Studio Retail up for sale as profits soar

Studio Retail Group has launched a strategic review and formal sale process amid soaring half-year profits.

The British value retailer’s adjusted profit before tax jumped 52 percent to 17.7 million pounds for the 26 weeks to 25 September as shoppers flocked online during lockdowns.

Group revenue increased 17.2 percent to 268 million pounds in the period, while the retailer reported a 15 percent increase in its active customer base in H1 to 2.1 million at the end of September.

“These interim results are testament to the strengths of our digitally-focused value business and the ability of our colleagues and customers to adapt rapidly to change,” group CEO Phil Maudsley said in a statement.

Studio Retail Group up for sale

“Our strategy to grow the Studio customer base and increase our customers' spend with us, supported by our flexible credit offer has delivered a record trading performance which underpins our confidence in the Group's medium-term growth prospects.”

The company also confirmed that in October it received a letter from Frasers Group, which owns an approximate 37 percent stake in the business, saying it believes Studio Retail is “misunderstood by the market and as a consequence, significantly undervalued” and “although this may be fixable over the long-term, the group should conduct a strategic review”.

Studio Retail Group said that “the board has now determined that it is an appropriate point to undertake a comprehensive review of the strategic options open to it in order to maximise value for shareholders. These options include a sale of the Group which will be conducted under the framework of a "formal sale process" in accordance with the Takeover Code.”

Photo credit: Studio Retail