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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Secondary Recommendation

DFS - UKs largest sofa retailer sports high margins

June 2015

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DFS
  • Price:
  • 263p
With the pro-business Conservative Party having won an unlikely majority the chances of further growth in property prices, employment rates and disposable incomes has increased significantly and among the beneficiaries could be “big ticket” retailer DFS, the largest provider of sofas and other upholstery in the UK.The shares, which were introduced to the main market on 11 March at 255p, raising £221m for selling shareholders and £78m for the company (reducing pro-forma net debt to 2x times EBITDA), hit a high of 285p before pulling back to 263p. This values the company at £560m.Founded in 1969 by Lord Kirkham, DFS floated the first time round in 1993 at a time when it operated 24 stores and generated sales of £114m. Throughou ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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