28 May 2024, 12:27
By Furniture News Oct 11, 2022

ScS preliminaries reflect "strategic progress"

In its audited preliminary results for the 52 weeks ended 30th July 2022, ScS reports "strong results and strategic progress".

The year saw record sales delivered (revenue hit £331.6m, up +8.6% YoY), while gross margin was maintained at pre-pandemic levels, despite inflationary cost pressures.

Underlying profit before tax, excluding business rates relief, was £13.8m (£5.6m higher than in FY21), and the retailer finished the year with a strong balance sheet, with cash of £70.8m.

One-year LFL order growth stood at +3.9%.

Strategic aims achieved during the year included strengthened leadership in key teams, an improved Trustpilot rating (to the maximum of five stars), and the implementation of a new concept design in three stores.

ScS CEO Steve Carson comments: “We are pleased to be announcing results that are ahead of market expectations. The year saw the group deliver record sales, maintain its strong gross margin and manage costs effectively, resulting in a +68% increase in underlying profit before tax, excluding business rates relief. We also saw excellent progress in year one of our refreshed strategy, including strengthening our teams as we look to drive the business forward in the coming years. 

"Trading since the start of the new financial year has been subdued, with the challenges of high inflation impacting consumers’ disposable income. As previously reported, the sector is seeing softening demand as consumers defer spend on big-ticket discretionary purchases. 

"We are pleased with the strategic progress we have made which, coupled with the strength of the group’s balance sheet, places the business in a strong position to deal with current headwinds. Whilst we expect the coming months to be challenging, we are confident in the longer-term growth prospects of the business.”

ScS acknowledges that trading in the new FY so far has been tougher than it saw in the second half of FY22, with order intake for the first 10 weeks down -7.8% on a LFL basis compared to the first 10 weeks to 6th October 2018 in FY19 (the last full year not impacted by the pandemic).

"The tightening economy, coupled with the execution of the next phase of our strategy, will provide opportunities to take market share," the retailer concludes.

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