Upholstered furniture retailer ScS has reported sales of over £300m while losses reached almost £45m.
According to its latest filed accounts for the 74 weeks ended 31 December 2024, total sales stood at £389.6m compared to £339.2m against the 52-week period ended 29 July 2023.
Pre-tax losses for the period resulted at £45.1m, while against the prior reported period, profit stood at £10m.
ScS, which was acquired by Poltronesofa back in 2023 and has since embarked on a capital programme to refurbish its stores (see related), said that furniture sales during the period were £344.7m, while flooring sales came in at £24.7m.
“Following the acquisition, the company, embarked on a capital programme to refurbish its stores,” the report said. “60 stores were refurbished in the period. This refresh was designed to improve the look and feel of the showrooms and introduce new technology and a new range of products. A further 36 stores will be refurbished in 2025.
“The period was a challenging one, impacted by the continued economic pressures consumers and businesses face across the UK. The Group has net assets of £28m at year end.
“The 17-month period reflects a significant amount of change. 60 stores were refitted during the period, impacting on sales. Sales were further impacted by a decision to exit flooring (£25m) and a drop in like for like online sales.
“Revenue, which represents gross sales less charges relating to interest-free credit sales, increased by 17.7% from FY23 to £345m. Revenue for the period has also been adversely impacted by an increase in the cost of finance due to increased customer adoption and a number of interest rates increases across the period.
“Gross margin was 44.9% (FY23: 44.1%). The company recorded a loss for the period of £44m (FY23: profit £7.5m). Note that the reported loss includes exceptional costs relating to the closure of stores for refurbishment and the discontinuance of selected business areas e.g. flooring. In addition, the company incurred significant restructuring costs, including the impairment of the intercompany loan with Snug for £8.3 million.”
