Quiz appoints advisors amid disappointing November sales

Quiz has appointed advisors to review its financing and strategic options after it reported a 5.7% decline in revenues to £24.9m for the four-month period from 1 August to 30 November 2024. It warned that given the disappointing level of revenues during the key trading month of November the cash headroom available to the business is less than previously anticipated. The group’s revenues experienced a marked decline in traffic both online and in-store compared with previous months and the comparable period in the prior year. Its online sales dropped by 8.1% from £8.6m to £7.9m, while in-store sales saw a decrease of 9.7% to £12.1m, due to a decline in store traffic. Overall online sales for the period were significantly impacted by the material year-on-year decline in demand during November. However, international revenues saw a 11.3% rise in revenues to £4.9m. This was driven by a strong performance with the group’s partners in the Middle East and the USA. The transfer of Quiz's largest International market to a new partner earlier in the year also resulted in increased revenues with the partner planning to open four new stores in the coming months to complement their existing 15 stores. The group has £4.0m of bank facilities which are scheduled to expire on 30 June 2025. There are no financial covenants applicable to these facilities which are repayable on demand. As at 5 December 2024, the group had net borrowings of £2.8m and total liquidity headroom of £1.2m. Subject to the trading performance during the important pre-and-post-Christmas period, the group's existing bank facilities could be fully utilised in the first quarter of 2025. Quiz said: “Given the decline in the revenues during the key trading month of November and the requirement to improve the liquidity of the business the board is reviewing the group's financing and strategic options and has engaged advisors to consider appropriate options. A further update to shareholders will be provided as and when appropriate. “In the absence of either a material improvement to trading during the important pre-and-post-Christmas period, the Majority Shareholder Loan being agreed and made available to the group or a combination of these eventualities, the board anticipates that additional funding will be required by the group in the first quarter of 2025.”