The U.K. upholstered-furniture and floorings retailer, ScS Group, has reported a lower pretax fall for fiscal 2023. The company attributes this decline to lower sales and higher credit costs for customers due to high interest rates. Furthermore, ScS Group highlights that trading in the new year has toughened.
For the year ended July 29, ScS Group’s pretax profit (excluding Snug, which it acquired in January) was £8.8 million. This figure stands in comparison to the £16.4 million generated during the same period last year. When including Snug, the company’s pretax profit amounts to £6.0 million.
Moreover, revenue (excluding Snug) experienced a decrease from £331.6 million to £321.7 million. Similarly, adjusted earnings before interest, taxes, depreciation, and amortization (excluding Snug) declined from £44.2 million to £37.1 million.
Current Performance and Outlook
This month, like-for-like orders have fallen by 4.4% after experiencing growth of 2.7% and 0.3% in August and September, respectively. However, despite these recent challenges, ScS Group remains positive about the group’s outlook.
Chair Alan Smith remarks, “We enter the new financial year cautiously optimistic, acknowledging the uncertain economic outlook and the pressures currently and prospectively facing household incomes.”
ScS Group has declared a final dividend of 10.0 pence per share, resulting in a full-year payout of 14.5 pence per share. This demonstrates an increase compared to the previous year’s payout of 13.5 pence per share.