Share Name Share Symbol Market Type Share ISIN Share Description
Studio Retail Group Plc LSE:STU London Ordinary Share GB00B8B4R053 ORD 10P
  Price Change % Change Share Price Shares Traded Last Trade
  7.00 2.8% 257.00 487,504 16:35:10
Bid Price Offer Price High Price Low Price Open Price
253.00 258.00 257.00 248.00 250.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Retailers 434.89 13.61 10.14 25.3 223
Last Trade Time Trade Type Trade Size Trade Price Currency
17:44:59 O 3,700 252.497 GBX

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Date Time Title Posts
12/6/202108:21Studio Retail Group (formerly Findel)251
22/5/200520:48ROFLMFAO !!!! NUTTER ALERT !!!!98
30/4/200114:38Stratus: Death or glory play-
18/4/200115:34Stratus placing and offer4
26/2/200108:02Stratus Tipped1

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Studio Retail Daily Update: Studio Retail Group Plc is listed in the General Retailers sector of the London Stock Exchange with ticker STU. The last closing price for Studio Retail was 250p.
Studio Retail Group Plc has a 4 week average price of 248p and a 12 week average price of 248p.
The 1 year high share price is 315p while the 1 year low share price is currently 173p.
There are currently 86,867,534 shares in issue and the average daily traded volume is 214,569 shares. The market capitalisation of Studio Retail Group Plc is £223,249,562.38.
inever: There were an unusually large number of transactions on Studio today compared to a normal day. Of the 239 transactions, 204 were Automatic Trades, 34 were “Orders” and the UT was a sell of 38,640. 67,326 shares were bought and 97,399 were sold as AT’s. The largest AT buy was for 4,834 at 285p timed at 11:02 and 6 minutes later the largest AT sell of 4,433 shares at 280p was recorded. 62,611 shares were bought and 5,419 were sold as O’s. The largest O was for 7500 at 271p, followed by 4 orders of 5k each. Chartwise, The Studio share price started the day just below the 20 days moving average, passed straight through the 50 day moving average of 284p and rests tonight on the 200 day moving average of 265p. All very nice and neat. We need to remind ourselves of what this management team in the last 12 months has achieved. Q1 Lfl Sales up 55% Q2 Lfl Sales up 28.5% H1 Lfl Sales up 38% Q3 Lfl Sales up 32% Q4 Lfl Sales up 88% Year to March: Sales up 43% By any stretch, that is a vote of confidence from the only stakeholder whose opinion should matter to us as investors – the customer. And it has been achieved on higher margins, don’t forget that. Frasers sold because they need to prepare their own balance sheet for some hefty write-offs. Studio’s second largest shareholder, Schroders aka Andy Brough, is predicting £1bn in sales and EPS of 90p in 3-4 years. (I think 2-3 years). The last management statement was very positive and promised guidance in June with the final results. That is fine by me, because management will know how they will fare against the Q1 Lfl before publishing that guidance, thus increasing its accuracy. Sales momentum is key in retail and Studio has it at the moment. I’m ignoring the AT’s and following the O’s, and so long as management keep doing what they are doing, I’ll be following them too. Studio remains my largest investment at cost. AIMHO
skindle: So now that the liquidity issue has apparently been resolved, what is the next reason for the under performance of this share price ? I will give this until the end of July but frankly, there it seems there will always be a reason why the share price is being maintained under three hundred pence.
inever: Schroders invest in businesses to sell at a profit whereas Frasers invest in businesses to run them. Frasers acquired 10% of Studio from Schroders. Frasers wants to buy Studio before it gets over valued. Andy Brough has predicted £1bn sales and 90p earnings in 3 to 4 years. On a conservative pe of 10, Andy expects Studio to be worth £9 a share in three to four years time at least.So it's up to Frasers to make a move but Schroders aren't going to budge while the price is £3 AND management are delivering. It may sound counterintuitive but Frasers will be disappointed that the Studio rebranding has been so successful so quickly. They were hoping it would stall, and enough investors would get bored and sell out to get them over the 50% threshold to buy the lot. There will come a time when the trading results will speak for themselves. Personally I think that will be when the issue the March 2021 final accounts. Andy mentioned the possibility of an overhang of shares if either Schroders or Frasers sell some or all of their holding. Doesn't that tell you something about the conversations Andy and Mike Ashley are having?Andy expects the share price to treble in the next few years but will sell if Management trip up.Frasers might sell if management don't trip up because their chances of owning 100% and running the whole show will diminish. It sounds crazy but the interests of the two biggest shareholders are not aligned and that's why the price is stuck below 300p.All IMHO.
