Interim Trading Update
02/02/2023 07:00
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RNS Number : 6462O ScS Group PLC 02 February 2023
For Immediate Release 2 February 2023
ScS Group plc
("ScS", or the "Group")
Interim Trading Update
Trading in line with expectations
ScS, one of the UK's largest retailers of upholstered furniture and flooring,
is providing a trading update for the 26 weeks ended 28 January 2023 (the
"Period").
ScS trading
Like-for-like order intake momentum improved significantly throughout the
Period and the Group returned to growth of 2.6% in the last 10 weeks, which
included the key winter sale. As previously reported, like-for-like
performance in the first 16 weeks was impacted by a tough comparative.
Period Weeks Like-for-like order
intake vs prior year
31 July to 19 November 2022 1 to 16 (9.1%)
20 November 2022 to 28 January 2023 17 to 26 2.6%
31 July 2022 to 28 January 2023 1 to 26 (4.7%)
The Group continued to invest in its operations and estate expansion by
opening two new stores in Swindon and York, bringing the total UK store count
to 100.
The balance sheet remains strong, with closing cash at 28 January 2023 of
£76.9m and no debt.
Snugsofa.com
The Board is pleased with the progress made through collaboration with the
team at Snug since the acquisition on 10 January 2023 and believes the
acquisition represents further progression in the Group's strategy. Snug's
strong brand and differentiated digital-first offering will complement the
Group's existing proposition, further diversifying its customer base and
increasing market share.
Outlook
Despite the current economic climate remaining challenging and unpredictable,
the Board is encouraged by recent order levels. We continue to believe that
the Group's refreshed strategy, strong cost management and robust balance
sheet places it in an excellent financial and operational position. The Group
remains on track to meet full year market expectations*.
ScS expects to announce its interim results on Tuesday, 21 March 2023. A
meeting for analysts will be held on the morning of the results, please
contact Buchanan via scs@buchanan.uk.com (mailto:scs@buchanan.uk.com) for
further details.
*excludes the impact of Snugsofa.com on the results for the seven months to 29
July 2023, guidance on this is expected to be provided at the time of the
Group's interim results. Snugsofa.com was acquired by the Group out of
administration on 10 January 2023.
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)20 7408 4050
Patrick Castle
James Thomas
Iain Sexton
Notes to Editors
ScS is one of the UK's largest retailers of upholstered furniture and
floorings. We trade as two separate brands- the core ScS brand and the newly
acquired Snug brand.
The ScS brand is promoted as the "Sofa Carpet Specialist", seeking to offer
value and choice through a wide range of upholstered furniture and flooring
products. The 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
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). ScS'
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
one store in Leeds and seven concessions throughout England.
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