Scs Share Discussion Threads

[darrin1471] 10/1/2023 22:56

"it has acquired the brand, domain names, website, intellectual property and stock of Snugsofa.com"

[fegger] 10/1/2023 18:21

Interesting whether the purchase included any Snugsofa stock as the RNS does not say. Or whether it was sold off separately

[davidosh] 10/1/2023 18:13

They will certainly be buying in some expertise for online trading where SCS have been lacking and well behind DFS.

Snug seem to have grown quickly and maybe too quickly which has caused the financial distress but to get up to £20m turnover they must have done something well
and hopefully with the more experienced hands and backing from SCS they can iron out the mistakes and turn the losses into profits.

These are the small and limited risks that SCS can afford to take with so much free cash available.

[davidosh] 10/1/2023 18:07

Snug was founded by Robert and Peter Bridgman in 2018 so it has done well to get to £20m turnover although maybe the pandemic and 'sofa in a box' created a frenzy of buying that has now softened.

Interesting purchase, buying the assets and taking on all the staff. Adds about 6% to revenues and increases their online exposure. Anyone know anything about Snug? I wonder if the staff, given their online experience, will be a potentially valuable asset?

[brucie5] 10/1/2023 16:16

Well, market seems to like it plenty. I'm only 22% down now!

[laughton] 10/1/2023 15:25

Looks to me as though the whole lot has done a pre-pack adminstration with SCS. Whether the existing stores will continue will I guess depend on whether SCS already have an outlet nearby.

Hopefull SCS, having more experience, will be able to make a go of this. Looks as though snug sofa sells at highr prices so maybe broaden the appeal.

Less than £1M for a business turning over £20M must be a good deal.

[fegger] 10/1/2023 14:44

The RNS says they have one location which is Leeds.

But they in fact have operated out of 7 other locations run by a sister company called Bridgman. On website hxxps://snugsofa.com/pages/stores

So they will lose the sales out of those locations. Bridgman is a furniture company so interesting to know the story of the relationship with Snugsofa and why it was sold.

[shrout] 10/1/2023 14:14

But what are the ongoing costs with 53 people employed? Can they make it profitable?

Rough guesstimate about £2m a year? Could be way out, but not enough to make it a bad deal.. hopefully.

Anyways, the market appears to like it.

[niklol] 10/1/2023 13:52

Let's hope it proves to be a good acquisition

[cwa1] 10/1/2023 13:34

For the 12 months to 31 December 2022, Snug expects revenues of cGBP20m. Going forward under ScS's ownership we aim to further grow the business. Snug will report in line with the Group's financial year, apply the Group's accounting policies and is expected to be earnings accretive in FY24.

Fingers crossed, etc.

[chinahere] 10/1/2023 13:30

on the face of it it is a great deal.

But what are the ongoing costs with 53 people employed? Can they make it profitable?

[riverman77] 10/1/2023 13:21

I'm sure they've done DD, but purchase price less than £1m so hardly the end of the world if it doesn't work out. I see the snug sofas are fairly expensive, not the discount end of the market that SCS normally serves.

[brucie5] 10/1/2023 12:38

This is what we've bought. Not really for me, but 20m of revenues not to be sneezed at I guess. I only hope they've done their dd.

[brucie5] 10/1/2023 12:36

Interesting: so why am I so nervous?
--------------------------------------

10 January 2023


For Immediate Release 10 January 2023

ScS Group plc

("ScS", or the "Group")

Acquisition of Snugsofa.com

ScS, one of the UK's largest retailers of upholstered furniture and floorings, is pleased to announce that it has acquired the brand, domain names, website, intellectual property and stock of Snugsofa.com ("Snug") from the administrators of Snug Shack Limited for consideration of GBP875,000. Snug is an innovative digital-first sofa and sofa-bed business specialising in modular and re-configurable sofas.

Snug was founded by Robert and Peter Bridgman in 2018 as Europe's first sofa-in-a-box concept, and has grown to become one of the largest retailers in this segment of the furniture market. Snug's ethos is to offer a carefully curated choice of products in a range of colours and configurations, with quick delivery and excellent quality and customer service. Although predominantly online, Snug also operates from one store in Leeds. We expect there to be an opportunity to add Snug concessions to the Group's stores, providing the brand with significantly improved national visibility and penetration.

