The group behind upholstered furniture retailer ScS has reported sales of over £240m as its transition continues to take shape.

According to its first set of filed accounts since its takeover of ScS for the 15-month period ended 31 December 2024, group sales reached £244.9m. Pre-tax losses amounted to £32.2m.

The group said that performance was adversely impacted by an increase in the cost of finance, while its exit from flooring, a decline in online sales and the closures around store refurbishments also had an impact in sales.

Since Poltronesofa acquired ScS back in 2023, the group has embarked on a capital programme to refurbish its stores. In total, 60 stores were refurbished in the period (see related).

“This refresh was designed to improve the look and feel of our showrooms and introduce new technology and a new range of products,” a statement said. “A further 36 stores will be refurbished in 2025.

“The period was a challenging one, impacted by the continued economic pressures consumers and businesses face across the UK. Profits were impacted by a reduction in our gross margin (44.4%) due to the increased cost of providing credit to our customers. The Group has net assets of £68m at year end.

“The Group recorded a loss for the period of £33m. Note that the reported loss includes exceptional costs relating to the closure of stores for refurbishment and the discontinuance of selected business areas e.g. flooring. In addition, the Company incurred significant restructuring costs, including the impairment of the intercompany loan with Snug for £8.3 million. “Tangible assets net movement in the period was £33m. This was due to the store refurbishment programme. At the end of the year stocks were £15.4m.”