SMALL CHAPTER MOVEMENTS: Quiz becomes latest victim of retail sector woes

Proof fell victim to the retail sector’s wider woes in November, when a “marked drop” in footfall weighed on sales and prompted a warning that more funding may be needed in the future.

Shares in the omnichannel fashion brand fell 41 per cent to 3.12p during the week, weighed down by an update on Friday which showed revenues down £1.5m to £24.9m in his last quarter.

Additional funding is likely to be needed in early 2025, “in the absence of a material improvement in trading during the important pre- and post-Christmas period,” Quiz said.

Although already offered by founder Tarak Ramzan, Quiz’s call for cash follows alarms from the retail industry as a whole.

Overall passenger footfall across the sector fell 4.5 per cent for the second consecutive month in November, according to the British Retail Consortium.

A subsequent Black Friday in November also played a role, but against a backdrop of low consumer confidence following the October budget.

Quiz cited uncertainty over the impact of both as it joined the industry in focusing on the vital Christmas period in the hope of change.

But this week it was not all doom and gloom for the sector: the cosmetics manufacturer war paint london by submitting a £13.88 million bid for challenger beauty firm Brand Architekts Group.

A combined £15m was raised through a “substantially excessive” placing to fund the acquisition, leaving Warpaint in a bright spot amid wider sector problems.

Warpaint shares barely moved, but Brand Architekts soared more than 90 percent.

Looking at the broader junior market, the AIM Share-Share Index is having a solid week, entering Friday up 1.1 per cent at 738 versus the FTSE 100’s slightly less bullish 0.8 per cent gain.

The largely positive week for markets came despite some gloomy economic data starting Monday.

Alongside the worrying retail data, the UK manufacturing PMI fell below expectations, hitting a nine-month low amid falling orders and rising costs.

Recently published results of companies listed on AIM XP Factory served to highlight the growing financial benefits of the ‘news bar’ trend.

XP Factory runs a chain of escape rooms and Boom Battle Bars, where friends and coworkers can try their hand at ax throwing, beer pong, crazy golf, and shuffleboard.

In the six months ended September 30, XP Factory’s revenue increased 33 percent, reaching £24.9 million compared to £18.7 million in the same period in 2023. The stock they rose 24 percent.

Quadrise had another strong performance following last week’s dazzling 77 percent rally.

Shares in the sustainable fuels innovator rose another 20 per cent after it reported “hugely encouraging results” from engine testing on prototypes of its ‘bioMSAR’ marine diesel alternative.

Orcadian energy surged 26 per cent after announcing the acquisition of HALO Offshore UK from joint liquidators Hague and London Oil.

Scancell Holdings fell 16 per cent 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 10.5p each which will raise at least £8.5m and a retail share offering.

SystemGroup fell almost 25 percent after the London-listed IT services provider published its half-year results.

The group’s revenue fell 7.3 per cent to £10.2 million, attributed to strategic changes to its service offerings.

Shares in Litigation Capital Management fell around 7 per cent following an adverse ruling by the Federal Court of Australia.

The ruling ruled against the LCM-funded party, a class action lawsuit by Queensland electricity users who accused Stanwell Corporation and CS Energy of illegally increasing electricity prices.

Shares in United Oil & Gas plunged 41 percent after it warned about its cash position as it continues to wait for payments from Egypt.

The company, in a statement, told investors that it is now cutting all costs to the “minimum.”

Shares in SDX Energy plummeted around 60 per cent in value on Friday when it announced plans to delist from AIM.

“The considerable management cost and time and legal and regulatory burden associated with maintaining the company’s admission to listing on AIM are… disproportionate to the benefits of the company’s continued admission to listing,” SDX said in a statement.

And finally, there was a small first for AIM: an oversubscribed fundraising in which shares were issued at a premium to the market price.

EMV Capital, a technology and life sciences investor, has achieved an unlikely feat and raised £1.5 million in the process, which will grease the wheels as it pursues new opportunities and doubles down on its current bet.

The stock finished the week up 16 per cent at 51p.