REG - Quiz PLC - Trading Update

QuizAnnouncement

19/09/2023 07:00

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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  £19.3m   £21.8m   -11.5%
 Online                     £10.9m   £14.3m   -23.8%
 International              £6.8m    £7.6m    -10.5%
 Total                      £37.0m   £43.7m   -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 £7.4m (2022: £10.0m) with sales
through third party websites totalling £3.5m (2022: £4.3m). 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 £2.4m (2022: £3.0m). 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
£4.4m (2020: £4.6m).

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 £6.4
million, being a cash balance of £3.2 million and £3.2 million of undrawn
bank facilities (31 March 2023: total liquidity headroom was £8.3 million,
being a cash balance net of bank borrowings of £6.2 million and £2.1 million
of undrawn bank facilities).

In addition to the investment in new stores, since 31 March 2023, the Group
has undertaken a £1.3 million investment at its distribution centre which
will provide additional capacity and improve working practices.

The £4.0m 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: £91.7m). 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 £1.5 million (EBITDA FY 2023: £6.2m and FY 2023 profit before taxation
of £2.3m).

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                            +44 (0) 207 886 2500

 (Nominated Adviser and Sole Broker)

 Emma Earl / Rupert Dearden

 Hudson Sandler LLP (Public Relations)     +44 (0) 207 796 4133
 Alex Brennan                              quiz@hudsonsandler.com (mailto: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/
(http://www.quizgroup.co.uk/media-download-centre/)

 

For further information:

https://www.quizclothing.co.uk/ (https://www.quizclothing.co.uk/)

http://www.quizgroup.co.uk/

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