ScS has reported record sales figures in the first full year of its new strategy.

SCS

ScS has delivered record sales compared with last year

The furniture retailer recorded underlying profit before tax up 68% year on year to £13.8m in the 52 weeks to July 30.

Scs also delivered record sales, up 8.6% to £331.6m compared with the previous year.

The retailer added that it has also maintained its gross margin despite inflationary cost pressures.

ScS said that it has made “good progress” against its new strategy, including strengthening its leadership team and trialling new store concepts that feature flooring options, dining ranges, as well as forming a partnership with Ideal Home.

Looking ahead, ScS warned that like much of the rest of the sector, the new financial year had been hit by falling consumer confidence, which deferred spending on big-ticket items.

The retailer’s order intake for the first ten weeks of the new financial year was down 7.8% on a like-for-like basis, compared with pre-pandemic levels, and down 14.4% on last year.

ScS chief executive Steve Carson said: “We are pleased to be announcing results that are ahead of market expectations. The year saw the group deliver record sales, maintain its strong gross margin and manage costs effectively, resulting in a 68% increase in underlying profit before tax, excluding business rates relief.

“We also saw excellent progress in year one of our refreshed strategy, including strengthening our teams as we look to drive the business forward in the coming years.

“Trading since the start of the new financial year has been subdued, with the challenges of high inflation impacting consumers’ disposable income. As previously reported, the sector is seeing softening demand as consumers defer spend on big-ticket discretionary purchases.

“We are pleased with the strategic progress we have made, which – coupled with the strength of the group’s balance sheet – places the business in a strong position to deal with current headwinds. While we expect the coming months to be challenging, we are confident in the longer-term growth prospects of the business.”

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