Studio Retail Group, the online value retailer, has experienced a significant increase in sales and has decided to halt its sale. The company received various offers for its business but determined that it can generate more value for its shareholders by operating solely as an online retailer through Studio.co.uk. To further its ambitions, Studio Retail Group has also sold its Findel Education operation for approximately £30 million.

During the year leading up to March 26, Studio achieved record-breaking trading performance. It expects its adjusted pre-tax profit from continuing operations to be between £48 million and £50 million, marking a year-on-year increase of 75% to 83%. However, Studio still has a long way to go in achieving its medium-term goal of £1 billion in revenue, as its most recent half-year revenue stood at £268 million.

Although financial figures for the fourth quarter were not provided, Studio mentioned that trading during this typically slower period was exceptionally strong. Product sales in Q4 were 88% higher than the previous year, and the gross margin rates from product sales saw a 650 basis point increase. These results contributed to an overall product sales growth of 43% for the full year, with gross margin rates rising by 290 basis points compared to the previous year.

Furthermore, Studio Retail Group experienced a significant increase in its active customer base, which grew by 36% to a total of 2.5 million. The Studio App played a crucial role in this growth, with over a million customers downloading it and accounting for more than 25% of sales during Q4.

CEO Paul Kendrick expressed his satisfaction with the company’s performance, highlighting its ability to navigate the operational challenges posed by the pandemic. He stated, “Studio has seen strong trading during the financial year whilst successfully managing the operational challenges of the pandemic, which, along with the sale of Findel Education, creates a step-change in our financial position. We start the new financial year from a position of focus and strength, with the growth in our customer base demonstrating the success of our leading online value retail and integrated financial services offer.”

Studio Retail Group’s decision to focus on its online retail business, coupled with its strong financial results, paints a positive future for the company. As it continues to expand its customer base and streamline its operations, Studio is well-positioned to achieve its long-term revenue goals and generate greater value for its shareholders.