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.