ScS sales smash £330m as CEO hails progress

ScS trading update profits sales David Knight
ScS CEO David Knight said the group’s financial health “has never been as strong”
// ScS boss David Knight hails “strong” year as profits & sales rise
// For the 52 weeks ending July 27 2019, underlying operating profit rise 4.6% to £14.3m
// Underlying EBITDA reached £19.7m

ScS has recorded a “strong” year thanks to a rise in its profits and sales.

For the 52 weeks ending July 27 2019, the furniture and flooring retailer reported a 4.6 per cent rise in underlying operating profit to £14.3 million in its preliminary results.

ScS saw underlying EBITDA increase to £19.7 million, while operating profit from continuing operations also rose to £13.9 million from £13.7 million the previous year.

READ MORE: ScS warns on profit margins amid half-year profit uptick

Meanwhile, gross sales increased by £5.8 million to £333.3 million, while revenue saw a £4.6 million increase to £317.4 million.

The retailer also recorded a 21.7 per cent increase in online sales to £16.8 million.

ScS chief executive David Knight said the group’s financial health “has never been as strong”.

“I am delighted to report another year of good progress and growth for ScS in our continued effort to ensure we remain Britain’s best value sofa and carpet retailer,” he said.

“The group’s financial health has never been as strong and with our resilient, debt-free balance sheet, we are in a good position to manage the ongoing uncertainty, and furthermore seek opportunities which will add value in the longer term.

“Our strong and clear value offering has proven successful, and we are confident it will continue to appeal to our customers who want to buy great products at the lowest possible price.”

Despite the growth, ScS warned that it had faced “a more challenging start to” the 2020 financial year, with like-for-like order intake falling 7.6 per cent between July 28 and September 29.

“Since the start of the current financial year, trading conditions have been more challenging,” Knight said.

“This period was impacted by the record temperatures experienced by the UK across the August bank holiday weekend and the increasing political and economic uncertainty we are currently facing in the UK.”

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