ScS back in the black after ‘strong recovery’ from the pandemic

In its preliminary results for the 53-week period to July 31, ScS reported profit before tax of £23m compared with a loss of £3.1m for the same period last year. 

The retailer reported a 21% increase in gross sales to £325m and a 22% increase in revenues to £311m. 

Gross profit jumped 23% to £147m while operating profit was £27m and underlying profits were £18m, up from just £0.9m in 2020. 

In terms of operational highlights for the period, ScS flagged that one- and two-year like-for-like order intake was down only 1.5% and 6.5% respectively, despite being closed for 17 weeks of the period. 

The retailer also reported a 146% increase in online sales for the period to £47m, as its ongoing investment in digital channels continued to bear fruit. 

ScS also said it repaid the government £3m in furlough grants in 2020 and had launched a refreshed strategy. 

Chief executive Steve Carson said: “Trading since the start of the new financial year has remained strong, with two-year like-for-like order intake growth of 11.9% for the nine weeks to October 2.

“One-year like-for-like orders have fallen 21% as a result of the significant bounce following the lockdown in the prior year. We are delighted with the strong orders since the start of the new financial year.

“However, we are cognisant of the ongoing challenges we, and many other businesses, are facing with regards to the supply chain, including driver shortages, raw material increases and shipping costs and delays.

“We have demonstrated throughout the pandemic that we have a flexible and resilient business model which is able to adapt to changes in the macro-environment whilst still delivering for our customers.

“We look forward to embedding the new purpose and mission statement into our operations and delivering on our refreshed strategy for future growth, which we are setting out today.”