Scs Share Discussion Threads

[jimic23] 05/10/2021 14:58

They did on page 13 re the 53rd week

[someuwin] 05/10/2021 14:11

Part of Paul Scott's SCS analysis on Stockopedia

"My opinion - I continue to believe, based on these numbers, that this is probably the cheapest value share on the UK market, certainly in the sectors I look at anyway. There could be some obscure resources stock that looks cheaper, but is much riskier & more cyclical probably. A combination of low PER, and a massive cash pile, and high dividend paying capacity, is extremely unusual. I can’t think of anything that’s even remotely close to this..."

[deadly] 05/10/2021 14:07

Common sense seems to be returning to the SP, but bizarre how some people will sell against all logic.

[abergele] 05/10/2021 13:46

Laughton,
don't beat yourself up over it,,
we are all guilty of mistiming at some time...
gl to you..

[laughton] 05/10/2021 13:06

I thought these were cheap yesterday so bought some more.
Today they're stupidly cheap. Could have saved myself nearly £500 waiting another day.
All that cash sitting on the balance sheet (half the market cap)!

Of course, it could be me that's stupid rather than the SP

[fft] 05/10/2021 12:11

Why they didn't flag up the 13 payroll payments and 13 supplier payments in the RNS is bizarre and a mystery. It does make quite a change to the cash position.This 53 week year only happens every 6 years or so. It is very strange they didn't make this very obvious.Hopefully the analysts at the 9.30 meeting either knew or were told the impact.

[davidosh] 05/10/2021 11:19

Worth noting that the cash will be at a low point in the cycle as it is distorted by the 53rd week. They have 13 monthly payroll runs and 13 monthly supplier payment runs in the 53 week year. You are seeing closing cash at the low point in a monthly cycle...compared to normally seeing it at high point.

[abergele] 05/10/2021 10:59

added a small topup,,
but they've shoved it into the sell column..how dare they,
does'nt help us with the selloff..gl all
report looks as good as can get,plus a divi under this autumn selling..

[brucie5] 05/10/2021 10:23

Hmm. Disappointing share price reaction. Obviously a solid company stuffed with cash. I would have thought some of it could be returned to shareholders, before PE get hold of it? Dividend of 4.7 hardly makes it a great income stock.

[someuwin] 05/10/2021 09:21

Bought some - looks amazing value to me.

[cwa1] 05/10/2021 08:44

Decided to take a handful more too. Fingers crossed it won't look TOO crazy over the longer term

[farrugia] 05/10/2021 08:15

what do you mean from where the dividend is derived frazboy?

[frazboy] 05/10/2021 08:04

Offloaded. Disappointed with the dividend and (from where the dividend is derived) the cash flow statement. Balance sheet looks solid tho. Best of luck all holders.

[drdre] 05/10/2021 07:49

Great results, as the TU predicated. The online channel growth of 146% stands out. £87m cash at a cap of £103m is crazy. You are getting UPBT which nearly makes that difference. These should go up on these results but the market is not well at present. Stockopedia have revenues of £377m for 2022. The outlook statement said they were on track to meet expectations.


If they went solely online with £46m with a cashpile of £87m the cap would be vast multiples of existing.

[cwa1] 05/10/2021 07:33

Repaid furlough grants I see, happy enough with that. Full year dividend of 10p, giving a yield of just under 4% at yesterdays 270p. Positive about prospects with the expected caveats

[cwa1] 05/10/2021 07:19

Prelims:-



STRONG YEAR OF RECOVERY; REFRESHED STRATEGY TO DRIVE FUTURE GROWTH



ScS, one of the UK's largest retailers of upholstered furniture and floorings, is pleased to announce its audited preliminary results for the 53 weeks ended 31 July 2021.



Financial highlights:

· Gross sales* increased 21.0% to £324.5m (2020: £268.1m)

· Revenue up 21.6% to £310.6m (2020: £255.5m)

· Gross profit increased 22.9% to £147.0m (2020: £119.6m)

· Gross margin* improved to 45.3% (2020: 44.6%)

· Operating profit of £26.8m (2020: £0.7m)

· Underlying profit before tax* of £18.4m (2020: £0.9m)

· Profit before tax of £22.7m (2020: loss of £3.1m)

· Underlying earnings per share* of 41.3p (2020: 2.6p)

· Statutory earnings per share of 50.4p (2020: loss per share 5.8p)

· The result includes business rates relief of £10.2m (2020: £3.4m), and CJRS benefit of £nil (2020: £5.0m)

· Strong balance sheet with cash of £87.7m (2020: £82.3m)

· Recommended final dividend of 7.0p per share, which if approved, would give a full year dividend of 10.0p per share (2020: nil)



Operational highlights:

· One year like-for-like* order intake down only 1.5%, despite being closed for 17 weeks in 2021, compared with 9 weeks in 2020

· Like-for-like* order intake down only 6.5% on 2019, despite being closed for 17 weeks in 2021

· Online sales increase of 146.0% to £46.9m (2020: £19.1m) following continued investment in our online business coupled with an increase in online shopping during the periods of store closures

· "Excellent" TrustScore maintained on Trustpilot with 300,000 reviews

· Closing order book (including VAT) of £103.5m (2020: £104.7m), £60.6m higher than at the same point in 2019

· Repayment of the £3.0m furlough grants claimed under the Coronavirus Job Retention Scheme during the year following the successful re-opening of the Group's stores

· Launch of refreshed strategy



Current trading and outlook:

· Year to date trading has been in line with the Board's expectations

· Order intake up 11.9% on a two year like-for-like* basis for the first nine weeks of the new financial year to 2 October 2021, one year like-for-like* order intake down 21.0% with the prior year benefiting from pent up demand following the end of the first national lockdown in late May 2020

· Positive about prospects for the full year although we are mindful of the ongoing disruption to supply chains and cost inflation



Steve Carson, Chief Executive Officer of ScS, commented:

"Trading since the start of the new financial year has remained strong, with two year like-for-like order intake growth of 11.9% for the nine weeks to 2 October 2021. One year like-for-like* orders have fallen 21.0% as a result of the significant bounce following the lockdown in the prior year. We are delighted with the strong orders performance since the start of the new financial year. However, we are cognisant of the ongoing challenges we, and many other businesses, are facing with regards to the supply chain, including driver shortages, raw material increases and shipping costs and delays.

We have demonstrated throughout the pandemic that we have a flexible and resilient business model which is able to adapt to changes in the macro-environment whilst still delivering for our customers. We look forward to embedding the new purpose and mission statement into our operations and delivering on our refreshed strategy for future growth which we are setting out today."

[brucie5] 04/10/2021 20:08

frazboy4 Oct '21 - 20:04 - 448 of 448
0 0 0
Market is in fear mode, macro head winds etc.
--------------------------------------------------------
For sure. But there's a lot of value here, so not sure SCS will among those so badly hit in a sell off.

Indeed, more likely to be sold off.

[frazboy] 04/10/2021 20:04

They were good, but did little for the DFS share price Market is in fear mode, macro head winds etc.

[brucie5] 04/10/2021 19:56

DFS results were stonking, were they not?

[aishah] 04/10/2021 19:19

Inflation up, input costs up, energy costs up, VAT up, fuel crisis, furlough gone. Will people have spare money for big item purchases?

[cwa1] 04/10/2021 17:42

Just need to wait and see now, the die is cast...

[rizler] 04/10/2021 13:45

Same here. Hoping for some sparkling results tomorrow.

[cwa1] 01/10/2021 14:31

Taken a few more at 270p in the hope that the price has fallen back enough ahead of results. Fingers crossed for an upbeat presentation next week...