ScS bumps up profit expectations as like-for-like orders grow

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Furniture giant ScS has announced that full-year profits will be ahead of expectation as like-for-like orders grew during the period.

In a trading update for the year ending July 30, 2022, ScS reported 3.9% growth in like-for-like orders compared to the previous year with an order book of £71.7m, which was £31.8m lower than at the same point in 2021 but £28.8m higher than in 2019.

The retailer’s board said after a “challenging 12 months” it was pleased to be able to announce that full-year profits would be ahead of expectations, though did not give a specific figure, ahead of the group publishing preliminary results in October.

ScS said: “The group’s financial position remains robust, with cash at July 30, 2022, of £70.8m and no debt. The group remains committed to the share buyback programme announced in March 2022 to repurchase and cancel up to £7m of its share capital. The programme is progressing well and as of July 30, the group had repurchased and cancelled 1.24 million shares.

“In recent months, we have seen reduced in-store and online visitors resulting in a reduction in order levels, driven by the widely reported falling consumer confidence as a result of the cost-of-living pressures and economic uncertainty.

“We expect the low consumer confidence will continue to adversely impact the group in financial year 2023. However, the group is in a strong position as we enter the new financial year and strategic progress over the last 12 months means we are well positioned to take market share and maximise opportunities in a difficult environment.”