DFS options plan is shelved
LORD KIRKHAM, chairman of furniture group DFS, has withdrawn a resolution to increase the value of options for his executives - as forecast in the Financial Mail on Sunday last weekend - following shareholder opposition. The plan, which would have increased directors' options by 50%, did not set tougher performance targets.
He told shareholers at the company's annual general meeting in Doncaster that the company was making 'good progress' after posting an increase in sales. He said like-for-like order intake was up 3% in the 18 weeks since 31 July.
He added: 'I am pleased to report DFS has continued to make good progress. In a highly competitive marketplace, we have achieved sales and margins in line with our budgets.'
DFS has 61 furniture and 3 specialist dining room stores and wants to open a further 15 to 20 outlets every three years. Kirkham said the expansion plans were on track - the group recently opened a store in Basildon, Essex and will open in Taunton, Somerset and Belfast this weekend.
He added: 'All key indicators remain favourable despite the troubled international climate.With more new stores than ever in the pipeline, I remain confident in our prospects as we steadily increase our dominance in all parts of the UK.'
As well as increasing store numbers, the group is upping manufacturing capability. It plans to open a 120,000 square feet factory and warehouse outside Adwick-Le-Street near Doncaster, where its head office is based. A number of staff will transfer from an existing factory and up to 250 new jobs will also be created.
The focus is now on the key trading period after 25 December. Christmas orders have now been takenand the next big trading days are Boxing Day and New Year's Day - bank holidays are key periods for the group.
