I've been a cheerleader for SCS (LON:SCS) over last few years. A superbly run business that makes real fat cash profits. 

June 2017 - https://www.stockopedia.com/content/armchair-ageddon-at-dfs-194239/

Jan 2018 - https://www.stockopedia.com/content/scs-sofa-so-good-baby-302388/

I've held my position since those notes, but...

I sold my entire holding this morning at 217-220p. I thought I'd better confess. I've spoken to a few of you here positively about the business. I still think there's much great and under appreciated about SCS but I think they have made an unfortunate misstep this year in terms of capital management and ensuring shareholders get a good maximised long term return. It's probably just oversight from great operational management but it may reveal lack of interest in shareholders and/or a tendency to go for empire over return. It could also indicate that there is awks between key shareholder (Sun Partners) and management.

Shame I didn't follow hunch and sell closer to 250p. I had a reasonably chunky position and this stock doesn't always have the best liquidity so results day is decision day if want to move quick. Some people have been happy enough to buy and the price has held up decently (partly as cheap and cash backed too)

I've owned since the swoon down in second half of 2016 around 150p (IPO price 175p Jan 2015). Approx 3 years holding period giving about 60% capital appreciation which is less than I hoped for (and I think its should have been more)...however, the 10%pa dividend yield from purchase has added significantly too so close to 25%pa return which is okay.

I'm a bit disappointed to sell at 220p and feel I should have had a double on purchase price to >300p and I was really hoping to hold longer term and collect a good dividend as well as capital appreciation.  I felt the lack of investor appreciation combined with a management that had the resources to make decisive accretive moves over time would power a low risk moderate compounder that would give ballast against some of my more risky positions. With better action by management SCS would be worth comfortably over 300p today and have a really positive vibe from investors.

Obviously, what I hope for and what happens are not the same!

IMO management have failed to play their cards correctly....which I was…

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