No relief in store for ScS
Current expansion program deferred.
The company said that trading over the first three weeks of the Boxing Day and January sale had been disappointing. Whilst gross margins have been maintained, like for like sales order intake over that period was down by 16%. Like for like sales order intake for the 24 weeks of the current financial year is down by 17%, a further 1% decline from the 16% decline reported for the first 17 weeks. Total sales order
intake is down by 12% for the comparable period (down by 9% for the first 17 weeks).
We see no relief from the credit squeeze and pressures on consumers’ disposable income for the remainder of the financial year and although our comparable numbers are softer, it is unlikely that we will see any significant improvement on our year to date like for like sales performance. Whilst some benefits from the cost review which we have carried out will flow through in the current
financial year, the principal benefits will be realised in the results for the next financial year. Our results, therefore, are likely to be at the lower end of the range of the market’s expectations.
