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ScS Group

LSE:SCS
Snowflake Description

Flawless balance sheet, good value and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SCS
LSE
£92M
Market Cap
  1. Home
  2. GB
  3. Retail
Company description

ScS Group plc, together with its subsidiaries, engages in the retail of upholstered furniture, flooring, and related products in the United Kingdom. The last earnings update was 65 days ago. More info.


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SCS Share Price and Events
7 Day Returns
-2.3%
LSE:SCS
-1.1%
GB Specialty Retail
1%
GB Market
1 Year Returns
8.5%
LSE:SCS
-10.9%
GB Specialty Retail
-6.3%
GB Market
SCS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ScS Group (SCS) -2.3% -5.7% 0.7% 8.5% 24% -
GB Specialty Retail -1.1% -4.7% 2% -10.9% -23.7% -22.8%
GB Market 1% -1.8% 1.5% -6.3% 14.4% 2%
1 Year Return vs Industry and Market
  • SCS outperformed the Specialty Retail industry which returned -10.9% over the past year.
  • SCS outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.3% over the past year.
Price Volatility
SCS
Industry
5yr Volatility vs Market

Value

 Is ScS Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ScS Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ScS Group.

LSE:SCS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:SCS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.898 (1 + (1- 19%) (0%))
0.932
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.932 * 6.65%)
7.42%

Discounted Cash Flow Calculation for LSE:SCS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ScS Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:SCS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.42%)
2019 9.10 Analyst x1 8.47
2020 11.80 Analyst x1 10.23
2021 12.10 Analyst x1 9.76
2022 11.57 Est @ -4.36% 8.69
2023 11.26 Est @ -2.69% 7.87
2024 11.09 Est @ -1.51% 7.22
2025 11.01 Est @ -0.69% 6.67
2026 11.00 Est @ -0.12% 6.20
2027 11.03 Est @ 0.29% 5.79
2028 11.10 Est @ 0.57% 5.42
Present value of next 10 years cash flows £76.32
LSE:SCS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £11.10 × (1 + 1.23%) ÷ (7.42% – 1.23%)
£181.26
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £181.26 ÷ (1 + 7.42%)10
£88.57
LSE:SCS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £76.32 + £88.57
£164.90
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £164.90 / 39.88
£4.13
LSE:SCS Discount to Share Price
Calculation Result
Value per share (GBP) From above. £4.13
Current discount Discount to share price of £2.30
= -1 x (£2.30 - £4.13) / £4.13
44.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ScS Group is available for.
Intrinsic value
44%
Share price is £2.3 vs Future cash flow value of £4.13
Current Discount Checks
For ScS Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ScS Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • ScS Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ScS Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ScS Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:SCS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-26) in GBP £0.27
LSE:SCS Share Price ** LSE (2019-05-22) in GBP £2.3
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PE Ratio Median Figure of 25 Publicly-Listed Specialty Retail Companies 11.24x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 788 Publicly-Listed Companies 16.35x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ScS Group.

LSE:SCS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:SCS Share Price ÷ EPS (both in GBP)

= 2.3 ÷ 0.27

8.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ScS Group is good value based on earnings compared to the GB Specialty Retail industry average.
  • ScS Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does ScS Group's expected growth come at a high price?
Raw Data
LSE:SCS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
-6.6%per year
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PEG Ratio Median Figure of 22 Publicly-Listed Specialty Retail Companies 1.87x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:SCS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.51x ÷ -6.6%

-1.29x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ScS Group earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on ScS Group's assets?
Raw Data
LSE:SCS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-26) in GBP £0.83
LSE:SCS Share Price * LSE (2019-05-22) in GBP £2.3
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PB Ratio Median Figure of 39 Publicly-Listed Specialty Retail Companies 1x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.51x
LSE:SCS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:SCS Share Price ÷ Book Value per Share (both in GBP)

