UK furniture and flooring retailer, ScS Group PLC (LON:SCS), delivered an increase in first-half profits and sales but shares fell as it warned trading in recent weeks has slowed due to adverse weather.
Gross profit in the 26 weeks to January 27 rose 3.2% to £75.3mln as the gross margin improved to 44.7% from 43.9%. Gross sales grew 1.5% to £168.4mln, supported by a £4.3mln contribution from five new stores.
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The like-for-like order intake increased 2.2% despite a 6.4% decline from its concessions at 27 House of Fraser stores.
In the 33 weeks to March 17, like-for-like order intake growth was 0.9%.
Trading in the seven weeks to March 17 has softened with like-for-like order intake falling 5.3% due to the recent cold weather snap.
Chief executive David Knight also warned: “We expect that the retail market will continue to remain challenging in the short to medium term, and we are conscious that the group still faces the key Easter and May bank holiday trading periods.”
He added: “Despite the challenging trading conditions, the group continues to deliver profitable growth and the board is pleased with the group's year to date trading, which is in line with its expectations."
ScS lifted its interim dividend by 8.2% to 5.3p each.
Shares dropped 2.4% to 200p in morning trading.