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Studio Retail has welcomed a pre-tax profit of £12m in the year ended 30 April, 2023, up from a £75.7m loss the prior year, following its acquisition by Frasers Group.
According to new filings from Companies House, while full-year revenues fell from £424.4m to £330.2m, it has “actively taken action to pause, stabilise and implement improvement plans to become stronger in future years”.
Frasers Group noted that Studio Retail has also undertaken a restructuring, which involved the separation and removal of retail operations from its financial services division into its “own distinct entity”.
It said: “This transformation allows the retail business to operate as quickly and efficiently as our pureplay retail competitors for the first time.”
Frasers Group first announced that it had acquired the digital retailer and certain other assets of Studio Retail Group in 2022, following news the retailer had fallen into administration.
The takeover comprised cash and the release of Studio from its liabilities to lending banks, resulting in a cash payment of £26m by Frasers to the lenders.
Frasers said the acquisition would provide it with “expertise and synergies that will accelerate this ambition”, and added it was pleased to have rescued another business out of administration and saved approximately 1,500 jobs.
