Furniture retailer DFS has reported a sharp drop in profits.

The company said profits before tax were down 22.3 per cent to £50.1 million in the year ending 29 July, 2017.

Gross sales were up 1.1 per cent to £990.8 million and revenue increased 0.9 per cent to £762.7 million.

DFS Chief Executive Officer Ian Filby said: "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."

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