ScS sees revenues rise but warns of reduced consumer confidence
It added initial trading in the year has been ‘tougher than we saw in the second half of FY22’, with order intake for the first 10 weeks of the new financial year down 7.8% on a like-for-like basis
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ScS has reported a record 8.6% revenue rise in its preliminary results for the 52-week period ended 30 July 2022, as it also warned that recent trading had been impacted by falling consumer confidence.
ScS confirmed revenues hit £331.6m, up from £305.2m. Despite the revenue increase it added its pre-tax profits dropped from £22.7m to £16.4m a dip of £6.3m. However, its underlying profits before tax excluding business rates relief reached £13.8m, £5.6m higher than FY21.
In current trading, it warned that as widely reported, inflationary pressures and reduced consumer confidence continues to impact visitor numbers – both physical and digital – to businesses with retail big ticket discretionary items.
Consequently, it added initial trading in the year has been “tougher than we saw in the second half of FY22”, with order intake for the first 10 weeks of the new financial year down 7.8% on a like-for-like basis when compared with the first 10 weeks to 6 October 2018 in FY19.
Steve Carson, CEO of ScS, said: “We are pleased to be announcing results that are ahead of market expectations. The year saw the Group deliver record sales, maintain its strong gross margin and manage costs effectively, resulting in a 68% increase in underlying profit before tax, excluding business rates relief.
“We also saw excellent progress in year one of our refreshed strategy, including strengthening our teams as we look to drive the business forward in the coming years.”
He added: “Trading since the start of the new financial year has been subdued, with the challenges of high inflation impacting consumers’ disposable income. As previously reported, the sector is seeing softening demand as consumers defer spend on big ticket discretionary purchases.
“We are pleased with the strategic progress we have made which, coupled with the strength of the group’s balance sheet, places the business in a strong position to deal with current headwinds. Whilst we expect the coming months to be challenging, we are confident in the longer term growth prospects of the business.”
