Studio Retail Group (STU)

Sector:

Retailers

Index:

FTSE Small Cap

228.00p
   
  • Change Today:
    -2.00p
  • 52 Week High: 260.00
  • 52 Week Low: 154.00
  • Currency: UK Pounds
  • Shares Issued: 86.44m
  • Volume: 34,507
  • Market Cap: £197.09m
  • RiskGrade: 141

Studio pleased with first half performance as it offloads education

By Josh White

Date: Monday 16 Dec 2019

LONDON (ShareCast) - (Sharecast News) - Online value retailer Studio Retail Group (SRG) reported flat revenue in its half-year report on Monday, at £228.1m, as its revenue from continuing operations rose 0.3% to £181.3m.
The London-listed firm said its adjusted profit before tax for the group as a whole for the 26 weeks ended 27 September was up 12% at £13m, while its profit before tax from continuing operations was down 83% at £2.6m.

It said its core net debt was £10.2m lower at £70.8m.

On the strategic front, since the period ended the company had reached a conditional agreement to sell its education business for headline cash consideration of £50m, representing 10.3x its adjusted EBITDA for the 2019 financial year.

Education was thus presented in the result as a discontinued operation.

It also undertook a simplification during the half-year, changing its name to Studio Retail Group in July and appointing managing director of Studio, Paul Kendrick, to the board on Monday.

The company reported the successful deployment of the Studio app during the period as well, with more than 200,000 downloads to date, and online sales in the first half representing 81% of total sales, up from 72% in September 2018.

"This has been another period of strategic progress as we strengthen our position as a digital-first value retailer," said group chief executive officer Phil Maudsley.

"We are pleased to have reported a strong increase in adjusted profit before tax in the first half, followed in the third quarter by a record sales performance from Studio during our peak seasonal trading period.

"We know that Studio's customers look for value all year round, so we do not need to chase promotional trends to maintain our market position."

In support of that approach, Maudsley said the firm was "looking forward" to further initiatives coming on stream next year to enhance its digital-led value offer.

"We will look to refund the remaining customers' PPI claims during the second half of the year.

"Education has delivered on the foundations laid last year and its leadership team should be congratulated on their hard work."

The board was "delighted" to have agreed the terms of a sale, Maudsley added, and looked forward to that completing in 2020.

"The retail marketplace is undoubtedly challenging, but Studio's unique position as a digital-first, value-focused retailer with an integrated credit option gives us great confidence for the future."

At 1616 GMT, shares in Studio Retail Group were up 6.82% at 235p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

STU Market Data

Currency UK Pounds
Share Price 228.00p
Change Today -2.00p
% Change -0.87 %
52 Week High 260.00
52 Week Low 154.00
Volume 34,507
Shares Issued 86.44m
Market Cap £197.09m
RiskGrade 141

STU Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value Not Available
Price Trend
58.28% above the market average58.28% above the market average58.28% above the market average58.28% above the market average58.28% above the market average
59.26% above the sector average59.26% above the sector average59.26% above the sector average59.26% above the sector average59.26% above the sector average
Income Not Available
Growth
10.16% above the market average10.16% above the market average10.16% above the market average10.16% above the market average10.16% above the market average
66.67% above the sector average66.67% above the sector average66.67% above the sector average66.67% above the sector average66.67% above the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 2
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

STU Dividends

No dividends found

Trades for 24-Feb-2020

Time Volume / Share Price
16:35 12,040 @ 228.00p
16:35 2,500 @ 228.00p
16:35 2,500 @ 228.00p
16:35 8,000 @ 228.00p
16:29 86 @ 230.00p

STU Key Personnel

CEO Philip Maudsley
CEO Roger Siddle
Chair Ian Burke
CFO Stuart Caldwell

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