Studio Retail Group shares opened almost 10% higher on Tuesday after the group revealed interim Results for the 26 weeks ended 25 September 2020.
Group revenue surged 17.2% from £228.7m in 2019 to £268.0m, whilst pre-tax profit was up 199% from £5.0m to £15.0m.
Active customer base at the group was up 15% in the period to 2.1m at the end of September, including 1.4m with an active credit account. Online ordering levels in during the first half of the year was over 91%, up from 81% last year and the app had over 850,000 downloads since its launch in October 2019.
Looking forward, the Studio Retail Group said: “Studio’s multi-year transformation into a digital-first retailer, means that it is ideally positioned to serve the increasing number of customers who choose to shop online. Our growing customer base, coupled with strong processes and systems has meant we have been well-positioned to respond to record levels of activity during peak trading in recent weeks.”
“While we are yet to see any material adverse impact of the pandemic on customer repayments, we remain watchful of the volatile consumer environment. Nonetheless, the strength of our customer proposition, further investment in our digital capabilities, and the strong growth in the credit customer base – where there is a higher degree of loyalty – underpins our confidence in the sustainability of the medium-term growth prospects of the business.”
Commenting on the results, chief executive Phil Maudsley said:
“I am very proud of the way that this group has responded over the last few months to the challenges of Covid-19. 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.”