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ScS has said it expects to report that full year profits will be in line with market expectations, as the group’s cash position stands at £69.5m with no debt for the year ended 29 July.
This comes as the group achieved strong like-for-like order growth of 6% from weeks 34 to 52, which builds on the 5.7% that was previously announced for weeks 27 to 33.
As a result, and following a “more challenging” first quarter, the group reports that its order intake for the full year is in line with FY22.
Following the acquisition of Snug in January, ScS has also re-established operations, which included rebuilding supplier relationships, restoring stock levels, improving brand awareness, and building order momentum.
While order growth for Snug was initially “slower than hoped”, the retailer is pleased that current run rates are in line with expectations.
ScS said in an update: “The ScS business continues to gain market share, cementing its position as the UK’s second largest upholstered furniture retailer. We are cognisant of the economic conditions facing our customers including higher interest rates and low consumer confidence, which are forecast to continue throughout FY24.
“However, we remain confident that the group’s strategy and strong balance sheet will enable ongoing trading resilience and we continue to expect to grow our market share while selectively investing in store and other strategic growth opportunities.”
ScS is due to publish its preliminary financial results for the year on 10 October.