The Board believes the acquisition of Snug represents further progression in ScS's strategy. Snug's strong brand and differentiated digital-first offering will complement ScS's existing proposition, further diversifying its customer base and increasing market share. Snug's innovative approach to social engagement and digital marketing will be an asset to the wider ScS business while Snug will benefit from the Group's expertise, supplier relationships and scale.

Snug has 53 colleagues who have been a significant part of its success, and that team will join the Group as part of the acquisition.

For the 12 months to 31 December 2022, Snug expects revenues of cGBP20m. Going forward under ScS's ownership we aim to further grow the business. Snug will report in line with the Group's financial year, apply the Group's accounting policies and is expected to be earnings accretive in FY24.

Steve Carson, Chief Executive Officer of ScS, commented:

"Snug is an exciting and young business with great potential. It has a strong and recognisable brand, a differentiated product and targets a market that complements our proposition. In that regard, it presents us with an exciting opportunity to further increase market share. We therefore, view it as a great strategic and cultural fit which reinforces our commitment to helping our customers create the home they love. We look forward to welcoming our new colleagues into the ScS family."

[cwa1] 10/1/2023 12:35

Indeed



Acquisition of Snugsofa.com

ScS, one of the UK's largest retailers of upholstered furniture and floorings, is pleased to announce that it has acquired the brand, domain names, website, intellectual property and stock of Snugsofa.com ("Snug") from the administrators of Snug Shack Limited for consideration of GBP875,000. Snug is an innovative digital-first sofa and sofa-bed business specialising in modular and re-configurable sofas.

Snug was founded by Robert and Peter Bridgman in 2018 as Europe's first sofa-in-a-box concept, and has grown to become one of the largest retailers in this segment of the furniture market. Snug's ethos is to offer a carefully curated choice of products in a range of colours and configurations, with quick delivery and excellent quality and customer service. Although predominantly online, Snug also operates from one store in Leeds. We expect there to be an opportunity to add Snug concessions to the Group's stores, providing the brand with significantly improved national visibility and penetration.

The Board believes the acquisition of Snug represents further progression in ScS's strategy. Snug's strong brand and differentiated digital-first offering will complement ScS's existing proposition, further diversifying its customer base and increasing market share. Snug's innovative approach to social engagement and digital marketing will be an asset to the wider ScS business while Snug will benefit from the Group's expertise, supplier relationships and scale.

Snug has 53 colleagues who have been a significant part of its success, and that team will join the Group as part of the acquisition.

For the 12 months to 31 December 2022, Snug expects revenues of cGBP20m. Going forward under ScS's ownership we aim to further grow the business. Snug will report in line with the Group's financial year, apply the Group's accounting policies and is expected to be earnings accretive in FY24.

Steve Carson, Chief Executive Officer of ScS, commented:

"Snug is an exciting and young business with great potential. It has a strong and recognisable brand, a differentiated product and targets a market that complements our proposition. In that regard, it presents us with an exciting opportunity to further increase market share. We therefore, view it as a great strategic and cultural fit which reinforces our commitment to helping our customers create the home they love. We look forward to welcoming our new colleagues into the ScS family."

[farrugia] 10/1/2023 12:30

an acquisition!

[davidosh] 28/12/2022 10:48

They only order in when a customer selects the product so they will certainly book a profit on each item sold but naturally the margins will be reduced if demand is lower and prices have to lower as well

They are experienced in setting prices so will know how to attract buyers and let’s face it the competition will be reducing all the time.

[abergele] 27/12/2022 13:16

They have been doing a lot of promotion adverts saying half price etc,
Lets hope there's a profit in there somewhere for them,,gla ,and a Happy New Year.

[gorse] 23/12/2022 13:06

Did a top-up on the fall this morning.

[davidosh] 19/12/2022 23:28

These larger buybacks are certainly helping to increase the buying pressure and move the share price in the right direction.

[chinahere] 09/12/2022 12:08

Yes, the numbers look good here.

I have re-invested some of today's dividend here and the rest at CARD.

British shops are not dead I am hoping....

[gorse] 08/12/2022 18:46

I regarded the dividend as more than "an aside" when I bought a few weeks back ... good ballance-sheet, buyback programme ...

[chinahere] 08/12/2022 17:29

Possible I guess.

As an aside we get a 9p dividend tomorrow I think!

[davidosh] 08/12/2022 15:21

I wonder if they have added or merely crossed the 13% threshold due to buybacks reducing the share count?

[cwa1] 08/12/2022 15:04

MNG up their stake...