There are growing concerns for luxury members-only concierge service Quintessentially as its auditors issue a second “going concern” warning. Quintessentially is renowned for providing high-end access to luxury services and products, attracting a clientele that includes celebrities and CEOs. However, the company is currently facing difficulties amid stalled takeover talks and uncertainties in the events and travel industry which could potentially impact its recovery.

BDO, the accounting firm responsible for auditing Quintessentially, has expressed worries about the company’s future. With the possibility of a recession looming and the pace of business recovery in the events and travel industry predicted to be slower than anticipated, BDO has raised doubts about Quintessentially’s ability to secure external funding, should it be required. As a result, concerns have been raised over the company’s status as a “going concern”, meaning there are concerns about its ability to continue operating.

In addition to the auditors’ warning, Quintessentially’s recent financial accounts were filed late, adding to the unease surrounding the company. The accounts disclosed a decrease in turnover from £50.4 million in 2019 to £44.7 million in 2020. However, losses narrowed from £4.4 million to £3 million during the same period. The company attributed the filing delay to a significant restructuring process that also caused delays in reporting its 2019 results.

Despite these challenges, Quintessentially reported profitable trading in the most recent financial year, indicating that the restructuring had a positive impact. The company claimed that its revenues had returned to pre-pandemic levels and boasted about achieving “record memberships” in the previous 12 months. However, specific figures were not provided to substantiate these claims.

Quintessentially responded to concerns about its future liquidity by assuring stakeholders that its directors believed they could obtain the necessary support if required. They emphasized that the financial statements had been prepared on a going concern basis and highlighted the company’s improved position and ability to generate consistent profitability.

Nevertheless, the auditors’ warnings and the delayed filing of financial accounts raise doubts about Quintessentially’s long-term viability. With uncertainties in the events and travel industry, as well as an ongoing search for a buyer, the future of this luxury concierge service remains uncertain. Only time will reveal whether Quintessentially can overcome these challenges and continue to thrive in a highly competitive market.

Useful links:
1. Financial Times: Quintessentially’s Troubles
2. BDO Audit Publications