Studio Retail Group

LN: STU

Market Cap£216m

Last Close 248p

Studio Retail Group is a leading online value retailer with an integrated financial services offer. The growth strategy is based around three key levers: value, choice and payment options, and management’s medium-term target is to achieve revenue of £1bn.

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Investment summary

Studio Retail Group’s (SRG) exceptional FY21 results were due to strong customer growth and spend per customer, reflecting product appeal and convenience, helped by positive effects from the COVID-19 pandemic. After the sale of Education, SRG represents a pure play on the growth of online value retail. At the capital markets day, management reiterated its ambition to grow revenue to £1bn within four to six years, a minimum CAGR of 9.5%. The key drivers are expected to be growth of the customer base, enhancing spend per customer and providing more flexible payment options. These play to SRG’s strengths, as evidenced in recent years. Our forecasts are under review.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2020A 434.9 35.0 27.3 12.1 20.5 50.0
2021A 578.6 73.0 48.8 44.9 5.5 12.3
2022E N/A N/A N/A N/A N/A N/A
2023E N/A N/A N/A N/A N/A N/A
Industry outlook

Against a challenging macroeconomic backdrop, Studio is outperforming much of the retail market through its unique digital-first value proposition, combined with the backing of flexible, and increasingly tailored, responsible consumer credit solutions.

Last updated on 20/10/2021
Content on Studio Retail Group
Studio Retail Group – A transformational year
Consumer | Flash note | 5 July 2021
Studio Retail Group – Strong trading and more focused
Consumer | Flash note | 20 April 2021
Studio Retail Group – Impressive trading continues
Consumer | Flash note | 30 September 2020
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Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (7.1) (10.8) 6.0
Relative* (10.1) (14.8) (14.7)
52-week high/low 315.0p/234.0p
*% relative to local index
Key management
Ian Burke Chairman
Paul Kendrick CEO
Stuart Caldwell CFO