AGM Trading Update

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 co nsistent with that which has proven successful in previous years. W e 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 Steve Carson, Chief Executive Officer Chris Muir, Chief Financial Officer	c/o Buchanan [phone]
Buchanan Richard Oldworth Victoria Hayns Tilly Abraham	Tel: [phone] [e-mail]
Shore Capital Patrick Castle James Thomas	Tel: [phone]

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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