= 2.3 ÷ 0.83

2.76x

* Primary Listing of ScS Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ScS Group is overvalued based on assets compared to the GB Specialty Retail industry average.
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Value checks
We assess ScS Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. ScS Group has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is ScS Group expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-6.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ScS Group expected to grow at an attractive rate?
  • ScS Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.2%.
Growth vs Market Checks
  • ScS Group's earnings are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
  • ScS Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:SCS Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:SCS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts -6.6%
LSE:SCS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 0.4%
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 16.8%
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 4.9%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:SCS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:SCS Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-07-31 340 16 9 2
2020-07-31 334 16 9 2
2019-07-31 334 14 10 2
LSE:SCS Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-01-26 339 20 11
2018-10-26 338 19 11
2018-07-28 337 18 11
2018-04-28 326 21 11
2018-01-27 325 24 12
2017-10-27 329 27 11
2017-07-29 333 29 9
2017-04-29 335 22 9
2017-01-28 337 16 9
2016-10-28 327 14 9
2016-07-30 317 11 9
2016-04-29 303 12 8

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ScS Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • ScS Group's revenue is expected to grow by 0.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:SCS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from ScS Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SCS Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-07-31 0.23 0.23 0.23 1.00
2020-07-31 0.22 0.22 0.22 1.00
2019-07-31 0.25 0.25 0.25 1.00
LSE:SCS Past Financials Data
Date (Data in GBP Millions) EPS *
2019-01-26 0.27
2018-10-26 0.27
2018-07-28 0.27
2018-04-28 0.28
2018-01-27 0.30
2017-10-27 0.27
2017-07-29 0.23
2017-04-29 0.23
2017-01-28 0.23
2016-10-28 0.23
2016-07-30 0.22
2016-04-29 0.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ScS Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess ScS Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ScS Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has ScS Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ScS Group's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ScS Group has delivered over 20% year on year earnings growth in the past 5 years.
  • ScS Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • ScS Group's 1-year earnings growth is negative, it can't be compared to the GB Specialty Retail industry average.
Earnings and Revenue History
ScS Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ScS Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SCS Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-26 338.90 10.74 144.84
2018-10-26 338.11 10.71 144.47
2018-07-28 337.31 10.68 144.10
2018-04-28 325.72 11.35 137.54
2018-01-27 324.95 11.85 136.10
2017-10-27 328.96 10.63 138.93
2017-07-29 332.97 9.40 141.75
2017-04-29 335.20 9.37 143.58
2017-01-28 337.43 9.33 145.41
2016-10-28 327.37 9.03 141.76
2016-07-30 317.31 8.73 138.11
2016-04-29 303.42 7.68 132.24
2016-01-23 289.53 6.64 126.36
2015-10-23 283.13 2.21 123.55
2015-07-25 276.73 -2.22 120.73
2015-04-25 265.26 -3.13 117.83
2015-01-24 253.79 -4.04 114.94
2014-10-24 248.96 0.94 110.67
2014-07-26 244.13 5.91 106.39
2013-07-27 245.65 2.63 101.27
2012-07-28 208.28 -1.91 91.41

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ScS Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • ScS Group used its assets more efficiently than the GB Specialty Retail industry average last year based on Return on Assets.
  • ScS Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ScS Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ScS Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is ScS Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ScS Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ScS Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ScS Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ScS Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • ScS Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ScS Group Company Filings, last reported 3 months ago.

