Findel PLC (LON:FDL) posted improved full year profits and said it will change its name to Studio Retail Group to show its “confidence and ambition” after investors recently rebuffed a takeover attempt from Mike Ashley.
The online value retail and education business reported revenue of £506.8mln for the 52 weeks to 29 March, up 5.7% on the previous year, and adjusted profit before tax up 17.7% to £28.8mln.
READ: Findel shareholders reject Sports Direct takeover offer
Statutory PBT leapt 33% to £29.4mln as improved sourcing helped product margins widen at the Studio website and the education business.
Retail analysts GlobalData said the retailer was benefitting from the UK's economic uncertainty and constricted household budgets, noting that results were bolstered by record Black Friday Sales, value proposition and flexible credit options.
"As Findel looks to ramp up its digital media investment and focus on quality, it will continue to threaten the market share of declining midmarket retailers," Global Data said.
Core net debt was down 22% to £57.4mln as cash generated from operating activities almost doubled year on year to £22.4mln. Total net debt, which includes a £175.5mln securitisation facility maturing in December 2020, was up modestly to £233.4mln.
Collaborations and name changes
Before major shareholder Sports Direct International PLC (LON:SPD) failed in last month’s mandatory bid process, triggered by an increase in its holding to 36.8%, the pair had begun trials for a potential collaboration.
While talks between the pair have been put on hold, chief executive Phil Maudsley said results of the pilot scheme have “not yet indicated that a fuller roll-out of licenced menswear will be beneficial” but he expects to resume discussions around other collaborations “as well as ways in which Sports Direct can help to improve our own supply chains” in the near future.
Explaining the proposed name change, Maudsley said Studio was main customer-facing brand of the group’s largest business and, having increased investment in digital and TV advertising in order to raise the brand’s profile, “we think the time is now right to strengthen Studio's identity further”.
Shares in Findel were up more than 4% to 200.95p by midday on Wednesday.