inever: If Stifel think that the Studio shareprice is undervalued by less than 20% then Studio need to appoint new advisers. The share price has more or less marked time in the last 6 months yet the growth in sales has increased from 33% to 88% in Q4.The results of the 2019 rebranding have been a spectacular success and Studio is on a momentum surge with a p/e lagging way behind the new reality. It's time to dump Stifel.
skindle: Barkypoo, with respect, you post absolute rubbish. The board of directors of Studio PLC have carried out a stirling job of transforming this business into a very efficient digital online retailer with revenue in excess of over half a billion, zero core debt and profit before tax margin approaching ten per cent. On this occasion the board of directors are not to blame and you are clearly ill informed to conclude such a judgement. Our largest shareholder is the sole reason behind our retarded progress for what reason few people know. Prior to the initial Sports Direct investment in Findel PLC under Messrs Sugden and Siddle our share price briefly touched 330 pence before the cowboys rode into town and decimated our progress. Scroll on six years and under a new chairman, chief executive and financial director this company has made huge progress which is not reflected in the current share price. Rid ourselves of the Komodo Dragon (Frasers) and we will find the key to the chest of gold. Make no mistake these barrow boys are strangling our progress, the hampered share price has nothing to do with company performance or board decisions.
skindle: I don’t think the performance of the company is in doubt anymore Inever, but many thanks for your post, excellent information. It’s the inability of the board to translate this stellar performance into a share price that fairly represents the revenue and profit before tax. I’ve been invested in Findel/Studio since the rights issue in 2011 where the board has notoriously been unable to align the share price with the genuine headway it was making. Having to deal with Mr Ashley breathing down the neck of the board since September 2015 has also proved to be a hindrance rather than a help. Mr Kendricks first action to delay the trading statement has rather undermined my confidence in what looked to be shaping up to be a real turning point in the transformation of the company. Still, I live in hope for what is to come. I’m hoping it won’t be another “next year we’ll be millionaires” moment.
jeff h: Another 32,700 sale disclosed by Ashley today, can only think he is trying to keep a lid on the share price to enable a bid from himself to cost less (market manipulation though?)or he is happy to sell at current share price levels, after all he bought the last 6 million shares of his stake for 161p. Presumably the Convertibles will only convert to an additional 8.3m Ordinary shares if a bid/share price comes in at over the 479p - below that and the banks may well wish to wait until the end of March and cash in their new to be issued (in the absence of a bid at over 489p) Deferred Shares for the £40m nominal value Inever refers to. The 2011 Prospectus dealing with the issue of the Convertible Shares mentions:- Repurchase: In the event that a holder of Convertible Shares has not served a notice to convert its Convertible Shares into Ordinary Shares by the end of the Conversion Period, then the Convertible Shares shall automatically convert into non-voting deferred shares (‘‘Deferred Shares’’). The Deferred Shares shall not carry any rights to attend or vote at general meetings of the Company or any rights to participate in the profits or capital of the Company, and the Company shall have the right to buy back such Deferred Shares for a nominal amount at any time following such conversion. ...I could not find anything to say if the Deferred Shares holder has a right to demand repayment from the Company.
jeff h: Anyone a view on why Frasers/Ashley keeps selling comparatively small amounts of the STU shares they hold? ....etc, etc Maybe trying to keep the price down?... or indicating the current share price is an acceptable level for his stake? Any thoughts?
