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Sunderland’s ScS sees sales growth following Stock Exchange listing

Sunderland-based furniture and floorings retailer ScS, who returned to the London Stock Exchange earlier this year, has announced a healthy uptake in sales.

Total sales increased 14.5% to £132m, up from £115.3m this time last year. On a like for like basis with the first half of 2014, ScS’ total sales order intake has gone up £7.8%, with the flooring sales order intake up 13% in particular.

Whilst gross profit increased 13.2% to £57.4m an £8.7m operating loss did occur. However, this was reportedly ‘in line with expectations’, with the figure said to reflect the company’s weighting of advertising and investment in establishing a concession connection with House of Fraser.

Reflecting on the past half, ScS have enjoyed a healthy period. For one, the company’s successful listing on the premium segment of the Official List of the London Stock Exchange raised £35.7m.

In addition, three new stores opened in Abbotsinch in Glasgow, Croydon and Slough. Moreover, House of Fraser concession launched in 30 stores in July 2014

A new e-commerce platform for the ScS trading website, as well as the bespoke House of Fraser ‘For Living’ website, launched with online sales up to £3.7m, a 27.6% increase from £2.9m in the first half of 2014.

David Knight, ceo of ScS said: “We are delighted to be reporting our maiden set of results since listing on the London Stock Exchange.

“These results demonstrate the progress that has been made to develop ScS into a strong and resilient business. Our sales order intake is our best ever at this time of year and this momentum gives us good visibility for the second half. We are, therefore, confident of meeting market expectations for the full year.

“Looking ahead, we are excited about our future growth prospects, including our new concession agreement with House of Fraser, our flooring offering and online proposition.

“The Group’s cash flow dynamics and new committed bank facilities underpin the strong financial position which will support our ambitions for future growth and deliver value for our new shareholders.

“To reflect this confidence, the board is today proposing a maiden interim dividend of 2.8p per share.”

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