// ScS posts revenues rise to £331.6m in the year to the end of July
// The retailer said trading since the start of the new financial year has been subdued as high inflation impacts consumers’ spending
ScS has said shoppers are putting off big ticket purchases amidst economic uncertainty as the cost-of-living crisis rages on, despite posting an 8.6% rise in full-year revenue after making good progress in the first year of its new strategy.
In the 52 weeks to 30 July, revenue at the furniture retailer rose to £331.6 million while underlying pre-tax profit jumped to £13.8 million from £8.2 million in the previous year.
Although the Sunderland-based business wanted that demand is softening as consumer confidence continues to be impacted by pressure on household budgets, wider economic and political uncertainty.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
In a trading update, it said the rise in interest rates and mortgage costs will reduce its customer’s spending power and make it more costly to offer its own interest-free credit.
The business said current trading had been tougher than it experienced in the six months to the end of July with order intake for the first ten weeks of the new financial year down 7.8% on a like-for-like basis.
ScS chief executive Steve Carson said: “We are pleased to be announcing results that are ahead of market expectations. The year saw the group deliver record sales, maintain its strong gross margin and manage costs effectively, resulting in a 68% increase in underlying profit before tax, excluding business rates relief. We also saw excellent progress in year one of our refreshed strategy, including strengthening our teams as we look to drive the business forward in the coming years.
“We are pleased with the strategic progress we have made which, coupled with the strength of the group’s balance sheet, places the business in a strong position to deal with current headwinds. Whilst we expect the coming months to be challenging, we are confident in the longer-term growth prospects of the business.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
