ScS Group is set to report full-year profit in line with market expectations "driven by effective cost management and improved trading in the second half of the year" for the 52 weeks ended 29th July 2023.
The group’s financial position remains robust, with cash of £69.5m and no debt.
ScS says its updated brand and strategy are beginning to resonate with customers, resulting in strong LFL order growth of +6% from weeks 34-52, building on the +5.7% previously announced for weeks 27-33. As a result of this growth, following a more challenging Q1, order intake for the full year was in line with FY22.
Continuing the trend of the past two years, ScS continues to gain market share, cementing its position as the UK’s second-largest upholstered furniture retailer.
Following the acquisition of Snug in January, ScS says it has re-established operations from an effective standing start – including rebuilding supplier relationships, restoring stock levels, improving brand awareness, and building order momentum: "Order growth was initially slower than we had hoped, but we are pleased that current run rates are now in line with our expectations."
The retailer says it appreciates the economic conditions facing its customers, including higher interest rates and low consumer confidence, which it says are forecast to continue throughout FY24, adding: "However, we remain confident that the group’s strategy and strong balance sheet will enable ongoing trading resilience, and we continue to expect to grow our market share while selectively investing in store and other strategic growth opportunities."
