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16 Jun 2021 07:00
For Immediate Release | 16 June 2021 |
This announcement contains inside information for the purposes of Article 7 of 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")
Trading Update
Current trading very strong and the Board now expects FY21 to be ahead of market expectations
Outlook for FY22 substantially better than current market forecasts
Resumption of dividends with interim dividend declared today
ScS, one of the UK's largest retailers of upholstered furniture and floorings, today issues the following trading update for the 46 weeks ended 12 June 2021.
Order intake
As previously reported, the Group experienced strong order intake growth over the first 21 weeks of the financial year despite the impact of further temporary regional and national store closures across the UK as a result of COVID-19. Increased restrictions across the UK meant our stores were closed from late December onwards, with our Scottish stores opening on 5 April, followed by our English and Welsh stores on 12 April.
Period | Weeks | Like-for-like order intake vs prior year | Like-for-like order intake vs 2019 |
26 July to 19 December | 1 to 21 | 12.4% | 6.6% |
20 December to 23 January | 22 to 26 | (65.2%) | (65.9%) |
26 July 2020 to 23 January 2021 | 1 to 26 | (9.1%) | (13.1%) |
24 January to 3 April 21 | 27 to 36 | (82.9%) | (86.2%) |
4 April 2021 to 12 June 2021 | 37 to 46 | 370.8%* | 79.0% |
26 July 2020 to 12 June 2021 | 1 to 46 | 10.6% | (9.5%) |
*stores were closed for the majority of this period in the prior year
The Board is delighted to report that, following the reopening of our stores, performance has been very encouraging. The Board expects full year performance for FY21 to be ahead of market expectations.
The launch of the new website, coupled with a number of initiatives completed in the year, has seen the Group's online sales channel continue to make good progress, with a year to date increase in order intake of 95.3% when compared with the same period in the prior year (+165.0% on a two year basis).
As at 12 June 2021, the Group's order book was £116.6m (including VAT), £39.0m larger than at the same point in the prior year.
Liquidity
The Group has maintained a robust balance sheet, with cash at 12 June 2021 of £101.3m and no debt. Further liquidity is available through the three year £20.0m CLBILS revolving credit facility (RCF) granted on 25 August 2020.
Furlough
Given the encouraging trading performance, and in line with the intention outlined in our half year results announcement, the Board confirms that the Group has repaid the £3.0m Coronavirus Job Retention Scheme (CJRS) grants previously claimed in relation to the current financial year.
Dividend
The strength of the Group's balance sheet, coupled with the robust trading experienced since our stores opened in April, has provided the Board with the confidence to recommence dividends, starting with an interim dividend of 3.0p per share which is being declared with this update. The dividend will be paid on 24 July 2021 to shareholders on the register on 9 July 2021. The ex-dividend date is 8 July 2021.
Outlook
The Board is encouraged by the Group's strong trading performance since reopening. Whilst some uncertainty persists relating to the end to all Covid restrictions, the Board believes the Group is well positioned to maximise opportunities for growth. The Group has a robust balance sheet and the re-introduction of dividends today reflects the Board's confidence in the business going forward. As such, and given the strength of the current order book, the Board's outlook for FY22 is substantially better than current market forecasts.
David Knight's handover to the new CEO Steve Carson has progressed as planned and Steve has now assumed responsibility for the day to day running of the business, with David remaining available to support as and when required.
Next scheduled update
The Group will provide a trading update for the 53 weeks ending 31 July 2021 on Thursday 5 August, ahead of publishing its preliminary results for the year on Tuesday 5 October 2021.
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 Tilly Abraham Charlotte Slater | Tel: +44 (0)20 7466 5000 scs@buchanan.uk.com |
Shore Capital Patrick Castle James Thomas Sarah Mather | Tel: +44 (0)207 408 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.
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