Quiz PLC's (AIM:QUIZ) shares tumbled 18% in early trading Thursday after the online fashion retailer revealed ongoing struggles, which has seen it turn to its founder and largest shareholder for financial help.
The company reported a £5.2 million loss for the year ending March, compared to a £2.3 million profit the previous year. Liquidity shrank significantly, with cash reserves falling to just £300,000.
To stabilise the business, Quiz is in discussions with Tarak Ramzan for a £1 million loan. Despite a decline in revenue by 11% to £82 million, higher full-price sales slightly improved gross margin to 62.2%.
The company has implemented several initiatives under new CEO Sheraz Ramzan, with early signs of improvement, but it anticipates continued challenges in the second half of the year.
In early trading, the stock was off 0.8p at 4.18p.