ScS posts first half sales growth
Upholstered furniture and floorings retailer ScS has reported a strong uplift in first half sales as the business continues to pursue its growth strategy.
In the 26 weeks to 28 January, revenue rose by 14.6% to £157.9 million while gross sales climbed by 14.1% to £165.9 million. Like-for-like order intake was up 2.7% in the period.
Meanwhile, gross profit increased from £64.8 million to £72.9 million. The company's operating loss was reduced to £2.6 million from £3.4 million in the same period in the prior year.
Speaking about the 33 weeks ended 18 March, ScS chief executive David Knight said like-for-like order intake growth was 0.9%. He added: "This is a pleasing performance against very strong prior year comparatives, and represents a two year like-for-like order intake growth of 12.5%.”
During the first half ScS opened four new stores in Aberdeen, Thanet, Edinburgh and Plymouth. As expected, due to initial setup costs and the timing of the new store openings, there was a negative impact on EBITDA of £0.5 million. However, ScS said all four stores are trading in line with expectations and are expected to make a positive contribution to EBITDA by the end of the current financial year.
The business now trades from 100 ScS stores and operates 28 House of Fraser concessions.
ScS said trading in February was “challenging”, largely driven by reduced footfall. However, it has seen an improvement since the start of March.
Knight added: “We remain mindful that the group still faces the key Easter and May bank holiday trading periods and faces very strong comparatives during the remainder of the year. The board believes the business remains in a strong position to maximise opportunities as they arise and to grow market share.”
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