2 Feb 2023 07:00
For Immediate Release | 2 February 2023 |
ScS Group plc
("ScS", or the "Group")
Interim Trading Update
Trading in line with expectations
ScS, one of the UK's largest retailers of upholstered furniture and flooring, is providing a trading update for the 26 weeks ended 28 January 2023 (the "Period").
ScS trading
Like-for-like order intake momentum improved significantly throughout the Period and the Group returned to growth of 2.6% in the last 10 weeks, which included the key winter sale. As previously reported, like-for-like performance in the first 16 weeks was impacted by a tough comparative.
Period | Weeks | Like-for-like order intake vs prior year |
31 July to 19 November 2022 | 1 to 16 | (9.1%) |
20 November 2022 to 28 January 2023 | 17 to 26 | 2.6% |
31 July 2022 to 28 January 2023 | 1 to 26 | (4.7%) |
The Group continued to invest in its operations and estate expansion by opening two new stores in Swindon and York, bringing the total UK store count to 100.
The balance sheet remains strong, with closing cash at 28 January 2023 of £76.9m and no debt.
Snugsofa.com
The Board is pleased with the progress made through collaboration with the team at Snug since the acquisition on 10 January 2023 and believes the acquisition represents further progression in the Group's strategy. Snug's strong brand and differentiated digital-first offering will complement the Group's existing proposition, further diversifying its customer base and increasing market share.
Outlook
Despite the current economic climate remaining challenging and unpredictable, the Board is encouraged by recent order levels. We continue to believe that the Group's refreshed strategy, strong cost management and robust balance sheet places it in an excellent financial and operational position. The Group remains on track to meet full year market expectations*.
ScS expects to announce its interim results on Tuesday, 21 March 2023. A meeting for analysts will be held on the morning of the results, please contact Buchanan via scs@buchanan.uk.com for further details.
*excludes the impact of Snugsofa.com on the results for the seven months to 29 July 2023, guidance on this is expected to be provided at the time of the Group's interim results. Snugsofa.com was acquired by the Group out of administration on 10 January 2023.
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 Iain Sexton | Tel: +44 (0)20 7408 4050 |
Notes to Editors
ScS is one of the UK's largest retailers of upholstered furniture and floorings. We trade as two separate brands- the core ScS brand and the newly acquired Snug brand.
The ScS brand is promoted as the "Sofa Carpet Specialist", seeking to offer value and choice through a wide range of upholstered furniture and flooring products. The 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 brand specialises primarily in fabric and leather sofas and chairs, selling 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). It also offers a range of third party brands (which include La-Z-Boy, Ideal Home and G Plan). ScS' flooring business includes carpets, rugs, wood, laminate and luxury vinyl tiling.
Snug is an innovative digital-first sofa and sofa-bed business specialising in modular and re-configurable sofas, with quick delivery and excellent quality and customer service. Although predominantly online, Snug also operates from one store in Leeds and seven concessions throughout England.