Studio, the online retailer previously known as Findel, has posted a slump in profits following a surge in PPI claims.

The retailer said PPI claims of £7.9m drove its bottom line down 83% to £2.6m in the 26 weeks to September 27.

The figure also strips out the impact of its education business, which Studio revealed it has agreed to sell to Wakefield city council in a £50m deal.

Studio, which counts Sports Direct as a 36% shareholder, said adjusted pre-tax profit was up 12% to £13m when revenues from its education business were included in its figures.

Total revenue from continuing operations edged up 0.3% to £181.3m during the six months.

Studio said “more customers” waited for Black Friday than in previous years, with “record numbers” splashing out on the day itself. Studio recorded 781,000 website visits on Black Friday itself and sent 100,000 orders in one day for the first time in its history.

It said, as a result, sales were up 10% in the 11 weeks following its half-year end.

Studio boss Phil Maudsley said: “This has been another period of strategic progress as we strengthen our position as a digital-first value retailer.

“We know that Studio’s customers look for value all year round, so we do not need to chase promotional trends to maintain our market position. In support of this approach, we look forward to further initiatives coming on stream next year to enhance our digital-led value offer.”

Maudsley said Studio would refund customers’ remaining PPI claims during the second half of its financial year.

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