ScS profits up over a third

ScS Upholstery continues to perform strongly compared with its rivals, such as MFI, which recently issued a profit warning, and Courts, which went into administration last November. The retailer said turnover increased to£88.3 million in the six months to March 31.

A good response to January Sales and favourable weather conditions contributed to the rise in turnover, as did faster than anticipated production and delivery lead times from suppliers.

Profit before tax for the period also increased, by 37 per cent, to£9.9 million. The retailer said an improvement of its store portfolio helped to boost margins. The rationalisation of its distribution facilities also cut costs.

Like-for-like sales for the first 33 weeks of this financial year are up 6 per cent. The retailer has 66 stores and plans to open another seven before the end of the financial year. Future expansion will be about six to eight stores a year.

ScS chairman Mike Browne said: 'This is an excellent start to the financial year and reflects our proven formula and focus as a specialist sofa retailer. We approach the second half year with a continued focus on offering value and choice, while maintaining margins, but remain conscious of the difficult trading environment for the retail sector.'