19 May 2024, 20:52
By Furniture News Jan 28, 2021

ScS "cautiously optimistic"

ScS has issued a half-year trading update covering the 26 weeks ended 23th January 2021.

Gross sales increased +13.9% to £182.3m, due to significant order intake growth in June and July following the first lockdown, together with the strong trading in Q1 of the current FY.

ScS commenced its winter sale with 57 of its 100 stores trading on Boxing Day. Following further restrictions, 37 stores then closed on 30th December, with the remaining 20 closing on 4th January. ScS says that performance in these stores was strong while they remained open.

Unlike the first national lockdown, and in line with Government guidelines, ScS' distribution centres have remained operational throughout the period, and continue to deliver goods to customers. The group's online sales channel continues to make good progress, with the half year seeing an increase in order intake of +98% YoY.

As of 23rd January, the group’s order book stood at £90.5m (including VAT) – up £16.8m YoY.

"Whilst it is too early to provide clarity on the outlook for the weeks and months ahead, we remain cautiously optimistic given the strong trading experienced by the group following the first and second lockdowns," reads the update. "Given the tactile nature of our products, the majority of customers chose to wait until stores re-opened to try our products in person before making their purchasing decision. This resulted in the business benefiting from pent-up demand, coupled with an increased level of investment by UK consumers in their homes. The group has built a robust balance sheet and continues to focus on cost and cash management to ensure we maintain this resilience in these challenging times."

As previously announced, Steve Carson joined the group on the 6th January, and will lead ScS as CEO following David Knight’s planned retirement in July.

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