17th Mar 2020 16:00
(Alliance News) - Furniture and floorings firm ScS Group PLC on Tuesday said it will be reporting an interim loss due to accounting changes.
ScS also said the results, for the half ended December, are being delayed due to changes in UK government policy amid Covid-19. It hopes to have them published by the end of this week.
Revenue is set to rise 0.3% to GBP152.0 million, ScS said, but it will post a pretax loss of GBP600,000 after accounting changes from a GBP500,000 profit a year before.
Excluding the accounting change, pretax profit is set to rise approximately 40% to GBP700,000.
Elsewhere, like-for-like order intake fell 4.4%, ScS said, but online sales have risen by 25% to GBP9.8 million.
In the first seven weeks of the second half, ScS's order intake has risen 3.3% like-for-like on the year before. Year-to-date like-for-like orders are down 3.0%.
Chief Executive David Knight said: "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. 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."
No guidance can yet be given on Covid-19's impact, ScS added, but there is the possibility of "severe" consequences.
Shares fell 2.9% on Tuesday in London to a price of 148.50 pence each.
By George Collard; [email protected]
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