Main Menu

Group raises £103m for expansion

Quiz prices shares in £200m Aim flotation

Quiz Clothing
Quiz: shares priced

Quiz, the Scotland-based fashion womenswear company, has announced the price of its shares and said trading will begin on the London Stock Exchange next week.

The company has raised £10.27 million though a placing on the Alternative Investment Market. Shares priced at 161p will begin trading on 28 July, valuing the company at £200m.

Existing shareholders will share £92.1m in the issue and £10.6m will primarily be used to accelerate the company’s growth.

The existing shareholders will hold approximately 48.7%. of the capital and the directors 25.8%. 

Panmure Gordon is acting as nominated adviser and sole bookrunner.

The flotation, first disclosed by Daily Business, will inject some confidence into a troubled retail sector.

Founded in Glasgow in 1993, Quiz has 73 standalone stores and 165 concessions in the UK and Ireland. the brand is present in 19 countries through 65 international franchise stores, concessions, wholesale partners and international online partners. There are 1,350 staff.

The group is growing rapidly in the UK and international markets.

Revenues increased 21% a year between 2015 and 2017 to £89.8m. From 2015 to 2017, the group delivered EBITDA growth of 30.6% a year to £10.3m.

Online and international channels are the group’s fastest growing channels with 42% and 64.2% growth per year between 2015 to 2017, respectively.

From 31 March 2017 financial year end to 31 May 2017, the Group has experienced total revenue growth of approximately 37%. compared to the previous year, with growth of approximately 118% in its online channel and 16% LFL growth across its standalone stores and concessions in the UK and Ireland

Recently, the group has materially increased its investment in its supply chain, IT systems and stores, including opening a new 180,000 sq. ft. distribution centre in Glasgow during 2016, to provide a strong platform to support future growth.

The directors believe that the group’s systems and infrastructure help de-risk its business model by providing key insights and live data on product performance, allowing informed key buying decisions to be made quickly.

It believes it has one of the fastest supply chains in the UK fashion industry, which is also a key strength of the business.

The group’s strategy is built around expanding online sales and building a two-year plan to open websites in Spain, US and Australia, standalone stores in Spain, concessions in Cyprus, the United States, Central America, as well as further expansion in the Middle East and the Far East.

It is targeting the 20 new stores in the UK and 20 new concessions over the next two years.

Peter Cowgill, proposed non-executive chairman, said: .

Tarak Ramzan, founder and chief executive, said: “Today’s announcement marks an exciting new phase in Quiz’s growth and development as a leading international omni-channel fast fashion brand.

“We have a well-invested infrastructure, a clear customer focus and a fantastic team and I am delighted that investors have recognised the company’s significant strengths and opportunities with their support.

“We are confident that the company’s admission to AIM will help Quiz to deliver its clear omni-channel growth strategy and enable the brand to achieve its hugely exciting global potential.”

Ewan Grant, head of corporate finance for RSM in Scotland which advised on the admission, said: ‘Quiz has consistently demonstrated resilience and energy in a fast moving and highly competitive sector; and this has now been recognised by the investor community.

“We’re delighted to have supported another fantastic Scottish company raise funds and realise their potential through an IPO.”


Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.