inever: Cellars, As a private investor, my first investment criteria is to find a management team that knows what they are doing, and preferably in a market segment I know about myself. Based on my own experience in UK retail, Studio has two of the most important ingredients necessary to continue to grow sales and profits in 2021 and beyond. The first is MOMENTUM and the second is a management team that knows what it’s doing. MANAGEMENT KNOWS WHAT IT IS DOING Let’s start with management. They realised the old Findel business needed to be reorganized. They developed a strategy and wisely concluded they needed to rebrand. The clear and simple new brand name, STUDIO, was launched in July 2019. The outgoing CEO Phil Maudsley has over 30 years’ experience with the group. The new chairman Ian Banks, first appointed in January 2017, has an impressive track record behind him, not least his current successful chairmanship of Pets at Home, another market winner in 2020 during Covid. The strategic review, rebranding and new sales growth trajectory have all happened under his chairmanship, and the benefits are only now beginning to filter through to the bottom line. Phil’s replacement as CEO in March 2021 will be Paul Kendrick who is currently the MD of the Studio division. Paul joined the group in May 2016 prior to the new chairman’s arrival so the promotion of an in-house executive is a real plus in terms of stability, continuity, corporate knowledge and culture. Promoting the executive with the trading and marketing background is proof that the emphasis will be on growing product sales and increasing market share. I believe this is a really important indicator of how much the board is committed to achieving their medium target of £1bn in sales from 3m active customers. When you read every market announcement Studio management have made since the new strategy was devised, you will see that there announcements are consistent with the objectives they set out in their strategic plan. In otherwords, management came up with a plan, they have implemented their strategy, the plan is working, and they are going to do more of the same. The strategy happens to be working better than expected during the pandemic, and as the CEO announced on August 24th 2020 “Our intention would be to reinvest any benefits from exceptional growth into further growing the customer base and accelerating our digital transformation.̶1; (Compare this to NBrown, which is also going through a transition to online. Sales are still falling and in the summer they talked about refreshing their strategy. Studio is accelerating its plan, Brown is refreshing there’s.) This is a management team that has been in situ implementing the old plan, saw it needed to change the direction and emphasis of the business, and set about building that vision around a new brand called Studio. This is not a turnaround executed by a management buy-in team full of adrenaline and beholden to short term private equity. This is a team that realised they needed to change or die, so change they did, and are succeeding as a result. MOMENTUM To answer your question about how much of the Covid related boost will be retained, look no further than the interview Paul Kendrick gave on September 30th 2020. He said: “We had expected that to drop away [i.e. the really strong growth during lockdown], and actually in that immediate post-period it did drop down [from 55% in weeks 1-11 to 27% in weeks 12-20], but what we’ve seen is as AW20 has kicked off, our sales performance has stepped up a bit again. So, over the last five weeks we’re actually 30% up, even with the high street being open.” He went on to say. “We are benefitting from two things. Over the last two years we have been driving the transformation to online and that’s the part of the market we are seeing growth in, but we’re also benefiting by being a VALUE RETAILER AS THERE AREN'T MANY VALUE RETAILERS THAT ARE STRONG ONLINE.”[My emphasis] This statement tells you two things. The first is management continues to plan with caution. The second is sales were still up 30% despite the fact that the high street had opened again. My guess is the dip in sales referred to by Paul Kendrick was more to do with the volume of stock-outs rather than anything else. They didn’t expect a 55% increase in sales in weeks 1-11, so stock-outs must have increased. When the Autumn/Winter 2020 ranges went up online and customers had new merchandise to choose from, sales growth resumed its 30% trajectory. I believe the Covid boost can be retained provided the management team continue to execute well in terms of their buying and merchandise function, and I believe they are up to that. The Covid sales bounce was noted in toys, games, electricals, fitness and garden, and the business de-risked by reducing clothing range intakes. In H1 Home & Leisure sales were up 80% and Clothing and Footwear up 22% despite the decision to “de-risk”; in this category. There is plenty of scope to build on this in 2021. QUARTER 3 Since these statements were issued, the most important trading quarter (Oct-Dec) has come and gone. It normally accounts for 40% of product sales. The December and January announcements by management both confirm Studio’s product sales grew year on year by about 32%, and crucially, it did so with a 440bps improvement in achieved gross margin. Growing gross margin at the same time that sales are growing strongly is retail’s holy grail for transforming financial performance. Their December 2020 statement says on its Digital Transformation “Enhanced databases and new technology will further improve this decision making and personalisation as well as NOW optimising product range management and pricing strategies.” In short management expect to increase sales on higher margins and their actual performance in October and November prove their strategy is working in practise. Three other kpi’s are disclosed: 1. Active customers have increased to 2.3m (i.e. the number of customers who made a purchase in the last 12 months). This is up from 1.83m at the end of March 2020, an increase of 470k active customers, or 26%. This rate of growth has accelerated because it only grew by 15% in the year to March 2020; 2. Of those, 1.5m are active credit accounts, up from 1.02m at the end of March 2020, an increase of 498k or 47%. [Confirmation of the CEO’s assertion that there is a high degree of loyalty from the credit customer base]; 3. The Studio app has been downloaded almost 1 million times. This is an increase of 150k in the month of December alone, and 300k since the end of September. About 60% of these App users have activated their “push button” which allows Studio to make tailored offers via the app to these users. 