SCS slumps as it warns of 'more challenging' recent trading

In the period from 28 July to 29 September, LFL order intake fell 7.6%, with the company pinning the blame on record temperatures across the August bank holiday weekend and increasing political and economic uncertainty.

Chief executive officer David Knight said: "We remain conscious of the impending Brexit deadline, and the impact this may have on the market, consumer confidence and the wider economy. However, the group's financial health has never been as strong and with our resilient, debt-free balance sheet, we are in a good position to manage the ongoing uncertainty, and furthermore seek opportunities which will add value in the longer term."

In its results for the year to 27 July 2019, the company said underlying operating profit rose to £14.3m from £13.7m the year before, on gross sales of £333.3m, up 1.8%. Underlying earnings before interest, tax, depreciation and amortisation ticked up 3% to £19.7m.

SCS recommended a final dividend of 11.20p per share, taking the full-year dividend to 16.70p. up 3.1% on the year before.

At 1110 BST, SCS shares were down 7.1% at 220.20p.

Last week , DFS Furniture posted a rise in full-year profit but said that order intake levels in the first 12 weeks of the new financial year had been "subdued" amid an "increasingly uncertain political and economic backdrop".

The company highlighted lower levels of footfall across its brands. This was attributed to weaker consumer confidence and a drop in housing transactions, which it said are the two key drivers of the upholstery market.