Retailer Quiz PLC’s bottom line took a hit on the absence of one-off gains, though revenue nearly doubled, figures on Tuesday showed, thanks to a strong post-Covid recovery for demand and customer numbers.
The Glasgow-based fashion brand posted a pretax profit of £788,000 in the year ended March 31, a steep drop from the £6.2 million achieved a year prior.
In financial 2021, Quiz benefitted from a £10.4 million gain stemming from a subsidiary disposal, as well as a £5.2 million gain from a ‘bargain purchase arising on acquisition’.
On an underlying basis, which does not include these gains, it swung to a pretax profit of around £800,000 from a £9.6 million loss.
Revenue in the year nearly doubled to £78.4 million from £39.7 million the previous year, and exceeding the £78.0 million guidance posted in April.
Quiz said the growth was as a result of increased demand and the removal of Covid-related restrictions. It reported a 66% increase in sales through its own website and 74% increase in the number of active customers, which further benefitted the figure.
In the three months to June 30, Quiz said revenue was up 62% against the prior year, consistent with pre-pandemic levels on a like-for-like basis. It cautioned, however, that sales later in the year may be impacted by the cost-of-living crisis and declining consumer confidence.
‘Despite the well-documented challenges across the retail sector, we remain encouraged by customer demand for the Quiz brand, with sales up by 62% in the year to date. Whilst there are significant levels of uncertainty impacting the consumer right now, we are confident that Quiz is well positioned to continue to deliver against its strategy and drive long-term, sustainable and profitable growth,’ said Founder & Chief Executive Tarak Ramzan.
Unchanged from the previous year, Quiz did not recommend a final dividend, saying the company remains focussed on strengthening its balance sheet and delivering a profitable performance.
Shares in Quiz were flat at 10.25 pence each on Tuesday morning in London.
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