Last checked at 13 Apr 2021 07:00
13 April 2021
QUIZ Plc
("QUIZ" or the "Group")
Trading Update
QUIZ, the omni-channel fashion brand, provides a trading update covering the financial year ended 31 March 2021 ("FY 2021") as well as recent trading.
FY 2021 Trading Update & Cash Position
FY 2021 revenues were impacted by prolonged periods of stores and concessions closures, as well as the material detrimental impact on demand for QUIZ's trademark occasionwear as social events and activities were curtailed. As a result, revenues for FY 2021 were £39.7 million which reflected a 66% decline on the £118.0 million generated in the year ended 31 March 2020 ("FY 2020"). The impact on each revenue stream during FY 2021 was as follows:
FY 2021 | FY 2020 | Year-on-year decline | |
Online | £21.6m | £37.5m | -42% |
International | £7.6m | £21.8m | -65% |
UK stores and concessions | £10.5m | £58.7m | -82% |
Total | £39.7m | £118.0m | -66% |
Despite this drop in revenues in the year, reflecting tight cost control, the Group has retained a net cash balance of £1.5 million at 31 March 2021 (comprising a cash balance of £4.2 million offset by a £2.7 million drawdown of available bank facilities). The Group has a total of £3.5 million of bank and credit facilities available to it which are scheduled for renewal in October 2021. There are no financial covenants applicable to these facilities.
Recent Business Developments
Following the proactive actions taken by QUIZ during FY 2021 to address its physical retail estate and lease terms and further to the re-opening of non-essential retail in England and Wales on Monday 12 April 2021, the status of the Group's stores and concessions is now as follows:
Open | Closed | |||
Stores | Concessions | Stores | Concessions | |
England and Wales | 36 | 87 | - | - |
Scotland | - | - | 19 | 1 |
Northern Ireland | - | - | 5 | 8 |
Republic of Ireland | - | - | 4 | 11 |
It is currently anticipated that the stores and concessions in Scotland and Northern Ireland will reopen on 26 April 2021, although this remains subject to confirmation.
The above concessions number of 87, includes 72 concessions located in Debenhams stores in England and Wales, which are scheduled to close by the end of May 2021. Revenues from Debenhams UK concessions in FY 2021 amounted to £3.4 million (FY 2020: £16.5 million). Subsequent to 31 March 2021, the Group has ceased to sell product through the Debenhams website. Revenues from this channel in FY 2021 amounted to £5.5 million (FY 2020: £7.7million).
Given the previous decline in revenues, the Group does not anticipate that the termination of sales through Debenhams will materially impact upon its profitability or cash flows.
Outlook
The Group continues to focus on identifying and delivering new opportunities to grow revenues through its own website and store network, as well as by working with new partners appropriate for the QUIZ brand.
The Group looks forward to the further reopening of stores and concessions and the continued relaxation of restrictions on social activities, which the Board believes will result in increased demand QUIZ's ranges which have traditionally provided popular options for social events and celebrations.
FY 2021 Results
The Company expects to publish its FY 2021 results for the financial year ended 31 March 2021 in late summer 2021 and will notify of the exact date in due course.
Tarak Ramzan, Chief Executive Officer of QUIZ commented: "With prolonged periods of store closures, the past 12 months has been a very challenging period for many in the UK retail sector, and QUIZ has not been immune to this. However, against this difficult trading backdrop, the Group has taken proactive actions to preserve cash and realign our store estate for the future retail landscape. In addition, we remain confident that there is robust underlying demand from our customers for the QUIZ brand and our trademark dressy and occasionwear. We are looking forward to being able to serve customers again through our store estate and to the gradual opening up of the retail and leisure economies over the coming months, which we believe we are well placed to benefit from."
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Market abuse regulation
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/201 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").
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 / Joanna Langley (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 |
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 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 in 22 countries.
QUIZ operates through an omni-channel, fast fashion 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/