// Studio hires financial advisor to conduct a formal sale process
// In the 26 weeks to September 25, adjusted profit before tax rose 52% to £17.7m
// Revenues increased 17.2% to £268m during the period
Studio has unveiled plans to explore its sale options following an increase in profits and sales amid the Covid-19 pandemic.
In the 26 weeks to September 25, the online value retailer saw adjusted profit before tax increase 52 per cent to £17.7 million as Brits shifted online.
Revenues increased 17.2 per cent to £268 million during the period, as Studio’s active customer base grew by 15 per cent to 2.1 million.
READ MORE: Big Interview: Paul Kendrick, CEO, Studio
In the third quarter to date, Studio also reported “materially stronger profit performance” as November saw a less promotional market than the same period last year, with revenues up 32 per cent year-on-year.
The value retailer said it is now undertaking a strategic review to explore sale options after receiving a letter from shareholders Frasers Group in October.
Frasers Group, which owns a 37 per cent stake in the business told Studio it thought the group was “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”.
The board has since appointed Stifel as its financial advisor to conduct a formal sale process.
No interested parties have been announced so far.
“I am very proud of the way that this group has responded over the last few months to the challenges of Covid-19,” group chief executive Phil Maudsley said.
“These interim results are testament to the strengths of our digitally-focussed value business and the ability of our colleagues and customers to adapt rapidly to change.
“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.”
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