Scs Share Discussion Threads

[greyingsurfer] 22/3/2022 14:18

Someone who wants to get value for money and not end up buying back at inflated prices.

[my retirement fund] 22/3/2022 13:05

ah thks for clarify

[squib3] 22/3/2022 12:52

It's 7m GBP, so poss 10%

[my retirement fund] 22/3/2022 08:12

Disappointing response, why no return of capital by special dividend etc

[harrogate] 22/3/2022 07:46

Yes support it but will it get it moving ? Think they could have been much more aggressive on buyback and maybe a significant special dividend. But it is a start

[fft] 22/3/2022 07:44

7m share buyback and a 50% increase in interim dividend to 4.5p. Large order book. Cash flow positive. Should support share price.

[brucie5] 18/3/2022 09:44

Good luck with that buy, I think you may have timed it well. Let's see.

[1pvh] 17/3/2022 10:22

Bought back in. Have to have a punt at this level. Luckily sold most out mid 250s and higher. 71m cap and over 300m turnover. Been in one of the stores a couple of times over last 3 months trade seems steady away

[brucie5] 16/3/2022 16:02

Arithmetically, I'd say bottom in at 1.60, being exactly 50% of recent peak. And value has eventually to find a bottom.

[dicktrade] 16/3/2022 15:59

so what just happened here?

[brucie5] 16/3/2022 07:23

Indeed, that is the question haunting the share price. My question is how far this has now been oversold in relation to cash and sustainable sales.

[aishah] 15/3/2022 21:40

Are big ticket items on the agenda given huge fuel, energy and food price hikes, rampant inflation and input price increases?

DFS said:
"We narrow our scenario range for FY22 to recognise that manufacturing and logistics disruption may affect H2 throughput, however our resilient order bank should mean any such in-year disruption will cause profits to shift into the next FY23 reporting period."

[brucie5] 15/3/2022 12:10

I venture to say that 1.60 was capitulation, and may be repeated; but represents 50% of peak share price in 2021. Just as previous capitulation at 1.30 in March 2020 was precisely 50% of 2019 peak. Seems to be a consistent ratio of hi-lo. So hereabouts should be very good value in due course, particularly if they can return some of it to shareholders.

[my retirement fund] 15/3/2022 11:11

This company needs to do a special dividend and return £1 to all shareholders NOW !

[cwa1] 15/3/2022 07:35

DFS half year report:-



Including a "special capital return"

[brucie5] 14/3/2022 22:04

7.6% dividend. Will it touch 8%?

[davidosh] 08/3/2022 01:07

Patience is so important but sadly some may simply have stop losses and for various reasons are forced to sell.
This will prove to be a bargain entry point for others and at £1.60 can anyone see how this will not lead to buybacks of the stock after the results are released and the closed period ends...

What else can they spend that spare cash on that will increase eps more significantly than buying back and cancelling shares and sharing the earnings with fewer holders so increasing eps and yield for the rest of us patient souls.

[currencytrader1] 07/3/2022 16:18

Genuinely feel for these guys selling, investing is about buying strong fundermentals and waiting... GLA

[km18] 07/3/2022 12:40

...from last year...

Company overview:
Scs is a “Sofa Carpet Specialist”, and one of the leaders in furniture and floor retailing sector with more than 100 years of experience. The company has been focused on digital advancement, increasing sales density and optimization of the product strategy. SCS also offers financing options and aims to provide a value proposition for clients looking for the best deal. The lack of acquisitions confirms an organic growth approach. In addition, company benefits from extremely stable balance sheet, with cash at £92m (Jan 2021) – to try and put it into perspective current market cap is £110.24m.
Last year’s performance was hit, confirmed by lower sales numbers and loss for the period of £2.22m. This year’s updates so far are quite positive. Interim results show only a 6.5% decrease in order intake compared to a Covid free 2019, which is impressive, bearing in mind the lockdown covering the majority of the period. In fact, order book at 31 July was £103.5m, compared to merely £60.6 in 2019. Following the outstanding performance, outlook for both FY 07/2021 and FY 07/2022 is for the company to be ahead of expectations

Competitors: DFS is another company in the sector, but it suffers from a more unstable balance sheet and as a result they had to rely on shareholders’ support last year.

Short analysis (interim report from January as we are expecting the results for the year):

Cash cash went up from previous half by 11.5%
Net debt decreased as cash grew and company retired debt
CA/CL =  1.155
Cash ratio = 0.94
Interest coverage (Annual 2020) = negative as the company generated a loss  
P/S TTM = 0.4, which is better than the sector average
BV ps TTM = 104, growing at 0.043% CAGR  
Operating profit was £19.8m, compared to the loss of the previous period
Gross profit Margin = 48.1%, vs 46% for previous half year report...

...from WealthOracleAM

[brucie5] 07/3/2022 11:14

March 2020 lows. I think this is near capitulation. Wait for it to steady, and then potentially, a huge buy opportunity.

[fft] 07/3/2022 09:48

If ever there was a time for SCS to do a buyback at a low rating, thereby increasing EPS and DPS, it is now. This is less than 50% of the price last year and the cash isnt going down.

[longterm95] 07/3/2022 09:47

Gobbled up a £4,000 loss and sold out. Shouldn’t have bought £5k worth more the other day but this is dropping like a stone. Good luck to all involved no bitterness , but this has been my worst call since I got in around middle of last year I believe or slightly later. Take care

[thorpematt] 07/3/2022 01:35

I think that what will happen is that the market will continue to give opportunities to buy good quality businesses at a discount.

I think that some people will allow fear to get in their way of doing so.