ScS’ half-year earnings have risen, although the value furniture retailer’s recent sales were hit by adverse weather conditions, when orders were affected by the snow.
ScS reported that operating profit came in at £0.3m in its first half, compared with a loss of £2.6m the previous year. EBITDA rose from £0.1m to £2.9m in the 26 weeks to January 27.
Gross sales advanced 1.5% to £168.4m in the period.
ScS expects to meet full-year expectations, despite the impact of the snow on current trading.
The retailer said that over the 33 weeks to March 17, like-for-like order intake growth inched up 0.9%. However, in the final seven weeks it fell 5.3%, ”principally due to the adverse weather conditions experienced in the week commencing 25 February”.
ScS chief executive David Knight was confident about prospects despite a tough retail market.
He said: “Our focus on providing excellent choice, value and quality for our customers has proven successful. The board is confident that its strategy is proving successful, and the business continues to strengthen, enabling it to maximise opportunities as they arise and continue to grow market share.
“We expect that the retail market will continue to remain challenging in the short to medium term, and we are conscious that the group still faces the key Easter and May bank holiday trading periods.
“Despite the challenging trading conditions, the group continues to deliver profitable growth and the board is pleased with year-to-date trading, which is in line with its expectations.”
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