Last checked at 15 Oct 2018 07:00
15 October 2018
Shoe Zone PLC
Full Year Trading Update
Shoe Zone PLC (the "Group"), the UK's largest value footwear retailer, reports on trading for the 52 week period to 29 September 2018, prior to entering its close period.
The Group is pleased to report that it has traded well in the second half of the year and expects to report revenues for the 52 week period of approximately £161 million (2017: £157.8 million), growth of 1.8%. This improvement is due to strong performance across the business, with both physical (Big Box and traditional Shoe Zone stores) and digital channels demonstrating growth allied with the completion of the loss-making store rationalisation programme.
The Board now expects to report a full year Profit before Tax for the year ahead of market expectations and in excess of £11.0m. This improvement is driven by a stronger revenue and margin performance from the spring/summer ranges as well as benefiting from progress achieved through the further development of the Group's foreign exchange hedging policy.
The Group continues to demonstrate strong cash conversion and closed the year with an approximate net cash balance of £15.7m (2017: £11.8m). Given the strength of the closing cash position, the Board anticipates that £4m of excess cash will be distributed as a Special Dividend to shareholders in March 2019, subject to approval at the Annual General Meeting.
The Group ended the year with 492 stores, having opened 16 and closed 20, in line with the Board's stated strategy. Within the 16 store openings, 10 were the continued roll out of the Big Box format, with latest format Shoe Zone stores forming the remainder. We ended the year with 19 Big Box stores.
Shoe Zone will announce Final Results for the 52 weeks to 29 September 2018 on Wednesday, 9 January 2019.
Nick Davis, Chief Executive of Shoe Zone PLC, commented:
"The Group has performed well through the year with a particularly strong performance in the second half. Our strategy of growth through Big Box expansion and online channels allied with excellence in the operations of the core Shoe Zone estate provides us with a clear path for the future. I am particularly pleased that the continued strong cash conversion has enabled the Board to outline its intention to propose its third Special Dividend.
"The new financial year has started well and there are a further 14 Big Box openings planned. We look forward to updating shareholders on progress at the time of our Final Results in January."
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
For further information please call:
Shoe Zone plc Anthony Smith (Chairman) Nick Davis (CEO) Jonathan Fearn (CFO)
| Tel: +44 (0) 116 222 3000 |
FinnCap Limited (Nominated Adviser & Broker) Matt Goode Carl Holmes Hannah Boros
| Tel: +44 (0) 20 7220 0500 |
FTI Consulting (Financial PR) Jonathon Brill Alex Beagley Eleanor Purdon | Tel: +44 (0) 20 3727 1000 |
About Shoe Zone
Shoe Zone is the largest specialist value footwear retailer, offering low price and high quality footwear for the whole family.
The Group operates from a portfolio of around 500 stores and employs approximately 3,500 employees across the UK and the Republic of Ireland.
Shoe Zone's website, www.shoezone.com, combined with our extensive store portfolio, gives customers the opportunity to shop across multiple channels.
Shoe Zone sells approximately 20 million pairs of shoes per annum with an average retail price per pair of shoes of around £10. The Group maintains low retail prices due to high volumes ordered, direct sourcing from factories and a low product line count.