Studio Retail has returned to profitability a year after it was acquired out of administration by Frasers Group.
The online retailer swung to a pre-tax profit of £12.1m in the 53 weeks to 30 April 2023, up from a £75.7m loss the year before.
It comes despite sales plunging 22% from £424.4m to £330.3m. When including credit, revenue fell 20% to £445.7m.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
Studio Retail, which was snapped up by Frasers for £26.8m in February 2022, said it had “actively taken action to pause, stabilise and implement improvement plans to become stronger in future years”.
The improvement plans included “access to parental management guidance, economies of scale through increased intra-group volumes, technology system improvements and advice on operational best practice”.
The company also said it had undertaken a restructuring to separate its retail operations from its credit division.
It said the business – renamed Frasers Group Financial Services – “will now act as the all-encompassing authorised consumer credit lender of choice for Frasers Group and its subsidiaries, offering its customers exciting credit products such as Studio Pay and Frasers Plus, an FCA-regulated credit facility and loyalty programme”.
Click here to sign up to Retail Gazette‘s free daily email newsletter
