Quiz PLC (AIM:QUIZ) fell victim to the retail sector’s wider woes in November as a “marked drop” in footfall weighed on sales and prompted a warning that fresh funding may be needed ahead.
Shares in the omni-channel fashion brand fell 41% to 3.12p over the week, weighed down by a Friday update showing revenue £1.5 million lower at £24.9 million in its latest quarter.
Additional funding would likely be needed in early 2025 in “the absence of a material improvement to trading during the important pre-and-post-Christmas period,” Quiz said.
Though already offered by founder Tarak Ramzan, Quiz’s call for cash follows alarm bells from the retail industry as a whole.
Overall footfall across the sector fell 4.5% for a second consecutive month in November, according to the British Retail Consortium.
A later Black Friday this November had played a part, but against the backdrop of low consumer confidence in the wake of October’s Budget.
Quiz cited uncertainty around the impact of both as it joined the industry in pointing focus to the vital Christmas period in hope of a turnaround.
It was not all doom and gloom for the sector this week though, with cosmetics maker Warpaint London PLC (AIM:W7L) unveiling a £13.88 million bid for challenger beauty firm Brand Architekts Group PLC (LSE:BAR).
Some £15 million was raised in tandem through a “substantially oversubscribed” placing to fund the takeover, leaving Warpaint a bright spot amid wider sector woes.
Warpaint shares barely budged, but Brand Architekts soared more than 90%.
AIM has strong week
As for the wider junior market, the AIM Share-Share Index has a solid week, entering Friday 1.1% higher at 738 against the FTSE 100’s slightly less bullish 0.8% gain.
The largely positive week on the markets came in spite of some gloomy economic data kicking things off on Monday.
Alongside the worrying retail data, the UK manufacturing PMI fell below expectations, reading to a nine-month low amid falling orders and rising costs.
More risers and fallers
Recently released results from AIM-listed XP Factory PLC (AIM:XPF) served to highlight the growing financial benefits of the ‘novelty bar’ trend.
XP Factory runs a chain of escape rooms and Boom Battle Bar, where friends and work colleagues can have a go at a spot of axe throwing, beer pong, crazy golf and shuffleboard.
In the six months ended September 30, XP Factory’s revenue increased by 33%, reaching £24.9 million compared to £18.7 million in the same period in 2023. Shares rallied 24%.
Quadrise PLC (AIM:QED) put in another good showing following last week’s blinding 77% rally.
Shares in the sustainable fuel innovator jumped another 20% after it reported “hugely encouraging results” of engine tests on prototypes of its ‘bioMSAR’ marine diesel alternative.
Orcadian Energy plc spiked 26% after announcing the acquisition of HALO Offshore UK from the joint liquidators of Hague and London Oil.
Scancell Holdings dipped 16% after announcing plans to raise up to £9.5 million to support its clinical programmes.
The funding round is made up of a placing of new shares at 10.5p each that will bring in at least £8.5 million and a retail offer of stock.
SysGroup PLC (AIM:SYS, AQSE:SYS) was off nearly 25% after the London-listed IT services provider published its half-year results.
Group revenue fell 7.3% to £10.2 million, attributed to strategic changes in its service offerings.
Litigation Capital Management Ltd (AIM:LIT) shares were off around 7% following an adverse ruling in the Federal Court of Australia.
The judgment ruled against LCM's funded party, a class action of Queensland electricity users that accused Stanwell Corporation and CS Energy of illegally driving up electricity prices.
United Oil & Gas PLC (AIM:UOG) shares plummeted 41% after warning over its cash position as it continues to wait on payments from Egypt.
The company, in a statement, told investors it is now cutting all costs to the “bare minimum”.
SDX Energy PLC (AIM:SDX, OTC:SDXEF) shares plunged around 60% in value on Friday as it announced plans to delist from AIM.
"The considerable cost and management time and the legal and regulatory burden associated with maintaining the company's admission to trading on AIM are… disproportionate to the benefits of the company's continued admission to trading,” SDX said in a statement.
And finally, there was a bit a novelty for AIM: an oversubscribed fundraiser that saw shares issued at a premium to the market price.
EMV Capital (AIM:EMVC), an investor in tech and life sciences, pulled off the improbable feat and brought in helpful £1.5 million in the process, which will oil the wheels as it hunts out new opportunities and doubles down on the current batch.
The stock ended the week 16% higher at 51p.