ScS profits surge despite 'challenging' trading conditions

Furniture and floorings outfit ScS turned in a 14% increase in profits last year as the company was boosted by some modest sales growth despite "challenging" trading conditions.

In the 52 weeks to 28 July revenue grew 1.3% to £337.3m, driven by a 22.6% increase in online gross sales.

EBITDA improved 8.1% to £18.8m as gross margin expanded from 44% to 44.7%, with pre-tax profits rising 10.5% to £13.2m and earnings per share shooting up 14% to 26.8p.

The AIM-listed outfit also declared a final dividend of 10.9p per share, taking its dividend for the year ended 28 July to 16.2p - a 10.2% year-on-year jump.

ScS also said the momentum had continued into the new year, with sales order intake up 2.1% on a like-for-like basis throughout the first quarter of its trading year.

"Despite a prolonged period of economic uncertainty and challenging trading conditions, we have continued to grow the business," chief executive David Knight.

"Since the start of the current financial year, the overall trading performance of the group has been in line with our expectations."

As of 1445 BST, ScS shares had picked up 8.54% to 216p.