ScS profits up as boss hails year of ‘good progress’

The furniture and flooring retailer reported a 4.6% uptick in underlying operating profit to £14.3m in its preliminary results for the 52 weeks ending July 27, 2019.

The retailer saw underlying EBITDA improve to £19.7m, while operating profit from continuing operations also inched up to £13.9m, from £13.7m the previous year.

Gross sales improved by £5.8m to £333.3m, while revenue saw a £4.6m increase to £317.4m.

The retailer also hailed “strong” like-for-like order growth of 4.2%, and a 21.7% increase in online sales to £16.8m.

ScS boss David Knight said the group’s financial health “has never been as strong” and hailed a year of “good progress” for the retailer.

“I am delighted to report another year of good progress and growth for ScS in our continued effort to ensure we remain Britain’s best value sofa and carpet retailer.

“The group’s financial health has never been as strong and with our resilient, debt-free balance sheet, we are in a good position to manage the ongoing uncertainty, and furthermore seek opportunities which will add value in the longer term.

“Our strong and clear value offering has proven successful, and we are confident it will continue to appeal to our customers who want to buy great products at the lowest possible price.”

However, much like competitor DFS, ScS warned that it had faced “a more challenging start to” the 2020 financial year, with like-for-like order intake falling 7.6% between July 28 and September 29.

Knight said: “Since the start of the current financial year, trading conditions have been more challenging, with like-for-like order intake falling 7.6% for the period from July 28, 2019 to September 29, 2019.

“This period was impacted by the record temperatures experienced by the UK across the August bank holiday weekend and the increasing political and economic uncertainty we are currently facing in the UK.”