SMALL CAP MOVERS: Quiz becomes the latest victim of the retail woes
Quiz fell victim to the wider problems in the retail sector in November, when a “marked drop” in footfall weighed on sales and prompted a warning that new funding may be needed in the future.
Shares in the omni-channel fashion brand fell 41 per cent to 3.12p this week, pressured by an update on Friday which showed sales were £1.5m lower at £24.9m in the latest quarter.
Additional financing would likely be needed in early 2025 in the absence of a material improvement in trading during the key pre- and post-Christmas period, Quiz said.
Although Quiz’s call for cash is already being offered by founder Tarak Ramzan, alarm bells are being raised from the retail industry as a whole.
According to the British Retail Consortium, total footfall in the sector fell by 4.5 percent for the second month in a row in November.
A later Black Friday in November had played a role, but against a backdrop of low consumer confidence in the wake of the October Budget.
Quiz cited uncertainty over the impact of both as it joined the sector in focusing on the crucial Christmas period in hopes of a turnaround.
Quiz revenue was £1.5m lower to £24.9m in the latest quarter
Yet it was not all doom and gloom for the cosmetics manufacturer sector this week War paint London unveiling a £13.88 million bid for challenger beauty company Brand Architekts Group.
Around £15 million was simultaneously raised through a “substantially oversubscribed” placement to fund the takeover, leaving Warpaint a bright spot amid wider sector problems.
Warpaint shares barely budged, but Brand Architekts rose more than 90 percent.
Turning to the broader junior market, the AIM Share-Share Index has had a solid week, closing 1.1 percent higher at 738 on Friday, versus the FTSE 100’s slightly less bullish 0.8 percent gain.
The largely positive week in markets came despite some gloomy economic data to kick off things on Monday.
In addition to the worrying retail data, the UK manufacturing PMI fell short of expectations, reaching a nine-month low, amid falling orders and rising costs.
Recently released results from AIM listed XP Factory served to highlight the growing financial benefits of the ‘novelty bar’ trend.
XP Factory manages a chain of escape rooms and Boom Battle Bar, where friends and colleagues can enjoy ax throwing, beer pong, miniature golf and shuffleboard.
In the six months ended September 30, XP Factory’s turnover rose 33 per cent to £24.9 million, compared with £18.7 million in the same period in 2023. Shares rose 24 per cent.
Square put in another good performance after last week’s blinding 77 percent rally.
Shares of the sustainable fuels innovator rose another 20 percent after it reported “hugely encouraging results” from engine tests on prototypes of its ‘bioMSAR’ marine diesel alternative.
Orcadian energy rose 26 percent following the announcement of the acquisition of HALO Offshore UK from the joint liquidators of The Hague and London Oil.
Scancell Holdings fell by 16 percent after announcing plans to raise up to £9.5 million to support its clinical programmes.
The funding round consists of a placing of new shares at a price of 10.5p each, which will raise at least £8.5m, and a retail offering of shares.
SysGroup fell by almost 25 percent after the London-listed IT services provider published its half-year results.
The group’s turnover fell 7.3 per cent to £10.2 million, due to strategic changes to its service offering.
Shares in Litigation Capital Management fell about 7 percent after an unfavorable ruling from the Federal Court of Australia.
The judgment found against the LCM-funded party, a class action by Queensland electricity users, which accused Stanwell Corporation and CS Energy of illegally inflating electricity prices.
Shares of United Oil & Gas plunged 41 percent after warning about its cash position as the country continues to wait for payments from Egypt.
The company told investors in a statement that it is now cutting all costs to the “bare minimum.”
Shares of SDX Energy fell about 60 percent in value on Friday as it announced plans to delist from AIM.
“The significant costs and management time and legal and regulatory burdens associated with maintaining the Company’s admission to trading on AIM are… disproportionate to the benefits of the Company’s continued admission to trading” , SDX said in a statement.
And finally, there was something new for AIM: an oversubscribed fundraising campaign in which shares were issued at a premium to the market price.
EMV Capital, a technology and life sciences investor, has achieved this unlikely feat, securing a useful £1.5m in the process, which will grease the wheels as it looks for new opportunities and doubles its current batch.
The stock ended the week 16 percent higher at 51p.
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