ScS Group PLC (LON:SCS) shares jumped on Friday after the firm said its order intake had improved “significantly” in the last seven weeks despite “challenging” trading in the early part of 2020.
In an outlook statement accompanying its half year results, the sofa retailer said like-for-like (LFL) order intake in the last seven weeks had risen 3.3%, an increase it said was “a significant improvement” on the first 26 weeks of the year where the figure had declined 4.4%.
READ: SCS Group orders improve but mindful over coronavirus impact
The company added that despite low consumer confidence it had been “successful in sustaining profitable growth and increasing its resilience”.
The firm also said it had seen reduced footfall at its stores and was “mindful” of the potential impact from coronavirus, however it added that it was “as well positioned as it can be” to deal with any effects on deliveries and demand.
For the 26 weeks ended 25 January, ScS reported a pre-tax loss of £600,000, swinging from a £500,000 profit in the prior year, while revenues rose to £160.1mln from £159.2mln.
The interim dividend, meanwhile, was maintained at 5.5p per share.
“We continue to focus on providing excellent value, quality and choice for our customers, and are committed to our strategy. We remain confident in the future success of the group", said chief executive David Knight.
In a note, analysts at ScS house broker Shore Capital said they believed the firm was “financially resilient” but conceded that visibility on the next few months trading was “basically zero, with the risk to short-term forecasts clearly on the downside”.
Investors, however, seemed optimistic as the shares jumped 10.5% to 179p.