DFS Furniture PLC Sale of The Sofa Workshop Limited (2595X)
27 Agosto 2020 - 8:00AM
UK Regulatory
TIDMDFS
RNS Number : 2595X
DFS Furniture PLC
27 August 2020
27 August 2020
DFS Furniture plc ("DFS" and the "Group")
Sale of The Sofa Workshop Limited
Class 2 Transaction Announcement
DFS Furniture plc announces that one of its subsidiaries, DFS
Furniture Company Limited, has entered into an agreement to sell
the entire issued share capital of The Sofa Workshop Limited (the
"Company", trading as Sofa Workshop), a wholly owned subsidiary and
premium UK sofa retailer, to Halo Furnishings Limited ("Halo").
The deal is conditional on regulatory approval from the FCA
which is in progress and is expected to be received in due
course.
The gross assets of Sofa Workshop at 30 June 2019 were GBP10.2m,
the loss before tax in the 48 week period to 30 June 2019 was
GBP2.9m. The business is being sold on a cash, working capital and
debt free basis. Following the disposal, the Group will benefit
from the reduction in the cash costs of funding Sofa Workshop's
operating losses, elimination of the potential volatility in the
profitability generated and it will allow the Group to focus on
executing the significant value creation opportunities in its core
activities.
The total consideration for the transaction is GBP0.3m payable
in cash on completion(1)
Tim Stacey, CEO commented:
"Over the course of the past few months we have reviewed our
strategy and plans across the Group with a focus on ensuring our
brands are in the best possible position to support the Group in
maximising its return on capital.
After careful consideration, we have decided to sell Sofa
Workshop to Halo. This transaction represents a great opportunity
for Sofa Workshop and I'd like to thank all our colleagues for
their hard work and commitment since the business was acquired by
the Group seven years ago and wish them every success in the
future.
We will remain focused on the core elements of our strategy,
namely accelerating investment in technology and omni-channel
initiatives for our two scale brands, DFS and Sofology, while
ensuring our complementary Dwell brand generates a consistent
return. As the clear market leader with strong recognition of our
brands, high showroom sales densities and advantageous vertical
integration, we feel well-positioned to drive shareholder
returns"
About Halo
Established in 1976 in the United Kingdom and 2004 in Asia, the
Halo Group is a world leader in the luxury furniture and lifestyle
market. Halo operates in distinct but integrated segments in
wholesale and retail as well as the interiors project space. It has
several brands including Timothy Oulton, Noble Souls, Outlaw, Bleu
Nature and Freehand among others.
(1) In the event Halo subsequently sells the Company or
substantially all of its assets (whether directly or via the sale
of another Halo group company) within 18 months of acquisition up
to GBP2.5m of additional consideration could be payable depending
on the proceeds of sale.
Enquiries:
DFS (enquiries via Tulchan)
Tim Stacey (Group CEO)
Mike Schmidt (Group CFO)
Liz McDonald (Company Secretary)
Phil Hutchinson (Investor Relations)
Tulchan
James Macey-White
Jessica Reid
Amber Ahluwalia
+44 (0)20 7353 4200
dfs@tulchangroup.com
About DFS Furniture plc
The Group is the clear market leading retailer of living room
furniture in the United Kingdom. We design, manufacture, sell and
deliver to our customers an extensive range of furniture products.
The business operates an omnichannel retail network of living room
furniture showrooms and web sites in the United Kingdom and other
European countries, trading through three leading brands. The Group
has been established and developed gradually over 50 years of
operating history. We attract customers through our substantial and
continued investment in nationwide marketing activities and our
reputation for high quality products and service, breadth of
product ranges and price points and favourable consumer financing
options.
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