Troubled Glasgow-based fashion firm Quiz plc said on Thursday it has started discussions with Tarak Ramzan, the company’s founder and largest shareholder, about a £1 million loan”to provide additional liquidity headroom for working capital purposes.”
Quiz said its total “liquidity headroom” at August 28, 2024, was £2.3 million — a cash balance of £400,000 and £1.9 million of undrawn banking facilities.
The news came as Quiz published delayed results for the year ended March 31, 2024, showing a loss before tax of £6.7 million compared to a £2.3 million profit in the prior year, and a 10.6% decline in revenue to £82 million.
In March, Quiz appointed chief commercial officer Sheraz Ramzan as its new CEO amid an ongoing review of strategic options led by its non-executive chairman Peter Cowgill, former executive chairman of Bury-based FTSE 100 retailer JD Sports Fashion.
In its outlook on Thursday, Quiz said: “Consistent with the Group’s Trading Update on 27th June 2024, revenues in the four months to 31 July 2024 decreased 11% on the prior year to £27.3 million …
“In recent weeks there are ‘green shoots’ from a number of the initiatives outlined above to improve business performance with an improvement across in-store and online revenues relative to previous months …
“The board expect the trading environment in H2 to remain challenging, albeit the group has softer comparatives in the second half of the financial year. There remains uncertainty with regards to consumer demand and inflationary cost pressures, but the board are targeting an improvement in financial performance through increasing revenues and continued cost controls …
“Despite the macro-economic challenges, the board is confident that the group’s turnaround strategy led by the new CEO will improve QUIZ’s performance and return the business to profitable growth in the medium-term.”
Quiz plc CEO Sheraz Ramzan said: “Whilst these results are disappointing – in part driven by the challenging macroeconomic conditions impacting many retailers – we have a clear plan to improve performance by leveraging our key strengths as an omni-channel retailer with a distinctive brand.
“We have identified several focus areas to build a more resilient business, improve our performance, and return to profitable growth in the medium term.
“In the new financial year to date we have already implemented several operational initiatives which I am confident will support our longer-term turnaround strategy. Whilst trading conditions in the current year have remained challenging and our turnaround will take time, I am pleased with the speed at which as a team we have been able to drive positive changes in the business.”