9th Jan 2019 08:36
LONDON (Alliance News) - Footwear retailer Shoe Zone PLC on Wednesday declared a special dividend and boosted its final payout after recording 18% annual profit growth.
Shoe Zone is paying a final dividend of 8.0 pence per share for its year to September 29, taking the year's total to 11.5p from 10.2p paid out the year before.
However, the company is also paying an 8.0p special dividend, having not declared such a payout the year before, meaning shareholders are getting almost double for its recently-ended year than the last.
Shoe Zone posted an 18% increase in pretax profit for the year, with the figure reaching GBP11.3 million, while revenue rose 1.8% year-on-year to GBP160.6 million.
Shares were up 13% early on Wednesday at a price of 203.25 pence each.
"I am pleased to report 2018 has been another successful year for Shoe Zone with the group delivering a record profit before tax since IPO driven from a strong performance throughout the business while operating in a challenging consumer environment," said Chief Executive Nick Davis.
"This positive performance is testament to the strength of the core business model and the effective focus on growing the Big Box and Digital channels," he continued.
"As a result of the strong performance, the board is pleased to again return excess cash to shareholders by way of special dividend.
"We continue to make good progress against our strategic objectives and the board remains positive about the outlook for the group."
Shoe Zone opened 10 new Big Box stores during the period, it said, with the plan showing "a clear path" to growth by moving into out-of-town retail sites. At the year-end it had 492 stores in total, and 19 Big Box sites.
Digital is also a focus, with revenue from this avenue up 20% year-on-year to GBP9.8 million. This area now makes up 23% of total profit.
Despite a tough retail environment, Shoe Zone is confident going forward, and it expects cash conversion to remain strong. Trading since September 29 has beaten market expectations, it added.
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