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Hi, anyone know why so many tiny trades appear on this share?
What should also be taken into consideration here is that as a result of last winter's floods, many affected houses will now have dried out and passed by heath officials to be suitable for refurbishment meaning that a lot of those with damaged furniture will be able to go out and buy new on their insurance policy. This whole process will have been delayed by lockdown.
I would go through the fundamentals again looking at forward revenue, profit, divvi and take into account cash in the bank vs market cap. I also bought in the 130s held and have added today. I think this stock was way undervalued even before the corona drop.
Now I'm torn - I've been bouncing in and out of SCS a couple of times banking free shares along the way - I bought my last lot at 138.5 and had set a sell order at 170 but it expired at the end of June and I didn't renew it. Do I cash out with some nice free shares or hold for a bigger rise and the return of dividends? Since I started typing the price has gone from 175 to 187 - choices choices!
haha prosecco is more like my price range, could be a few quid better off after today though I couldnt have dreamt of a better trading update
Bolly or Pol Roger?
Champers anyone?
Why is DFS sp rising gently and this one stuck at rock bottom?
Huge buys yet v little upward movement!
The chart is shaping up like it could break out and explode upwards very shortly.
is quite hard given that approx 35,5m of the 38m share capital is owned by 9 major shareholders it does not leave to many for the PI to buy and sell .there is a reason for this a little gold mine me thinks.
well ive kept my small stake in scs 5k of share i think they will perform well and pay a divi at the end of the year.
The retail sector has been badly hit for obvious reasons due to the Covid-19, however opportunities also present themselves to pick up good value stocks, and for me £SCS is one that falls into that category, hence adding to the ISA along with another couple of retailers including £CARD which I will also share my thoughts on time permitting over the next few days.
I have been looking for retailers which are well run and historically well performing which I believe will see the Covid-19 crisis though and who have a commitment to reinstating the dividend payment as soon as we get to the other side.
ScS moved quickly as the Covid-19 situation progressed and have utilised the Government schemes available to protect the financial situation. Including the £12m inflow from a revolving credit facility, as at 23 March 2020, SCS held £74.8m in cash.
The company noted on the 6th of April on holding back the interim divided:
“Our focus in recent years on building a business with increasing resilience is reflected in the strength of our balance sheet and the level of flexibility in our cost base. We cannot predict the impact of COVID-19 but we believe the Group is as well positioned as it can be.”
“Despite the strength of our balance sheet, the Board feels that it is appropriate to suspend payment of the interim dividend, which was due to be paid on 7 May 2020. At a time when the UK Government is supporting ScS, it seems inappropriate to use the cash for anything other than protecting the financial strength and resilience of the business.”
ScS, or to give it its full title the ‘Sofa and Carpet Specialist’ is one of the UK’s leading furniture and flooring retailers and have over 100 years of furniture and retailing experience. The operate from a 100 stores and via the website and the current share price is currently sat on the 52wk low of 128p and that being 51% down on its year high of 258p. On the current market cap of £48m, this compares favourable with a net cash position of £63m stated at the end of March. The company is trading at less than 5 times net profit (if you believe they will get back to pre Covid-19 performance) this compares favourably to the market leader £DFS who are on 7.8 and with a weaker balance sheet.
ScS with an overall StockRank of 91, hits green on 5 out of 9 on the the Piotroski F-Score which aims to identify the healthiest companies amongst a basket of value stocks through applying a set of nine accounting-based stock selection criteria.
Having just announced on their website this bank holiday weekend that all its stores located in England are now back open under the new safety measures the company can start to rebuild following the shut door period.
With the economy dipping into recession and the likely housing market stagnation certainly this year and fewer people moving house, coupled with restrictions on flights and actually the confidence needed to be in the air in a confined space, I believe more people will invest in their homes later this year and will spend on things like new sofas, furniture, carpets and tables, with the 4 years interest free credit being a huge bonus for some families.
ScS for me is well placed to survive the Covid-19 due to the strong balance sheet, established market position and actually selling a product that I believe will benefit this year from the stagnant housing market and stay at home theme.
Recent investment in the e-commerce offering has driven an online sales increase of 24.5% to £9.8m (2019: £7.8m) at the half year stage, this again has helped the company during the lockdown period where the company has still maintained its website and active twitter feed to drive traffic with 4 years interest free credit, deals of the day and offers of money off if you buy before midnight.
I have previously shopped at ScS purchasing a 2-seater for the conservatory, no complaints at all to be honest and would shop with them again. ScS continues to focus on customer service with an "Excellent" Trustscore on Trustpilot which is based on over 200,000 reviews, one of only four companies in the UK to reach this milestone.
Based on the above, ScS Group Plc is a company I was happy to add to the ISA.
Ticker code: SCS, Shares in issue: 38m, Current SP: 128p, Market Cap: £48m, 52 Wk Low: 128p, 52 Wk High: 258p
Im trying to diversify but so hard not to bag another tranche here tuesday
Totally agree with that and as stated CARD. My third is WRKS for retail winners coming out of lockdown. SCS probably the least risky of the bunch.
Retail Pick - ScS Group Stores Now Back Open
https://app.stockopedia.com/content/retail-pick-sc-s-group-stores-now-back-open-611788?order=createdAt&sort=desc&mode=threaded
Not sure how or why the sp is at this low, despite covid the company is hoarding a mountain of cash and assets. All I can see is a bad H1 with a massive bounce in H2 reflecting pent up demand and an immediate return of the divvi. Either way im in and thanks for the opportunity!
the retail sector will start to open over the next few weeks 165 is looking a good entry price.
I expect the company to have purchased a big block of shares back of Sun Capital in the placing that occurred overnight. If not, as a shareholder I want to know why and there better be a good reason. The company is way overcapitalised and should return the cash pile back to shareholders immediately.
Yes they have. However the fall in recent L4L revenue reported
last month might be worth keeping in mind?.
Think this is a solid enough company, however the retail backdrop appears to be
weakening and operational gearing can bite hard on lower sales.
Position should be clearer when they next update.
Think this is worth watching. Not currently holding.
M and G just taken large stake. How strange no one has mentioned it . mS KRapp we meet again. Fist Dirivitives looking good following demise of CEO
Safe as sofas
I believe you're right Irene. Looks like the bots drove this down first thing and now the people are stepping in to grab a bargain. Great opportunity for a top up below 190, this was recently in in the 230s.
down to 1.84??!! What has happened here - no news i can see....
The market didn't seem to notice that we went ex-divi here yesterday so we got a 10.9 dividend for free. That alone represents a 5% yield.