Furniture retailer hamstrung by system glitches
Asda chief executive Tony DeNunzio has been appointed deputy chairman of MFI as the retailer announced end-of-year sales mired by system problems.

Turnover was up 2.2 per cent in the 52 weeks to December 25 last year, at£1.5 billion. However, the retailer's core UK business sales - down for the period by 9.4 per cent to£825 million - was propped up by its Howden Joinery chain, whose sales were up by 24.8 per cent to£559 million. Profit before tax was more than quartered, from£117.9 million in 2003 to£25 million in the current reported period.

MFI chief executive John Hancock said: '2004 was a poor year in UK retail, with performance severely impacted by the issues around the new supply chain systems. 2005 will be a year of stabilisation and recovery in UK retail with further growth in Howden Joinery.'

DeNunzio already has a relationship with MFI as senior independent and non-executive director. He will take his new role from today.

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