Table of Contents
Quiz was in the hot seat yesterday after becoming the latest to reveal difficult trades, warning it may need more funding.
Shares in the AIM-listed fashion retailer plunged 43.2 per cent, or 2.3p, to 3.04p after it said both online and in-store traffic suffered a “marked drop” during the important pre-Christmas trading month of November.
As a result, revenue for the four months to the end of November fell by £1.5m compared to the same period last year, to £24.9m.
And sales in the eight months to November fell 8.6 per cent to £52.2m, which Quiz said was “below management’s expectations”.
In the absence of a material improvement in trading during the key pre- and post-Christmas period, additional funding would likely be needed in early 2025, Glasgow-based Quiz told shareholders.
Dan Coatsworth, investment analyst at brokerage AJ Bell, said: “Even if the company is able to pull through in the short term, the long-term prospects for the business look shaky at best.”
Struggle: Shares in the AIM-listed fashion retailer plunged 43.2 per cent, or 2.3p, to 3.04p after it said both online and in-store traffic suffered a “marked decrease”.
The update comes hot on the heels of a guidance cut by Frasers Group, owner of chains such as Sports Direct and House of Fraser, as well as big bets on companies such as Boohoo (up 0.7 per cent, or 0.26p , up to 35.26 pence). and Mulberry (down 2.5 per cent, or 2.5p, to 97.5p).
Frasers itself remained under pressure yesterday, with shares falling 3.6 per cent, or 24p, to 638p.
The acquisitive retailer, controlled by former Newcastle United tycoon Mike Ashley, has revealed plans to make a voluntary bid for Norwegian sports retailer XXL ASA.
The offer values the Scandinavian company, in which Frasers already owns a 26 per cent stake, at £17.4m.
At the end of a generally positive week for London markets, the FTSE 100 index fell 0.5 per cent, or 40.77 points, to 8,308.61, while the FTSE 250 index added 0.3 per cent , or 57.94 points, to 21,059.
Builders were among the market’s bright spots as house prices hit a record high, with Barratt Redrow ahead 1.1 per cent, or 4.9p, to 434.4p and Persimmon adding 0 .9 per cent, or 11 pence, to 1,287.5 pence.
However, utilities were weaker ahead of this month’s final regulatory proposals from water regulator Ofwat.
Jefferies analysts downgraded their ratings on United Utilities and Severn Trent from “buy” to “hold” because they believe that, ahead of the proposals, the risk-reward ratio for both appears more balanced at current valuations.
FTSE 100-listed United Utilities lost 3.4 per cent, or 38.5p, to 1,090.5p and Severn Trent lost 3.1 per cent, or 86p, to 2,656p.
In a weak defense sector, BAE Systems fell 1.4 per cent, or 17.5p, to 1,229.5p, unmoved by news that it has signed individual contracts worth a total of £2bn with Sweden and Denmark for new CV90 combat vehicles.
Blue-chip engineer Spirax lost 2.9 per cent, or 220 pence, to 7,275 pence, hit by a downgrade to “neutral” by JP Morgan analysts Cazenove.
The brokers’ comments weighed on support services business Serco, which fell 5.1 per cent, or 7.9 pence, to 147.5 pence, as analysts at Swiss bank UBS cut their “sell” stance. of “buy”.
DIY INVESTMENT PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-to-use portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free Fund Trading and Investment Ideas
interactive inverter
interactive inverter
Fixed fee investing from £4.99 per month
sax
sax
Get £200 back in trading fees
Trade 212
Trade 212
Free trading and no account commission
Affiliate links: If you purchase a This is Money product you may earn a commission. These offers are chosen by our editorial team as we think they are worth highlighting. This does not affect our editorial independence.