INTERIM DIVIDEND AND BOARD UPDATE
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For immediate release |
6 April 2020 |
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ScS Group plc
("ScS" or the "Group")
INTERIM DIVIDEND AND BOARD UPDATE
The Group announced on 24 March 2020, that it had temporarily closed its stores, distribution network and head office in order to protect our people and our customers. Whilst stores remain closed, ScS has continued to provide support to our customers and employees through dedicated teams, who we have enabled to work remotely.
Financial position & interim dividend
The Group continues to review all ongoing cash expenditure to protect our liquidity in the short term. The business has moved in a swift but considered way with regards to furloughing an appropriate number of our colleagues, whilst, at the same time, maintaining customer support. We continue to monitor and utilise any further Government support that is available.
Our focus in recent years on building a business with increasing resilience is reflected in the strength of our balance sheet and the level of flexibility in our cost base. We cannot predict the impact of COVID-19 but we believe the Group is as well positioned as it can be.
Despite the strength of our balance sheet, the Board feels that it is appropriate to suspend payment of the interim dividend, which was due to be paid on 7 May 2020. At a time when the UK Government is supporting ScS, it seems inappropriate to use the cash for anything other than protecting the financial strength and resilience of the business.
The Board recognises the importance of income to the Group's shareholders and will continue to assess when it is appropriate to recommence dividend payments.
Board update
As announced on 29 January 2020, David Knight notified the Board of his intention to retire as Group CEO. He had given 12 months' notice in accordance with his contract. Given current circumstances, the Board and David have agreed that he will not retire before the end of July 2021. David is prepared to be flexible should the appointment of his successor and a smooth handover require a little longer. The Board is very grateful to David for his flexibility regarding his retirement date.
Enquiries:
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ScS Group PLC David Knight, Chief Executive Officer Chris Muir, Chief Financial Officer |
c/o Buchanan +44 (0)20 7466 5000 |
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Buchanan Richard Oldworth Tilly Abraham Charlotte Slater |
Tel: +44 (0)20 7466 5000 |
Notes to editors
ScS is one of the UK's largest retailers of upholstered furniture and floorings, promoting itself as the "Sofa Carpet Specialist", seeking to offer value and choice through a wide range of upholstered furniture and flooring products. The Group's product range is designed to appeal to a broad customer base with a mid-market priced offering and is currently traded from 100 stores.
The Group's upholstered furniture business specialises primarily in fabric and leather sofas and chairs. ScS sells a range of branded products which are not sold under registered trade marks and a range of branded products which are sold under registered trade marks owned by ScS (such as Endurance, Inspire and SiSi Italia). The Group also offers a range of third party brands (which include La-Z-Boy, G Plan and Celebrity). The Company's flooring business includes carpets, as well as laminate and vinyl flooring.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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