SCS (SCS)

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SCS SCS Logo

One of the UK’s largest retailers of upholstered furniture and floorings.

3-Oct-2017

Preliminary Results For The Year Ended 29 July 2017 – Seems in-line with (maybe slightly above) expectations.  I suppose the main takeaway is that the excellent (9%+) Dividend will be paid – This and the fact this update reflects small growth.

Will probably see some interest here on a PER of 7.

22-Nov-2017 – 174.5p – £70.2m – PER 7.61

AGM Statement – Certainly doesn’t look like a meeting where you’re going to miss anything.

Even with an 8%+ Dividend I just can’t bring myself to be interested in a cyclical furniture and flooring company. Any downturn, that Dividend gets cut or even disappears, along with my investment!

31-Jan-2018 – 202p – £80.8m – PER 8.72

Trading Update For The 6 Months To 27 January 2018 – “The Group has traded in line with the Board’s expectations in the first half of the financial year, including the key winter sales period. We believe the Group’s increasing resilience and value proposition will enable us to manage the continued economic uncertainty and take advantage of opportunities”.

This seems reasonably encouraging and even though the BIG Dividend is reasonably well covered I will remain Neutral for now.

21-Mar-2018 – 205p – £82.0m – PER 8.68

Interim Results For The 26 Weeks To 27 January 2018 – Revenue up 1.8% to £160.7m (2017: £157.9m), Operating Profit improved by £2.9m to £0.3m (2017 loss: £2.6m), EPS of 0.1p (2017 loss: 5.6p), Cash of £51.8m (2017: £36.8m) and the Interim Dividend is up 8.2% to 5.30p (2017: 4.90p). YTD in-line.

This is starting to look more attractive, that yield is increasing, it’s currently 7%+ and covered 7 times – But still not an area of much certainty!

8-Aug-2018 – 214.5p – £86.4m – PER 8.88

Trading Update For The 12 Months To 28th July 2018 – In-line but expecting trading to remain challenging.

The yield remains attractive but still not enough to move me from Neutral here.

2-Oct-2018 – 199p – £79.6m – PER 8.18

Preliminary Results For The 12 Months To 28th July 2018 – A strong year. Revenue up (slightly), Gross margin up (slightly), EPS up 14%, loads of Cash (£48.2m) and the Total Dividend is up 10.2%. Trading this year, so far, is in-line.

This looks almost decent enough to get involved for that juicy yield now (7%+), I am going to switch this up from Neutral to my Watchlist.

Subsequent note: Actually, further research and the forecast fall in EPS is just enough to put me off for now – Back to Neutral.

25-Oct-2018 – 221p – £88.4m – PER 8.7

Trading Update – Last 12 weeks in-line even with the bad (27) House Of Fraser concessions included – Confirmation these are to now cease trading.

I remain Neutral as in-line forecasts are for lower EPS than last year.

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