- Online value retailer Studio Retail said it had agreed to sell education unit Findel Education to Wakefield city council for £50m.

The company also announced an 83% drop in pre-tax profit from continuing operations in the six months through 26 September to £2.6m, owing to extra costs for mis-sold payment protection insurance.

Underlying profit rose 12% to £13.0m on broadly flat revenue of £228.1m.

The sale price on Findel Education represented a multiple of 10.3 times 2019 financial year adjusted Ebidta.

The proceeds would be used to make a voluntary payment to the group's defined benefit pension fund, with the remainder to reduce debt.

Completion of the sale -- being made to Wakefield council in its capacity as the lead authority of the Yorkshire Purchasing Organisation -- was subject to shareholder approval and clearance from the UK Competition and Markets Authority.

'Education has undergone a digital transformation over the past two years, and we are confident that YPO represents a natural new home for the business,' chief executive Phil Maudsley said.

'We believe this transaction is in the best interests of all Studio stakeholders, allowing us to focus on driving further growth within our core Studio value retail business.'

Story provided by