Online & Digital

Studio Retail Group profits rise in full-year results

The Studio Retail Group (SRG) has hailed a strong year of growth after posting a 3.9% increase in adjusted operating profits for the period ended 27 March 2020.

Total group revenue increased by 2.2% to £514.8m during the year and core net debt reduced by £5.6m to £51.8m.

Studio, SRG’s online value retail business, also reported revenue of £434.9m, up 3.1% on the same period the year prior. Adjusted operating profit for the business also reached £39m following SRG’s investmentment to upgrade its systems and processes.

Additionally, SRG said Studio’s trading performance in the first 20 weeks of the new financial year has been “exceptional”, with product sales up 42% on prior year and financial services revenue up 6.4%.

The business also passed the milestone of having over 2 million active customers in June, which SRF said positions the business “ideally” as it heads into its traditional peak trading period up to Christmas.

Phil Maudsley, group chief executive, said: “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.”

He added: “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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