12 July 2021
QUIZ Group Plc
("QUIZ" or the "Group")
QUIZ, the omni-channel fashion brand, announces an update on trading and its cash position for the period between 1 April 2021 to 30 June 2021 ("the Period").
Consistent with a number of other omni-channel retail businesses, the COVID-19 pandemic has continued to impact QUIZ's sales with the closure of stores and concessions for part of the Period and demand for the Group's trademark dressy and occasion wear continuing to be negatively impacted by the various restrictions on social activities and events.
The Group's total sales in the Period of £17.3m were consistent with the Board's expectations. This represents a £13.1m increase on the revenues generated during the comparable prior year period from 1 April to 30 June 2020 ("2020") which was severely impacted by the first wave of the coronavirus pandemic in the UK and Europe.
Revenues from each of the Group's channels were as follows:
UK stores and concessions
Sales through QUIZ's own websites totalled £4.6m (2020: £2.2m) with revenues steadily improving through the Period. Sales through third party websites totalled £1.8m with this channel impacted by the cessation of sales through the Debenhams website from early April 2021(2020: £1.2m).
The Group's UK stores and concessions were closed at the start of Period and reopened through mid to late April. In the comparable prior year period, all the Group's UK stores and concessions were closed until late June. As at 30 June 2021, the Group operated 61 stores in the United Kingdom, 13 less than operated prior to the lockdown of stores in March 2020. Rental terms for these stores are predominantly based upon revenues generated rather than previous higher fixed rental arrangements providing a lower cost base than previously incurred. The average lease length on these stores is 24 months.
As at 30 June the Group operated 45 concessions in the United Kingdom (June 2020: 143 concessions). During the Period, the Group benefited from the Debenhams concessions trading for a short period prior to their closure allowing for the clearance of most of the Group's stock associated with these concessions.
International revenues from store and concessions operated by the Group amounted to £0.6m (2020: £0.1m). The Group has five international stores and 15 international concessions, all located in Ireland, which were closed at the start of the Period and reopened in mid-May (2020: 7 stores and 22 concessions). Revenues from international franchise partners in the Period amounted to £3.1m (2020: £0.4m). The Group continues to pursue opportunities for long-term International growth and is confident that this can be achieved.
The Group is pleased with the gross margins generated in during the Period which compare favourably to those generated in both 2020 and 2019.
As at 12 July 2021, the Group had a £2.7m net cash balance (31 March 2021: £1.5 million). In addition, the Group has £3.5m of bank facilities available which are currently scheduled to expire on 31 October 2021, which the Group intends to renew.
The Group continues to focus on identifying and delivering new opportunities to profitably 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 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.
Results for the year ended 31 March 2021
The Company expects to publish results for the year ended 31 March 2021 in September and will notify of the exact date in due course.
Via Hudson Sandler
Tarak Ramzan, Chief Executive Officer
Gerry Sweeney, Chief Financial Officer
Sheraz Ramzan, Chief Commercial Officer
(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
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
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 in 22 countries.
QUIZ operates through an omni-channel business model, which encompasses online sales, standalone stores, concessions, international franchises and wholesale arrangements.
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