(Alliance News) - Shoe Zone PLC announced on Tuesday it had swung to a full-year profit despite stores only trading for 36 weeks.
Shares in Shoe Zone were up 21% at 141.90 pence on Tuesday morning in London.
For the year ended October 2, the Leicester-based footwear retailer reported a pretax profit of GBP9.5 million, swinging sharply from a loss of GBP14.6 million in financial 2020.
Revenue was down 2.8% to GBP119.1 million from GBP122.6 million the previous financial year.
Revenue from its digital stores, however, was up 58% to GBP30.5 million from GBP19.3 million. Its UK stores revenue was down 13% to GBP87.4 million from GBP100.1 million. Its Republic of Ireland stores were the worst performer with revenue down 75% to GBP674,000 from GBP2.7 million.
Shoe Zone said its decision to invest in its digital infrastructure and operations led to the growth in online sales over the last 12 months.
In line with the previous year, Shoe Zone did not declare a final dividend.
Shoe Zone explained this was because it has an outstanding Coronavirus large business interruption loan scheme loan balance of GBP4.4 million. The terms of the loan restricts companies from making any dividend payments whilst there is a balance outstanding.
Post-period end, however, it had fully paid off the loan and is now in a place to recommence payouts.
By Heather Rydings; heatherrydings@alliancenews.com
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Shoe Zone (SHOE)