Furniture retailer ScS has reported higher interim profits however, the retailer cautioned that trading is expected to remain tough.
The retailer warned margins for the second half of 2019 will be hit with higher costs of providing interest free finance to their customers.
David Knight, chief executive said the retail industry are to “suffer in the midst of the uncertain economic and political environment.”
Therefore, he expects the “trading environment to continue to remain challenging in the short to medium term, although the board is confident that the group is well positioned to maximise opportunities as they arise.”
ScS reported profits of £545,000 the six months to 26 January, compared to £414,000 the previous year. Revenue was slightly up by 1.1% to £151.4m and like-for-like order intake grew to 1.5%, which is up over the two -period by 4.5%
Knight added, “The group continues to deliver profitable growth whilst increasing its resilience. The board is pleased with the group’s year-to-date trading, which is in line with its expectations.
“Our focus on providing excellent choice, value and quality for our customers, coupled with our commitment to delivering against our strategic priorities, continues to prove successful.”