Scs Share Discussion Threads

[aishah] 05/12/2022 08:22

Crossed 200d SMA Friday close. Santa rally coming?

[brucie5] 02/12/2022 16:45

Looks very bullish now, over £1.50. Despite the slowdown the balance sheet strengths come to the fore, and it continues both to buy back shares and pay generous dividends. That said, I'm fully invested and having already bought down, won't be adding.

[jimic23] 02/12/2022 13:42

Pay the new CFO a quarter of that package plus some proper LTIP to get an owner's mentality around the board table for the first time since Sun Capital

[thorpematt] 02/12/2022 12:31

David,
We'd be guessing, but that last sentence of yours sounds feasible. As a stand-in CEO if I recall correctly, at northgate, then he might be looking to step up.

[davidosh] 02/12/2022 11:42

I would think there will be a long queue to get this job anyway. Safe job with almost the market cap in the bank so a great cushion of cash and no suppliers hounding you. Not to mention the FD got a salary and bonus over a million pounds in 2021 so thousands of company FDs will be envious of that.

Where is the downside? I am really surprised Chris is leaving. Maybe he is miffed that he was not given the CEO role last year

[davidosh] 02/12/2022 11:38

I guess the thanks will come when an official leaving date is announced....could be as late as next November

[disc0dave45] 02/12/2022 11:34

Looking at trades (which may not be correct) I'm expecting a dip in share price Generally such news at least generates some movement.No thanks given to Mr Muir either after 6 years.

[gymratt] 02/12/2022 11:20

Had a nibble. Nice divi whilst awaiting a rerate...

[davidosh] 02/12/2022 11:05

It was only the AGM last week so strange to be announced afterwards. Did the voting not go well or something said by shareholders. I was not there but timing seems strange. Chris is nowhere near retirement age and no mention of a move to another role. A full year of notice makes it easy to plan for a new FD though.

[cwa1] 02/12/2022 07:41

ScS Group plc

("ScS", or the "Group")

Directorate Change

ScS, one of the UK's largest retailers of upholstered furniture and floorings, announces that Chris Muir has notified the Board of his intention to step down as Chief Financial Officer.

The process to identify a successor will commence immediately. Chris has a 12 month notice period and will remain with the business while a successor is identified and to facilitate a smooth handover. A further announcement in this respect will be made in due course.

[catabrit] 30/11/2022 12:50

I love this hound. Quite rare to be paid a circa 9% dividend yield, have net cash backing, a declining share count and an expanding market share. If you're not buying this as a deep value play, then I have no idea what you are buying. It's a cigar butt with the option of becoming a much bigger biz post recession. I quite like that set-up so own quite a bit of this. Let's see what happens!

[chinahere] 26/11/2022 17:40

I think this will re-rate soon. £2 per share would only be around £70 million market cap and a P/E of 6 or so.

Cash holdings would be almost market cap. so a great margin of safety. Only thing I worry about is a disastrous purchase which I hope is very unlikely.

[thelongandtheshortandthetall] 25/11/2022 18:51

Yes I see that.
However. They are buying them a lot cheaper.

Either way 56k a day is going to be positive buying power.

[laughton] 25/11/2022 18:38

Yes, but keep in mind that they are only buying what they didn't buy on the original plan. It will just be completed a bit quicker.

"The size of the New Programme is equal to the remaining balance under the Old Programme."

[thelongandtheshortandthetall] 25/11/2022 17:47

Quite happy with that. 56,312 shares bought and cancelled each day will make a decent dent.
Very nice divi too.

[cwa1] 25/11/2022 16:09

New buyback scheme...



The maximum daily number of ordinary shares under the New Programme that will be purchased is 56,312, which is 25% of the average daily volume traded in October 2022, the month prior to this announcement. This maximum daily volume in the New Programme is significantly higher than the 18,733 ordinary shares daily maximum under the Old Programme.

[brucie5] 25/11/2022 11:54

Sitting duck for PE buyer, surely.

[chinahere] 25/11/2022 10:46

Yes, buybacks at a £ amount rather than a fixed amount of shares!

[thelongandtheshortandthetall] 25/11/2022 10:22

I'm hoping the AGM result will mean yet more aggressive share buybacks.👍

[thelongandtheshortandthetall] 25/11/2022 10:17

AISHAH.
From the July annual report they have 'payments received on account' of only £25m.

[riverman77] 25/11/2022 10:13

If they are able to earn 3% on their £89m cash balance, then this should be around £2.5m - if they paid this out as a special dividend it would be about 5% at current share price.

[aishah] 25/11/2022 08:14

Pleasantly surprised by the update here following on from DFS about a resilient market for big ticket items. Taken a maiden position.

Cash is way higher than mkt cap. Assume lot of it is customer deposits. They should be earning a good income on it though with rates rising.

[abergele] 25/11/2022 08:09

A good result for us considering the circumstances of the country,
very steady as she goes,, g.l.all Lth's

[cwa1] 25/11/2022 07:22

Trading

The Group is trading resiliently through what continues to be a challenging period. Like-for-like order intake has seen an improvement in recent weeks, with trading ahead of the prior year. Total like-for-like order intake for the 16 weeks to 19 November 2022 is down 9.1% due to the reduction in orders in the first ten weeks to 6 October 2022, when the comparative period benefited from strong pent-up demand following the last national lockdown. The Group is also pleased to see that we have continued to gain market share over the period.

Period

Weeks

Like-for-like order

intake vs prior year

31 July to 6 October 2022

1 to 10

(14.4%)

7 October to 19 November 2022

11 to 16

1.3%







31 July to 19 November 2022

1 to 16

(9.1%)



The balance sheet remains strong, with closing cash at 19 November 2022 of £89.7m and no debt.

Outlook

The Board is encouraged by the Group's recent performance and current trading is in line with its expectations for the full year. The Group is preparing for the important winter sales trading period and, as always, its success will be a key factor in the results for the full year. The business is planning to approach the winter sales period in a manner consistent with that which has proved successful in prior years.

We are mindful of the challenges of the current economic climate. Trading remains difficult to predict, but we believe our refreshed strategy, strong cost management and robust balance sheet places the Group in an excellent financial and operational position.

[davidosh] 23/11/2022 00:19

Any of you going to the Agm on Friday?