QS Group Plc, the value for money clothing retailer with over 180 stores located throughout England and Wales, saw turnover rise 1.8 per cent to £39.6m (2000: £38.9m) in the 26 weeks ended 28 July 2001.

At the same time, an operating loss of £1.94m was recorded, compared with a profit of £280,000 in the comparable period last year.

In a statement to shareholders, chairman Tony Dignum said: "The second half has begun with like for like sales for the 8 weeks to 22 September 2001 showing an increase of 0.75 per cent. The full year outcome will depend on the important run-up to Christmas." He added that the company had been through a tough trading period, and the UK value sector remains intensely competitive.

On 10th September the Board announced that QS Group is in discussions with a potential buyer.