DFS in £230m growth drive

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Doncaster-based sofa retailer and manufacturer DFS Furniture has secured a £230m funding package from a syndicate led by Lloyds Bank Commercial Banking following its recent stock market listing.

The funding includes a £200m loan that will be used to repay debts and a £30m overdraft to provide day-to-day working capital.

HSBC, RBS, Barclays, UBS and Jefferies are the other participants in the banking syndicate.

DFS’ floatation on the stock market at the beginning of March valued the firm at £543m.

Founded in 1969 by Lord Kirkham, it has grown to become the largest sofa retailer in the UK with a 26 per cent market share. The business has 100 stores across the UK, Ireland and the Netherlands.

DFS, has achieved strong gross sales and revenue growth in recent years by increasing market share organically and through the acquisition of Dwell and Sofa Workshop.

In the 12 months to November 1 2014 DFS recorded revenues of £675m.

Bill Barnes, finance director, said: “The new funding agreement enables us to repay existing debts.”