company added that there could still be some risks, citing uncertainty around the coronavirus and Brexit.

Despite that degree of caution, shares in DFS closed up 16p, or 10.7 per cent, at 166p

Russ Mould, investment director at AJ Bell, noted: “A boom in sofa sales makes perfect sense.

“Many businesses helping to improve the home environment, such as DIY and electrical retailers, have seen a pick-up in sales during lockdown this year as people seek to improve their home comforts.

“DFS is also among the beneficiaries. After all, if you’re going to spend so much time at home, why put up with tatty seats, peeling wallpaper and fridges on the blink?”

Shares in Aveva lifted 314p, or 7.3 per cent, to 4,646p as the Cambridge-based software giant spent $5 billion (£3.8bn) on a Softbank-backed data company from California.

The acquisition will see the UK company take over a business on the other side of the pond that it believes will dovetail with its own. Osisoft collects huge streams of data from mines, factories, or other industrial sites, and helps a company analyse it.

Founded in 1980 by Dr Patrick Kennedy, the business calls itself a global leader in real-time industrial data software and services.

Aveva chief executive Craig Hayman said: “The acquisition of Osisoft is perfectly in line with our strategic vision and it will accelerate the enlarged group’s role in the digitisation of the industrial world, which is being driven by a need for sustainability, the industrial internet of things, cloud, data visualisation and artificial intelligence.”

London’ s benchmark FT SE 100 share index of Britain’s top blue-chip stocks fell 67.72 points to close at 6,037.01.