Retail Week has learnt the sofa specialist's turnover was£575.7 million for the year ending July 30 last year, its first results since being taken private in November 2004.
Turnover increased 8.8 per cent year on year, despite 2005 being one of the toughest years on record for furniture players.
The retailer aims to open eight stores this year and is on the hunt for acquisitions, ending a 21-month consolidation period.
Chairman Lord Kirkham said: 'As a private business, we can be opportunistic and if the right opportunity came forward, we would consider its merits.'
He said the retailer would consider grabbing rival Sofa Workshop if its owner MFI goes ahead with a sale of the chain.
Kirkham was bullish about current trading. He said: 'We are on track to surpass our 2005 performance this year.'
However, he warned: 'We have got to fight more than ever before in this tough market.'
The results reinforce DFS's status as one of the top UK furniture retailers, since Kirkham splashed out£507 million almost 18 months ago to buy the business he founded in 1969.
Kirkham said he has benefited from being able to improve his 75-strong portfolio in private while last year's difficult trading climate claimed Courts and Furnitureland.
DFS is due to file its accounts at Companies House today. DFS refinanced the business for£340 million in April last year and net external debt was reduced to£282 million by the year-end. Operating margin rose to 10.3 per cent from 9.4 per cent as DFS stripped costs.
The retailer is committed to its three UK factories, which produce about 15 per cent of its offer. Aggressive ads are a key part of the retailer's strategy and its£70 million spend will be increased in line with turnover.
Kirkham pledged to remain at the retailer indefinitely. 'DFS is my job, hobby, life and passion,' he said. Although his son Michael does not work for DFS, Kirkham said he has helped out recently. But Kirkham said his successor must be the best candidate. 'Nepotism is bad news,' he said.
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