Record Sales, But Order Intake Down 7.8% in New Financial Year
- 8.6% revenue increase for ScS
- Pre-tax profits dropped from £22.7m to £16.4m
- Underlying profits before tax excluding business rates relief reached £13.8m, up £5.6m compared to FY21
- Order intake down 7.8% in the first 10 weeks of new financial year
- CEO Steve Carson: ‘Trading has been subdued due to high inflation impacting consumer disposable income’
- Strategic progress and strong balance sheet position ScS well for current challenges
ScS has reported an 8.6% increase in revenue for the 52-week period ended 30 July 2022, reaching £331.6m from £305.2m. However, pre-tax profits dropped from £22.7m to £16.4m. Underlying profits before tax, excluding business rates relief, reached £13.8m, a £5.6m increase compared to FY21. Despite the positive results, initial trading in the new financial year has been impacted by inflationary pressures and reduced consumer confidence, leading to a 7.8% drop in order intake for the first 10 weeks compared to the same period in FY19. CEO Steve Carson expressed satisfaction with the company’s progress and balance sheet strength, stating that they are well-positioned to face current challenges. He also acknowledged the subdued trading due to high inflation affecting consumer disposable income and softening demand for big ticket discretionary purchases.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about ScS’s financial performance and the CEO’s perspective on current trading conditions. It includes relevant data and quotes from the CEO, but it does not contain any digressions or personal opinions presented as facts.
Noise Level: 3
Noise Justification: The article provides relevant information about ScS’s financial performance and the impact of inflation on consumer behavior. It includes quotes from the CEO that offer insight into the company’s strategy and outlook for the future. However, it does not delve too deeply into the underlying causes or broader implications of these trends.
Financial Relevance: Yes
Financial Markets Impacted: ScS’s financial performance and outlook impact retail big ticket discretionary items market
Financial Rating Justification: The article discusses ScS’s financial results, including revenue growth and profit decline, as well as the impact of inflation on consumer behavior and its effect on the company’s order intake. This directly relates to financial topics and impacts the retail sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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