Shares in value furniture-to-floorings company ScS (SCS) traded down 7% today at 222.5p following the successful placing of 6.25m shares by its largest shareholder. This represents 15.3% of its issued share capital.

The company participated in the placing by purchasing 1.99m shares for a total consideration of £4.4m. The shares purchased will be cancelled, resulting in a reduced share capital consisting of 38m shares.

ScS had £57.6m of net cash on the balance sheet at the financial year ended 27 July 2019.

The cancellation will mathematically increase earnings per share by around 5%.

PRIVATE EQUITY BACKED HOLDER SELLS DOWN

Yesterday afternoon, private equity backed Parlour Product Holdings announced that it had asked broker Shore Capital to place shares in an accelerated book build at a price of 220p.

Parlour Product Holdings will subsequently own 9.85m shares or 24.6% of ScS, and remain the company’s largest shareholder.

The seller is owned by US private equity firm Sun Capital Partners which rescued ScS in 2008. The Florida based firm currently has $7bn in assets under management.

In its last set of results for the year ended 27 July 2019 the company delivered better than expected profits, while flagging a more challenging start to the new financial year.

READ MORE ABOUT SCS HERE

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Issue Date: 06 Nov 2019