Gross Profit and Sales Increase Despite Low Consumer Confidence

  • ScS delays full results due to COVID-19 developments
  • Gross profit expected to increase by 0.3% to £71.7m and gross sales by 0.5% to £160.1m in the first half of the year
  • Group revenue up to £152m from £151.4m last year
  • Online sales increase by 24.5% to £9.8m due to investment in e-commerce
  • Like-for-like order intake growth of 3.3% in the last seven weeks after a decline of 4.4% in the first 26 weeks
  • CEO David Knight: ‘Trading has strengthened and group is focused on providing value, quality, and choice for customers’
  • Impact of COVID-19 to be discussed in interim financial statements

Furniture retailer ScS has announced that it is delaying the release of its full results due to recent developments related to the COVID-19 pandemic. The company expects gross profit to increase by 0.3% to £71.7 million and gross sales to rise by 0.5% to £160.1 million during the first half of the year, despite low consumer confidence. Group revenue is expected to reach £152 million, up from £151.4 million in the previous year. ScS is currently reviewing the impact of the pandemic with its auditors and cannot predict its full effect on the business. CEO David Knight stated that while footfall has reduced and consumer confidence remains low, the company has managed to sustain profitable growth and increase resilience. Online sales have increased by 24.5% to £9.8 million due to investment in e-commerce, and like-for-like order intake grew by 3.3% in the last seven weeks after a decline of 4.4% during the first 26 weeks of the year. The company is committed to providing value, quality, and choice for customers.

Factuality Level: 8
Factuality Justification: The article provides accurate information about ScS’s financial performance and its response to the COVID-19 pandemic. It includes relevant details about the company’s expectations for gross profit, sales, revenue, and online sales growth, as well as the CEO’s comments on their strategy and customer focus. However, it does not predict the exact impact of the pandemic on the business due to its uncertainty.
Noise Level: 3
Noise Justification: The article provides relevant information about ScS’s financial performance and its response to the COVID-19 situation. It also includes a quote from the CEO, David Knight, which adds some insight into their strategy. However, it does not contain any exaggerated or irrelevant information, nor does it dive into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: ScS (furniture retailer)
Financial Rating Justification: The article discusses the impact of COVID-19 on ScS’s financial performance and its delay in releasing full results, as well as the company’s online sales growth and strategies to maintain customer service.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, but the company is facing challenges due to the COVID-19 pandemic which may have a minor impact on its operations and financial results.

Reported publicly: www.retailsector.co.uk