Half Year Trading Update

RNS Number : 9707M

ScS Group PLC

27 January 2021

 

For Immediate Release

27 January 2021

ScS Group plc

("ScS", or the "Group")

Half Year Trading Update

ScS, one of the UK's largest retailers of upholstered furniture and floorings, today issues the following trading update ahead of announcing its interim results for the 26 weeks ended 23 January 2021 on 16 March 2021.

Gross sales

Gross sales in the 26 weeks to 23 January 2021 increased 13.9% to £182.3m (2020: £160.1m). This increase is due to the significant order intake growth seen in June and July 2020 following the first lockdown, together with the strong trading in the first quarter of the current financial year. Unlike the first national lockdown, and in line with government guidelines, our distribution centres have remained operational throughout the period and continue to deliver goods to our customers.

As at 23 January 2021, the Group's order book is £90.5m (including VAT), £16.8m larger than at the same point in the prior year.

Order intake

Period	Weeks	Like-for-like order intake vs prior year
26 July to 19 December	1 to 21	12.4%
20 December to 23 January	22 to 26	(65.2%)
26 July 2020 to 23 January 2021	1 to 26	(9.1%)

The Group had a positive start to the year, seeing order intake growth over the first 21 weeks despite the impact of further temporary regional and national store closures across the UK, as a result of COVID-19.

Due to increased restrictions across the UK, we commenced our winter sale with 57 of our 100 stores trading on Boxing Day. Following further restrictions, 37 stores then closed on 30 December, with the remaining 20 closing on 4 January. Performance in these stores was strong whilst they remained open.

The Group's online sales channel continues to make good progress, with the half year seeing an increase in order intake of 98% when compared to the same period in the prior year.

Balance sheet

The Group has maintained a robust balance sheet, with cash at 23 January 2021 of £91.8m and no debt. Further liquidity is available through the £20.0m CLBILS revolving credit facility (RCF) granted on 25 August 2020.

Outlook

Whilst it is too early to provide clarity on the outlook for the weeks and months ahead, we remain cautiously optimistic given the strong trading experienced by the Group following the first and second lockdowns. Given the tactile nature of our products, the majority of customers chose to wait until stores re-opened to try our products in person before making their purchasing decision. This resulted in the business benefiting from pent-up demand, coupled with an increased level of investment by UK consumers in their homes. The Group has built a robust balance sheet and continues to focus on cost and cash management to ensure we maintain this resilience in these challenging times.

As previously announced, Steve Carson joined the Group on the 6 January 2021. Steve will lead ScS as CEO following David Knight's planned retirement in July 2021. The handover process has commenced and is progressing well.

Enquiries:

ScS Group PLC David Knight, Chief Executive Officer Chris Muir, Chief Financial Officer	c/o Buchanan [phone]
Buchanan Richard Oldworth Tilly Abraham Charlotte Slater	Tel: [phone] [e-mail]
Shore Capital Patrick Castle James Thomas Sarah Mather	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.

 

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