18 July 2024, 08:31
By Furniture News Mar 16, 2021

Profits up at ScS, yet orders down

ScS has announced its interim results for the 26 weeks ended 23rd January 2021.

Gross sales increased +13.9% to £182.3m, with revenue up +14.4% to £173.9m. Gross profit increased +16.8% to £83.7m – operating profit was £19.8m (£1.2m in 2020), and profit before tax £17.7m (against a loss of £0.6m in 2020). Government support during the period amounted to £6.6m.

This record H1 performance was driven by the delivery of the large opening order book from pent-up demand in June and July 2020, coupled with strong order growth in Q1. Despite store closures throughout the autumn and key winter sales period, LFL order intake was down just -9.1%.

Online sales increased +81.3% to £17.7m, bolstered by an improved omnichannel offering comprising a new website, ‘zero-touch’ finance and MyScSLive video technology.

CEO David Knight comments: “We are delighted to be reporting a strong result for the first half of the year, and continue to make progress on our strategic priorities. The group has built a robust balance sheet in recent years and remains focused on cost and cash management to ensure it maintains its resilience in these challenging times.

"With consumer confidence and the economic environment remaining uncertain, it is difficult to provide clarity on the group’s outlook for the weeks and months ahead. However, we remain cautiously optimistic as recent Government announcements have provided further clarity on the anticipated re-opening of our stores. The business continues to adapt and respond to trading conditions, with increased focus on the development of our digital channels. We are confident that our underlying priority of providing an excellent customer experience with outstanding value, quality and choice, will continue to prove successful."

Online order growth for the first seven weeks of the second half of the year (to 13th March 2021) is up +157.5%, yet due to temporary store closures overall order intake is down -87.2% on a LFL basis, resulting in order an  overall intake decline of -23.8% for the 33 weeks to 13th March 2021.

ScS' balance sheet, as of 13th March 2021, stood at £80.9m.

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