TIDMSHOE
RNS Number : 2827Q
Shoe Zone PLC
17 October 2023
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. It forms part of United Kingdom
domestic law by virtue of the European Union (Withdrawal) Act 2018.
Upon the publication of this announcement, this inside information
is now considered to be in the public domain.
Shoe Zone plc
("Shoe Zone" or the "Company")
Full Year Trading Update
Strong sales and highest recorded profits
Shoe Zone is pleased to announce its unaudited full year trading
update for the 52 weeks to 30 September 2023 ("FY 2023").
Financial Highlights:
-- Group revenue increased by 6.1% to GBP165.7m (FY 2022: GBP156.2m)
-- Store revenue of GBP134.8m (FY 2022: GBP129.8m), digital
revenue of GBP30.9m (FY 2022: GBP26.4m)
-- Store numbers: 323 (FY 2022: 360)
-- Product margin of c.62.1% (FY 2022: 61.2%)
-- Net cash of GBP16.4m (FY 2022: GBP24.4m)
-- Adjusted profit before tax expected to be not less than GBP16.0m 1 (FY 2022: GBP11.2m)
-- Share buy-back programme continued with 3.8m shares bought back at a cost of GBP8.1m
1 Adjusted to exclude the profit on sale of one freehold
property and foreign exchange revaluations
Financial Summary
Revenue
In the 52 weeks to 30 September 2023 revenue was GBP165.7m (FY
2022: GBP156.2m). The 6.1% increase is due to strong second half
trading particularly in peak summer and our key back to school
period, and this is trading out of 37 fewer stores than last
year.
Digital revenue was GBP30.9m (FY 2022: GBP26.4m) an increase of
17.0%. This represents 18.7% of Group revenue (FY 2022: 16.9%) and
this continuing growth is validation of the ongoing investment in
our digital platform.
Product margin
Product margin increased to c.62.1% (FY 2022: 61.3%). This is
due to lower container prices part way through the year, and
improved stock management due to less market volatility.
Profit before tax
Adjusted profit before tax is expected to be not less than
GBP16.0m (FY 2022: GBP11.2m). This is adjusted for GBP0.3m profit
on sale of one freehold property and a foreign exchange revaluation
loss of GBP0.6m. Shoe Zone has traded positively during the period,
particularly in the second half of the year which included our key
Back to School period.
Net cash
The Company ended the year with net cash of c.GBP16.4m (FY 2022:
GBP24.4m). The reduction in net cash balance was due to dividends
paid of GBP8.2m, further share buy-backs in the year of GBP6.4m and
an increased level of capital expenditure to gross GBP11.3m (net
GBP9.6m), offset by the cash generated from profitable
operations.
Dividend
A 2.5 pence per share interim payment amounting to GBP1.2m was
made in August.
A final dividend, the amount of which is yet to be determined,
will be proposed in January 2024 alongside our final results.
Share Buy-back programme
The Company continued its programme of share buy-backs, and as
at the year-end had purchased in total 3.8m shares at a cost of
GBP8.1m and at an average price of GBP2.14. We have cancelled 3.75m
shares.
Store numbers
We ended the year trading out of 323 (FY 2022: 360) retail
stores. We closed 72 stores, opened 35 and refitted 15. The total
is made up of 188 original Shoe Zone stores, 42 Big Box and 93
Hybrid stores. We continue our strategy to expand the number of
Hybrid and Big Box formats through relocations and refits of
existing Shoe Zone stores.
Chief Executive Update, Anthony Smith
"I am pleased to announce that Shoe Zone has had a strong year,
continuing the momentum gained from the positive year we had in
2022. We continue our strategy to expand our Hybrid and Big Box
formats via refits (15) and relocations and new stores (35). Shoe
Zone continues to show how resilient it is, with a proven track
record of delivering robust results during times of economic
uncertainty.
We look forward to updating shareholders in more detail at the
time of our final results in January 2024.
I would like to thank all of our teams for their continued
commitment and hard work that have produced these great
results."
For further information please call:
Shoe Zone PLC Tel: +44 (0) 116 222 3001
Anthony Smith (Chief Executive)
Terry Boot (Finance Director)
Zeus (Nominated Adviser and Broker) Tel: +44 (0) 203 829
5000
David Foreman, James Hornigold, Ed Beddows (Investment
Banking)
Dominic King (Corporate Broking)
About Shoe Zone
Shoe Zone is a Town Centre, Retail Park and Digital footwear
retailer, offering low price, high quality footwear for the whole
family.
Shoe Zone operates from a portfolio of 323 stores and has
approximately 2,400 employees across the UK.
The store portfolio consists of 188 high street stores
containing the core Shoe Zone product range and 93 hybrid high
street stores and 42 larger Retail Park stores which also have
additional brands such as Skechers, Hush Puppies and Kickers.
shoezone.com, combined with the store network, ensures a full
multi-channel offering for great customer service.
During an average year Shoe Zone sells 14.1 million pairs of
shoes per annum at an average retail price of cGBP13.50.
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END
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