TIDMQUIZ
RNS Number : 8418M
Quiz PLC
19 September 2023
19 September 2023
QUIZ Plc
("QUIZ" or the "Group")
Trading Update
QUIZ, the omni-channel fashion brand, announces an update on
trading for the period between 1 April 2023 to 31 August 2023 and
its current cash position.
On 5 July 2023, the Group announced its annual results for the
year ended 31 March 2023 noting that further to the challenging
trading conditions and strong prior year comparatives,
like-for-like revenues in the first quarter of the financial year
had been 15% lower than the comparable period in the previous
year.
Since then, inflationary cost pressures have continued to impact
consumer confidence and demand for QUIZ's products. As a result,
overall revenues in the year to date have continued to be lower
than the previous year and below management's prior expectations.
As a result, revenues from each of the Group's channels in the five
months to 31 August 2023 were as follows:
2023 2022 Change
--------------------------- --------- --------- -------
UK stores and concessions GBP19.3m GBP21.8m -11.5%
Online GBP10.9m GBP14.3m -23.8%
International GBP6.8m GBP7.6m -10.5%
--------------------------- --------- --------- -------
Total GBP37.0m GBP43.7m -15.3%
--------------------------- --------- --------- -------
UK Stores & Concessions
The 12% decrease in the Group's UK stores and concessions
revenues reflects the decline in traffic in store relative to the
previous year. Prior year comparatives were at their strongest in
the period through to 31 August 2023 and during September total UK
stores and concessions revenues have been similar to the prior
year.
As at 19 September 2023, the Group operates 64 stores in the
United Kingdom (2022: 62 stores). Since 1 April 2023 three new
stores have opened, three have relocated, and one has closed.
As at 19 September 2023, the Group operated 61 concessions in
the United Kingdom (2022: 62 concessions). Concessions continue to
provide QUIZ with a flexible and low-cost route to market given the
limited expenditure required to establish new outlets.
Online
Sales through QUIZ's own websites totalled GBP7.4m (2022:
GBP10.0m) with sales through third party websites totalling GBP3.5m
(2022: GBP4.3m). Progress was made in the period increasing the
Average Transaction Value, however the decline in web traffic and
an increase in return rates year on year adversely impacted
revenues generated.
International
International revenues from Irish store and concessions operated
by the Group amounted to GBP2.4m (2022: GBP3.0m). As at 19
September 2023, the Group operated five stores and 21 international
concessions in Ireland (2022: six stores and 17 concessions).
Revenues from international franchise partners amounted to GBP4.4m
(2020: GBP4.6m).
Cash Position
The Group has been focused on preserving its balance sheet and
maintaining an appropriate net cash position.
As at 18 September 2022, the Group had total liquidity headroom
of GBP6.4 million, being a cash balance of GBP3.2 million and
GBP3.2 million of undrawn bank facilities (31 March 2023: total
liquidity headroom was GBP8.3 million, being a cash balance net of
bank borrowings of GBP6.2 million and GBP2.1 million of undrawn
bank facilities).
In addition to the investment in new stores, since 31 March
2023, the Group has undertaken a GBP1.3 million investment at its
distribution centre which will provide additional capacity and
improve working practices.
The GBP4.0m of bank facilities available to the Group will
expire on 30 June 2024. There are no financial covenants applicable
to these facilities.
Outlook
Whilst it is too early to determine with certainty, the Board
has taken the prudent assumption that should the current trend in
revenues continue during the second half of the financial year, FY
2024 Group revenue would be c. 6 to 7% lower than current market
expectations (FY 2023: GBP91.7m). This will have a knock-on impact
on the Group's profitability and whilst it is anticipated that a
positive EBITDA would be generated, if revenues were at these
levels, it would be expected to result in a loss before taxation
for the year of no more than GBP1.5 million (EBITDA FY 2023:
GBP6.2m and FY 2023 profit before taxation of GBP2.3m).
Whilst the impact of cost of living pressures on consumers'
disposable income persists, management continues to retain a tight
control on costs and is proactively reviewing all aspects of the
business to mitigate the impact of the current economic and trading
environment on the Group and identify potential strategies to drive
additional revenue growth. Longer-term, the Board remains confident
that QUIZ's product proposition and commitment to providing
glamorous looks at value prices will continue to appeal.
Market abuse regulation
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/201.
Enquiries :
QUIZ plc Via Hudson Sandler
Tarak Ramzan, Chief Executive
Officer
Gerry Sweeney, Chief Financial
Officer
Sheraz Ramzan, Chief Commercial
Officer
Panmure Gordon
(Nominated Adviser and Sole Broker)
Emma Earl / Rupert Dearden +44 (0) 207 886 2500
Hudson Sandler LLP (Public Relations) +44 (0) 207 796 4133
Alex Brennan quiz@hudsonsandler.com
About QUIZ
QUIZ is an omni-channel fashion brand, specialising in occasion
wear and dressy casual wear. QUIZ delivers a distinct proposition
that empowers its fashion forward customers to stand out from the
crowd.
QUIZ's buying and design teams constantly develop its own
product lines, ensuring the latest glamorous looks at value prices.
This fast, flexible supply chain, together with the winning formula
of style, quality, value and speed-to-market has enabled QUIZ to
grow rapidly into an international brand with stores, concessions,
franchise stores, wholesale partners and international online
partners.
QUIZ operates through an omni-channel business model, which
encompasses online sales, standalone stores, concessions,
international franchises and wholesale arrangements.
To download images please visit:
http://www.quizgroup.co.uk/media-download-centre/
For further information:
https://www.quizclothing.co.uk/
http://www.quizgroup.co.uk/
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END
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September 19, 2023 02:00 ET (06:00 GMT)
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