Dizz Group has registered a total comperehensive loss of €3.3 million in 2020, significantly higher than the loss of €203,000 forecast in its Financial Analysis Summary released in July, with the variance mainly attributable to cost of sales, administrative expenses and taxation.

The figures emerge from a statement posted to the Malta Stock Exchange by the Group, which operates in fashion retail, managing several top brands like Terranova, Liu-Jo, Guess, Paul & Shark, Trussardi, Michael Kors and Pinko, and more recently in catering through the Pascucci franchise.

Dizz Group registered an adverse variance of €4.7m in relation to cost of sales, with the variance mainly due to an decrease in the selling prices charged by the fashion division to attract more sales, which translated into a reduction in the gross profit margin of the Group.

This was offset by a significant positive material variance of €3.1m relating to other income, primarily consisting of rental income from investment property and the granting of the COVID-19 wage and rent supplements.

This was also sustained by other income derived from the diversification efforts of the Group which have proven to be successful in mitigating the losses registered during the year as a result of the global pandemic.

The Group also reported an adverse variance of €949,000 in relation to administrative costs which was primarily due to an increase in legal and professional fees, fines, loss on termination of lease and a higher rental cost incurred which was higher than projected. This variance was registered despite the granting of the COVID-19 wage supplements received.

Moreover, the Group registered an additional adverse variance of €529,000 with regards to taxation resulting from clarification received from the Commissioner for Revenue on the final tax treatment of leases.

Despite these variances, the Group managed to reduce its negative cash and cash equivalents by as much as €1.1m in comparison to what was originally provided for in the Financial Analysis Summary, primarily being bolstered by increases in cash generated from financing activities.