29 May 2024, 16:31
By Furniture News Mar 22, 2022

Increased lead times see ScS defer success to H2

ScS made a loss but achieved "strong strategic progress" in the 26 weeks to 29th January 2022, and says it is positioned to deliver full-year profit in line with expectations.

Increased product lead times due to supply chain disruption impacted delivered gross sales, revenue and profitability, but enabled the group to build a strong order book – £148.m (including VAT), double that of 25th January 2020.

EBITDA stood at £11.6m (H1 FY21 £32.2m, H1 FY20 £16.0m), culminating in a loss before tax of £3.6m. 

LFL order intake growth was +16.6% YoY. Online orders by increased by +55.8% Yo2Y

CEO Steve Carson comments: “We are pleased with trading and the progress made to date delivering our new strategic growth plan.

"Like many retailers, supply chain disruption has impacted the group’s first half results. Whilst this has been frustrating, it has enabled the business to accumulate a strong order book, and we are focused on delivering it through the second half of the year. We are progressing our strategic goals, whilst maintaining strong cost control and cash management. 

"We are mindful of the ongoing impact of inflationary pressure on the group, its customers and suppliers. Whilst we have no suppliers who manufacture in Ukraine, Russia or Belarus, we are deeply saddened by the conflict."

ScS reports LFL order intake growth for the 33 weeks ended 19th March 2022 of +37.7%, with two-year LFL order intake in line with the pre-pandemic 33-week period to 14th March 2020. Cash as of 19th March 2022 stands at £91m.

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