Shoe Zone Share Discussion Threads

[nw99] 13/10/2021 08:28

119 target

[tomtum1] 13/10/2021 08:25

His shorts going to cost him

[thecroots] 13/10/2021 08:22

Boonkoh

As you already know shipping rates have halved in the past 3 weeks and continue to fall

[bountyhunter] 13/10/2021 08:07

A great set of results as most of us were anticipating.

PBT

Profit before tax is expected to be not less than GBP6.5m. Shoe Zone has traded positively during the period the UK was not subject to Government mandated lockdowns and particularly over our key Back to School period. This positive trading, alongside the significant cost reduction action taken in 2020 and the Government support schemes Shoe Zone has utilised, has enabled the business to move quickly back into profitability.

Cash

The Company ended the period with a balance sheet cash balance of GBP19.0m (FY 2020: GBP13.3m). We intend to pay off the outstanding balance of GBP4.8m of the Coronavirus Large Business Interruption Loan ("CLBIL") by the end of the next financial year, enabling us to have the ability to restart dividend payments earlier than previously anticipated. The net cash balance excluding the CLBIL is GBP14.2m at the period end (FY 2020: GBP6.3m).

[nw99] 13/10/2021 08:02

Zeus initiate on #SHOE. The Group currently trades on an FY22 PE of 8.4x falling to 6.1x the following year. Assuming 11.0x FY23E PE implies a share price of 119p, +80% ahead of current share price.

[boonkoh] 13/10/2021 08:00

Todays results are a mirage.Cost of extra shipping not feeding through yet, will when they start to sell the stock that has been arriving now, which is the more expensive shipping. Estimated headwind of 5-10m a year I think.Then there is business rates. Here I estimate they are probably paying like 6-9m a year. So that also, is coming back from this FY onwards.Given both, I'm not quite sure FY22 is going to be profitable at all. But directors are confident, even thinking of cbil loan payoff and reinstating dividends.

[thorpematt] 13/10/2021 08:00

Anyone care to make an estimate of the net debt position presently?

Obviously the cash improvement takes some of it down, but in terms of the EV it is necessary to know it.

ALso: What are the thoughts on full year (with no lockdown) trading revenues. I mean estimates for 2022. We can't just extrapolate the 52 weeks from the 36 weeks because the digital revenues are high.

Also what % of online reverts back to shops when no lockdowns exist?

These are all the real questions we need to answer - after which we have a valuation!

[w1ndjammer] 13/10/2021 07:50

yep this is a buy all day long, great results...........

WJ.

[boonkoh] 13/10/2021 07:39

Anyone know the amount of business rates relief they benefitted from? Trying to strip out the one off factors...

[purpleinvestor] 13/10/2021 07:12

Was very confident about these results from my sources.

Early reinstatement of dividends, Profit in a very tough year for retail outlets, digital sales boom, repayment of any govt loan for covid by end of next year and all this with the container costs issue to be absorbed at the end of the year

Well done Shoe Zone

[thecroots] 13/10/2021 07:08

Wow. Not less than 6.5m profit!

Didn't realise they were doing that well!

[tomtum1] 13/10/2021 07:08

RNS:restart dividend payments earlier than previously anticipated.

[abarclay] 12/10/2021 19:32

Get in the zone

I also think Shoe Zone could be a great penny stocks to buy following recent price weakness. It’s thought that retailers like this could suffer a profits meltdown as booming inflation hits broader consumer confidence. However, I think this value retailer could actually benefit as shoppers try to draw their budgets out that little bit further.

In fact, value retail is considered to be one of the hottest games in town, perfectly evidenced by the rampant growth of supermarkets Aldi and Lidl over the past decade. What I like about Shoe Zone too, is that it also has cash on the balance sheet and no debt.

This should also allow it to keep investing in, for example, its digital operations to boost long-term earnings.

[tomtum1] 12/10/2021 16:21

I'm expecting good results. Hopefully tomorrow am

[mongrels3] 12/10/2021 14:03

Results must be any time. I spoke to the finance director last Tuesday and he told me that they would be out within 7 days. I'm a holder here, but really dislike organisations that have such poor investor information.

[purpleinvestor] 12/10/2021 13:22

Yeah I was gonna say that as well - small buys but even that is rare for Shoe Zone

[homeboy] 12/10/2021 13:00

get real, have you seen the traded volumes, it's just a few muppet pi punters having a gamble

[purpleinvestor] 12/10/2021 12:55

Leakage of results i.m.o as its been virtually all buys the past 4 days of trading.
That never happens for Shoe Zone in the past

[tomtum1] 12/10/2021 12:55

Looking like good results coming.

[homeboy] 12/10/2021 12:53

row upon row of unsold smelliness

jd sports doing well selling trainers though

[homeboy] 12/10/2021 12:52

'shoe' shops still empty whilst others are closed

went passed three shoe stores today in the same locale, the only one that was empty was shoezone, no one buying their ghastly cheap smelly shoes then

[pottsypotts] 12/10/2021 12:48

Leakage of results, or market makers playing again