Full Year Trading Update
03/08/2023 07:00
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RNS Number : 1161I ScS Group PLC 03 August 2023
For Immediate Release 3 August 2023
ScS Group plc
("ScS", or the "Group")
Full Year Trading Update
Full year profit in line with market expectations
ScS, one of the UK's largest retailers of upholstered furniture and floorings,
today issues a trading update for the 52 weeks ended 29 July 2023.
The Group expects to report full year profit in line with market expectations,
driven by effective cost management and improved trading in the second half of
the year.
The Group's financial position remains robust, with cash at 29 July 2023 of
£69.5m and no debt.
ScS order intake
ScS's updated brand and strategy are beginning to resonate with customers,
resulting in strong like-for-like order growth of 6.0% from weeks 34 to 52
building on the 5.7% previously announced for weeks 27 to 33. As a result of
this growth, following a more challenging first quarter, order intake for the
full year was in line with FY22.
Continuing the trend of the past two years, the ScS business continues to gain
market share, cementing its position as the UK's second largest upholstered
furniture retailer.
Snug
Following the acquisition of Snug in January 2023, we have re-established
operations from an effective standing start. This included rebuilding supplier
relationships, restoring stock levels, improving brand awareness, and
ultimately building order momentum. Order growth was initially slower than we
had hoped but we are pleased that current run rates are now in line with our
expectations.
Outlook
We are cognisant of the economic conditions facing our customers including
higher interest rates and low consumer confidence, which are forecast to
continue throughout FY24. However, we remain confident that the Group's
strategy and strong balance sheet will enable ongoing trading resilience and
we continue to expect to grow our market share while selectively investing in
store and other strategic growth opportunities.
Notice of results
The Group will publish its preliminary results for the 52 weeks ended 29 July
2023 on 10 October 2023.
An analyst briefing will be held at 9.30am on the morning of the results.
Please contact Buchanan via scs@buchanan.uk.com (mailto:scs@buchanan.uk.com)
for further details.
Enquiries:
ScS Group PLC c/o Buchanan +44 (0)20 7466 5000
Steve Carson, Chief Executive Officer
Chris Muir, Chief Financial Officer
Buchanan Tel: +44 (0)20 7466 5000
Richard Oldworth scs@buchanan.uk.com (mailto:scs@buchanan.uk.com)
Toto Berger
Verity Parker
Shore Capital Tel: +44 (0)207 408 4050
Patrick Castle
James Thomas
Iain Sexton
Notes to Editors
ScS is one of the UK's largest retailers of sofas, flooring and furniture. We
trade as two separate brands- the core ScS brand and the newly acquired Snug
brand.
The ScS brand seeks to offer value and choice through a wide range of sofas,
flooring and furniture products. The product range is designed to appeal to a
broad customer base with a mid-market priced offering and is currently traded
from 99 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). The 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
two stores in Leeds and Bristol, and 16 concessions throughout the UK.
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