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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Shoe Zone Plc | LSE:SHOE | London | Ordinary Share | GB00BLTVCF91 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2.50 | 1.27% | 200.00 | 195.00 | 205.00 | 200.00 | 197.50 | 197.50 | 50,932 | 09:13:26 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Footwear-wholesale | 165.66M | 13.22M | 0.2860 | 6.99 | 92.45M |
From Apr 2019 to Apr 2024
TIDMSHOE
RNS Number : 3972R
Shoe Zone PLC
08 March 2021
8 March 2021
Shoe Zone PLC
("Shoe Zone", the "Company" or the "Group")
Final Results
Shoe Zone PLC ("Shoe Zone"), the UK's largest value footwear retailer, operating in Town Centres, Retail Parks and Online, is pleased to announce its final results for the 52 week period ended 3 October 2020.
Financial Summary
-- Revenue decreased by 24.3% to GBP122.6m (2019: GBP162.0m) -- Product gross margin lower at 61.4% (2019: 62.7%) -- Loss before tax of GBP14.6m (2019: PBT GBP6.7m) -- Earnings per share -23.8p (2019: 11.4p) -- Net cash of GBP6.3m (2019: GBP11.4m) -- Final dividend of nil (2019: 8.0p per share) -- Total ordinary dividend nil (2019: 11.5p per share)
Operational Summary
-- 51 Big Box stores opened by the end of December 2020 -- Big Box revenue was GBP17.1m (2019: GBP15.6m); 14.3% of turnover (2019: 9.6%) -- 9 Hybrid Town Centre stores opened by the end of December 2020 -- 50 stores closed in the year -- Average lease length of 2 years -- Rents at renewal have fallen by 30.9% (2019: 23.1%) saving GBP777k (2019: GBP631k) -- Digital revenue growth of 82% to GBP19.3m (2019: GBP10.6m) -- Separately announced today the appointment of Terry Boot as Finance Director
For further information please call:
Shoe Zone plc
Charles Smith (Chairman) Tel: +44 (0) 116 222 3000
Anthony Smith (Chief Executive)
FinnCap Limited (Nominated Adviser & Broker)
Matt Goode / Kate Bannatyne (Corporate Finance) Tel: +44 (0) 20 7220 0500
Alice Lane (ECM)
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 around 430 stores and has approximately 3,000 employees across the UK.
The store portfolio consists of over 380 high street stores containing the core Shoe Zone product range and over 50 larger Retail Park units which also feature brands such as Skechers, Hush Puppies and Kickers.
The website shoezone.com, combined with the store network, ensures a full multi-channel offering for great customer service.
During an average year Shoe Zone sells 16 million pairs of shoes per annum at an average retail price of GBP10.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.
Chief Executive's report
In my second year back as Chief Executive, it is disappointing I am reporting on a year impacted by COVID-19. Despite this, there are positives such as the continued growth of digital and the commitment and focus of our loyal employees. The financial pressure caused by COVID-19 has meant we now have debt on the balance sheet for the first time in over 15 years.
The business model of digital, big box, hybrid and town centre stores remains the same although the percentage contributions of each area are changing fast due to lockdown restrictions, some of which will be a permanent shift.
In 2020, the business delivered revenue of GBP122.6.0m (2019: GBP162.0m). Underlying loss before tax was GBP14.6m (2019: profit before tax GBP6.7m). During the year freehold property values were reviewed to reflect the deteriorating retail property environment, resulting in a non-cash adjustment of GBP2.3m. Loss per share is therefore -23.65p (2019: Earnings per share 11.43p).
Digital
Digital continues to be a key growth area especially during lockdown periods when it was our only source of income. Our relatively new autonomous digital department has been very effective at coping with unexpectedly huge growth in sales and volumes.
