The future of luxury members-only concierge service Quintessentially is under scrutiny as its auditor, BDO, has issued its second “going concern” warning in just two years. Quintessentially, known for providing exclusive access to luxury services and products, has been struggling with talks of a possible takeover. The company’s owners, which include co-founder and former Conservative party chairman Ben Elliot, have been seeking a buyer for the company since receiving an unsolicited takeover offer in January.
BDO has expressed concerns about a potential recession and its potential impact on Quintessentially’s ability to recover. They caution that the return of events and travel business may be lower than anticipated, potentially requiring external funding that may not be available. This uncertainty raises doubts about Quintessentially’s ability to continue operating as a “going concern.”
In addition, the company’s financial accounts for the 12-month period ending April 30 have been delayed. These accounts reveal a decrease in turnover from £50.4 million in 2019 to £44.7 million in 2020, although losses narrowed from £4.4 million to £3 million. Quintessentially attributes the delay in filing to a significant restructuring process, which also delayed the release of its 2019 results. The company claims that this restructuring has allowed them to trade profitably in the latest financial year, with revenues returning to pre-pandemic levels. However, specific figures regarding record memberships during this period are not provided.
Quintessentially’s directors have responded to concerns about liquidity by expressing confidence that they can obtain the necessary support if needed. They have prepared the financial statements on the basis that the company will continue to trade profitably. The directors assert that Quintessentially is now in a much stronger position.
As the future of Quintessentially remains uncertain and auditors raise concerns about its ability to recover and continue as a going concern, the luxury members-only concierge service faces significant challenges. With the looming possibility of a recession and the need to overcome financial setbacks, the outcome for Quintessentially is uncertain.
Useful links:
1. Quintessentially Official Website
2. BDO Business Restructuring Services
