ScS, one of the UK’s largest retailers of upholstered furniture and flooring, reports that its total sales order intake is up 7.8% on a like-for-like basis, in its latest financial report covering the 26 weeks ending 24th January 2015.
Flooring sales order intake was up 13% on a like-for-like basis, while total sales were up 14.5% to £132m. Gross profit increased by 13.2% to £57.4m.
ScS reports an operating loss of £8.7m, and an EBITDA loss (excluding exceptional items) of £3m. The report states that an operating loss (excluding exceptional items) of £5.2m was in line with expectations, reflecting the weighting of advertising and investment in establishing the House of Fraser concession (in 30 stores in July 2014).
The period has seen many developments take place at ScS. On 28th January 2015, ScS was listed on the London Stock Exchange, raising £35.7m. Three new stores were opened, in Abbotsinch in Glasgow, Croydon and Slough, taking the retailer's store total to 97.
ScS launched a new e-commerce website, and a bespoke House of Fraser For Living website – the retailer reports that online sales are up 27.6% to £3.7m. Additionally, a £12m committed revolving credit facility with Lloyds Bank plc was agreed in January.
David Knight, CEO of ScS, comments: "We are delighted to be reporting our maiden set of results since listing on the London Stock Exchange. These results demonstrate the progress that has been made to develop ScS into a strong and resilient business. Our sales order intake is our best ever at this time of year and this momentum gives us good visibility for the second half. We are, therefore, confident of meeting market expectations for the full year.
"Looking ahead, we are excited about our future growth prospects, including our new concession agreement with House of Fraser, our flooring offering and online proposition. The group’s cash flow dynamics and new committed bank facilities underpin the strong financial position which will support our ambitions for future growth and deliver value for our new shareholders. To reflect this confidence, the board is today proposing a maiden interim dividend of 2.8p per share.”
