4 Aug 2022 07:00
For Immediate Release | 4 August 2022 |
This announcement contains inside information for the purposes of Article 7 of the UK Market Abuse Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018
ScS Group plc
("ScS", or the "Group")
Full Year Trading Update
Full year profit for FY22 ahead of market expectations
ScS, one of the UK's largest retailers of upholstered furniture and floorings, today issues the following trading update for the 52 weeks ended 30 July 2022, ahead of announcing its preliminary results on 11 October 2022.
The board is pleased to announce that positive trading, strong margin, and effective cost management during the year means the Group now expects to report full year profit ahead of market expectations.
Order intake
FY22 saw like-for-like orders growth of 3.9% when compared to FY21, although FY21 was impacted by the effects of the COVID-19 pandemic. There was a 3.9% reduction in orders when compared to FY19, the last period not impacted by the pandemic.
Period | Weeks | Like-for-like order intake vs prior year | Like-for-like order intake vs FY19 |
1 August 2021 to 29 January 2022 | 1 to 26 | 16.6%* | (3.1%) |
30 January 2022 to 30 July 2022 | 27 to 52 | (9.9%)* | (4.9%) |
1 August 2021 to 30 July 2022 | 1 to 52 | 3.9%* | (3.9%) |
*periods impacted by third national lockdown
At 30 July 2022, the Group's order book was £71.7m (including VAT), £31.8m lower than at the same point in the prior year and £28.8m higher than at the same point in 2019.
Outlook
After a challenging 12 months, the Board is pleased to be announcing profit ahead of market expectations for the year ended July 2022.
The Group's financial position remains robust, with cash at 30 July 2022 of £70.8m and no debt. The Group remains committed to the share buyback programme announced in March 2022 to repurchase and cancel up to £7m of its share capital. The programme is progressing well and as at 30 July the Group had repurchased and cancelled 1.24m shares.
In recent months we have seen reduced in-store and online visitors resulting in a reduction in order levels, driven by the widely reported falling consumer confidence as a result of the cost of living pressures and economic uncertainty.
We expect the low consumer confidence will continue to adversely impact the Group in FY23. However, the Group is in a strong position as we enter the new financial year, and strategic progress over the last 12 months means we are well positioned to take market share and maximise opportunities in a difficult environment.
Notice of results
The Group will publish its preliminary results for the 52 weeks ended 30 July 2022 on Tuesday 11 October 2022.
An analyst briefing will be held at 9.30am on the morning of the results, details of which will be provided in due course.
Enquiries:
ScS Group PLC Steve Carson, Chief Executive Officer Chris Muir, Chief Financial Officer | c/o Buchanan +44 (0)20 7466 5000 |
Buchanan Richard Oldworth Toto Berger Verity Parker | Tel: +44 (0)20 7466 5000 scs@buchanan.uk.com |
Shore Capital Patrick Castle James Thomas | Tel: +44 (0)207 408 4050 |
Notes to Editors
ScS is one of the UK's largest retailers of upholstered furniture and flooring, 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 98 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.