Scs Share Discussion Threads

[cockneyrebel] 23/2/2015 11:38

Read this in the DFS documentation which looks positive as a read across to SCS imo:



"The strong sales momentum reported in our first quarter results announcement of 23 December 2014
has continued into 2015. DFS gross sales for the first 26 weeks of the financial year, ending on 31
January 2015, were up 9% before including incremental sales from Sofa Workshop and dwell. Order
intake in the important trading period from Boxing Day has also been positive compared to the prior
year and in line with our expectations. This performance underpins the Board's confidence that DFS
enjoys excellent prospects for the current year and for long term profitable growth as one of the UK’s
best-known brands, a major British manufacturer and the country’s leading retailer of upholstered
furniture5.

[2breakout] 23/2/2015 08:11

Buy rating in Momentum investor, not having much affect on the share price though.

[phonics] 22/2/2015 22:36

Been reading the IPO document this weekend and although the company looks interesting I'm also concerned about the 22.5million liability that Mick mentions above which has been capitalised. Reading around to try and understand what this means it sounds like they will be booking it as an asset on the balance sheet and then depreciating it each year. Assuming that is correct not sure how much they would intend to depreciate/pay off each year but net profit last year was just shy of 6mill so presumably even if they were to grow at 15/20% over each of the next few years that's going to take some time to pay down especially given the proposed generous dividend policy.

Am I completely wide of the mark here? Interested to hear how other people interpret this.

[cockneyrebel] 20/2/2015 15:28

Cheers - assume they'll RNS a date ahead of the results themselves hopefully.

CR

[dixies] 20/2/2015 13:38

No definitive date at the moment. Their website just states interims for the half year ending Jan due in March.

[cockneyrebel] 20/2/2015 13:26

Is there a date for the results yet?

I just have 'March'?

Cheers

CR

[cockneyrebel] 19/2/2015 14:56

Cheers for the info on my thread mick-h.

I've been buying a lot more today. Also directors were supposed to have been buying more shares in the float rather than selling, I read somewhere.

CR

[mickharkins1] 19/2/2015 03:00

Can anyone explain in laymans terms what has happened to the intra-group loans (£22.5 mio owed at 26 Jul'14) - it mentions that following the Reorganisation this amount has been "capitalized"?

Thanks in advance,

Mick

[sphere25] 13/2/2015 13:20

"The Board has adopted a progressive dividend policy, subject to the discretion
of the Board and subject to the Company having sufficient distributable reserves.
The Directors intend that the Company will pay an interim and a final dividend to
be announced at the time of the interim and preliminary results of the Company.
The Directors’ intention is to target an 8.0 per cent. dividend yield for the year
ended 25 July 2015, calculated by reference to the Offer Price. The Company
may revise its dividend policy from time to time. There are no guarantees that the
Company will pay dividends or the amount of any such dividends."

"Intended" 14p dividend to start.

More, more, more, we sure do like it, we sure do like it!

Maybe they'll throw in a free sofa and carpet?

Plenty to consider here having a quick glance through:

A complete wipeout for the original shareholders 7 years ago and private equity dumping (no doubt they'll dump the rest post lock-in)

Premium listing on the main market with a potentially tasty dividend to start. Boring business, but could be a nice play on the housing market.

"In the financial year ended 26 July 2014, the Operating Group generated adjusted
EBITDA of £13.7 million (2013: £11.9 million) on revenue of £258.2 million
(2013: £245.6 million)."

"The Operating Group’s revenues for the years ended 28 July 2012, 27 July
2013 and 26 July 2014 were £208.3 million, £245.6 million and £258.2 million,
respectively. This is due principally to significant growth in branded upholstered
furniture revenue (excluding core range sales) and flooring revenue, increase in
online revenue and revenue from the “pilot” concession in three House of Fraser
stores"

"In the years ended 28 July 2012, 27 July 2013 and 26 July 2014, the Operating
Group generated net cash from operating activities of £12.3 million, £8.1 million
and £13.8 million respectively. The decrease in net cash generated from
operating activities of £4.2 million from 28 July 2012 to 27 July 2013 was
principally due to a tax payment and changes in the phasing of customer orders
over the summer period."

So that potential 14p dividend is going to cost them £5.6 million and considering the last few years capex, it looks reasonably well covered.

The balance sheet doesn't look like a train wreck (like alot of PE exits).

Current Trading:

"The Operating Group is trading in line with management expectations for the 23 weeks ended 3 January 2015, sales order intake for the ScS store portfolio are up 8.1 per cent. on a like-for-like basis"

8% growth - not too bad.

Boring but steady play on the housing market with a potentially nice dividend to support the valuation.

[martywidget] 30/1/2015 16:43

08/11/2019 Someone start a new thread, many thanks.