ScS blames international supply chain issues as it slips to loss

For the 26 weeks to January 29, Scs reported a loss before tax of £3.6m and an operating loss of £1.8m. The retailer also reported a 4% drop in revenues to £146m and a 5.3% slip in gross sales to £152m.

EBITDA was £12m, down £21m year on year, while its gross margin slipped 1.3% to 45%. 

Despite the subdued half-year results, ScS said it was confident of delivering profitable full-year results in line with market expectations.

ScS chief executive Steve Carson said: “We are pleased with trading and the progress made to date delivering our new strategic growth plan. The dedication of our colleagues continues to be instrumental in the success of the group and I would like to thank them for their ongoing commitment and efforts.

“Like many retailers, supply chain disruption has impacted the group’s first-half results. While this has been frustrating, it has enabled the business to accumulate a strong order book and we are focused on delivering it through the second half of the year. We are progressing our strategic goals, while maintaining strong cost control and cash management.

“We are mindful of the ongoing impact of inflationary pressure on the group, its customers and suppliers. While we have no suppliers that manufacture in Ukraine, Russia or Belarus, we are deeply saddened by the conflict.

“The board’s confidence in the future of the group is demonstrated by the 50% increase in the interim dividend and the commencement of a £7m share buyback programme. Financially the group remains strong, with good cash flows and a strong balance sheet. Given the group’s positive trading, we remain on track to meet full-year market expectations.”