20% of product sales are made through the app. The app was only launched in September 2019. Marketing to these customers is much more nimble, personalised and cheaper than recruiting new customers. The statement doesn’t state it, but by my calculations product sales for the 12 months to December 2020 were £400m, up 28.2% on March 2020. Sales per active customer are about £174 for the last 12 months compared to £171 at the end of March 2020. It is hard to quantify the value of income from the credit finance side because it lags the product sales growth but I think a £30m increase to £158m is possible by the year end. TRAFFIC TO THE WEBSITE What is most impressive about Studio is the rate of increase in the traffic to the Studio website and how it has performed relative to its peers. Similarweb estimates that the total visits to the Studio website by month are as follows: Dec 2020 14m Nov 2020 19.7m [Studio places a lot of emphasis on black Friday in November] Oct 2020 12.7m Sep 2020 9.6m Aug 2020 9.0m Jul 2020 8.85m Jun 2020 9.3m May 2020 7.2m Back in September management indicated they would accelerate their strategy to grow customers and sales and there is no question they have been very successful at that. One would expect traffic to grow significantly in Q3 and especially in November, but Studio’s visitor number of 19.7m in the highly competitive November demonstrates they are succeeding in increasing customer awareness of the Studio brand. And this is a stellar performance compared to its peers at this time. SimilarWeb ranks the website every month. In November SimilarWeb ranked Studio the 2181st most popular website in the world, 102nd in the UK and SECOND in the UK category Ecommerce and Shopping, right behind Boots and leapfrogging TKMaxx. In October the rankings were 4556th/178th/88th respectively. Brand awareness is increasing rapidly, helped no doubt by Studio being the main sponsor of ITV’s “I’m a Celebrity Get Me Out Of Here”. But the sponsorship of this iconic programme also shows Studio’s customer profile compliments the target market ITV is aiming for with such a popular programme. The potential market size for Studio must therefore be very high. TRADING OUTLOOK NEXT YEAR. The like for like comparisons are going to be more difficult to interpret in FY22, especially in the first half. This year H1 sales were up 39% (+55% weeks 1-11, +27% weeks 12-20 and +30% weeks 21-26. But I think sales growth of 25-30% can be maintained for these reasons: 1. Brand awareness is rising rapidly (according to Similarweb) 2. App downloads are significantly ahead of last year; 3. The growth in the customer base is accelerating; 4. Credit customers should be over 50% higher than the start of last year and these customers remain loyal; 5. New systems will optimise product range management and improve price strategies; 6. Management have the experience of 2020 behind them. Data analytics of the massive increase in traffic should help them identify new opportunities, especially in expanding their merchandise ranges. 7. The new CEO is an in-house appointment so personnel disruption will be minimal. This is a steady team operating under the guidance of an experienced chairman. I don’t know how management equates 3m customers with a target of £1bn in sales but I think they will get to 3m active customer in the next 18 months. I anticipate sales for the year end March 2021 to be £577m up from £435m, made up of £419m product sales and £158m of credit income). Therefore if 3m active customers equates to £1bn in sales, then Studio will be in touching distance of £1bn in sales by the end of March 2022. I think Findel will be disposed of somehow in 2021, allowing management to concentrate on managing the rapid growth of Studio. It is all my opinion of course and I have no connection with the company other than as a private investor, but I wish Ashley would take his tanks off the lawn and allow the management team to concentrate on exploiting the opportunity they have successfully created for Studio.
inever: Studio will be announcing its H1 results to the end of September on December 8th. They have already stated that product sales at Studio were 39% up year on year. By my calculations that means product sales should be £183m, £51m up on H1 the previous year.They've said revenue from financial services are up 5.5%, equivalent to an increase of about £2.7m to £51.7mIn H1 to September 2019 Studio's gross margin % improved to 34.6%Applying the same margin less 10% for fulfillment and we are looking at an increase of £13-15m in operating profit in H1, or double last year.That will make for a great announcement on it's own. But there should be more good news because they will also tell us how Q3 is going, and from my calculations, these are also going to be well ahead of 2019.Firstly the business entered Q3 with 700k downloads of the Studio App compared to 200k when it made its announcement in December 2019.According to visits to the Studio website in October jumped to 8.75m from 6.6m in September, a 33% increase. I am eagerly awaiting the November data but I get the feeling the like for like growth in sales of over 30% will be sustained into Q3. Chairman Ian Burke did a very good job at Pets at Home keeping their good results from leaking prior to the public announcement of them in the summer. Their share price shot up on the day. Studio is primed to do the same IMHO.
Studio Retail share price data is direct from the London Stock Exchange
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