Sofa retailer ScS Upholstery has plummeted into loss and warned any upturn in trading conditions is unlikely for some time.

For the six months to January 26, ScS reported a trading loss of£8.8 million compared with a profit of£3.3 million the previous year. Turnover fell 13 per cent to£91.8 million, and comparable store sales fell 15 per cent.

Panmure Gordon and house broker KBC Peel Hunt both downgraded their forecasts for ScS again.

Panmure analyst Christian Koefoed-Nielsen said the retailer is right to defer its store expansion programme and focus on cash conversion. He pointed out that ScS is confident of a profitable second half as ad spend in the first half pays off and cost restructuring measures have an effect.

KBC Peel Hunt analyst Robert Brent said: “We believe the next few years will be difficult but, with management focused on costs and cash, the group should emerge with its relative position enhanced.”

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