8th Jan 2020 09:33
(Alliance News) - Shoe Zone PLC on Wednesday noted it has achieved slight revenue growth in what was a tough year for the footwear retailer.
Revenue for the 53 weeks to October 5 climbed by 0.9% on the 52 weeks to September 29, 2018, to GBP162.0 million. The company did not give a figure excluding the extra week.
Pretax profit fell 41% to GBP6.7 million due to costs accelerating ahead of revenue growth, with the underlying figure down 15%.
Shoe Zone is paying a final dividend for the year of 8.0 pence per share, taking the total to 11.5p, flat on the prior year. The Leicester-based company said this reflects confidence in future growth.
"Despite it being a difficult year for Shoe Zone, the business has achieved revenue growth, and delivered underlying pretax profit marginally ahead of our revised expectations following our revaluation of freehold property," said Chief Executive Anthony Smith.
Shoe Zone in August warned profit in its recently-ended financial year would miss expectations due to difficulties on the UK High Street. In particular, on Wednesday CEO Smith criticised business rates for hurting retailers.
Digital growth remains "key", Shoe Zone said. Revenue from this sphere grew 13% in the second half year-on-year, compared to 5.2% growth in the first half. Digital revenue was GBP10.6 million, up 9.3% year-on-year.
Shoe Zone said it has made a "solid" start to its new financial year, and is currently meeting expectations. The overall outlook is "positive", it added.
Smith, who had previously been executive chair, took up the role of CEO in August when predecessor Nick Davis Left.
"Notwithstanding the broader sector challenges, I am delighted to be back running this market-leading business, knowing its potential to produce great results," Smith commented.
"The core business model remains robust and combined with the refreshed strategy of Big Box expansion, higher digital growth and town centre renewal, the board is confident this enhanced strategic focus will improve customer experience, increase market share and drive shareholder returns."
Shares were down 1.9% on Wednesday morning in London at a price of 158.88p each. They approached the 100p mark in October but have since recovered. The shares are 11% lower over the past 12 months.
By George Collard; [email protected]
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