Shoe Zone PLC Full Year Trading Update (9701D)
October 15 2018 - 1:00AM
UK Regulatory
TIDMSHOE
RNS Number : 9701D
Shoe Zone PLC
15 October 2018
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 GBP161 million (2017: GBP157.8
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
GBP11.0m. 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 GBP15.7m
(2017: GBP11.8m). Given the strength of the closing cash position,
the Board anticipates that GBP4m 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 Tel: +44 (0) 116 222
Anthony Smith (Chairman) 3000
Nick Davis (CEO)
Jonathan Fearn (CFO)
FinnCap Limited (Nominated Adviser & Broker) Tel: +44 (0) 20 7220
Matt Goode 0500
Carl Holmes
Hannah Boros
FTI Consulting (Financial PR) Tel: +44 (0) 20 3727
Jonathon Brill 1000
Alex Beagley
Eleanor Purdon
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
GBP10. The Group maintains low retail prices due to high volumes
ordered, direct sourcing from factories and a low product line
count.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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