Online Retailer Studio Struggles with PPI Claims Impacting Profits, Education Unit Sale Ahead
- Studio records flat revenue of £228.1m in half-year results
- Adjusted profit before tax rises by 12% to £13m
- Profit from continuing operations plunges 83% to £2.6m due to PPI claims
- Education unit sale agreed with Wakefield City Council for £50m cash consideration
- Online product sales up by 12.8%
- Record Black Friday sessions at 781k
- Core net debt reduced to £70.8m
- CEO Phil Maudsley confident in digital-first value retailer’s future
Online retailer Studio has reported a flat revenue of £228.1m in its half-year results ended 27 September, with adjusted profit before tax rising by 12% to £13m. However, profit from continuing operations fell by 83% due to PPI claims amounting to £7.9m, which were significantly higher than the previous year’s £15.5m. Studio Retail Group, formerly known as Findel, has agreed to sell its Education unit to Wakefield City Council for a cash consideration of £50m. The sale is expected to reduce core net debt and strengthen the legacy pension scheme’s position once completed. Online product sales increased by 12.8%, and Black Friday saw record levels of online sessions at 781k. CEO Phil Maudsley remains confident in Studio’s future as a digital-first, value-focused retailer despite the challenging market conditions. The Education unit sale is expected to complete in 2020.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the company’s financial performance, including revenue, profit, and plans for selling its Education unit. It also includes quotes from the CEO that support the company’s strategy and outlook.
Noise Level: 3
Noise Justification: The article provides relevant information about the company’s financial performance and its plans to sell its Education unit. It also mentions the CEO’s comments on their strategy and market position. However, it lacks in-depth analysis or exploration of long-term trends or consequences of decisions.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the financial performance of Studio Retail Group and its plans to sell its Education unit, which impacts the company’s profitability and debt levels.
Financial Rating Justification: The article contains information about the company’s revenue, profits, planned sale of a business unit, and impact on core net debt, all of which are financial topics.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.
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