1st Oct 2019 11:38
(Alliance News) - ScS Group PLC on Tuesday said online and in-store furniture sales boosted financial 2019 performance but business has been tough in the new financial 2020 due to warm weather and Brexit concerns.
Shares in ScS were down 7.1% at 220.20 pence each in London in morning trade.
The upholstered furniture and floorings retailer reported pretax profit of GBP14.3 million for the year ended July 27, up 4.4% from GBP13.7 million the year before.
Gross sales rose 1.8% to GBP333.3 million from GBP327.5 million, taking revenue up 1.5% to GBP317.4 million from GBP312.8 million.
The gross sales increase was attributed to a 1.2% rise in furniture sales in stores to GBP274.2 million from GBP270.9 million, and 22% higher online sales at GBP16.8 million versus GBP13.8 million year-on-year. These offset lower flooring sales in stores, which fell 1.2% to GBP42.3 million from GBP42.8 million.
ScS noted that "revenue growth was slightly below the growth in gross sales due to increases in the underlying rates driving the cost of interest-free credit provided by the group's finance houses."
The company has recommended a final 11.20p per share dividend, taking the total for the year up 3.1% to 16.70p per share from 16.20p per share.
Since the end of July, however, the environment has been more challenging, thanks to Brexit concerns and weather, ScS said.
Chief Executive David Knight said: "Since the start of the current financial year, trading conditions have been more challenging, with like-for-like order intake falling 7.6% for the period from July 28 to September 29. 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.
"We remain conscious of the impending Brexit deadline, and the impact this may have on the market, consumer confidence and the wider economy. However, 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."
By Anna Farley; [email protected]
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