Full Year Trading Update

RNS Number : 6179H

ScS Group PLC

05 August 2021

 

For Immediate Release

5 August 2021

This announcement contains inside information for the purposes of Article 7 of the UK Market Abuse Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018

ScS Group plc

("ScS", or the "Group")

Full Year Trading Update

Continued strong trading; full year performance for FY21 and outlook for FY22 ahead of market expectations

ScS, one of the UK's largest retailers of upholstered furniture and floorings, today issues the following trading update for the 53 weeks ended 31 July 2021, ahead of announcing its preliminary results on 5 October 2021.

Order intake

Like-for-like order intake summary for the year:

Period	Weeks	Like-for-like order intake vs prior year	Like-for-like order  intake vs 2019
26 July to 19 December	1 to 21	12.4%	6.6%
20 December to 23 January	22 to 26	(65.2%)*	(65.9%)
26 July 2020 to 23 January 2021	1 to 26	(9.1%)	(13.1%)
24 January to 3 April 21	27 to 36	(82.9%)*	(86.2%)
4 April 2021 to 12 June 2021	37 to 46	370.8%**	79.0%
13 June 2021 to 31 July 2021	47 to 53	(45.5%)	23.7%
26 July 2020 to 31 July 2021	1 to 53	(1.5%)	(6.5%)

  *periods impacted by third national lockdown

**stores were closed for the majority of this period in the prior year

As noted in our previous update on 16 June, the current and prior year have been impacted by regional and national store closures across the UK as a result of COVID-19. Encouragingly, when our stores have been open performance has been strong, with the final seven weeks of the year seeing like-for-like orders growth of 23.7% when compared to 2019. The same period in the prior year benefited from strong pent up demand following the re-opening of our stores in May 2020 after the first national lockdown.

Despite our stores being closed for 17 weeks in the FY21 year, our full year like-for-like order intake was down only 6.5% on 2019.

At 31 July 2021, the Group's order book was £103.5m (including VAT), £1.2m lower than at the same point in the prior year and £60.6m higher than at the same point in 2019.

The Group's financial position remains robust, with cash at 31 July 2021 of £87.7m and no debt.

Outlook

The Board is encouraged by the strong trading performance since reopening and therefore believes that the Group is in a strong position as we enter the new financial year. The next few months still hold a level of uncertainty, with the tone of government messaging at present being one of caution. However, given recent trading and the strength of the current order book, the Board's expectations for FY21 and FY22 are ahead of current market forecasts.

Next scheduled update

The Group will publish its preliminary results for the 53 weeks ended 31 July 2021 on Tuesday 5 October 2021.

An analyst briefing will be held at 9.30am on the morning of the results, details of which will be provided in due course.

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 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.

 

END

 

 

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