Scs Share Discussion Threads

[woozle1] 14/2/2017 14:28

Anyone any idea why insiders are selling shares with a DY of 9% and a 7 p/e. I'd love to be buying more of these but this is a warning flag for me.
W

[simso] 03/2/2017 10:26

The Sales for ScS will appear at an average of 8 weeks after the order was taken. thats an average, and the range is up to 11 weeks for Far East manufactured. We have been given LFL's for orders. Crudely, the first half sales should comprise the final 8 weeks off last year (+15% according to a helpful table someone put together on Stocko) and the first 16 of this year of +4%. On that basis the LFL Sales reported for H1 would be around +7%. The last 8 weeks do have a bigger weighting as aim11 points out…and these orders will make the sales for the first 2 months of the second half. I am assuming flat v LY, and indeed thats where i am modelling the whole second half. Given the unwinding of last year's Bonus (relating to a double digit LFL), and strong performance from New Space, I am still expecting significant profit growth this year…far ahead of the measly +£0.5m which the Brokers expect. At this share price, one assumes Mr Market doesn't even think the brokers number can be achieved.

[aim11] 31/1/2017 17:55

that's fair enough, i actually would prefer to pay the premium and be in the market leader dfs here anyway - i see the argument scs is cheaper, but its much smaller and less liquid, and the dfs online set up is better invested. i'm just looking around for cheap post brexit stocks which people have given up on or ignored

[aim11] 31/1/2017 17:15

The accounts and ipo docs for these sofa businesses refer to marked seasonality in revenues, with the busiest time of the whole year after xmas through to end of january.

On my calcs, if you assume complete linearity over the 26 weeks, LFL was -1% in the final 10 weeks.

However, if you assume a 10 / 90 revenue split between the first 16 weeks to final 10 weeks, which i would guess is quite plausible, then the LFL was +2.5 in the final 10 weeks. Using the same revenue split for the prior year also, then you can work out that the comp for 10 weeks FY17 vs FY16 was +1.2% harder than the comp for 16 weeks FY17 vs FY16. (because last year they did +8.8 in the 26 weeks and +7.9 in the first 16 weeks, implying +9 in the final 10 weeks).

+2.5% + the +1.2% harder comp, implying the last 10 weeks of this 26 week period were actually quite good.

[aim11] 31/1/2017 16:56

of the 26 weeks though, aren't the last 10 weeks where all the actual revenue is, basically december and january? Not the first 16 weeks when no one in their right mind is buying a sofa just before xmas and jan sales start. And the comps for the last 10 weeks are harder than the first 16 weeks. So i think the twitter post suggesting a linear approach to estimating LFL's through the period and coming out with negative for the final 10 weeks isn't correct at all. any other thoughts on this ?

[rhomboid] 31/1/2017 10:33

In the interests of clarity I've sold out after an eagle eyed Simon Jackson on Twitter posted;

"@rhomboid1mf by my quick calcs LFL gone 1% -ve in past 10 weeks as 26wks +2.7% but 1st 16 weeks were +5.0%. Harder comparatives approach too

Thanks Simon you made me turn on a sixpence 🤔I've sold out for a modest profit as there's buyers around, no growth kills my interest 🙂"

I may be back if growth resumes and a profit is etc

[salpara111] 31/1/2017 09:08

Normally if a company pays a divi of over 8.5% there is an expectation that it will be cut as that is abnormally large but here we are.
If the divi was 5.5% I would consider that to be attractive and that would suggest a share price of over 250p but here we are!

[rhomboid] 31/1/2017 08:57

I'm happy to hold and keep banking the dividends, 4 new stores in an Estate of 100 should add 2-3% revenue to the 2.7% LfL so we're looking at a minimum 5% growth in revenue and a rather larger % inc. in profit per annum, so a PE of c. 7, divi knocking on 9% and a big heap of cash even after netting off customers prepayments , can't see too many issues with all that!

[cwa1] 31/1/2017 08:31

Yes, solid if unexciting.

However, given the current metrics such as the PE ratio and yield, unexciting, solid, no nasty shocks, etc. should be fairly good news, no? Certainly today's comments should point to no worries concerning the dividend in the short term at least, which is now an incredible 8.5% based on current forecasts.

