ScS reports a 4.5% rise in gross sales to £334.7m, and a rise in revenue of 14.7% to £317.3m, in its preliminary results for the 53 weeks ended 30 July 2016.
LFL order intake was up 14.8%, gross profit increased 17.3% to £149.1m, and EBITDA increased to £16m while operating profit £11m.
CEO David Knight comments: "We are delighted to be reporting significant growth across all areas of the group for the 2016 financial year. Our sales order intake is the highest ever and is up 14.8% on a LFL basis. These results demonstrate that the group has made significant progress in developing ScS into a strong national brand with three very clear retail offers – upholstered furniture, flooring and our House of Fraser concessions, all supported by an online platform that has seen continued investment.
"We are encouraged by our trading performance since the start of the current financial year which is in line with our expectations. However, we are mindful that the group continues to face very strong comparatives during the remainder of the year.
"Looking further ahead, we are excited about our prospects, including the continued growth from our existing ScS network, the concession agreement with House of Fraser, our flooring offering and our online proposition. We continue to identify new store opportunities within our target areas. The group’s cash flow dynamics underpin the strong financial position which will support our ambitions for future growth and continue to deliver value for our shareholders.”
ScS sales density per sqft increased 12.9% to £219, supported by a significant increase in marketing spend.
Two new stores opened in Bromborough on the Wirral on Boxing Day 2015 and in Aberdeen in September 2016, and three further stores in Plymouth, Thanet and Edinburgh are targeted to open on Boxing Day.
Gross sales at the House of Fraser concession were up 19.7% to £25.3m, while continued investment and development of the ecommerce platform for ScS trading website resulted in gross sales increasing 19.8% to £10m.
Improved distribution management led to a reduction in costs expressed as a percentage of revenue to 4.9%.
Currently, sales order intake was up 4.5% on a LFL basis for the 9 weeks to 1st October.