Quiz Share Discussion Threads

[aishah] 11/10/2017 21:39

Quiz plc – “trading update”… but what about profit & cash

[kcr69] 11/10/2017 21:00

For the avoidance of doubt, I think whoever wrote that stockopedia report is listening a little too much to the inner workings of their own hype rather than getting their head out of the sand and writing something with a little balance.

Very few companies talk earnings in a pre close trading update and many don't mention EBITDA, although for balance I note many do. The company has noted gross margin is on track and previously shown how it is driving greater operational profit out of a fixed cost base on the back of vastly increased volume. This element and trend is unlikely to have changed. Once again for balance it has also noted that it is increasing expenditure on marketing which is clearly evident in the revenue coming from the online business.

Who is the market? What are their expectations? Genuine questions. I am aware of Panmure Gordon, as house broker, covering the stock and from their note today they are extremely bullish about the results and have reiterated their targets and buy rating as a result.

The interims are 6 weeks away. I am more than happy to hold, and add on any further weakness, if the market really does require the full P&L to recognise the growth story that is unfolding here, particularly given the 3 years of well managed cost that is clearly documented in the prospectus.

In keeping with the stockopedia report, I also wrote this from the top of my head....for the avoidance of doubt.....and akin to the stockopedia author, I could be completely wrong.

Edit. As an aide to the author, a report titled "an excellent update, with outstanding sales progress across all channels only blemished by the lack of news on EBITDA" would have certainly been met with more interest from this particular reader.

[runthejoules] 11/10/2017 17:24

Thanks nurdin where did that reply come from, via twitter?

[connor23] 11/10/2017 17:14

Thanks nurdin. That's what I assumed to be honest and it's not that unusual (G4M have done this previously is one example that springs to mind).I appreciate others might have wanted to see more detail though. Personally I am happy to hold on as the growth story develops.

[nurdin] 11/10/2017 16:32

It is not unusual for companies like Quiz to talk just about revenues in a pre-close tradig update.The details are reserved for the interim results announcement due in Nov.Thats a reply from the Company by the way.

[runthejoules] 11/10/2017 16:27

I think Paul's hit the nail on the head there and I should have read the RNS properly. That's not to say that any costs or losses won't be justified by their global physical expansion, which should pay off long-term.

[aishah] 11/10/2017 15:39

Small Cap Value Report:

QUIZ (LON:QUIZ)
Share price: 183.5p (down 1.9% today)
No. shares: 124.2m
Market cap: £227.9m

(for the avoidance of doubt, I no longer hold a position in this share)

Pre-close trading update - for the six months to 30 Sep 2017.
This is a clothing retailer, both from physical stores and on the internet (like a lot of other companies - so its emphasis on being "omni-channel" is not unique at all).

This update is unsatisfactory, in that it only mentions revenues and gross margins. It doesn't give the key piece of information, which is how the company's overall profit compares with market expectations. Failing to be clear about this just introduces doubt, and makes me wonder whether costs might might be running ahead of forecast? That's the only explanation I can think of, as to why the update only mentions sales growth, and gross margins, but not net profit.

Full report :

[eddyeagle1979] 11/10/2017 15:34

Surprised at the fall today - some decent growth here...

[hootza616] 11/10/2017 14:08

Thanks walbrock82, and very informative response to my "weird comment".
For the record I am long in both, and I see huge potential for continued growth in this market. I'll think about selling in 2020!

[walbrock82] 11/10/2017 13:34

Having looked at the results, here are my thoughts

This UK omni-channel fast fashion womenswear brand is like BOOHOO.

Their interim results showed a 35% increase in group sales to £56.1m from £41.5m.
Sales breakdown is international operations saw an increase to £10m from £8.9m. Their UK operations, standalone stores and concessions increased by 15% to £32.3m in H1 2017 (H1 2016: £28.1m) with each channel performing in line with expectations.
As always, the online side sparkle with growth of 204% to record £13.8m from £4.5m, helped by new distribution centre.
Quiz PLC is a newly listed company (debut in 2017). It raised £102.7m in gross proceeds, where £10.6m is used to expand growth.

Could this be the next BOOHOO?

Potentially.

They have a high operating margin close to 10% (higher than BOOHOO 7-8%). Their balance sheet is super strong with low debt levels and prudent levels of assets. Strong share proceeds mean growth gets funded for many of years, so shareholders don’t need to worry about fundraising.
Another positive is hiring Peter Cowgill from JD Sports as non-executive chairman. You don't need to worry about someone who delivers profits to long-term shareholders!
Shares look cheap when compared to BOOHOO and with Quiz PLC sales looking to break £100m in 2018. (Boohoo’s sales £294m)
At £1.86, this value the business at £232m, compared to Boohoo’s £2.2bn valuation.

Final Thoughts

Quiz PLC looks attractive, especially when sales are growing at 30% apace. Margins are attractive. With 2018’s EPS forecast at 6.4 pence gives it forward-PE of 28 times, much lower than Boohoo’s 90 times.
My advice is to research this company before taking a punt. If the due diligence turns out fine, then it’s worth a punt!

For further results and analysis on other companies result, click

[john09] 11/10/2017 12:47

Weird comment

[hootza616] 11/10/2017 12:34

So, it's gone midday and QUIZ is down 3.7% and BOO up 3.7%.
Any comments?

[john09] 11/10/2017 09:25

Expect a bit of media coverage

[runthejoules] 11/10/2017 09:17

Jumped on a ruddy spike this morning but yep, patience needed. This won't be another Boo as the market is too crowded now but should do well from the actual physical shopfronts. GLA

[kcr69] 11/10/2017 09:12

Haven't had the opportunity to read the note in detail yet, however Panmure Gordon have issued an update today remaining extremely bullish and reiterating a target of 219p based on FY 2017/18.

High level estimates include

Revenue £116.4m
Adjusted EBITDA £13.1m
PBIT £10.3m
Earnings 8.0m (including £1.2m exceptional IPO costs in this FY only)

I think the above are a little on the soft side and would expect revenue of £119 - £122m. Astounded the market is struggling to see the huge growth opportunity here, particularly online which is likely to be over 25% of total revenue this year.

Trades today would also possibly suggest a fairly big seller, possibly from the IPO, albeit clearly conjecture. Patience clearly required.

[john09] 11/10/2017 09:07

I think this will close nicely up later today

[manics] 11/10/2017 08:05

Reading between the lines you can see the BOD recognise what the market wants to see, from a strategical point of view (online etc.)

[kcr69] 11/10/2017 08:04

Its a fantastic update. On course for EPS of over 8p this year on earnings exceeding £10m. A lowly market PE rating of only 30 would give a base of £2.50 a share for FY 2017/18.

[manics] 11/10/2017 07:38

Early calls to open flat/+1%. Could and likely will change.

[connor23] 11/10/2017 07:25

Strong update that, with some positive trends. Good to see online making up a larger percentage of the revenue and that there is still some good growth in the UK market.Hopefully a few broker notes today that can provide a bit more detail.

[john09] 11/10/2017 07:12

Great update. Online up 204% beating last years total onine revenue in the first 6 months . Total revenues up 35%

[fillipe] 10/10/2017 14:54

Same here.

f

[connor23] 10/10/2017 13:54

I'm holding a few of these. A bit of interest ahead of tomorrow. Recent newsflow on consumer spending sounds supportive, so I am optimistic.