REG - ScS Group plc - AGM Trading Update

SCSAnnouncement

26/11/2021 07:00

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RNS Number : 6567T  ScS Group PLC  26 November 2021

 For Immediate Release  26 November 2021

 

 

ScS Group plc

("ScS", or the "Group")

AGM Trading Update

Year to date performance ahead on two year like-for-likes

 

ScS, one of the UK's largest retailers of upholstered furniture and floorings,
provides the following update ahead of the Company's Annual General Meeting
("AGM") to be held at 14:00 GMT today at its registered office, ScS, 45-49
Villiers Street, Sunderland, SR1 1HA. At the meeting, the Group's Chair, Alan
Smith will provide the following update on performance and outlook.

 

Trading

 

Total two-year like-for-like order growth of 0.9% for the 16 weeks ending 20
November 2021, with a one-year like-for-like order reduction of 10.6%
following an unprecedented period of pent-up demand at the beginning of the
prior year.

As previously reported, the Group had a strong start to the year, resulting in
two year like-for-like order intake growth for the first nine weeks. However,
over the last seven weeks, the Group has seen a reduction in store footfall
and conversion with consumers spending less on big ticket discretionary
purchases. This appears to be driven by a change in behaviour with consumers
shopping earlier for Christmas when compared with previous years. The extended
product lead times currently being experienced across the furniture and wider
retail industry are also having an impact on current purchasing trends.

At 20 November 2021, the Group's order book was £131.9m, £71.5m above the
same point two years ago. Our online business, which is a key part of our
ongoing strategy for growth, continues to perform well, with two-year
like-for-like order growth for the first 16 weeks of the year of 38.5%.

Outlook

The Group is now preparing for the winter sales trading period, and whilst it
remains difficult to predict shopping habits and consumer engagement, the
business is planning to approach this key period in a manner consistent with
that which has proven successful in previous years. We continue to work
closely with our existing suppliers to mitigate current supply chain
challenges. To broaden our customer proposition, we have recently partnered
with new UK suppliers so that we can offer furniture on shorter lead times.

We believe our continued focus on a promotional, value-led proposition will
remain attractive to our target market and the Board looks forward to the
future with continued confidence.

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)

 Victoria Hayns

 Tilly Abraham
 Shore Capital                           Tel: +44 (0)20 7408 4050

 Patrick Castle

 James Thomas

 

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 is currently traded from 99 stores.

 

The Group'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 trademarks and a range of branded products which are
sold under registered trademarks owned by ScS (such as Endurance, Inspire and
SiSi Italia). The Group also offers a range of third party brands (which
include La-Z-Boy and G Plan). The Group's flooring business includes carpets,
as well as laminate and vinyl flooring.

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