Also good to see the new stores trading strongly.

I'm reasonably happy with things for now.

[salpara111] 31/1/2017 08:09

Solid statement.
I had hoped for a slightly better LFL number.
I hate the way that all retailers are now basically saying that 2017 is going to be a bad year before it has really even started.
I will hold for the moment but if I see it return to the mid 180s where I entered I would be tempted to exit.

[cwa1] 31/1/2017 07:36

Trading Update

ScS, one of the UK's largest retailers of upholstered furniture and floorings, today issues the following trading update ahead of announcing its interim results for the 26 weeks ended 28 January 2017 on 21 March 2017.

The Group has traded in line with the Board's expectations in the first half of the financial year and continues to make progress with its strategy for growth. The Group achieved like-for-like order intake growth of 2.7% for the 26 weeks ended 28 January 2017, a pleasing performance against particularly strong comparatives. Two year like-for-like order intake has grown 12.5%. Trading over the Christmas and January sales period was also in line with the Board's expectations.

Our four new stores in Aberdeen, Thanet, Plymouth and Straiton (Edinburgh) have seen strong trading since opening. Following these openings, the Group now trades from 100 ScS stores and operates 28 House of Fraser concessions.

We remain mindful that the Group still faces the key Easter and May bank holiday trading periods and faces very strong comparatives during the remainder of the year. The Board believes the business remains in a strong position to maximise opportunities as they arise and to grow market share.

[simso] 17/1/2017 10:42

I wonder if the drop on price over the last two days reflects a retail footfall report yesterday from the British Retail Consortium, which said that Footfall in December was -0.2% lower than a year earlier, made up of -0.7% in Retail Parks while the High St increased for the first time in 5 years.

[cwa1] 17/1/2017 08:24

Added a few, hopefully useful, links to the header.

[rhomboid] 16/1/2017 15:22

Agreed current share price is modest indeed , notwithstanding the very generous dividend received, I'm expecting a very good update as big ticket item sales appear to have held up far better than doomsters have been pontificating to be the case. I visited my local branch and was very impressed with the presentation of stock and the professional way the sales process was dealt with. They also said they'd been v.busy and only had a couple of clearance items remaining and that was at the start of the Sale!

Looking forward to the update

[salpara111] 16/1/2017 15:15

Well hopefully the trading update can stir some interest here.
The last couple of very positive trading updates have been met with little interest.
They floated at 175p almost 2 years ago and have made pretty good progress since then so I do feel that the current share price is somewhat unfair.

[cwa1] 16/1/2017 12:11

Great to see a bit of interest in this one, fingers crossed for the trading update.

[imranawan] 16/1/2017 11:23

Trading update on 31st Jan 2017, according to the Investor Relations section of their website.

[simso] 16/1/2017 11:15

Well done CWA1! Hopefully we will have a Trading Update this week or next,. and have plenty to discuss on our new Board!

[plasybryn] 16/1/2017 09:40

Great to have charts. Thanks

[the big fella] 16/1/2017 09:11

Excellent. Thanks

[cwa1] 16/1/2017 08:50

Cheers Marty. Since I've got the blessing of this thread originator and a modest amount of interest I've posted up a new thread. If anyone wants anything put up on it or removed-with the reservation that I am a computer "numpty"!-then just let me know on the new thread please:-



Please drop in and say "hello" so as I don't feel too lonely over there.....

[cwa1] 16/1/2017 08:47

Welcome to the new thread. Please drop in and say hello and mark it in your "favourites" list for future viewing.

Please let me know if there is anything that needs added to the thread and, within my limited computing skills, I'll do my best!

[cwa1] 16/1/2017 08:46

Corporate Website:-

London Stock Exchange Information Page:-



Broker targets:-



Morningstar Landing page:-

[martywidget] 16/1/2017 08:24

I agree CWA1 re your post 13 Jan '17 - 09:42 - 185 of 187

Someone who is currently interested in SCS, [and likely to be around over the foreseeable future on ADVFN] to update header with any info as requested, start a new thread.
Regards.