Scs Share Discussion Threads

[steveo18] 21/4/2015 07:42

Should get a boost from CPR

[cyman] 20/4/2015 12:47

Why the rise today?

[steveo18] 16/4/2015 19:48

Improving consumer confidence and an earlier Easter than last year have boosted retail sales, according to new figures.
Like-for-like retail sales rose 3.2pc in the five weeks to April 4, which includes Good Friday, with total sales up 4.7pc.

[joan of arc] 13/4/2015 19:15

So based on a 2.8p interim dividend how did whoever it was arrive at a total divi for the year of 14p which is 5 times that, ie £5.6m payout and probably their entire profit for the year.

[steveo18] 09/4/2015 09:31

GOING UP TOWARDS BREAKOUT

[steveo18] 08/4/2015 10:50

Dividend

As an expression of our confidence in the Group's prospects, I am delighted to announce the payment of our maiden interim dividend of 2.8p per ordinary share, this dividend will be payable on 22 May 2015 to shareholders on the register at 1 May 2015. The ex-dividend date is 30 April 2015.


14p forecast for the full year


V nice worth having

[johnv] 27/3/2015 12:33

Strange can buy thro Barclays and HL.

[greenroom78] 27/3/2015 10:43

HSBC saying I can't buy these as they are not an 'ordinary share'.

Anyone have any clues as to what they mean? I thought SCS were fully listed again? Also IG are 'closing only' so I can't spread bet it either.

Annoying.

[steveo18] 27/3/2015 08:52

Thanks ces

[cestnous] 27/3/2015 08:15

From I.C. today;




GENERAL RETAILERS SCS GROUP (SCS)
Settle down with ScS’s 7 per cent yield
Bull points Generous yield Cash-rich Cyclical upswing Low rating Broadening appeal
Bear points Interest rate rise risk House of Fraser roll-out risk
If you’re looking for income, you might want to consider furnishing your portfolio with a few shares in ScS Group (ScS). This purveyor of sofas and flooring, which operates nearly 100 stores nationwide, is new to the London Stock Exchange, having listed in January at 175p. It’s enjoying a tailwind from the cyclical upswing in the housing market and improving consumer credit. What’s more, thanks to a highly cash-generative operating model, the shares promise to pay a 7 per cent yield while the company continues to pursue growth.
ScS has certainly made a comeback. In 2008 it was bought out by private equity firm Sun Capital for just £1. At the time, the retailer was in a real jam. The financial crisis caused the housing market to collapse and consumer confidence plummeted. And the freezing over of the consumer credit market proved a lethal blow for a company that sells most of its goods on tick.
Moreover, credit insurance was withdrawn as the economy flatlined. Since most of ScS’s suppliers were using invoice discounting to fund working capital, they couldn’t operate without credit insurance. But now, things look different. The housing market has bounced back, the economy is growing, wages are rising in real terms and lending conditions are improving. This upswing helped like-for-like sales to grow 8 per cent in the first half. The group also has a cash-rich balance sheet following its £35.7m IPO fund-raising and Sun Capital has poured money into the business, minimising the need for future capital expenditure.
That’s all good news that underpins the bumper dividend prospects, as does ScS’s highly cash-generative business model, which operates with negative working capital. It works like this: items are made to order – so the group holds minimal stock – and customers pay upfront so cash is received before suppliers are paid. At the half-year stage £60m of trade payables compared with just £20m of inventories. Most of the goods are sold on credit provided through third-party lenders that assume the risk of default. So when trading is going well, cash generation is very strong, supporting a forecast 6.9 per cent payout this year, rising to 7.3 per cent in 2016.
There’s a growth element to ScS as well. ScS wants to widen its 8 per cent slice of the £3bn furniture market by opening stores and broadening the product range to appeal to a wider, more upmarket demographic. It has already introduced new brands, including Parker Knoll, and in 2012 launched a floorings business.
In July, ScS opened 30 concessions in House of Fraser (HoF) stores – a cheap way to get exposure to the high street. ScS’s HoF business is loss-making and there is the risk that it fails to gain traction. The other big bear point is the potential for a faster and a higher-than-expected rise in interest rates to hurt the business.
A cyclical upswing in consumer credit, rising wages, a resurgent housing market and improving economy are fuelling sales growth at ScS. Meanwhile, the cash-generative model and strong balance sheet support an enticing yield and, at just nine times earnings, there is significant potential for upside. Buy. JB

[cockneyrebel] 20/3/2015 17:01

This is the real chart:


free stock charts from uk.advfn.com

[cockneyrebel] 20/3/2015 16:59

That chart in the header is misleading - it floated @ 188p. Anyone looking at that might think it went vertical on floatation imo.

CR

[cestnous] 20/3/2015 16:01

Roll on Monday :¬)

[cockneyrebel] 12/3/2015 08:36

:-) LG

*Investec Initiates SCS Group At Buy; Price Target At 270p.

CR

[lord gnome] 09/3/2015 15:01

Ranchy CR? Ride 'em cowboy.

[cockneyrebel] 09/3/2015 08:34

Punters awakend to the 14% yield targeted here which has attracted buyers this am imo.

Edit: 14p divi, not 14% sorry, bit of a senior moment earlier. 6%+ which is pretty ranchy imo.

CR

[stoxx67] 08/3/2015 09:51

i think CR was attempting to be rather more subtle about this.. lol

[cockneyrebel] 07/3/2015 16:17

These will be going up on Monday imo :-)

CR

[cockneyrebel] 06/3/2015 10:09

Retail sales were weaker in Feb - but we spent well on our homes apparently:



"Homewares were the only category that performed well, with sales up 6.6 per cent,"

[phonics] 23/2/2015 19:29

Thanks for posting that Mick. Happy to hear my reading of it was wide of the mark!

[mickharkins1] 23/2/2015 14:41

I just got confirmation from Buchanan today that:

"the capitalised loan is not repayable. It was effectively exchanged for equity, which was part of the shares that Sun European Partners LLP sold in the transaction."

So good news and was the catalyst for me buying some more!