SOFA retailer DFS gave investors some seasonal cheer after announcing a turnaround in orders in recent weeks.

The group said the market had shown slight signs of a pick-up since October, when it reported its full-year results.

The upturn in orders, which fell 3.9 per cent in the first nine weeks of the financial year, fuelled the group's optimism ahead of the Christmas period and January sales.

The positive message was welcomed by the City after Sunderland's ScS Upholstery last week gave its third profits warning in as many months.

That news wiped more than a quarter off ScS's share price.

Both DFS and ScS have seen improvements in order books in recent weeks.

Graham Kirkham, DFS executive chairman, said: "This more positive order pattern helps underpin our confidence in the ability to reach our targets for the current year."

DFS, based in Doncaster, announced in October it did not expect to make material profit progress on the £56.4m it earned last year.

Mr Kirkham told shareholders at the annual meeting of DFS in Doncaster yesterday that results so far had remained in line with this profits forecast.

Progress was being made in rebadging its network of 69 stores with the new corporate logo.

Six of the 12 store refits planned for the financial year had been completed, including Milton Keynes, Norwich, Plymouth and South Ruislip.

"We remain positive and confident of the longer term prospects for our business," Mr Kirkham said.

DFS, which employs 2,300 people, has pledged to base future growth on the continued expansion of its store chain.

It also has four stores specialising in dining furniture and three factories - at Doncaster, Alfreton, in Derbyshire, and Long Eaton, near Nottingham - which make up 15 per cent of its output.

Shares rose 4.5p to 382.5p following the update, which analysts said was better than expected.