ScS has reported increases in both gross sales and profit in its half-year results, despite low customer confidence and the developing coronavirus situation.

The furniture retailer reported an 0.3% increase in profit to £71.7m for its interim results for the 26 weeks to January 25, 2020.

Gross sales also inched up 0.5% to £160.1m, while underling EBITDA improved £0.4m to £3.8m.

The retailer said during the first six months of the financial year it had driven like-for-like order intake down and invested heavily in its ecommerce offering, which had seen online sales increase 24.5% to £9.8m.

Scs also said it had a strong balance sheet with £61.5m in cash and underlying operating profits of £1.7m.

Current trading was strong, with orders up 3.3% like-for-like for the first seven weeks of the year, however ScS said it was “mindful of the developing situation with the coronavirus” and its potential impact on demand and deliveries.

It also flags the possible need for store closures, which would lead to “lower orders” while the potential closure of a distribution centre would delay deliveries.

ScS said the coronavirus, which first emerged in China during the Lunar New Year, also caused delays to its sourcing of products from the Far East.

Chief executive David Knight said: “Trading has strengthened since our market update on 29 January 2020, with like-for-like order intake in the last seven weeks growing 3.3%. This is a significant improvement on trading for the first 26 weeks of the year, which had a like-for-like order intake decline of 4.4%. This has resulted in a like-for-like order intake decrease of 3.0% for the 33 weeks ended 14 March 2020.

“Whilst consumer confidence remains low, the group has been successful in sustaining profitable growth and increasing its resilience. Trading in the early part of the year was particularly challenging. However, the improvement and return to growth seen over the key winter sales period and for the first six weeks of the second half was encouraging. In the past week we have seen reduced footfall and we are mindful of the developing situation with COVID-19 and the potential impact on deliveries and demand. However, we believe the group is as well positioned as it can be.

“We continue to focus on providing excellent value, quality and choice for our customers, and are committed to our strategy. We remain confident in the future success of the group.”

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