Result of GM and Interim Update

RNS Number : 3671L

Shoe Zone PLC

29 April 2020

 

29 April 2020

Shoe Zone PLC

Cancellation of Dividend Approved/ Interim Results Update

Shoe Zone PLC ("Shoe Zone" or the "Company") announces that the special resolution to cancel payment of the final dividend for the financial period ended 5 October 2019 put to the General Meeting held today was duly passed on a poll. The result of the poll on the resolution was as follows: 44,413,130 votes (99.94%) For; 25,891 votes (0.06%) Against; and 0 votes Withheld. The total number of ordinary shares entitling the holders to vote on the special resolution proposed at the General Meeting was 49,987,122 ordinary shares. The full text of the resolution is set out in the notice of General Meeting which is available on the Company's website (www.shoezone.com/Investors). As announced on 2 April 2020, the COVID-19 pandemic will have a material impact on the Company's performance for the current financial year ("FY19/20"). The extent of the full year impact is not yet known. For the 6 months to 31 March 2020, Shoe Zone has delivered turnover of £69.9m [2019: £73.0m] and ended the period with a net cash balance of £3.6m [2019: £3.3m].  Cash conservation continues to be of paramount importance to the Directors and therefore no interim dividend will be paid in respect of the first half of FY19/20 [2019: 3.5p]. Full interim results will be announced on 23 June 2020. As at close of business on 28 April 2020, the Company has a net cash balance of approximately £5.4m, having utilised the existing £3.0m bank facility. This morning, the Company received formal notice that its application for a £15.0m loan utilising the Coronavirus Large Business Interruption Loan Scheme, has received credit committee approval from its primary lender, Natwest. Shoe Zone welcomes this support from Natwest and the Government, however there is significantly more to be done to protect the Company's financial position. The New Facility will provide additional liquidity to the Company during a period where all of its retail stores are closed. The timing of the reopening of the Company's stores remains uncertain; moreover the process of reopening, once it begins, is likely to be complex. The Company is in ongoing negotiations with all of its suppliers and landlords and, with the co-operation and understanding of these stakeholders, the Board consider the Company's current level of funding will be sufficient to secure the future of the business, assuming that stores are allowed to open gradually during the summer months and return to a high proportion of previous sales over the next year. Over the forthcoming financial periods, Shoe Zone will focus on rebuilding cash balances to a higher level than previously carried, repaying debt, and fulfilling other statutory obligations. The Board believes that this focus is necessary to ensure the long term viability of the business, and the Company will therefore only recommence the payment of dividends to shareholders once these objectives have been met. The Group therefore cancels its previously announced dividend policy and a new policy will be announced when the board believes the Company is able to resume making dividend payments to shareholders. This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. For further information, please contact: Shoe Zone plc Anthony Smith (Chief Executive) Jonathan Fearn (Chief Financial Officer) Tel: [phone] FinnCap Limited (Nominated Adviser & Broker) Matt Goode / Carl Holmes / Hannah Boros (Corporate Finance) Alice Lane (ECM) Tel: [phone] About Shoe Zone Shoe Zone is a Town Centre, Retail Park and Digital footwear retailer, offering low price and high-quality footwear for the whole family. Shoe Zone operates from a portfolio of 490 stores and has approximately 3,500 employees across the UK and the Republic of Ireland. The store portfolio consists of over 445 high street stores containing the core Shoe Zone product range and 45 larger out of town retail units which also feature brands such as Skechers, Hush Puppies and Reiker.  The website shoezone.com, combined with the store network ensures a full multi-channel offering for great customer service.

 

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