TIDMQUIZ
RNS Number : 2427C
Quiz PLC
10 October 2022
10 October 2022
QUIZ Group Plc
("QUIZ" or the "Group")
Trading Update
Positive trading across all channels
QUIZ, the omni-channel fashion brand, announces a Trading Update
for the period from 1 April 2022 to 30 September 2022 ("the
Period").
Trading Update
The Group's total revenues in the Period were GBP49.4m, 37.2%
higher than the Prior year, marginally ahead of the Board's
expectations. This performance represents a GBP13.4m increase on
the comparable prior year period from 1 April to 30 September 2021
("2021") and reflects the appeal of the QUIZ brand and its strong
reputation amongst its customers for dressy and occasion wear.
The Group's revenue growth in the Period benefited from demand
recovering further to the removal of coronavirus related social
restrictions. The Group's year on year revenue growth rate
moderated as the Period progressed during August and September, a
trend consistent with other fashion retail businesses as
inflationary pressures began to impact consumer confidence.
The gross margin generated in the Period benefited from stronger
demand for full price products and was ahead of comparable periods
in recent years. This reflects the success to date in recovering
higher product costs which, along with other costs, have been
subject to inflationary pressures through the Period.
Revenues from each of the Group's channels were as follows:
2022 2021 Change
--------------------------- --------- --------- -------
UK stores and concessions GBP24.6m GBP16.6m +48.2%
Online GBP16.1m GBP12.5m +28.8%
International GBP8.7m GBP6.9m +26.1%
--------------------------- --------- --------- -------
Total GBP49.4m GBP36.0m +37.2%
--------------------------- --------- --------- -------
UK Stores & Concessions
The 48% increase in the Group's UK stores and concessions
revenues demonstrates the QUIZ brand's strong customer appeal.
Revenues from this channel were consistently higher than prior to
the pandemic on a like-for-like basis.
As at 30 September 2022, the Group operated 62 stores in the
United Kingdom (2021: 61 stores) with one store opening and one
closing during the Period. The Group is pleased with the financial
contribution generated from UK stores, which continued to benefit
from the lower cost base negotiated as part of the Group's store
restructuring during 2020.
As at 30 September 2022, the Group operated 62 concessions in
the United Kingdom (2021: 70 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 GBP11.3m (2021:
GBP8.8m) with sales through third party websites totalling GBP4.8m
(2021: GBP3.7m). Progress has been made to improve a number of key
e-commerce metrics such as the Average Transaction Value, however
the benefit of this has been partially mitigated by an increase in
the level of returns through the Period.
International
International revenues from store and concessions operated by
the Group amounted to GBP3.4m (2021: GBP1.7m). As at 30 September
2022, the Group operated six international stores and 15
international concessions, all located in Ireland (2021: five
stores and 15 concessions). Revenues from international franchise
partners in the Period amounted to GBP5.4m (2020: GBP5.2m).
Consistent with the other revenue channels the Group continues to
pursue opportunities for long-term, profitable International growth
and is confident that this can be achieved.
Cash Position
The Group has been focused on strengthening its balance sheet
and improving its net cash position. It is pleased to report that
the positive trading in the Period combined with a favourable net
movement in working capital has contributed to a GBP6.2 million
improvement in the total liquidity headroom available to the Group
since 31 March 2022.
As at 30 September 2022, the Group had total liquidity headroom
of GBP12.7 million, being a cash balance of GBP9.2 million and
GBP3.5 million of undrawn bank facilities (31 March 2022: total
liquidity headroom was GBP6.5 million, being a cash balance net of
bank borrowings of GBP4.4 million and GBP2.1 million of undrawn
bank facilities).
The GBP3.5m of bank facilities available to the Group will
expire on 30 June 2023. There are no financial covenants applicable
to these facilities.
Outlook
Whilst it remains uncertain what impact the current cost of
living pressures will have on consumers' disposable income and on
their demand for QUIZ products over the remainder of the Group's
financial year, management remain confident that the product
proposition and commitment to providing glamorous looks at value
prices will continue to appeal.
The Group's full year results to 31 March 2023 which will, as
always, be in part dependent on trading during the key Christmas
period, are expected to be in line with market expectations.
The Board is pleased with the strong growth recorded across all
channels during the Period which supports the Group's omni-channel
business model. It remains confident that the brand will continue
to increase its appeal and looks forward to achieving continued
profitable revenue growth.
Results for the six months to 30 September 2022
The Company expects to announce its Interim Results for the six
months to 30 September 2022 in December and will notify the exact
date in due course.
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)
Alina Vaskina (Corporate Finance)
Erik Anderson (Corporate Broking) +44 (0) 207 886 2500
Hudson Sandler LLP (Public Relations) +44 (0) 207 796 4133
Alex Brennan / Lucy Wollam quiz@hudsonsandler.com
Notes:
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
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 standalone 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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