Digital revenue was GBP19.3m (2019: GBP10.6m) with growth of 82% and a profit contribution of GBP4.6m (2019: GBP3.0m). The slower increase in contribution was due to heavy discounting in Lockdown 1 using a "Buy One Get One Free" promotion to generate cash and rectify overstocks. Discounting and resultant lower margins continue to be an ongoing issue due to COVID-19. We also had to slow down our digital exclusive lines due to lack of availability from suppliers. Gross margin during April 2020 was 28.7% (2019: 65.4%), and in May was 52.4% (2019: 64.7%). Gross margin took 5 months to recover in the financial year, and hence digital margin for the period as a whole was 51.7% (2019: 60.3%).
By the close of the year we grew the email database to 1.45m engaged members (2019: 1.1m). The conversion rate grew to 4.47% (2019: 3.48%) however this has been artificially inflated because of stores not being open, although we are focused on taking advantage of the increase in engaged database members going forward.
Returns continue to be extremely low at 8.4% (2019: 11%). The returns' rate has been lower than expected during lockdown due to the mix of product sold. We expect this to return to c.10% as trading patterns stabilise.
Big Box & Hybrid
The big box stores have increased by 9 to a total of 51 stores. Revenue was GBP17.1m (2019: GBP15.6m) with a contribution loss of GBP0.2m (2019: GBP1.5m profit). This loss is entirely attributable to the COVID-19 lockdown impact.
The hybrid stores have increased by 2 to a total of 6. These have performed well and will be our strategy for town centre renewal over the next five years, which we anticipate will contribute the majority of our town centre profitability.
Product
We revived the 'Lilley & Skinner' brand in Spring/Summer with premium sandals and Autumn/Winter with boots. These are sourced direct from factories and deliver strong margins.
Osaga, Red Level, Stone Creek, Urban Territory were former Brantano brands acquired during the year to develop for our big box and hybrid ranges. These brands will enhance our "made to order" product ranges.
Clarks gave us notice to end our relationship due to their ongoing difficulties. This brand was performing poorly for us, so will not be missed.
Property
We ended the period operating from 460 stores, having opened 10 (9 big box; 1 hybrid) and closed 50. We completed 8 refits. Total capital expenditure of GBP2.8m (2019: GBP7.3m).
Rents at lease renewal have fallen by 30.9% (2019: 23.1%) saving GBP777k (2019: GBP631k). We expect this trend will continue as property supply continues to outstrip demand.
Our average lease length is 2 years, giving us opportunity to respond to changes in any retail location at short notice.
Dividend
The effect of COVID-19 has meant the business has taken on debt of GBP12m after being debt free for over 15 years. Our defined benefit pension schemes remain at deficit of GBP10.6m and will need greater support. Until the business is debt free, has tackled the pension deficit, repaired the balance sheet and restored capital expenditure, the business will not be in a position to make dividend payments. We anticipate this will not be before 2025.
Outlook
All of our stores are closed and we remain unable to forecast accurately due to current uncertainties. Our experienced management team continues to make the right decisions as new issues arise. However, we look forward to our customers returning to our stores on or after 12(th) April 2021 (England only), combined with our digital platforms continuing to perform well.
Property
We have opened 1 hybrid store and completed 3 conversions (2 hybrid; 1 big box). When all our stores reopen we will have 427 stores (52 big box; 9 hybrid; 367 town centre). We have closed 33 stores which is faster than previously forecast, mainly due to COVID-19 and certain towns becoming unviable due to the closures of complementary retailers.
We expect closures and openings to be at a similar level to 2020 (50 closures and 10 relocations). This is expected to continue for the next 2-3 years, and will have a negative cash impact due to the closure costs of redundancies and dilapidations.
Capital expenditure
The rollout of big box stores has been suspended for the foreseeable future due to the financial pressure caused by COVID-19.
The hybrid stores have performed well and we now plan to relocate 10 stores to this format in 2021. These are largely funded by rent free periods from landlords, payback within 12 months and have a high success rate because the relocation of existing stores. Most of these relocations are essential to protect store contributions in decent towns where our current lease has expired.
