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ScS swings to profit but warns over cost inflation, driver shortages
5th Oct 2021 08:57
(Sharecast News) - Furniture and floorings retailer ScS said on Tuesday that it swung to a full-year profit as revenues rose in "a year of recovery" from the impact of the pandemic, although it also warned over cost inflation and driver shortages.
In the 53 weeks to the end of July, the company swung to a pre-tax profit of £22.7m from a loss of £3.1m the year before, with revenue up 21.6% to £310.6m.
Underlying earnings per share rose to 41.3p from 2.6p in 2020 and the group recommended a final dividend of 7p a share, giving a full-year dividend of 10p, having not paid one in the prior year.
ScS said online sales grew 146% to £46.9m following continued investment in the segment and an increase in online shopping during periods of store closures due to Covid measures.
Chief executive Steve Carson said trading since the start of the new financial year has remained strong, with two year like-for-like order intake growth of 11.9% in the nine weeks to 2 October.
"One year like-for-like orders have fallen 21.0% as a result of the significant bounce following the lockdown in the prior year. We are delighted with the strong orders performance since the start of the new financial year," he said. "However, we are cognisant of the ongoing challenges we, and many other businesses, are facing with regards to the supply chain, including driver shortages, raw material increases and shipping costs and delays."
At 0910 BST, the shares were down 8% at 250.24p.
In the 53 weeks to the end of July, the company swung to a pre-tax profit of £22.7m from a loss of £3.1m the year before, with revenue up 21.6% to £310.6m.
Underlying earnings per share rose to 41.3p from 2.6p in 2020 and the group recommended a final dividend of 7p a share, giving a full-year dividend of 10p, having not paid one in the prior year.
ScS said online sales grew 146% to £46.9m following continued investment in the segment and an increase in online shopping during periods of store closures due to Covid measures.
Chief executive Steve Carson said trading since the start of the new financial year has remained strong, with two year like-for-like order intake growth of 11.9% in the nine weeks to 2 October.
"One year like-for-like orders have fallen 21.0% as a result of the significant bounce following the lockdown in the prior year. We are delighted with the strong orders performance since the start of the new financial year," he said. "However, we are cognisant of the ongoing challenges we, and many other businesses, are facing with regards to the supply chain, including driver shortages, raw material increases and shipping costs and delays."
At 0910 BST, the shares were down 8% at 250.24p.