Lloyds Bank Commercial Banking has provided a new £12m funding package to ScS, to support its return to the stock market. The bank’s north east-based Mid Markets and Acquisition Finance teams provided a revolving credit facility to the retailer, which was recently listed on the stock market by its private equity owner Sun European Partners LLP.
ScS will use the finance package to support working capital as a newly-listed business.
Following Sun European Partner LLP’s acquisition of the business in 2008, the directors of ScS have implemented a strategy aimed at increasing sales through initiatives including the introduction of flooring, operating House of Fraser’s concession stores and the introduction of third-party brands.
This has resulted in ScS recording revenue growth of 23.6% in the last two years and growing its market share to 8.7%.
Founded in the 1890s and headquartered in Sunderland, ScS operates 97 stores across the UK and 30 House of Fraser concessions, as well as online sales channels. The vast majority of its sofas, chairs and corner units are made to order and sourced from UK-based suppliers.
Ron Turnbull, CFO at ScS, says: “This new funding underpins the confidence felt throughout the business in recent years and further strengthens our financial position. With the support of Lloyds Bank post-IPO, we have a solid platform from which to capitalise on opportunities presented by the recovering economy.”
Andrew Hopper, relationship director at Lloyds Bank Commercial Banking, adds: “ScS has been on a steady upward trajectory in recent years, with economic confidence leading to increased consumer spending. An uptick in the housing market has also boosted ScS’ fortunes and the positive reception from investors to the IPO shows a wider confidence in the business. We are pleased to be supporting ScS and its ambitious management team in this next stage of growth."
