25 Nov 2020 07:00
For Immediate Release | 25 November 2020 |
ScS Group plc
("ScS", or the "Group")
AGM Statement & Board Changes
Trading in line with the Board's expectations; new CEO appointed
ScS, one of the UK's largest retailers of upholstered furniture and floorings, provides the following update ahead of the Company's Annual General Meeting ("AGM") to be held at 14:00 today at its registered office, ScS, 45-49 Villiers Street, Sunderland, SR1 1HA. At the meeting, Alan Smith, Chairman, will provide an update on the following matters:
Trading
Period | Weeks | Like-for-like order intake vs prior year |
26 July to 31 October | 1 to 14 | 31.7% |
1 November to 21 November | 15 to 17 | (65.2%) |
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|
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26 July to 21 November | 1 to 17 | 15.0% |
The Group had a positive start to the year with 14 weeks of strong order intake growth to 31 October 2020. As expected, the Welsh firebreak and the second lockdown currently in operation in England has impacted trading over the recent weeks. Temporary store closures impacting the period to date are as follows:
· Wales, 7 stores - 23 October to 8 November
· England, 81 stores - 5 November to 2 December
Trading since the second lockdown commenced has been similar to that experienced during the initial lockdown, where, given the tactile nature of our products, the majority of customers waited until stores re-opened to try our product in person before making their purchasing decision.
Unlike the first national lockdown, and in line with government guidelines, our regional distribution centres have remained operational and continue to deliver goods to our customers.
Whilst it is too early to provide clarity on the outlook for the weeks and months ahead, we are encouraged by the trading pattern the Group experienced following the first lockdown, when the business benefited from significant pent up demand and an increased level of investment by UK consumers in their homes. Whether this trend repeats itself following the second lockdown remains to be seen, however, the Group has built a strong balance sheet and has worked hard to ensure it is as resilient as it can be.
At 21 November 2020, the Group's cash balance totalled £113m and had no debt. Further liquidity is available through the £20.0m CLBILS revolving credit facility (RCF) granted on 25 August 2020.
Despite the uncertainty, the focus on our value led proposition has proved successful to date and we are confident it will continue to appeal to consumers who want to buy great products at the lowest possible price.
Board Changes
The Board is delighted to announce the appointment of Steve Carson to the Board as Group CEO to lead ScS following David Knight's planned retirement next year. Steve will join the Group on 6 January 2021 for a period of handover before David leaves the Group in July 2021.
Steve brings deep knowledge and experience in retail and leadership after an extensive career in the sector, most recently as Group Managing Director of Holland and Barrett. Prior to this, Steve held a number of roles at Home Retail Group plc ('HRG'), which owned a number of well-known brands such as Argos, Homebase and Habitat. Steve latterly served as Director of Retail and Customer Operations and a Board member from 2014-2018, during which time HRG was acquired by Sainsbury's plc, where Steve had also begun his career. Having worked across a number of national household brands, Steve's key expertise is in managing and optimising all areas of the store network, leading national teams and driving digital innovation.
Alan Smith, Chairman of ScS, commented on the appointment:
"Finding a successor to a CEO as capable and long serving as David has not been easy but I believe that, in Steve, we have found an executive with the right mix of experience, skills and personality to take the Group forward. This early appointment will allow Steve ample time to meet all the ScS team and understand the Company's approach to its customers. On behalf of the Board, I warmly welcome Steve to ScS."
Steve Carson commented:
"I am delighted to be joining ScS and look forward to getting to know the ScS team, the Board and our external partners as we build on our successes, identify new and exciting opportunities and together embark on the next stage of the ScS evolution."
No information is required to be disclosed pursuant to LR 9.6.13 R.
Enquiries:
ScS Group PLC David Knight, Chief Executive Officer Chris Muir, Chief Financial Officer | c/o Buchanan +44 (0)20 7466 5000 |
Buchanan Richard Oldworth Tilly Abraham Charlotte Slater | Tel: +44 (0)20 7466 5000 scs@buchanan.uk.com |
Shore Capital Patrick Castle James Thomas | Tel: +44 (0)20 7408 4050 |
Notes to Editors
ScS is one of the UK's largest retailers of upholstered furniture and floorings, promoting itself as the "Sofa Carpet Specialist", seeking to offer value and choice through a wide range of upholstered furniture and flooring products. The Group's product range is designed to appeal to a broad customer base with a mid-market priced offering and is currently traded from 100 stores.
The Group's upholstered furniture business specialises primarily in fabric and leather sofas and chairs. ScS sells a range of branded products which are not sold under registered trademarks and a range of branded products which are sold under registered trademarks owned by ScS (such as Endurance, Inspire and SiSi Italia). The Group also offers a range of third party brands (which include La-Z-Boy and G Plan). The Group's flooring business includes carpets, as well as laminate and vinyl flooring.