DFS announce an interim dividend of 1.5p approved by the Board reflecting an anticipated 4.5p total full year dividend

DividendMax Ltd.

DFS announce an interim dividend of 1.5p approved by the Board reflecting an anticipated 4.5p total full year dividend

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

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