// ScS posts loss before tax of £3.6m for the 26 weeks to January 29
// The furniture retailer blames international supply chain issues for the decline
ScS has reported a loss before tax of £3.6 million and an operating loss of £1.8 million for the 26 weeks to January 29, blaming international supply chain issues.
The furniture retailer also reported a 4% drop in revenues to £145.9 million, and a 5.3% slip in gross sales to £151.5 million.
EBITDA was £11.6 million, down £20.6 million year-on-year while its gross margin slipped 1.3% to 44.6%.
READ MORE: ScS hails bumper winter trading as order book doubles to £148m
However, ScS said it remains confident to deliver profitable full-year results in line with market expectations.
ScS CEO Steve Carson said: “We are pleased with trading and the progress made to date delivering our new strategic growth plan.
“The dedication of our colleagues continues to be instrumental in the success of the group and I would like to thank them for their ongoing commitment and efforts.
“Like many retailers, supply chain disruption has impacted the group’s first half results. Whilst this has been frustrating it has enabled the business to accumulate a strong order book and we are focused on delivering it through the second half of the year. We are progressing our strategic goals, whilst maintaining strong cost control and cash management.
“We are mindful of the ongoing impact of inflationary pressure on the group, its customers and suppliers. Whilst we have no suppliers who manufacture in Ukraine, Russia or Belarus, we are deeply saddened by the conflict.
“Financially the group remains strong, with good cash flows and a strong balance sheet. Given the group’s positive trading, we remain on track to meet full year market expectations.”
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