ScS has just under 100 stores across the UK
(Picture: ScS )Trading has been “subdued” in recent months as the challenges to consumers of “high inflation” impacting disposable income has hit big ticket items, according to leading sofa retailer ScS.
This did not stop the business that has just under a hundred stores across the UK achieving a “record” revenue boost of 8.6% for the full year until July from £305.2 million to £331.6 million. Sales were up 8% from £319.2 million to £344.7 million.
However, during the period, pre-tax profit dropped from £22.7 million to 16.4 million a dip of £6.3 million.
The business said that, - as has been widely reported across the home furnishings landscape that has recently seen rival furnishings retailer Made put up for sale - that inflationary pressures and reduced consumer confidence continue to impact visitor numbers, both physical and digital, to businesses which retail big ticket discretionary items.
Steve Carson, boss of of the business, 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.
“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.”
At the end of last month, ScS appointed former Argos boss John Walden as chairman replacing Alan Smith who will retire form the business at the end of next year.
