UK-based homeware retailer ScS has reported a ‘strong’ financial performance for fiscal 2022 (FY22), driven by record sales.
For the 52 weeks to 30 July, the retailer’s gross sales were £344.7m ($384m), up by 8.0% from £319.2m ($355.6m) in fiscal 2021 (FY21).
ScS’s revenue increased by 8.6% to £331.6m in FY22 against £305.2m in the prior year.
The retailer reported a gross profit of £156.3m, up by 6.3% from FY21, but its gross margin dropped by 72 basis points from 46.1% to 45.3% year-on-year.
ScS also suffered a £6.3m decline in profit before tax to £16.4m in FY22, against £22.7m in FY21.
Its earnings per share also declined from £0.50 to £0.36 against last year.
ScS CEO Steve Carson said: “The year saw the group deliver record sales, maintain its strong gross margin and manage costs effectively, resulting in a 68% increase in underlying profit before tax, excluding business rates relief.
“We also saw excellent progress in year one of our refreshed strategy, including strengthening our teams as we look to drive the business forward in the coming years.
“Trading since the start of the new financial year has been subdued, with the challenges of high inflation impacting consumers’ disposable income.
“As previously reported, the sector is seeing softening demand as consumers defer spend on big ticket discretionary purchases.
“We are pleased with the strategic progress we have made which, coupled with the strength of the group’s balance sheet, places the business in a strong position to deal with current headwinds.
“Whilst we expect the coming months to be challenging, we are confident in the longer-term growth prospects of the business.”
As of 8 October, ScS’s balance sheet stands at £76.7m with no debt.
The company said it believes its operating model, strategy and balance sheet places it ‘in an excellent position to deal with the headwinds our industry is facing’.