ScS Upholstery PLC - Interim Results
May 19 1998 - 4:00AM
UK Regulatory
RNS No 6500t
SCS UPHOLSTERY PLC
19th May 1998
ScS Upholstery plc
Record Interim Results For The 26 Weeks Ended 31 March
1998
ScS Upholstery plc, the specialist retailer of fabric and
leather upholstered furniture, is pleased to announce
record interim results for the 26 weeks ended 31 March
1998. The comparative interim results are for a 25 week
period.
key points
* First results since December 1997 flotation
* Turnover increased 40% to #14.4m (1997 : #10.3m)
* Like for like sales order intake increased 14%
* Profit before flotation costs and tax increased 107% to
#2.3m (1997 : #1.1m)
* Earnings per share increased 24% to 2.6p (1997 :
2.1p) or 133% to 4.9p after adjusting for flotation costs
* Interim dividend of 1.1p (net) per share
* Three new stores opened in year to date - Coventry,
Telford and Banbury - bringing Group total to 15 - a
further opening now planned by financial year end
* Net cash increased to #4.8 million
Regarding outlook, Tony McCann, Chairman said:
"ScS remains strongly committed to an expansion plan with
the goal of becoming a major national specialist
furniture retailer ...... We anticipate that the Group
will continue to make satisfactory progress during the
remainder of 1998."
Chairmans Statement
The twenty six weeks to 31 March 1998 has been the most
significant period of development in the history of ScS.
In December 1997 the Group completed a successful
flotation on the Official List of the London Stock
Exchange. I am delighted to report an excellent set of
interim results for the Group and to confirm the
continuing progress made in the expansion of the ScS
store network.
Results
Profits before tax and exceptional flotation costs were
#2.3 million, an increase of 107% over the comparable
period for 1997. Earnings per share adjusted to exclude
flotation costs was 4.9 pence, an increase of 133%.
Turnover in the period was #14.4 million, an increase of
40% over 1997. This increase was driven by both the
continuing new store opening programme as well as by
continuing growth from existing stores of 38%. It should
be noted that this period represented a 26 week period
against a 25 week period last year. In addition it is
important to remember that turnover reflects customer
deliveries as opposed to sales order intake which the
Directors believe more accurately reflects the underlying
performance of the business. The increase in like for
like sales order intake for the first 25 weeks of this
financial year represents a 14% increase over the same
period last year.
Gross profit margin increased by 3.1 percentage points
over the comparable period last year to 47.2%. Operating
margin before exceptional flotation costs was 15.1%, an
increase of 4.6 percentage points over the result
achieved last year
The net cash position at the end of the period was #4.8
million; an increase since the start of the financial
year of #0.2 million despite the effect of the new store
opening programme.
Dividends
The flotation prospectus stated that Directors intend,
subject to satisfactory trading and financial performance
of the Group, to pursue a progressive dividend policy and
that interim dividends are expected to represent
approximately one-third of the total annual dividend.
The Board has now declared an interim dividend of 1.1
pence per share payable on 5 August 1998 to those
shareholders on the register of members at 3 July 1998.
The Board
The Board was pleased to announce in February the
appointment of Walter Goldsmith as our second non-
executive director. Walter Goldsmith holds a number of
other public company directorships including that of
Chairman of Flying Flowers.
Expansion programme
The prospectus stated that the Group planned to open
three new stores in the year to 30 September 1998. This
has now been accomplished with the successful launch of
new stores at Coventry, Telford and Banbury, all of which
were completed in time to take advantage of the Easter
Bank Holiday trading period and ahead of the Groups
previously expected schedule. Initial trading at these
stores has been up to expectation.
I am pleased to report that the Group has now committed
to opening an additional new store ahead of the schedule,
which is planned to commence trading by the end of the
current financial year.
Outlook
ScS remains strongly committed to an expansion plan with
the goal of becoming a major national specialist
furniture retailer. The Board believes that ScS remains
well placed to achieve the plans stated in the prospectus
to open five new stores in 1999 and to continue this
expansion programme thereafter.
We anticipate that the Group will continue to make
satisfactory progress during the remainder of 1998.
A.J.McCann
Chairman
19 May 1998
ScS Upholstery plc
Summarised Group Profit & Loss Account
Unaudited Unaudited Audited
Six months 25 weeks Year
ended ended ended
Notes31 March 22 March30 September
1998 1997 1997
#000 #000 #000
Turnover 14,384 10,286 23,692
-------- -------- --------
Operating Profit Before
Exceptional Item 2,166 1,081 2,306
-------- -------- -------
Operating Profit After
Exceptional Item 2 1,417 1,081 2,205
Net interest receivable 133 32 94
-------- ------- -------
Profit on Ordinary
Activities Before Taxation 1,550 1,113 2,299
Tax on profit on
ordinary activities 3 735 362 749
------- ------- -------
Profit on Ordinary
Activities After Taxation 815 751 1,550
------- ------- -------
Equity dividends 4 568 0 0
Non equity dividends 0 0 4
------- ------- -------
Retained Profit for
the Period 247 751 1,546
=== === ===
Earnings per share
- pence each 5 2.6 2.1 4.5
Dividends per ordinary share
- pence each - pre flotation 0.7 0.0 0.0
-
interim 1.1
Notes:
1. The financial information for the six months to 31
March 1998 and the comparative figures for the twenty
five weeks to 22 March 1997 are unaudited and have
been prepared on the basis of the accounting policies
set out in the group's statutory accounts for the
year ended 30 September 1997.
