Upholstered furniture and flooring retailer ScS has reported a growth in order intake and confirmed that it is making ‘progress’ following the acquisition of Snugsofa.com.
According to its latest trading update for the 26 weeks ended 28 January 2023, 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”.
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.
On its acquisition of Snug and future outlook, ScS said: “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.
“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.”