Studio Retail Group is planning to explore its sale options after increased demand contributed to a 17 per cent increase in sales.
The online value retailer reported sales of £268m for the half year ended 25 September, while adjusted profits also increased by 52 per cent to £17.7m.
The group said it has seen record levels of activity during peak trading in recent weeks. Product revenue in Q3 to the end of November is 32 per cent ahead of the prior year.
Studio said as a digital-first retailer, it is “ideally positioned” to serve the increasing number of customers who choose to shop online.
Alongside its results, the group has separately announced the launch of a strategic review and formal sales process.
Frasers Group, which owns a 37 per cent stake in the firm, said it believed Studio is “misunderstood by the market and as a consequence, significantly undervalued”.
The board has since appointed Stidel Nicolaus Europe to act as its financial advisor on the sale of the business.
Phil Maudsley, Group CEO, commented: “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.”
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