Farewell then, ScS Group. Although your 100-plus sofa-carpet showrooms across the UK will no doubt continue to flourish under their new owner, Poltronesofà , shareholders can no longer recline on your huge cash cushion.
Last week, following a take-private by its Italian peer, shares in the Sunderland-headquartered furniture group were delisted from London’s main market nine years after their IPO. Despite a few tough years, ScS was by no means an ailing retailer. Bar a brief period in 2020, the company was profitable throughout its public life, generated £6mn in pre-tax profit in its most recent financial year to July 2023, and was forecast to make operating profit of £10mn this year.
Granted, the last audited tally of trade and other payables, at £68mn, was more than double inventories and receivables combined. But ScS was used to managing the balance of invoices and stock. What’s more, that cash cushion – £69.5mn at last count – was more than enough to draw on in the event of any tricky cash flow management.