20th Mar 2020 11:22
(Alliance News) - Furniture retailer ScS Group PLC saw a slight sales lift in its first half, though it swung to a loss.
In the six months to January 25, gross sales rose 0.5% to GBP160.1 million from GBP159.2 million in the year prior. Revenue, which is sales minus charges relating to interest free credit sales, was 0.3% higher year-on-year at GBP152.0 million from GBP151.4 million.
ScS swung to a pretax loss of GBP595,000 from a GBP545,000 profit in the year prior. ScS booked GBP1.8 million in net finance costs, compared to GBP134,000 in income in the year prior.
Like-for-like order intake dipped 4.4% year-on-year, despite a recovery towards the end of the interim period.
ScS explained: "The first 17 weeks of the period saw a like-for-like order intake decline of 7.1%. Encouragingly, the following nine weeks to January 25, which included the key winter sales period, saw like-for-like order intake growth of 1.2%, despite being impacted, as expected, by the loss of one post-Christmas trading day in the Boxing Day week.
"The group has made significant improvements to its operational efficiency in the first half of the year, largely as a result of the centralisation of the majority of administrative tasks from each of our individual stores to our head office in Sunderland. This will help reduce the impact of ongoing wage inflation pressures."
The company held its payout at 5.50 pence per share.
In the year to date, ScS said it has traded in line with board expectations.
Like for many other companies in the retail sector, focus, for the near-term future at least, shifts to the Covid-19 pandemic.
ScS said: "In the past week we have seen reduced footfall and we are mindful of the developing situation with Covid-19 and the potential impact on deliveries and demand. However, we believe the group is as well-positioned as it can be.
"Whilst consumer confidence remains low, the group has been successful in sustaining profitable growth and increasing its resilience. Trading in the early part of the year was particularly challenging. However, the improvement and return to the growth seen over the key winter sales period and for the first six weeks of the second half was encouraging."
Shares in the company were 13% higher at 183.79p each in London on Friday morning.
By Eric Cunha; [email protected]
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