LSE:SCS Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-26 33.26 0.00 62.52
2018-10-26 33.26 0.00 62.52
2018-07-28 37.30 0.00 48.16
2018-04-28 37.30 0.00 48.16
2018-01-27 28.71 0.00 51.84
2017-10-27 28.71 0.00 51.84
2017-07-29 33.28 0.00 40.13
2017-04-29 33.28 0.00 40.13
2017-01-28 23.61 0.00 36.83
2016-10-28 23.61 0.00 36.83
2016-07-30 29.62 0.00 22.38
2016-04-29 29.62 0.00 22.38
2016-01-23 19.62 0.00 32.24
2015-10-23 19.62 0.00 32.24
2015-07-25 26.78 0.00 21.06
2015-04-25 26.78 0.00 21.06
2015-01-24 18.26 0.00 26.55
2014-10-24 18.26 0.00 26.55
2014-07-26 4.25 22.53 18.79
2013-07-27 4.84 29.83 21.19
2012-07-28 2.19 32.38 21.16
  • ScS Group has no debt.
  • ScS Group has no debt compared to 5 years ago when it was 575.4%.
  • ScS Group has no debt, it does not need to be covered by operating cash flow.
  • ScS Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess ScS Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ScS Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is ScS Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.04%
Current annual income from ScS Group dividends. Estimated to be 7.38% next year.
If you bought £2,000 of ScS Group shares you are expected to receive £141 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ScS Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • ScS Group's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.25%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:SCS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 26 Stocks 3.4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:SCS Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-07-31 0.18 2.00
2020-07-31 0.17 2.00
2019-07-31 0.17 2.00
LSE:SCS Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-10-24 0.162 7.090
2018-10-02 0.162 7.307
2017-10-24 0.147 7.045
2016-10-11 0.145 8.856
2015-10-02 0.140 7.899
2015-03-23 0.056 3.420

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, ScS Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but ScS Group only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of ScS Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess ScS Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ScS Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ScS Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of ScS Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Knight
COMPENSATION £860,408
AGE 60
TENURE AS CEO 17.3 years
CEO Bio

Mr. David Knight has been the Chief Executive Officer of ScS Group plc since January 01, 2002. Mr. Knight served as the Chief Executive Officer SCS Upholstery plc since January 1, 2002. Mr. Knight joined ScS in 1987 as General Manager from Wades Department Stores, which he has joined in 1978. He served as Branch Manager of ScS’s flagship store, located at the Metro Centre in Gateshead and served as its National Sales Manager since October 1995 and its Merchandising Director since November 1997. Since October 1999, he served as Managing Director of ScS’s flagship store. He has been a Director of ScS Group plc since January 01, 2002. He serves as a Director of Parlour Product Topco Limited. He served as an Executive Director of SCS Upholstery plc since November 1997.

CEO Compensation
  • David's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • David's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the ScS Group management team in years:

8.3
Average Tenure
52
Average Age
  • The average tenure for the ScS Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

David Knight

TITLE
CEO & Director
COMPENSATION
£860K
AGE
60
TENURE
17.3 yrs

Chris Muir

TITLE
CFO, Company Secretary & Executive Director
COMPENSATION
£545K
AGE
42
TENURE
3.1 yrs

Sacha Beere

TITLE
Operations Director
COMPENSATION
£255K
AGE
52
TENURE
14.9 yrs

Gary Kemp

TITLE
Logistics Director
COMPENSATION
£192K
AGE
56
TENURE
8.3 yrs

Marie Liston

TITLE
Corporate Services Director
COMPENSATION
£213K
AGE
44
TENURE
3.1 yrs
Board of Directors Tenure

Average tenure and age of the ScS Group board of directors in years:

4.4
Average Tenure
61
Average Age
  • The tenure for the ScS Group board of directors is about average.
Board of Directors

Alan Smith

TITLE
Non-Executive Chairman
COMPENSATION
£125K
AGE
71

David Knight

TITLE
CEO & Director
COMPENSATION
£860K
AGE
60
TENURE
17.3 yrs

Chris Muir

TITLE
CFO, Company Secretary & Executive Director
COMPENSATION
£545K
AGE
42
TENURE
3.1 yrs

Ron McMillan

TITLE
Senior Independent Director
COMPENSATION
£60K
AGE
66
TENURE
4.6 yrs

George M. Adams

TITLE
Non-Executive Director
COMPENSATION
£60K
AGE
62
TENURE
3.8 yrs

Paul Daccus

TITLE
Non-Executive Director
AGE
45
TENURE
4.4 yrs

Angela Luger

TITLE
Non-Executive Director
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
17. Dec 18 Buy Simon Nicholson Individual 17. Dec 18 17. Dec 18 99 £1.99 £197
24. May 18 Sell Gary Kemp Individual 24. May 18 24. May 18 -70,000 £2.09 £-145,992
X
Management checks
We assess ScS Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ScS Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Are Investors Undervaluing ScS Group plc (LON:SCS) By 43%?

