Member Article

Sunderland’s ScS cites ‘warmer weather’ and ‘General Election uncertainty’ for order decline

Sunderland-based ScS has revealed that like for like order intake in the 4 trading weeks to 2 May, commencing Easter Monday, was 15.9% below last year.

Despite this the furniture and floorings retailer, which reported a boost in sales growth in March, announced that trading for the 10 week period up to Saturday 4 April was in line with expectations, with like for like order intake up 7.6%.

Scs said thatrading over the Easter Bank Holiday weekend and the first May Bank Holiday has been impacted by a period of warmer weather which coincided with peak sales periods, resulting in lower footfall in stores which, coupled with uncertainty over the outcome of the General Election, has significantly lowered customers’ confidence in committing to big ticket purchases and resulted in higher levels of market discounting.

The board reportedly expects trading to revert to more normal levels and to report EBITDA of between £11m to £12m for the full year to 25 July 2015, including the expected loss from the House of Fraser concession agreement.

Moreover, the board remains confident of the future growth prospects for ScS and, supported by strong cash flow dynamics and a robust financial position, said it is committed to paying the planned £5.6m dividend to shareholders for the year ending 25th July 2015.

A further update will be made at the time of the Company’s year-end in July.