Home furnishings retailer ScS has reported a loss before tax of £3.6m during the 26 weeks ended 29 January 2022, as supply chain disruption impacted sales and revenues.
ScS reported a 16% drop in revenues to £145.9m compared with FY21 and a 4% drop in comparison with H1 2020.
Despite this, ScS said trading during the period has been “positive”, with strong order intake. It added the delivery of the resultant order book will enable the group to “deliver positive results in the months ahead, despite the economic and political challenges”.
Steve Carson, CEO of ScS, said: “We are pleased with trading and the progress made to date delivering our new strategic growth plan. The dedication of our colleagues continues to be instrumental in the success of the group and I would like to thank them for their ongoing commitment and efforts.
“Like many retailers, supply chain disruption has impacted the group’s first half results. Whilst this has been frustrating it has enabled the business to accumulate a strong order book and we are focused on delivering it through the second half of the year. We are progressing our strategic goals, whilst maintaining strong cost control and cash management.”
He added: “We are mindful of the ongoing impact of inflationary pressure on the group, its customers and suppliers. Whilst we have no suppliers who manufacture in Ukraine, Russia or Belarus, we are deeply saddened by the conflict.
“The board’s confidence in the future of the group is demonstrated by the 50% increase in the interim dividend and the commencement of a £7m share buyback programme. Financially the group remains strong, with good cash flows and a strong balance sheet. Given the group’s positive trading, we remain on track to meet full year market expectations.”