// Studio reports 8.6% rise in adjusted pre-tax profit to £31.2m in the 52 weeks to March 27
// Total group revenue increased by 2.2% to £514.8m
// Revenue from core Studio brand grew 3.3% to £434.9m
Online value retailer Studio has said it has hit the “digital sweet spot” after posting a rise in annual profits and sales.
The full-year period ending March 27, the company formerly known as Findel reported an 8.6 per cent uptick in adjusted pre-tax profit to £31.2 million.
Meanwhile, total full year group revenue grew by 2.2 per cent to £514.8 million, while full year revenue from the core Studio retail brand increased 3.3 per cent to £434.9 million.
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Studio performed well in the period leading up to Christmas, and despite strong sales, challenging market conditions and a lacklustre fourth quarter resulted in product margins reducing slightly to 33 per cent.
On the other hand, core net debt reduced by £5.6 million, down to £51.8 million.
Since the start of the current financial year, which factors in much of the lockdown period, Studio enjoyed an “exceptional” trading performance.
In the first 20 weeks, product sales were up 42 per cent year-on-year as people stayed home and shopped online.
Studio chief executive Phil Maudsley said the firm was in a “digital sweet spot”.
“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,” he said.
“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.”
Studio anticipates the return of more competitive market conditions to return in the coming months, said it was schedule to reaching its goal of having over 3 million active customers this year.
Last month, Studio announced the promotion of Paul Kendrick, the managing director of its retail arm, to the post of group chief executive to replace Maudsley.
Kendrick, who is executive director of Studio and managing director of its core subsidiary, Studio Retail, will take over as chief executive of the whole company upon the retirement of the Maudsley at the end of the current financial year, which is March 26 next year.
Studio said this was the outcome of a structured development and succession plan implemented by the board working with both Maudsley and Kendrick over the past two years.
Maudsley will also be fully involved with the transition during the remainder of this financial year.
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