Non-store capital expenditure is suspended unless it is business critical e.g. Payments software update to comply with GDPR.
Product
The November 2020 and current lockdowns are having a material impact on sales and margins. This will leave us with a winter stock overhang of c. GBP7m at cost, that we are unable to deal with until Autumn 2021, as it is currently locked away in non-trading stores. We have sufficient warehouse stocks to fulfil digital orders on the majority of high-volume styles.
Freight rates post-Christmas have significantly increased to c. GBP6,500 per container (2019: GBP1,900). We can't forecast how long this will last but it is significant as we import on average 100 containers per month.
Owing to Force Majeure stock cancellations during Lockdowns 1-3, we now have an excess of dollar hedges. We will keep the excess dollars for future use unless the business requires it for sterling payments.
Conclusion
We have received government assistance via furlough payments, grants and rates relief. We have also had cash flow assistance via VAT deferral, rent deferrals from landlords (some discounts/COVID-19 clause reductions in rent), cancellations of stock with suppliers and other cost savings.
We do not expect profits will return to pre COVID-19 levels for the foreseeable future. Lockdown in November and January to mid-April so far in this financial year makes a return to profit extremely unlikely until the financial period ending on 2 October 2022 at the earliest.
I would like to thank all those who gave us assistance in 2020 and have continued to help us in 2021. We are working very well as a management team in finding innovative ways to secure a future for our extremely dedicated "Shoe Zoners"
Director's statement of compliance with the duty to promote the success of the group (Section 172(1) statement)
The Director has acted in the way that they consider, in good faith, promotes the success of the Group for the benefit of its members as a whole, and in doing so have given regard to (amongst other matters):
External relationships
The vast majority of the Company's products are manufactured overseas in China and to a lesser extent in India and Europe. As a result, the Group is subject to the risks associated with international trade, particularly those common in the importation of goods from developing countries, including the imposition of taxes or other charges on imports, compliance with and changes to import restrictions and regulations, and exposure to different legal standards and the burden of complying with a variety of foreign laws and changing foreign government policies.
The Company's policy for the payment of suppliers is to agree payment terms in advance and to abide by such terms.
The Company continually develops strategies to further improve its strong relationship with its suppliers.
Our people
Our long-term success depends on looking after the best interests of our employees, customers, shareholders and suppliers.
All employees are able to contribute to the ongoing success of the business through regular contact between management and employees. We promote equal opportunities and do not tolerate discrimination of any kind. We operate a non-contractual profit share scheme that rewards all employees, with service greater than one year, based on the overall company profit performance. Details on the number of people employed can be found in note 7 of the financial statements.
I am delighted that Terry Boot will be joining us on 8(th) March 2021 as our new Finance Director. The Board meets regularly and communicates with our people on a regular basis to ensure they all understand our strategic objectives both short and long-term.
I am incredibly proud of the effort of our employees in extremely difficult circumstances and want to thank them for their ongoing commitment and hard work and the considerable efforts needed in the months ahead.
Charity
We donated over GBP165,000 to charitable causes. These donations are mainly targeted at children in poverty/difficult circumstances locally, nationally and internationally and delivered via The Shoe Zone Trust.
Environment
We recognise the impact of our activities on the environment. We relentlessly review our consumption of single use plastics and have eliminated them in all own label products. We recycle all cardboard and plastic waste from our stores and head office. We use sea transportation to reduce emissions. We are currently trialling our first Compressed Natural Gas delivery lorry.
Political donations
During its last financial period the Group made no political donations and incurred no political expenditure. The Group does not intend to make any such donations or incur any such expenditure this year.
Financial review
In the 52 weeks to 3 October 2020, revenues fell by 24.4% to GBP122.6m (2019: GBP162.0m) following the loss of trade from our retail stores due to COVID-19. We ended the year with 460 stores, a net reduction of 40 stores on 2019.
