DFS, the specialist sofas retailer owned by private equity firm Advent, has posted flat earnings in its first quarter.

DFS, bought by Advent from founder Lord Kirkham for £500m in April, reported adjusted EBITDA of £15.2m in the period to October 30. The comparable figure last time was £15.1m.

Sales climbed 4.2% to £149.6m and cash balances have risen from £7m to £22.3m since the end of July.

DFS chief executive Ian Filby was pleased with performance, which he said was ahead of targets despite a rise in the cost of the retailer’s interest free credit offer and adverse exchange rate movements.

Filby said: “DFS has delivered solid results in what has remained a challenging trading environment, with a reduction in average lead times to delivery helping to offset the marginally smaller order bank carried forward from the prior year.”

He said that business since the end of October had been “in line with the first quarter, up to the period of recent adverse weather conditions”.

Over the next three years DFS intends to open about 20 more shops. At present it has 74 sofa stores and five dining stores.

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