Shares of Glasgow-based fashion firm Quiz plc rose about 40% on Friday after it published a trading update for the financial year ended March 31, 2022, saying it anticipates a return to profitability and that it expects full-year revenue to be ahead of expectations at £78 million.

“The positive sales momentum previously reported by the group during the Christmas trading period continued through the final quarter of the group’s financial year,” said Quiz.

“This encouraging momentum was achieved across both the group’s store and concession portfolio as well as its e-commerce website, and resulted in like-for-like revenues broadly consistent with those generated in FY 2019, prior to the impact of COVID-19.

“As a result of this strong performance, total FY 2022 Group revenue is expected to be ahead of expectations at approximately £78.0 million.

“Furthermore, the group is pleased with the gross margin generated across the year, and that the gross margin recorded in the last quarter was consistent with the same period in FY 2019.

“This was driven by strong full-price sell through of QUIZ’s trademark occasionwear and dressy casualwear products in response to the increased prevalence of social occasions such as weddings, and holidays compared to the previous year.

“QUIZ is therefore pleased to confirm that it anticipates reporting a return to profitability in FY 2022 with an EBITDA generated of no less than £4.3 million and a profit before tax of no less than £0.5 million …

“As at 30 March 2022, the group had a net cash balance of £4.2 million … comprising a cash balance of £5.6 million offset by a £1.4 million drawdown of available bank facilities.

“It has a total of £3.5 million of bank and credit facilities available to it which are scheduled for renewal in September 2022.

“There are no financial covenants applicable to these facilities.”