The Loss before Tax was GBP14.6m (2019: Profit before Tax GBP6.7m). This significant reduction in Profit before Tax was due to COVID-19 reversed in part by furlough support monies and rate free periods during lock-down. We continue to focus on cost reductions in rent, rates and central costs.
Digital growth has been strong with revenues of GBP19.3m (2019: GBP10.6m). Profit contribution from Digital increased by 15.3% to GBP4.6m (2019: GBP3.0m) in the year. We continue to grow and invest in our digital presence and recognise the growth potential this provides.
During the year, the company has adopted IFRS 16. This has had a significant impact on both our income statement account and statement of financial position. Details of the impact can be found in note 1.
During the year, with the back drop of COVID-19 and increased pressure on retail space we undertook a review of the value of our freehold properties. This resulted in a one off non-cash adjustment to profits of GBP2.3m
Product Gross Margin decreased to 61.4% (2018: 62.7%) due to digital promotional activity during lock-down and a buy one get one free promotion when stores reopened.
Administration expenses increased by GBP1.8m to GBP13.9m (2019: GBP12.1m) in part due to COVID-19 with redundancy costs rising by GBP1.2m. Distribution costs rose by GBP0.7m to GBP6.9M (2019: GBP6.2m) with the higher costs of digital post and packing.
The effective rate of corporation tax for the year was 18.5% (2019: 19.4%) creating GBP2.7m of taxable losses to be offset against future profits.
Earnings per Share are therefore a (23.81p) (2019: 11.43p).
Capital expenditure fell to GBP2.8m (2019: GBP7.3m) as we conserved cash during lockdown. The expenditure in the early part of the financial year was for expansion of our Big Box portfolio, re-fits and IT development projects.
For the first time in over 15 years the Group has taken on debt to mitigate the loss of trade during COVID-19. The business has a loan with National Westminster Bank supported by the COVID-19 Large Business Interruption Loan Scheme. At the year-end the draw down was GBP7.0m which we extended to GBP12.0m in October to cover the cash flow pressure through further lockdowns.
The pension liability has increased by GBP0.9m (2019: GBP3.4m) from GBP9.7m to GBP10.6m. During the year, deficit reduction contributions of GBP1.4m were made between the two schemes.
The Group uses derivative financial instruments, typically forward exchange contracts, to hedge the risk of future foreign currency fluctuations. The hedging policy enables the effective portion of changes in the fair value of designated derivatives to be recognised in Other Comprehensive Income. Historically these movements would have been recognised in the Income Statement. Further information can be seen in accounting policies in note 1 of the financial statements.
Derivative financial assets of GBP(0.1m), compared to GBP2.7m in the prior year, represents the market to market valuation of the derivative hedges in place at the end of the financial year. Due to stock cancellations during the pandemic Shoe Zone is over hedged against future dollar purchases, this will be reflected in larger variations in exchange differences in future periods.
The Company generated GBP15.9m cash from operations, a year on year increase of GBP1.7m resulting in a net cash position of GBP6.3m (2019: GBP11.4m) at the year end. The reported cash position (GBP13.3m) includes the GBP7.0m CLBILS loan. The Group's current bank facilities also include an on demand overdraft facility of GBP3.0m, which has not been used during the year.
With the growing pension scheme liability, loan facility and ongoing pressure from COVID-19 and lockdowns the Board is not proposing a final dividend this year and given these pressures on our business will be unlikely to pay a dividend until 2025 at the earliest.
