Good morning, let's take a look at:

Not sure if there is anything else worth covering. I might just add a few thoughts on IFRS 16.


  • Share price: 16.18p (-3%)
  • No. of shares: 124 million
  • Market cap: £20 million

Trading update

Trading at Quiz is "broadly in line with the Board's expectations against the backdrop of a difficult UK retail environment".

This means a slight miss against expectations.

Revenue is down 5% in H1, with flat gross margin.

Online revenue is flat, but the company provides an adjusted measure which says that online revenues grew:

Online revenues grew by 7% to £20.0m (HI 2019: £18.7m), once adjusted for unprofitable revenue streams terminated during the year. Total online revenues in the previous period were £20.0m, consistent with the current year.

Store sales growth, unsurprisingly, is very poor, but at least the second derivative is ok!

Sales in the Group's UK standalone stores and concessions decreased by 11% to £31.3m in H1 2020 (H1 2019: £35.1m). The rate of decline experienced has reduced in recent weeks.

It would be nice to have clarity on whether we can use this 11% decline as a like-for-like figure.

Lease length is reported to come in at an average of 26 months, unchanged versus what the company reported in June. "Actively managing" its lease renewals is a key element of its turnaround plans.

International sales (comprising Ireland, Spain and other countries) are up 3% despite declining sales in Ireland.

Net cash is £7.1 million and cost savings of £2 million - £3 million are being pursued

My view

I still can't get over the speed and the scale of the collapse in valuation. This IPO'd at 161p a little over two years ago.

Full-year results to March 2019 confirmed that profitability had all but disappeared. Quiz reported £4 million of EBITDA and a small positive underlying PBT, but the actual PBT was only around breakeven.

With sales declining by 11% on the UK High Street, I would expect a significant deterioration in PBT in the current year.

The short average lease length offers some hope that the company can find a way out of its predicament, but this is far from guaranteed.

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