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(Alliance News) - Shoe Zone PLC on Friday said trading conditions have been challenging since the end of the first half and, as a result, financial 2019 performance will be below expectations.
London-listed shares in Shoe Zone fell 38% to 120.00 pence each in morning trade.
The footwear retailer also said Chief Executive Nick Davis has resigned with immediate effect to pursue other business interests.
Davis joined Shoe Zone in 2003 and was "instrumental" in getting the company ready for the public listing in 2014. He was promoted to CEO in 2016.
Executive Chair Anthony Smith will therefore resume his role as CEO on a permanent basis, while Chief Operating Officer Charles Smith will assume the role of interim executive chair.
Turning back to trading, Shoe Zone said it has undertaken a review of its freehold property valuations and has concluded that it will be writing down the value of its 17 freehold properties by GBP3.1 million to GBP5.3 million. This will result in a non-cash exceptional charge in its full year results for the year to October 5.
This property write down will have no effect on Shoe Zone's dividend, it said, which will be calculated on the basis of the underlying trading performance. The company, however, added that it does not anticipate a special dividend to be awarded for the current financial year.
For the year to September 29, 2018, Shoe Zone declared a special dividend of 8.0 pence, after paying a 19.5p total payout for the year.
"As has been widely publicised, the UK High Street is currently facing a challenging environment in which to operate," said Smith.
"While we therefore face a short-term impact on our balance sheet, we do not anticipate any change to our dividend policy, reflecting our confidence and excitement in the long-term growth opportunities through the Big Box roll-out, continued operational improvements and our multi-channel proposition," added Smith.
Shoe Zone said it will provide more detailed trading update on October 24.