2. Exceptional item relates to costs incurred in respect
of the full listing of the group on the London Stock
Exchange in December 1997.
3. The taxation charge is calculated by applying the
directors' best estimate of the annual tax rate to
the profit for the period.
4. Dividends in the six months to 31 March 1998 relate
to:(A) pre flotation transactions: (i) stock dividend
#143,000; (ii) cash dividend #75,000 and (B) post
flotation interim dividend #350,000.
5. Earnings per share is based on profit after tax
divided by the weighted average number of shares for
the respective period: (i) six months to 31 March
1998 31,818,200; (ii) twenty five weeks to 22 March
1997 36,363,657; (iii) year to 30 September 1997
34,659,111
6. The financial information contained in this interim
statement does not constitute statutory accounts as
defined in section 240 of the Companies Act 1985.
The financial information for the full preceding year
is based on the statutory accounts for the financial
year ended 30 September 1997. Those accounts, upon
which the auditors issued an unqualified opinion,
have been delivered to the Registrar of Companies
7. Copies of these interim results are being despatched
to shareholders. Further copies can be obtained from
the Companys registered office: 45-49 Villiers
Street, Sunderland SR1 1HA.
ScS Upholstery plc
Summarised Balance Sheet
Unaudited Unaudited Audited
Six months 25 weeks Year
ended ended ended
31 March 22 March30 September
1998 1997 1997
Notes #000 #000 #000
Fixed assets
Tangible assets 4,780 3,479 3,869
------- ------- -------
Current Assets
Stocks 2,015 1,897 1,637
Debtors: amounts falling
due after
more than one year 1,539 1,598 2,431
Cash at bank and in hand 5,159 2,555 4,915
------- ------- -------
8,713 6,050 8,983
Creditors: amount falling
due
within one year 8 7,790 5,244 8,107
------- ------- -------
Net current assets 923 806 876
------- ------- -------
Total assets less current
liabilities 5,703 4,285 4,745
------- ------- -------
Creditors: amount falling
due after
more than one year 1,173 706 530
Provisions for liabilities
and charges 122 161 122
------- ------- -------
Net assets 4,408 3,418 4,093
=== === ===
Capital and reserves
Called up share capital 318 370 250
Capital redemption reserve 195 0 120
Profit and loss account 3,895 3,048 3,723
------- ------- -------
Total shareholders' funds 4,408 3,418 4,093
=== === ===
Notes:
8. Included within accruals is #994,907 representing
receipts from H M Customs & Excise, together with
related interest, arising from the Court of Appeal
ruling in the case of Primback Ltd versus Commissioners
of Customs & Excise. Pending the outcome of an appeal,
now to be determined by the European Court of Justice,
the benefit of this money has not been reflected in the
profit & loss account.
Summarised Statement of Cash Flows
Unaudited Unaudited Audited
Six months 25 weeks Year
ended ended ended
31 March 22 March30 September
1998 1997 1997
#000 #000 #000
Net cash inflow from operating
activities 865 762 4,725
Returns on investment and
servicing of finance 160 23 114
Taxation (19) (12) (578)
Capital Expenditure and
financial investment (607) (448) (1,146)
Equity dividends paid (75) 0 0
Management of liquid resources 12 (875) (3,275)
-------- ------- -------
Net cash flow before financing 336 (550) (160)
Financing (138) (63) (245)
-------- ------- -------
Increase/(decrease) in
cash in the period 198 (613) (405)
=== === ===
Reconciliation of Net Cash Flow to Movement in Net Debt
Unaudited Unaudited Audited
Six months 25 weeks Year
ended ended ended
31 March 22 March30 September
1998 1997 1997
#000 #000 #000
Increase/(Decrease) in cash 198 (613) (405)
Increase/(Decrease)
in bank deposits (12) 875 3,275
Repayment of Loans 62 63 125
------- ------- -------
Movement in net debt 248 325 2,995
Net debt at 1 October 4,219 1,224 1,224
------- ------- -------
Net debt at 31 March/
30 September 4,467 1,549 4,219
=== === ===
Analysis of Changes in Net Funds
30 September Cash Flow 31 March
1997 1998
#000 #000 #000
Bank Deposits 4,910 (12) 4,898
Cash at bank and in hand 5 256 261
Bank Overdraft (290) (58) (348)
------- ------- -------
(285) 198 (87)
Loans due before 1 year (125) (125)
Loans due after 1 year (281) 62 (219)
------- ------- -------
(406) 62 (344)
------- ------- -------
4,219 248 4,467
=== === ===
Reconciliation of Operating Profit to Net Cash Flow from
Operating Activities
Unaudited Unaudited Audited
Six months 25 weeks Year
ended ended ended
31 March 22 March 30 September
1998 1997 1997
#000 #000 #000
Operating Profit 1,417 1,081 2,205
Depreciation and amortisation 197 158 322
Changes in working capital
and other
non-cash items (749) (477) 2,198
------- ------- -------
865 762 4,725
=== === ===
Contact: Mike Browne, Chief Executive,
ScS Upholstery : 0171 466 5000
or
Richard Oldworth/Andy Yeo, Buchanan Communications : 0171 466 5000
END
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