Studio Retail Group - A transformational year
Studio Retail Group’s (SRG) exceptional results in FY21 are due to strong customer growth and spend per customer and reflect its product appeal and convenience, helped by positive effects from the COVID-19 pandemic. After the sale of its Education business, 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. With a more focused structure, management anticipates the above should lead to improved cash generation and potentially a return to dividend payments in the medium term. Our forecasts are under review.Studio Retail Group plc, formerly Findel plc, operates in the home shopping and education supplies markets. The Company's segments include Express Gifts, Findel Education and Overseas Sourcing. The Express Gifts segment includes direct mail order businesses in the United Kingdom, offering online and through catalogue a range of home and leisure items, clothing, toys and gifts supported by credit offer. The Findel Education segment supplies resources and equipment (excluding information technology and publishing) to schools and educational establishments in the United Kingdom and overseas. The Overseas Sourcing segment includes sourcing office based in Hong Kong supplying importing services to various group companies and external customers. The Company's subsidiary Express Gifts Limited, includes Studio, an online and home catalogue shopping; Ace, an online store for home, living and garden needs, and Health & Home, an online store for beauty, home, office and garden accessories.
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