Concierge business co-founded by Queen’s nephew reports loss despite cost cuts | Services sector

Par excellence, the luxury concierge service for the super-rich, co-founded by Queen Camilla’s nephew Sir Ben Elliot, reported a loss of £2.1 million despite cutting jobs and gaining extra time to repay £15m of loans.

The company, which former Conservative Party co-chairman Elliot founded in 2000, said there was still “significant uncertainty” over whether the business would be able to operate beyond next year if sales fell or it was unable to secure new financing. This came as the company reported a loss of £2.1 million for the year to April 2024.

That leaves a cloud over a company known for securing tables and tickets for millionaires at sold-out restaurants and events, and for liaising with admissions officers at top private schools. Quintessentially has also worked with the government, reportedly receiving £1.4 million from the Department for International Trade to carry out moves to “attract the right, high-value individual investors to the UK” between 2016 and 2020.

Accounts filed at Companies House explained that although the company had enough cash to continue trading for another 12 months, an unexpected drop in business and a subsequent lack of emergency funding could lead to it going bankrupt. “This creates significant uncertainty which could ultimately cast doubt on the company and the group’s ability to continue its activities,” warns the group.

It was unable to pay dividends to shareholders – including Elliot – “due to accumulated losses”.

Despite this warning, a company spokesperson pointed out that one of the company’s major lenders and shareholders had written a letter of support expressing confidence in the company and committed to providing future financial support and an extension of existing loan conditions and facilities.

“In addition, continued revenue growth, supported by new contracts and a significant cost reduction program recently implemented, is expected to return the group to profitability in 2025,” the accounts said.

As the company reported a 12% rise in turnover to £29.6m, Quintessentially bosses said the overall loss reflected the fact it had made “significant” investments in the company. This includes a new app launched early last year. The company has also embarked on a hiring spree in an effort to increase revenue.

But continued losses have forced the company to reverse some of that growth and cut an undisclosed number of jobs. “To resolve this problem, the group carried out a cost reduction exercise,” the company’s accounts indicate. This included a “review and renegotiation of operational contracts as well as a targeted workforce reduction programme”.

However, the group employed 252 people at the last count, compared to 218 a year earlier. Quintessentially said it was now on track to “operate profitably during the final six months of the current financial year until April 30, 2025”, while welcoming progress made in implementing a new joint venture in Saudi Arabia and renewing corporate contracts with companies including Mastercard.

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However, it is unclear whether this will be enough to cover £15m of loans falling due next month.

In September, Quintessentially convinced World Fuel Services, one of its major shareholders, to extend the repayment deadline for two loans, now totaling £12 million and £3 million. These loans must now be repaid by February 25, 2025.

A spokesperson for Quintessentially denied that the company had to be granted additional time to repay the loan and that the WFS loan had always renewed the facility every year “which is what the company and its directors also expect for this year”.

Quintessentially has suffered some historic missteps. In its 2019 accounts, Quintessentially admitted to making accounting errors worth £7m and paying £1.4m in illegal dividends. BDO resigned as auditor in 2023 and has since been replaced by a smaller accounting firm, Sopher + Co.