DFS shrugs off tough trading conditions by forking out £25 million | City & Business | Finance

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DFS, which sounded a profit warning two months ago after a “material reduction in customer orders”, has identified £4 million of annual savings by acquiring the 37-store chain, whose senior management will continue to lead the business. 

Sofology has invested in new technology, which DFS said could be shared across the group.

DFS boss, Ian Filby, said the move was “a clear opportunity to accelerate our proven strategy of broadening our appeal”.

He said in a statement yesterday: “While the UK furniture retail market continues to be very challenging, we remain focused on making strategic progress to strengthen our position in living room furniture.

“This acquisition represents a clear opportunity for DFS to accelerate our proven strategy of broadening our appeal, generating substantial long-term returns for shareholders underpinned by well-understood synergies.

“Sofology’s distinctive market position is a good fit with our existing brands.”

Last year, Sofology posted £143 million in revenue but recorded a statutory loss before tax of £8.9 million.

Sofaology’s chief executive, Jason Tyldesely, will continue to lead the brand after the deal.



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