ScS sitting pretty despite difficult summer

ScS sitting pretty despite difficult summer

UK-based home furnishing retailer ScS Group PLC (LON: SCS) booked consistent full-year progress across its sales indices, despite a challenging market climate.

The Company’s gross sales improved by £5.8 million year-on-year, to £333.3 million. This drove revenue growth of £4.6 million to £317.4 million, which in turn saw its underlying EBITDA rise by £0.6 million to £19.7 million, and its underlying operating profit bounce 4.6% to £14.3 million.

ScS shareholders enjoyed similar progress, with underlying EPS jumping 13.1% to 30.3p and a full-year dividend of 16.70p per share, up 3.1%.

The Group added that it had opened a new store in Kirkcaldy in September, alongside the roll-out of its in-store sales app in July and further investment in its e-commerce offerings, which saw online sales hike 21.7% to £16.8 million during FY19.

ScS comments

David Knight, Chief Executive Officer, responded to the positive results, 

“I am delighted to report another year of good progress and growth for ScS in our continued effort to ensure we remain Britain’s best value sofa and carpet retailer.”

“Since the start of the current financial year, trading conditions have been more challenging, with like-for-like order intake falling 7.6% for the period from 28 July 2019 to 29 September 2019. This period was impacted by the record temperatures experienced by the UK across the August bank holiday weekend and the increasing political and economic uncertainty we are currently facing in the UK.”

“We remain conscious of the impending Brexit deadline, and the impact this may have on the market, consumer confidence and the wider economy. However, the Group’s financial health has never been as strong and with our resilient, debt-free balance sheet, we are in a good position to manage the ongoing uncertainty, and furthermore seek opportunities which will add value in the longer term.”

“Our strong and clear value offering has proven successful, and we are confident it will continue to appeal to our customers who want to buy great products at the lowest possible price.”

Investor notes

The Company’s shares have dipped 6.33% or 15.00p to 222.00p per share 01/10/19 13:07 BST. Peel Hunt analysts reiterated their ‘Buy’ stance on ScS stock, the Group’s p/e ratio is 8.84 and their dividend yield is generous at 7.30%.

Elsewhere in retail and on the highstreet, there have been updates from; McColl’s Retail Group PLC (LON: MCLS), Boohoo Group PLC (LON: BOO), Burberry Group plc (LON: BRBY), Associated British Foods plc (LON: ABF), H&M (STO: HM-B) and Sports Direct International Plc (LON: SPD).