7 May 2015 07:00
For Immediate Release | 7 May 2015 |
ScS Group PLC
("ScS" or the "Company")
Trading Update
ScS, one of the UK's largest retailers of upholstered furniture and floorings, today provides an update following the important Easter and early Spring trading period.
Since the Half Year end in January 2015, trading for the 10 week period up to Saturday 4 April was in line with expectations and the interim announcement, with like for like order intake up 7.6%. However, like for like order intake in the 4 trading weeks to 2 May, commencing Easter Monday, was 15.9% below last year.
Trading over the Easter Bank Holiday weekend and the first May Bank Holiday has been impacted by a period of warmer weather which coincided with peak sales periods, resulting in lower footfall in stores which, together with uncertainty over the outcome of the General Election, has significantly lowered customers' confidence in committing to big ticket purchases and resulted in higher levels of market discounting.
The Board expects trading to revert to more normal levels and to report EBITDA of between £11m to £12m for the full year to 25 July 2015, including the expected loss from the House of Fraser concession agreement.
The Board remains confident of the future growth prospects for ScS and, supported by strong cash flow dynamics and a robust financial position, is committed to paying the planned £5.6m dividend to shareholders for the year ending 25th July 2015.
A further update will be made at the time of the Company's year-end in July.
Enquiries:
ScS Group PLC David Knight, Chief Executive Officer Ron Turnbull, Chief Financial Officer
| c/o Buchanan +44 (0)20 7466 5000 |
Buchanan Mark Edwards / Gabriella Clinkard/ Jane Glover
| Tel: +44 (0)20 7466 5000 scs@buchanan.uk.com |
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 currently trades from 97 stores.
The Company'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 trade marks (such as the Lotti, the Danni and the Zamba) and a range of branded products which are sold under registered trade marks owned by ScS (such as Endurance and SiSi Italia). The Group also offers a range of third party brands (which include La-Z-Boy, G Plan and Parker Knoll). The Company's flooring business includes carpets, as well as laminate and vinyl flooring.
In 2014 ScS began to operate the furniture and carpet concession ranges for the House of Fraser "For Living" brand. ScS currently operates in 30 House of Fraser stores across the UK.
Cautionary Statement
This announcement contains certain forward-looking statements with respect to the financial condition and operational results of ScS Group plc. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Nothing in this announcement should be construed as a profit forecast. Except as required by law, ScS Group plc has no obligation to update the forward-looking statements or to correct any inaccuracies therein.