SUY Scs Upholstery

RNS Number:6646L
ScS Upholstery PLC
14 January 2008


Immediate Release                                                14 January 2008


                               SCS UPHOLSTERY PLC
                                        
                                 TRADING UPDATE
                                        

ScS Upholstery Plc ("ScS"), the specialist sofa retailer, issues the following
update on current trading.


Trading over the first three weeks of the Boxing Day and January sale has been
disappointing. Whilst gross margins have been maintained, like for like sales
order intake over that period was down by 16%. Like for like sales order intake
for the 24 weeks of the current financial year is down by 17%, a further 1%
decline from the 16% decline reported for the first 17 weeks. Total sales order
intake is down by 12% for the comparable period (down by 9% for the first 17
weeks).


We see no relief from the credit squeeze and pressures on consumers' disposable
income for the remainder of the financial year and although our comparable
numbers are softer, it is unlikely that we will see any significant improvement
on our year to date like for like sales performance. Whilst some benefits from
the cost review which we have carried out will flow through in the current
financial year, the principal benefits will be realised in the results for the
next financial year. Our results, therefore, are likely to be at the lower end
of the range of the market's expectations.


Given the current circumstances and the focus on maintaining our strong cash
position, the Board will not be recommending the payment of a dividend this
year. Until trading conditions improve, we have also deferred the current
expansion programme, with only one store committed to open before the end of the
financial year, and also deferred the majority of the refurbishment programme.


Our next statement will be the announcement of our interim results for the half
year to 26 January 2008 which will be made on Tuesday 15 April 2008.



For further information, please contact:


ScS Upholstery
David Knight                                 0191 5146054


Buchanan Communications
Richard Oldworth                             0207 4665000
Nicola Cronk




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

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