Furniture retailer's profit plummets 27%
Profits at ScS Upholstery have nosedived as higher interest rates and the credit crunch has taken its toll on higher value purchases.
Profit before tax for the 10 months to July 28 was down 27 per cent to£7.1 million.
Current trading has also been slow, with like-for-like sales in the seven weeks to September 15 down 8 per cent.
ScS chairman Mike Brown admitted that the results were disappointing. “This reflects an extremely difficult trading environment. Given our high gross margins, the resultant shortfall in sales against our original expectations has had a significant impact on profits,” he said.
So far this financial year, the furniture retailer has opened nine stores and plans to open a further five before the end of the period. It is also planning to refurbish 18 stores, at a cost of about£2 million.