Scs Share Discussion Threads

[nallen1] 05/8/2021 09:11

Stockopedia reckons this is ripe for a take over with all the cash its sitting on and reckons fair value of 400p

[wanttowin] 05/8/2021 08:41

Holding £88 million in cash too !

[cwa1] 05/8/2021 07:34

Outlook

The Board is encouraged by the strong trading performance since reopening and therefore believes that the Group is in a strong position as we enter the new financial year. The next few months still hold a level of uncertainty, with the tone of government messaging at present being one of caution. However, given recent trading and the strength of the current order book, the Board's expectations for FY21 and FY22 are ahead of current market forecasts.

[brucie5] 23/7/2021 16:20

Back in on this retrace. Price seems right and it has the cash to last a storm.

[drdre] 21/7/2021 16:18

They have over 100m in cash, capped at 137m and on a forecast basis, estimated PER is single digits (8). Compare to DFS, which is around 12 (which is still very good). Next update should be good.

[chrisb1103] 21/7/2021 15:20

This from 16th June....Current trading very strong and the Board now expects FY21 to be ahead of market expectationsOutlook for FY22 substantially better than current market forecastsLooking forward to the next update 5th August - movin on up :)

[scooper72] 21/7/2021 10:37

Well I've topped up this morning. Just hope all their staff don't get continually pinged to stay at home.

[tole] 21/7/2021 06:37

https://www.fool.co.uk/investing/2021/07/17/top-small-cap-stocks-for-july/Tom Rodgers: SCSWith home refurbishment markets booming, sofa manufacturer SCS Group (LSE:SCS) is my top small-cap stock for July 2021. The £116m market cap firm has produced operating profit growth of 30.6% in the last 12 months as sales and profits surge post-lockdown. Dividends are expected to return in force, as high as 12p per share for 2022, offering substantial future income even after a 40% rise in the share price in the year to date. A forward P/E of 11 times earnings is cheap and I see more upside for July and beyond.

[davidosh] 18/7/2021 20:58

I think they probably will do at some stage but it does give suppliers confidence to provide stock before payment when the balance sheet looks very strong and we should also remember that there will have been furlough assistance so most companies are holding back on paying big dividends until we are out of the pandemic as it would not look very good.

They are probably also keeping powder dry as there could be some good acquisitions to be made.

[riverman77] 17/7/2021 09:48

Can anyone explain why this company is hoarding so much cash? Almost looks suspicious - why don't they do a big special dividend to return most of it to shareholders?

[brucie5] 13/7/2021 19:38

Apparently knocked back by the triple top. 50sma is at about 280, which is where I'd see first support.

[davidosh] 12/7/2021 08:52

The strength of the Group's balance sheet, coupled with the robust trading experienced since our stores opened in April, has provided the Board with the confidence to recommence dividends, starting with an interim dividend of 3.0p per share which is being declared with this update. The dividend will be paid on 24 July 2021 to shareholders on the register on 9 July 2021. The ex-dividend date is 8 July 2021.


Interim Dividend Payment Date

Further to the declaration of an interim dividend in the Group's trading update of 16 June 2021, ScS confirms that the interim dividend will now be paid on 23 July 2021. The record date and ex-dividend date are as set out in the trading update, being 9 July 2021 and 8 July 2021 respectively.


So we will be getting it a day earlier than expected and hopefully a much bigger final dividend in a few months time as well. I am expecting at least a 5% dividend yield overall.

[tole] 21/6/2021 21:58

https://www.fool.co.uk/investing/2021/06/16/3-hot-uk-shares-id-buy-this-summer/UK shares to sit and hold ontoI think the trends that DFS is seeing bode well for SCS (LSE:SCS) too. In fact, I'm tempted to buy both. SCS has a stronger balance sheet with plenty of cash. It also reported strong performance in its last interim results. That was several months ago in March, so I reckon it's likely due another update soon.Some of the best UK shares to invest in are those of smaller companies, in my opinion. With a market capitalisation of £115m, I'd say SCS falls firmly in this group.The downsides that SCS is facing are likely to be similar to DFS, namely higher material costs and shipping delays. That said, I see SCS as a well-managed company and it's well-funded too. At a price-to-earnings ratio of 13x its shares are relatively cheap, in my opinion.

[finkie] 16/6/2021 15:57

Agreed staying on this train next stop private equity takeover

[buffetteer] 16/6/2021 13:46

I am buying not selling . Forecasts don’t make sense . They’re beyond conservative . £75m net cash (post deposits). Biz value £45m . Pbt £17m forecasts which is understated . Go figure !

[brucie5] 16/6/2021 13:37

Took my profits here, though medium term this will remain on my watch list. Mainly because I'm selling a few shares into strength against the summer months and have made 31% here since my two buys in March/April. Looks like it can go a lot higher, though, and I'm curious to see what they'll do with all that cash.

[davidosh] 16/6/2021 09:29

A very good update this morning

Order LFL v 2019 of +79% for the 10 weeks since re-opening, and the Board's outlook for FY..... "substantially better than current market forecasts".

The house broker has increased FY forecasts by 150% to 26p eps but this still looks light and will probably end up close to 30p by the time year end orders have been delivered and booked.

Current net Cash Balance of £101m (Around £25m-£30m of that is Customer Deposits). Market Cap last night was £110m. Still looks an incredibly cheap valuation, on forecasts which I still think are too prudent, despite +150% upgrade.

Plenty of scope for the year end dividend to be many times higher than the interim.

[fft] 16/6/2021 08:40

Any brokers note out today ? Will be interesting to see what numbers they pencil on for 2022 and 23.Sounds like they got a fair bit of the Harveys business.

[cwa1] 16/6/2021 08:34

The thread host laced his hands round his tum and muttered: satisfactory :-)

[williamgtheobald] 16/6/2021 08:33

Agreed. Happy days! :-) Especially as the market cap at £128m isn't that much greater than the £101m in the bank! (Although conscious a lot of this money will no doubt be customers deposits).

[waspfactory] 16/6/2021 08:26

A robust balance sheet with no debt, £101m in the bank, full year performance for FY21 to be ahead of market expectations and resumption of dividends - what's not to like! Happy days :)

[brucie5] 16/6/2021 07:39

There we go-earlier than expected.

[nickwild] 16/6/2021 07:13

good update figures in RNS

[davidosh] 14/6/2021 13:15

The next trading update will be at the end of July or early August unless the board feel that the superb forecast beating figures need to be updated ahead of then.

This was last year



ScS sales and profits were around a third of DFS pre pandemic. Their performances will be highly correlated..and indeed ScS performed better after Lockdown 1 (orders +92% in 9 weeks after re-opening...vs DFS +69%)

I expect big upgrades and in any event the charity pledge that I made at Mello which was matched by other investors too... looks likely to be hit today if it holds at the end of the day.

[brucie5] 14/6/2021 09:09

Monday, September 27th 2021
Full Year 2021 SCS Group PLC Earnings Release
Thursday, November 25th 2021
SCS Group PLC Annual Shareholders Meeting
--------------------

No idea about a TU though.