ScS sees sales increase by £5m
Sunderland furniture giant ScS is continuing its postCovid bounceback.
The firm’s interim results for the 26 weeks to January 28 show gross sales were up by £5million on the same period last year, while the underlying loss before tax was £4.7million, down by £900,000 on the previous year.
The firm says a loss is normal for the first half of its financial year, which includes ‘significant marketing expenditure’ to promote the winter sale period.
The figures also include costs of £800,000 related to the acquisition of ‘sofa in a box’ firm Snug in January.
The new addition is expected to make a £1million loss in the second half of the financial year but become profitable in 2024.
The six months also saw the firm exceed 400,000 reviews on business reliability website Trustpilot, making it the fifth most reviewed company in the UK and the only one in the top 10 to hold the maximum rating.
ScS chief executive Steve Carson said the group had
made ‘good strategic progress’ in the first six months of the financial year, opening two new stores, in York and Swindon, in addition to the acquisition of Snug, but trading conditions were still tough as the cost of living crisis continues.
“We are pleased with the strength of our winter sale performance and the subsequent increase in order momentum over the last two months,” he said.
"The macroeconomic environment continues to be challenging and we are mindful of the pressures faced by many of our customers.
"Therefore, continuing to focus on our value driven proposition is more important than ever so that everyone is able to create the home they love.
“The board continues to believe that progress with the group's strategy, ongoing cost management and a robust balance sheet places it in a strong financial and operational position.
"The outlook, therefore, is positive and ScS remains on track to deliver full year profit before tax in line with market expectations.”
The board believe that ‘consensus market expectation’ is that it will report underlying profit before tax for the full year of £7.7million, excluding the impact of the Snug acquisition.