We generally believe that a company's value is the present value of all of the cash it will generate in the future. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. … We're using the 2-stage growth model, which simply means we take in account two stages of company's growth

Simply Wall St -

Interested In ScS Group plc (LON:SCS)’s Upcoming UK£0.055 Dividend? You Have 2 Days Left

Investors who want to cash in on ScS Group plc's (LON:SCS) upcoming dividend of UK£0.055 per share have only 2 days left to buy the shares before its ex-dividend date, 18 April 2019, in time for dividends payable on the 09 May 2019. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … 5 checks you should use to assess a dividend stock?

Simply Wall St -

What Can We Make Of ScS Group plc’s (LON:SCS) High Return On Capital?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Introducing ScS Group (LON:SCS), A Stock That Climbed 20% In The Last Three Years

Just take a look at ScS Group plc (LON:SCS), which is up 20%, over three years, soundly beating the market return of 16% (not including dividends). … While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Simply Wall St -

Is ScS Group plc's (LON:SCS) Balance Sheet A Threat To Its Future?

The direct benefit for ScS Group plc (LON:SCS), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … However, the trade-off is SCS will have to adhere to stricter debt covenants and have less financial flexibility. … Does SCS's growth rate justify its decision for financial flexibility over lower cost of capital.

Simply Wall St -

Is ScS Group plc's (LON:SCS) ROE Of 29% Impressive?

This article is for those who would like to learn about Return On Equity (ROE). … Another way to think of that is that for every £1 worth of equity in the company, it was able to earn £0.29. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

ScS Group plc (LON:SCS): Are Analysts Right About The Drop In Earnings?

Help shape the future of investing tools and you could win a $250 gift card! … Since ScS Group plc (LON:SCS) released its earnings in July 2018, … as a -7.3% fall in profits is expected in the upcoming year

Simply Wall St -

ScS Group plc (LON:SCS): A Fundamentally Attractive Investment

ScS Group plc (LON:SCS) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … company with a

Simply Wall St -

A Close Look At ScS Group plc’s (LON:SCS) 29% ROCE

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

ScS Group plc (LON:SCS) Will Pay UK£0.11 In Dividends

On the 26 November 2018, ScS Group plc (LON:SCS) will be paying shareholders an upcoming dividend amount of UK£0.11 per share. … Well, keep on reading because today, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?

Simply Wall St -

Company Info

Description

ScS Group plc, together with its subsidiaries, engages in the retail of upholstered furniture, flooring, and related products in the United Kingdom. Its stores offer various upholstered furniture products, including fabric and leather sofas; and flooring products, such as carpets, and laminate and vinyl flooring products. The company also provides various third party brands, including La-Z-Boy, G Plan, and Parker Knoll. It operates 101 stores and 27 House of Fraser department stores. The company also sells its products online through its Website, scs.co.uk. ScS Group plc was incorporated in 1996 and is headquartered in Sunderland, the United Kingdom.

Details
Name: ScS Group plc
SCS
Exchange: LSE
Founded: 1996
£91,732,132
39,883,536
Website: http://www.scsplc.co.uk
Address: ScS Group plc
45-49 Villiers Street,
Sunderland,
Tyne and Wear, SR1 1HA,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE SCS Ordinary Shares London Stock Exchange GB GBP 28. Jan 2015
BATS-CHIXE SCSL Ordinary Shares BATS 'Chi-X Europe' GB GBP 28. Jan 2015
Number of employees
Current staff
Staff numbers
1,932
ScS Group employees.
Industry
Homefurnishing Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 00:40
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2019/03/19
Last earnings filing: 2019/03/19
Last earnings reported: 2019/01/26
Last annual earnings reported: 2018/07/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.