Property-related stocks have been boosted by the unexpected Conservative Party victory at the recent General Election, led by house builders and estate agents.

Hurt by a pre-election profit warning

But SCS (LON:SCS), a recently-floated furniture retailer, has not benefited thus far. Initially floated at the end of January at a 175p offer price, ScS now languishes at 160p following a poor trading update on 7 May:

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

Not a good start after less than 4 months as a listed company!

However, it did commit to paying its dividend, which is always a good sign. 

Value Abounds

Moreover, ScS now offers good value with a single-digit P/E, an Enterprise Value/Sales multiple of only 0.14 and a dividend yield of 8.6%.

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Balance Sheet Strength - Net Cash

Out of a market capitalisation of under £65m at time of writing, ScS has over £26m in net cash! So that provides some support for the shares. 

Yes, if you look to the current (0.95) and quick (0.62) ratios, you might argue that there is some risk to ScS's liquidity. But this is nothing new for a furniture retailer - after all, just look at larger rival DFS Furniture (LON:DFS). Equivalent current and quick ratios for DFS are 0.30 and 0.21 respectively!

Property Sales Have Picked Up

A potential catalyst for a re-rating is the pick-up that we have already started to see in the property market, with volumes starting to rise post-election now that risks of a mansion tax have receded. Rightmove, the online property listings site, is predicting a post-Election surge in properties for sale. This could help furniture sales and thus ScS - we…

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