The DFS Board has declared an interim dividend for FY23 of 1.5 pence per share (£3.5m total cost). This is based on an expected full year total dividend of 4.5 pence per share subject to meeting the midpoint of their £30-35m PBT profit expectation and reflects a 2.5x EPS cover. This dividend will be paid on 25 May 2023 to shareholders on the register on 14 April 2023.
Other financial highlights include:
● Revenue from continuing operations of £544.5m is up 9.4% compared to the non-Covid disrupted pro-forma FY19 period (down 2.2% on H1 FY22: £556.5m)
● Higher average order values driven by range innovation as well as some retail price increases to counter input inflation more than offset the impact on revenues of a decline in market volumes compared to FY191
● PBT(A)1,2,3 of £7.1m or 1.3% of revenues is reflective of a weak market environment, particularly in quarter one (H1 FY22 PBT(A): £23.3m)
● Order bank remains elevated (given their made to order model and a stronger second quarter performance) equivalent to c.£4m of profit which they expect to realise through H2
● Cost headwinds are abating and profit margins expected to improve in H2 of FY23 onwards and beyond
● Net bank debt increased to £135.6m from £90.0m at June 2022, reflecting the relatively low profit in the period, completion of share buy back programmes announced in March and September 2022 and working capital balances starting to normalise
● FY23 profit before tax and brand amortisation expected to be in a range of £30-£35m in line with market consensus towards the lower end of their previous guidance
