REG - ScS Group plc - AGM Statement & Board Changes

SCSAnnouncement

25/11/2020 07:00

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RNS Number : 3832G  ScS Group PLC  25 November 2020

 For Immediate Release  25 November 2020

 

ScS Group plc

("ScS", or the "Group")

AGM Statement & Board Changes

Trading in line with the Board's expectations; new CEO appointed

 

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 today at its registered office, ScS, 45-49
Villiers Street, Sunderland, SR1 1HA. At the meeting, Alan Smith, Chairman,
will provide an update on the following matters:

 

Trading

 

 Period                     Weeks       Like-for-like order

                                        intake vs prior year
 26 July to 31 October      1 to 14     31.7%
 1 November to 21 November  15 to 17    (65.2%)

 26 July to 21 November     1 to 17     15.0%

 

The Group had a positive start to the year with 14 weeks of strong order
intake growth to 31 October 2020. As expected, the Welsh firebreak and the
second lockdown currently in operation in England has impacted trading over
the recent weeks. Temporary store closures impacting the period to date are as
follows:

·    Wales, 7 stores - 23 October to 8 November

·    England, 81 stores - 5 November to 2 December

Trading since the second lockdown commenced has been similar to that
experienced during the initial lockdown, where, given the tactile nature of
our products, the majority of customers waited until stores re-opened to try
our product in person before making their purchasing decision.

Unlike the first national lockdown, and in line with government guidelines,
our regional distribution centres have remained operational and continue to
deliver goods to our customers.

Whilst it is too early to provide clarity on the outlook for the weeks and
months ahead, we are encouraged by the trading pattern the Group experienced
following the first lockdown, when the business benefited from significant
pent up demand and an increased level of investment by UK consumers in their
homes. Whether this trend repeats itself following the second lockdown remains
to be seen, however, the Group has built a strong balance sheet and has worked
hard to ensure it is as resilient as it can be.

At 21 November 2020, the Group's cash balance totalled £113m and had no debt.
Further liquidity is available through the £20.0m CLBILS revolving credit
facility (RCF) granted on 25 August 2020.

 

Despite the uncertainty, the focus on our value led proposition has proved
successful to date and we are confident it will continue to appeal to
consumers who want to buy great products at the lowest possible price.

Board Changes

The Board is delighted to announce the appointment of Steve Carson to the
Board as Group CEO to lead ScS following David Knight's planned retirement
next year. Steve will join the Group on 6 January 2021 for a period of
handover before David leaves the Group in July 2021.

Steve brings deep knowledge and experience in retail and leadership after an
extensive career in the sector, most recently as Group Managing Director of
Holland and Barrett. Prior to this, Steve held a number of roles at Home
Retail Group plc ('HRG'), which owned a number of well-known brands such as
Argos, Homebase and Habitat. Steve latterly served as Director of Retail and
Customer Operations and a Board member from 2014-2018, during which time HRG
was acquired by Sainsbury's plc, where Steve had also begun his career. Having
worked across a number of national household brands, Steve's key expertise is
in managing and optimising all areas of the store network, leading national
teams and driving digital innovation.

Alan Smith, Chairman of ScS, commented on the appointment:

"Finding a successor to a CEO as capable and long serving as David has not
been easy but I believe that, in Steve, we have found an executive with the
right mix of experience, skills and personality to take the Group forward.
This early appointment will allow Steve ample time to meet all the ScS team
and understand the Company's approach to its customers. On behalf of the
Board, I warmly welcome Steve to ScS."

Steve Carson commented:

"I am delighted to be joining ScS and look forward to getting to know the ScS
team, the Board and our external partners as we build on our successes,
identify new and exciting opportunities and together embark on the next stage
of the ScS evolution."

No information is required to be disclosed pursuant to LR 9.6.13 R
(https://www.handbook.fca.org.uk/handbook/LR/9/5.html#D420) .

 

Enquiries:

 

 ScS Group PLC                           c/o Buchanan +44 (0)20 7466 5000

 David Knight, 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)

 Tilly Abraham

 Charlotte Slater
 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 100
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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