11th Jun 2019 11:44
(Alliance News) - Fast fashion brand Quiz PLC on Tuesday said a shrinking margin and higher costs substantially eroded its annual profit, forcing it to suspend future dividends.
Shares in Quiz were down 24% at 21.08 pence each.
Quiz's pretax profit for its year to March 31 totaled GBP216,000, a small fraction of its GBP8.5 million profit the year before.
This was attributed to Quiz's gross margin, which fell to 61% from 63%, as well substantially higher costs. Total administrative costs grew 29% to GBP54.8 million from GBP42.4 million and distribution costs rose 13% to GBP24.1 million from GBP21.4 million.
In the financial year, dividends totalling 1.2p per share were paid versus no dividends the year prior. However, given its profit decline, Quiz has suspended its dividend payments and will not pay out a final dividend.
Revenue increased 12% to GBP130.9 million from GBP116.4 million.
Quiz Founder & Chief Executive Tarak Ramzan said: "The Quiz brand continues to gain momentum with a growing customer base. Whilst trading conditions have remained challenging in the year to date, the board remains confident that underpinned by our flexible business model and an increasing online focus, the group can return to sustainable profitable growth."
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