Consolidated income statement for the 52 weeks ended 3 October 2020
Hot Features
Premium
52 weeks 53 weeks
ended 3 ended 5
October October
2020 2019
GBP'000 GBP'000
Revenue 122,568 162,047
Cost of sales (114,455) (136,965)
--------- ------------------
Gross profit 8,113 25,082
Administration expenses (13,928) (12,081)
Distribution costs (6,895) (6,154)
--------- ------------------
(Loss)/Profit from
operations (12,710) 6,847
Finance income 10 44
Finance expense (1,901) (192)
--------- ------------------
(Loss)/Profit before
taxation (14,601) 6,699
Taxation 2,698 (985)
--------- ------------------
(Loss)/Profit attributable
to equity holders
of the parent (11,903) 5,714
========= ==================
(Loss)/Profit Earnings
per Share - basic
and diluted (23.81p) 11.43p
========= ==================
Consolidated statement of total comprehensive income for the 52 weeks ended 3 October 2020
52 weeks 53 weeks
ended ended
3 October 5 October
2020 2019
GBP'000 GBP'000
(Loss)/profit for the period (11,903) 5,714
Items that will not be reclassified subsequently
to the income statement
Remeasurement losses on defined benefit
pension scheme (2,114) (4,177)
Movement in deferred tax on pension schemes 899 707
Items that will be reclassified subsequently
to the income statement
Fair value movements on cash flow hedges (2,124) 648
Tax on cash flow hedges 363 (126)
Other comprehensive income / (expense)
for the period (2,973) (2,948)
----------- --------------
Total comprehensive income for the period
attributable
to equity holders of the parent (14,879) 2,766
=========== ==============
Consolidated statement of financial position as at 3 October 2020
52 weeks 53 weeks
ended ended
3 October 5 October
2020 2019
GBP'000 GBP'000
Assets
Non-Current assets
Property, plant and equipment 16,967 22,143
Right of use assets 42,387 -
Deferred tax asset 5,617 1,677
Total non-current assets 64,971 23,820
---------- ----------
Current assets
Inventories 26,698 28,511
Trade and other receivables 2,735 6,078
Derivative financial assets - 2,726
Cash and cash equivalents 13,266 11,417
Total current assets 42,699 48,732
---------- ----------
Total assets 107,670 72,552
---------- ----------
Current liabilities
Trade and other payables (17,316) (27,429)
Lease liabilities (19,914) -
Derivative financial liability (105) -
Bank Loan (1,944) -
Provisions (1,471) (715)
Corporation tax liability (137) (440)
Total current liabilities (40,887) (28,584)
---------- ----------
Non-current liabilities
Trade and other payables - (2,432)
Lease liabilities (37,475) -
Bank Loan (5,056) -
Provisions (1,260) (370)
Employee benefit liability (10,594) (9,736)
Total non-current liabilities (54,385) (12,538)
Total liabilities (95,272) (41,122)
---------- ----------
Net assets 12,398 31,430
========== ==========
Equity attributable to equity holders
of the company
Called up share capital 500 500
Merger reserve 2,662 2,662
Cash flow hedge reserve (116) 1,645
Retained earnings 9,352 26,623
---------- ----------
Total equity and reserves 12,398 31,430
========== ==========
Consolidated statement of changes in equity for the 52 weeks ended 3 October 2020
Share capital Merger Cash flow hedge reserve Retained earnings Total
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 29 September 2018 500 2,662 1123 34,129 38,414
Profit for the period - - - 5,714 5,714
Defined benefit pension
movements - - - (4,177) (4,177)
Cash flow hedge
movements - - 648 - 648
Deferred tax on other
comprehensive income - - (126) 707 581
Total comprehensive
income for the period - - 522 2,244 2,766
------------- ---------------- ----------------------- ----------------- --------
Dividends paid during
the year (note 11) - - - (9,750) (9,750)
------------- ---------------- ----------------------- ----------------- --------
Total contributions by
and distributions to
owners - - - (9,750) (9,750)
------------- ---------------- ----------------------- ----------------- --------
At 5 October 2019 500 2,662 1,645 26,623 31,430
Impact on transition to
IFRS 16 (note 13) - - - (4,153) (4,153)
At 6 October 2019 500 2,662 1,645 22,470 27,277
Loss for the period - - - (11,903) (11,903)
Defined benefit pension
movements - - - (2,114) (2,114)
Cash flow hedge
movements - - (2,124) - (2,124)
Deferred tax on other
comprehensive income - - 363 899 1,262
------------- ---------------- ----------------------- ----------------- --------
Total comprehensive
income for the period - - (1,761) (13,118) (14,879)
------------- ---------------- ----------------------- ----------------- --------
Dividends paid during - - - - -
the year (note 11)
------------- ---------------- ----------------------- ----------------- --------
Total contributions by - - - - -
and distributions to
owners
------------- ---------------- ----------------------- ----------------- --------
At 3 October 2020 500 2,662 (116) 9,352 12,398
------------- ---------------- ----------------------- ----------------- --------
Share capital comprises the nominal value of shares subscribed for.
