FURNITURE retailer ScS has reported record results in the first six months of the year.

For the period up to March 31, the Sunderland retailer reported pre-tax profits of £3.8m, up 47 per cent on the same period of the previous year.

The rise came despite a continued expansion plan which saw the group open three new stores in the first half of this year, following on from the 11 stores opened last year.

The group now has 34 stores, employing more than 600 staff, but plans to more than double that number to 70 in the next five years.

The recent store openings have increased the group's selling space by more than 60 per cent.

Commenting on the results, Darlington-born managing director David Knight, said: "These results are testament to the continuing success of our business strategy.

"ScS represents an exciting opportunity as it continues its expansion programme in what remains a highly fragmented marketplace.

He added: "We believe the ScS formula will enable the company to maintain its strong track record and realise its excellent growth potential, expanding to over 70 stores within the next five years."

Turnover was up by 73 per cent to £37.3m.

The group, which floated on the Stock Exchange in December 1997, plans to pay an interim dividend of 2p per share in July, up 43 per cent on the previous interim total. Mr Knight said: "We opened nine new stores between April and September 2000, the majority of which did not contribute to profits in the first six months of this financial year.

"In addition, we have opened a further three new stores in this first half. These new stores continue our strategy of opening on prime retail parks with a high quality fit-out. Despite the fact that we have spent £2.5m on new stores over the period, we continue to be cash generative and ended the period with a healthy balance of £4.9m in cash.

"Our expansion programme is going to plan. It will make us a national presence, although we plan to keep our headquarters in Sunderland."