17th Mar 2020 12:43
(Alliance News) - Shoe Zone PLC on Tuesday said it has decided against paying the final dividend previously announced for 2019.
Shoe Zone is a footwear retailer based in Leicester with over 500 stores.
It had planned an 8.0 pence per share final dividend for 2019, which was approved at the firm's annual general meeting earlier in March.
However, after consulting advisors, this now will not be paid.
"In recent days we have seen a reduction in footfall, across our estate, and whilst the full extent of the coronavirus on the short and medium-term retail environment is not yet clear, it is becoming ever more apparent that it will create significant disruption to people's lives and shopping habits in the coming months," said the company.
"The decision to defer and take steps to propose the cancellation of the 2019 final dividend has been taken with the unanimous backing of the board and is one of a number of appropriate measures being implemented to conserve the company's cash balances and ensure the robustness of the business to protect it from a sustained period of challenging trading."
Shares were 27% lower on Tuesday shortly after midday in London at a price of 74.20p each.
By George Collard; [email protected]
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