Studio Retail Group


£198.8m market cap

230p last close

Studio Retail Group is a multi-channel retailer operating across the business-to-consumer and business-to-business market places. It is a market-leading online value retailer and educational resource supplier in the UK.

Investment summary

Studio’s online and value-based offer produced strong trading during lockdown, with 55% y-o-y product sales growth in the first 11 weeks of FY21, comparing very favourably with its online peers. Demand was driven by growth in active customers and spend per customer. It looks well placed, with tight stock management, as the high street re-commences trading, which is likely to be very competitive. The Phase 2 review of the proposed sale of Education will likely delay the process to 2021, adding to the uncertainty from COVID-19, making the provision of FY21 guidance difficult.

Y/E Mar
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 479.6 46.6 26.8 25.9 8.9 17.4
2019A 506.8 50.9 28.8 26.5 8.7 8.9
2020E 534.5 54.8 30.7 29.6 7.8 10.3
2021E N/A N/A N/A N/A N/A N/A
Industry outlook

The investment case is primarily centred on Studio, the main customer-facing business, which is making excellent progress in its digital transition. 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 17/09/2020
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Share price graph
Balance sheet
Forecast net debt (£m) 236.7
Forecast gearing ratio (%) 326
Price performance
Actual (3.6) 31.4 10.8
Relative* (2.6) 34.7 32.1
52-week high/low 252.5p/141.0p
*% relative to local index
Key management
Ian Burke Chairman
Philip Maudsley CEO
Stuart Caldwell CFO

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