SUY Scs Upholstery

RNS Number:9503I
ScS Upholstery PLC
03 December 2007


For immediate release                                          3 December 2007


                               ScS UPHOLSTERY PLC

            ANNUAL GENERAL MEETING AND INTERIM MANAGEMENT STATEMENT


ScS Upholstery (ScS) the specialist sofa retailer, is holding its Annual General
Meeting at 12 noon today.


Mike Browne, Executive Chairman of ScS will make the following statement,
comprising ScS's Interim Management Statement as required by the UK Listing
Authority's Disclosure and Transparency rules


"Since we last updated the market in September 2007, trading conditions have
been much more challenging than anticipated. Total sales order intake is down by
9% for the first 17 weeks of the current financial year and like for like sales
order intake is down by 16% on the comparable period (down by 8% for the first 7
weeks).


Not only are we up against strong comparables for this period, but the previous
interest rate increases continue to affect consumers. When combined with the
high profile collapse in the sub-prime debt markets and the resultant credit
squeeze, we believe that consumer confidence has been severely hit with regard
to "big ticket" purchases.


The downward trend in our sales order intake will have a significant adverse
impact on sales and, therefore, the result for the six months to 26 January
2008. However, given that we have so many key trading periods ahead of us,
namely the Boxing Day and January sale, Easter and May Bank Holidays, when
comparable figures are softer, it is too early to predict whether recent trading
will affect our original expectations of the full year result.


Our advertising plans and product range are now finalised for the Boxing Day and
January sale which will see us reverting to a more aggressive campaign.


Our store opening programme remains on track with five new stores planned to
open during the second half of the financial year and we continue to actively
explore other opportunities.


The strategic plan for our distribution operations is progressing well with the
successful closure of four warehouses and opening of three modern and more
efficient warehouses. All regions have sufficient capacity as we head into the
peak December delivery period.


We have actioned a full review of both our fixed and variable costs to reduce
the cost base to a level more appropriate to current trading.


Cash at the end of the first quarter was #12.3m.This is a reduction of #4.3m
from the balance reported at 28 July 2008 and includes capital expenditure
payments of #2.0m and corporation tax payments of #0.8m.


Clearly the current trading conditions are very difficult but with the
initiatives outlined above, we believe we can minimise the impact posed by the
current challenges.


We will issue a statement regarding the crucial trading periods of Boxing Day
and the January Sale during the week commencing 4 February 2008 immediately
following the end of our first half year".


For further information, please contact:

ScS Upholstery

David Knight                                      0191 5146054
Ron Turnbull                                      0191 5146060

Buchanan Communications                           0207 466 5000

Richard Oldworth

Nicola Cronk

Susanna Gale





                      This information is provided by RNS
            The company news service from the London Stock Exchange

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