Furniture and floors a full-year winner for ScS Group
Upholstered furniture and floorings retailing company ScS announced its preliminary results for the 53 weeks to 30 July on Tuesday, with gross sales up 14.5% to £334.7m and revenue up 14.7% to £317.3m.
The AIM-traded firm reported like-for-like order intake was up 14.8%, and its gross profit increased 17.3% to £149.1m.
EBITDA improved to £16.0m from £11.3m, and its operating profit was £11.0m, up from £2.8m in 2015 or £6.4m before last year’s exceptional items.
ScS’s earnings per share were posted at 21.8p, swinging from a loss per share 5.6p last year, and the board highlighted a strong balance sheet with cash of £22.4m, up from £21.1m, and no debt.
It recommended a final dividend of 9.83p per share, bringing the full year dividend of 14.5p per share, an increase of 3.6%.
“We are delighted to be reporting significant growth across all areas of the group for the 2016 financial year,” said CEO David Knight.
“Our sales order intake is the highest ever and is up 14.8% on a like-for-like basis.
“These results demonstrate that the group has made significant progress in developing ScS into a strong national brand with three very clear retail offers - upholstered furniture, flooring and our House of Fraser concessions, all supported by an online platform that has seen continued investment.”
Knight said the board was encouraged by the company’s trading performance since the start of the current financial year, which was in line with expectations.
“However, we are mindful that the group continues to face very strong comparatives during the remainder of the year.
“Looking further ahead, we are excited about our prospects, including the continued growth from our existing ScS network, the concession agreement with House of Fraser, our flooring offering and our online proposition.”
Knight explained that the company was continuing to identify new store opportunities within its target areas.
“The group's cash flow dynamics underpin the strong financial position which will support our ambitions for future growth and continue to deliver value for our shareholders.”
At 1121 BST, shares in ScS Group were up 3.84% to 191.06p.