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Studio Retail Group reports £31.2m pre-tax profit

Tom Shearsmith
24 August 2020

Online value retail business Studio Retail Group has reported revenue of £434.9m, up 3.1%, with an adjusted pre-tax profit of £31.2m, up from £28.8m in FY19.

Total group revenue, including the company's educational business, reached £514.8m, up 2.2%.

Online product sales for Studio were up by 2.5% to £311.7m, as a result of strong performances during its peak trading periods, such as Christmas, offset by “less consistent” performances during other times.

Competitive market conditions and a disappointing retail trading performance during Q4 resulted in product margins reducing slightly to 33.0%, although gross profit from retail increased by 1.0% to £102.8m.

Adjusted operating profit for the business reached a total of £39.0m after investment in upgrading systems and processes.

Phil Maudsley, Group Chief Executive, commented: “The year FY20 seems a world away now, but it was a year in which we made operational progress as a Group, ensuring we were ready to face COVID-19 from a position of strength.

“Over the past five months I would like to thank each and every one of my colleagues for their commitment and hard work. It is down to them, our improved infrastructure, and our strengthened online customer offer that we have been able to meet the significant increase in customer demand.

As the public have remained at home, more and more customers have been attracted to, and become aware of, our phenomenal online value offer. It is now up to us to keep up the momentum and make sure our proposition continues to resonate at a time when shopping habits are moving online and consumers are valuing the pound in their pocket more than ever before.

“While wider economic uncertainty exists, we are in a digital sweet spot. We are a business on a strong footing, with the correct strategy, and we are confident of the long-term opportunities open to us.”

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