Shares in carpet and furniture retailer ScS get a boost as profits rise in full-year results
Furniture and floorings retailer ScS got a boost to its share price this morning after it reported a strong growth in operating profits in its full-year results.
Its share rose 6.5 per cent in early trading after it released the update.
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In the 28 weeks up to 28 July, gross sales improved £2.8m to reach £352.3m, while total revenue got a £4.3m boost to £337.3m.
Operating profit jumped 10.5 per cent to reach £13.2m. The company also said its outlook appeared strong, as sales for the nine weeks to 29 September 2018 have risen 2.1 per cent on a like-for-like basis.
Why it's interesting
ScS has bucked the retail market trend and appears to be trading strongly. Carpetright, one of the firm's leading competitors, won approval to push ahead with a company voluntary arrangement (CVA) earlier this year in an effort to appease creditors.
It has shut 11 stores already, but many others across the country are at risk. Carpetright's downfall may have helped ScS, although the company says its success is down to the quality, value and choice of its products.
ScS even said a downturn in sales from its House of Fraser concessions was "more than offset by growth in our core business".
Read more: Retail sales growth slumps after bumper summer
What ScS said
David Knight, chief executive of ScS, said:
Despite a prolonged period of economic uncertainty and challenging trading conditions, we have continued to grow the business. I believe this is due to our continued focus on what we do best – ensuring that we offer an excellent customer experience with outstanding value, quality and choice.
We will continue to focus on our value offering and we believe the group's increasing resilience and strong cash flow dynamics will enable us to manage the continued economic uncertainty and take advantage of opportunities as they arise, allowing us to continue to deliver value for our shareholders.