Furniture retailer Fantastic has issued a special dividend after lifting its half year profit 43 per cent.

Fantastic made a $6.97 million profit in the six months to December 28, compared to a profit of $4.9 million in the same period a year ago.

Group sales for the half were up 8.7 per cent to $244.3 million and the sale of its Dandenong Property contributed $22.7 million to its balance sheet.

A special dividend of four cents will be paid on April 8, plus an interim dividend of six cents.

AAP