FURNITURE retailer ScS yesterday pledged a resurgence after seeing its pre-tax profits fall by more than half.

The Sunderland company described its performance for the ten months to July 28 as "disappointing," after pre-tax profits fell from £17.2m last year to £7.1m - a fall of 59 per cent.

ScS issued a profits warning at Christmas and another earlier this year, citing difficult market conditions and distribution problems at its warehouses.

However yesterday, the company, which operates from 95 sites across the UK, including nine stores opened in the past year, said it remained optimistic about the future, and said it had already introduced major changes to the business.

Chief executive David Knight said the firm's high-profile advertising campaign featuring actor Martin Kemp had been replaced with one that focused more on ScS's products, and turbulence in the warehousing network had already been tackled.

He told The Northern Echo: "The results are disappointing, of course, but it is really a reflection of the economic climate, and is in line with what the City expected after what we have said over the past few months.

"However, if we look at the results for ScS over the past ten years, this has been a very strong and solid business, and we continue to be in good shape and are optimistic in going forward.

"We have taken a very hard look at our advertising, and while Martin Kemp has done a great job for us, his contract is up, and we are now launching a campaign that focuses on the comfort and value of our products.

"We have had a complete review of our logistics operation, after we had some problems last Christmas, and we are opening two new, purpose-built distribution centres in Coventry and Livingstone which, in the longer term, will bring good economy to the business."

ScS, which employs more than 300 people in its stores and Sunderland head office, also saw its revenues for the period fall from £195.8m last year to £183.8m.

Mr Knight said that improvements are consistently being made internally to strengthen the business, including a £2m investment in the IT infrastructure at its headquarters.