British furniture retailer DFS has reported a 2.5% increase in its pre-tax profits to £80m for the 2011-12 fiscal year ended 28 July 2012.
The increase in profits comes despite a 2.1% fall in its yearly sales to £624.7m compared to £638.4m in 2011.
DFS also reported a year-end cash balance of £27m after £47.9m bond buybacks and shareholder dividend, the company’s 2011 year-end cash balance stood at £38.9m.
Commenting on the results DFS Chief Executive Officer Ian Filby remarked that the improvement in performance that was seen the first three quarters of the fiscal continued in the fourth and helped the company deliver good results for the reporting financial year.
"This performance benefited from a growing sales contribution from our new stores, which also began to contribute to profit.
"Improved margins over the year as a whole reflected the increase in our own manufacturing capacity and our drive to improve efficiency across the business, particularly through more cost-effective media buying," said Filby.
In the 2011-12 fiscal, the company reportedly opened 13 new outlets with the first ones outside of UK opened in Dublin, Ireland besides the first city centre store opened in Tottenham Court Road, London.
"These new stores are performing well, in line with our expectations.
"Since the beginning of our new financial year we have opened one further new store and our expansion plan is firmly on track as we develop our future store opening pipeline, while also enhancing our successful and growing online business," added Filby.