DFS has reported a pre-tax profit drop of 22.3% to £50.1m for the year ended 29th July 2017, citing a “very challenging furniture market environment in the second half”.

Gross sales were up 1.1% to £990.8m, revenue up 0.9%, and EBITDA down 12.7%.

Three new 10-15,000 sqft DFS stores opened in the UK and ROI during the period, plus a third small store trial in Crawley.

DFS saw 20% growth in partnership brand upholstery orders.

CEO Ian Filby says: "We have continued to make good strategic progress across all our key areas of growth, while our financial performance reflects the current challenges of the UK furniture market. In particular we were delighted to announce the acquisition of Sofology and the exclusive licensing partnership with the British lifestyle brand Joules.

"Historically DFS has been able to build its market-leading position and generate strong cashflow for shareholders in all environments by leveraging its fundamental strengths. Our recent strategic investments and operating efficiency programme support our confidence in our ability to deliver modest profit growth and cash returns in the current financial year and we continue to have excellent prospects for the long term."