ScS sees improvement during second half of the year

Upholstered furniture and floorings retailer ScS has reported improved trading during the second half of the year with profit to be in line with market expectations.

According to its latest trading update for the 52 weeks ended 29 July 2023, ScS expects to report full year profit in line with market expectations, driven by effective cost management and improved trading in the second half of the year.

The Group’s financial position remains robust, with cash of £69.5m and no debt.

Commenting, the group said: “ScS’s updated brand and strategy are beginning to resonate with customers, resulting in strong like-for-like order growth of 6.0% from weeks 34 to 52 building on the 5.7% previously announced for weeks 27 to 33. As a result of this growth, following a more challenging first quarter, order intake for the full year was in line with FY22.

“Continuing the trend of the past two years, the ScS business continues to gain market share, cementing its position as the UK’s second largest upholstered furniture retailer.

“Following the acquisition of Snug in January 2023, we have re-established operations from an effective standing start. This included rebuilding supplier relationships, restoring stock levels, improving brand awareness, and ultimately building order momentum. Order growth was initially slower than we had hoped but we are pleased that current run rates are now in line with our expectations.

“We are cognisant of the economic conditions facing our customers including higher interest rates and low consumer confidence, which are forecast to continue throughout FY24. However, we remain confident that the Group’s strategy and strong balance sheet will enable ongoing trading resilience and we continue to expect to grow our market share while selectively investing in store and other strategic growth opportunities.”

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