Scs Share Discussion Threads

[aishah] 02/2/2023 13:06

Cash same as mkt cap!

[abergele] 02/2/2023 08:12

Great news under the countries financial circumstances,,
more uplift to follow it seems...g.l.all Lth's

[cwa1] 02/2/2023 07:30

Like-for-like order intake momentum improved significantly throughout the Period and the Group returned to growth of 2.6% in the last 10 weeks, which included the key winter sale. As previously reported, like-for-like performance in the first 16 weeks was impacted by a tough comparative.

Despite the current economic climate remaining challenging and unpredictable, the Board is encouraged by recent order levels. We continue to believe that the Group's refreshed strategy, strong cost management and robust balance sheet places it in an excellent financial and operational position. The Group remains on track to meet full year market expectations*.

ScS expects to announce its interim results on Tuesday, 21 March 2023. A meeting for analysts will be held on the morning of the results, please contact Buchanan via [e-mail] for further details.

[brucie5] 02/2/2023 07:24

Sound looking update.

[joemillson] 31/1/2023 15:56

The holding size notice may have been triggered by the reduction in overall shares outstanding, from the buybacks. So not necessarily from PM buying more.

[finkie] 31/1/2023 11:43

Premier Milton up stake to over 5% they seem sensible from a quick google. Also the company buying stock for cancellation and happy to do so at 217p etc seems to bode well for the future.

[lkstls] 27/1/2023 17:00

Thorpematt thanks a lot for the explanation

[thorpematt] 26/1/2023 18:58

P.S

Paul Scott did a video on Vimeo last year on balance sheet. His view on IFRS16 is the same as mine. 6'20" in

[thorpematt] 26/1/2023 18:47

Long term leases.

An accountant I am not.

BUT

Essentially a 2 or 3 years back the accounting standard was changed. So that any leases on property had to be reported as debt.

So for example say you have a 2 year lease on your property for £2k a month that is £24k of debt (to your landlord) that has to be written as long term debt. However any rents due in the next 12 month don't (because they are short term) hence longer term leases get reported as debt. To "account" for discrepency the property is logged as an asset (except it isn;t becuse you dont actually own it). Also the EPS are enhanced *because the rent is added back in).

SAll of which is slightly stupid IMO. Because it is like saying the rent for 2043 is a debt...which it isn;t until it's overdue (in 20years time).

SO, in any event MOST long term leases account for debts not due for many year. In fact, since none are due for at least one year, they are not monies owed at all.

Now ordiginally LT leases were for equipment rented. Things like car and vehcle leases and in the case of travel companies aeroplanes. The diffence of course is that these are capital depreciating items that WILL decrease in value to zero over a time period. Since property doesn;t work that way I prefer to see lease on property as rent. I treat it the same way as having a contract with a energy supplier. Yes you are commited to paying the bills (at an agreed rate) but it is not a debt until the time period is the present. We do not call my electricity bill for 2043 a debt because I haven;t used it yet.

So in summary companies with long term leases on properties in the worng location have a problem. But other than that future lease agreeements are fine or indeed more than fine.

Where SCS is concerned most of the locations they have are the ones you would choose if you had to anyway. And eachmonth or year the rent comes out of operating expenses (like the ellctric bill). Once the lease expires it can be renegotiated (or not). No stress.

I do not have the axact surrent figues to hand. I hope this is of some help.

[abergele] 26/1/2023 17:26

Hi,,
would/could the leases money paid be tax deductible as of some sort of asset for tax purpose?..just a thought..

[chinahere] 26/1/2023 12:43

I'm in the same boat but as far as I understand it the leases greater than a year are on the balance sheet as both an asset and a liability. How the difference in value is calculated I don't know.

Leases paid in the current year are amortised as interest payments in the P&L.

If you assume that leases are a fact of business and will be paid while the business produces profit then stripping them out helps in seeing what else has value (cash etc.).

Hopefully someone else will come along and further enlighten both of us.

Edit: It looks like the two are equal at the start but adjust according to discount rate or market changes:

[lkstls] 25/1/2023 15:41

Could someone please elaborate on this long term lease thing? As someone with limited knowledge in accounting I'm having difficulty understanding it. Thank you!

[thorpematt] 25/1/2023 11:36

Yep, well, if you take out the long term leases (which mostly are assets IMV) then the the large net cash position reveal how undervalued it is.

Plus, the competition has a terrible balance sheet, so in a rising rate environment cash is king.

[finkie] 25/1/2023 10:25

just keeps going up in a virtual straight line!

[essentialinvestor] 19/1/2023 17:00

Very nicely done, fully admit I was way too cautious here.

[brucie5] 19/1/2023 16:49

Yes indeed. 200 is something of a comeback. I doubt very much that it will stop there.

[abergele] 19/1/2023 16:42

Lovely finish to the day it seems...g.l.all Lth's

[brucie5] 17/1/2023 12:35

On a blinder - playing catch up?

[abergele] 13/1/2023 14:34

(ii) has it a £1.8878 sells--v-- £1.89997 buys
very tight today, g.l.all lth's

[davidosh] 12/1/2023 16:56

Just looking back and thinking it really was a crazy bargain at £1.17 just three months ago!
I am pleased they increased the level of share buybacks.

[aishah] 12/1/2023 12:47

SP is up 30% since last update. Recent acquisition looks canny. Strong hold for me.

[brucie5] 12/1/2023 11:52

Wow - that's indeed a deep dive! His conclusion seems to be in line with Paul Scott's consistently positive coverage. So glad I haven't sold any along the way!

[aishah] 12/1/2023 11:46

Deep dive into SCS - Worth reading imo.

[greyingsurfer] 11/1/2023 09:48

Not sure that's what I'm looking for in a sofa :)