The merger reserve has arisen as a result of the application of merger accounting to the group reorganisation on 26 March 2014.
The cash flow hedge reserve comprises of gains/losses arising on the effective portion of hedging instruments and is carried at fair value in a qualifying cash flow hedge.
Retained earnings are all other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere.
Consolidated statement of cash flows for the 52 weeks ended 3 October 2020
52 weeks 53 weeks
ended ended
3 October 2020 5 October 2019
GBP'000 GBP'000
Operating activities
(Loss)/Profit after tax (11,903) 5,714
Corporation tax (2,698) 985
Finance income (10) (44)
Finance expense 1,901 192
Depreciation of property, plant and equipment 3,545 3,258
Fixed asset impairment and loss on disposal of property, plant and equipment 4,642 3,034
Right of use asset profit on disposal, depreciation and impairment 23,998 -
Pension contributions paid (1,466) (890)
18,009 12,249
Decrease / (increase) in trade and other receivables (810) 157
Decrease / (increase) in foreign exchange contract 336 30
Decrease / (increase) in inventories 2,184 (1,451)
(Decrease) / Increase in trade and other payables (5,498) 3,150
Increase in provisions 1,646 83
(2,142) 1,969
Cash generated from operations 15,867 14,218
Net corporation tax paid (283) (1,488)
----------------- ---------------
Net cash flows from operating activities 15,584 12,730
----------------- ---------------
Investing activities
Purchase of property, plant and equipment (2,809) (7,290)
Interest received 10 44
----------------- ---------------
Net cash used in investing activities (2,799) (7,246)
----------------- ---------------
New secured loan repayable by instalments 10,000 -
Repayments of secured loan (3,000) -
Capital element of lease repayments (17,719)
Interest paid (217)
Dividends paid during the year - (9,750)
Net cash used in financing activities (10,936) (9,750)
----------------- ---------------
Net increase in cash and cash equivalents 1,849 (4,266)
Cash and cash equivalents at beginning of period 11,417 15,683
----------------- ---------------
Cash and cash equivalents at end of period 13,266 11,417
================= ===============
-- Accounting policies
General information
Shoe Zone plc (the 'Company') is a public company incorporated and domiciled in England and Wales. The registered office is at Haramead Business Centre, Humberstone Road, Leicester, LE1 2LH. The company registered number of the Company is 08961190.
The Company and its subsidiaries' (collectively the Group) principal activity is footwear retailing in the United Kingdom and the Republic of Ireland.
Basis of preparation
The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently applied for the 52 weeks ended 3 October 2020.
These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards and Interpretations (collectively IFRSs) issued by the Internal Accounting Standards Board (IASB) as adopted by the European Union ('adopted IFRSs') and those parts of the Companies Act 2006 that are applicable to companies that prepare financial statements in accordance with IFRS.
The consolidated financial statements have been prepared on a going concern basis and under the historical cost convention, as modified for the revaluation of certain financial assets and financial liabilities at fair value.
The preparation of financial statements in compliance with adopted IFRS requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies. The areas where significant judgements and estimates have been made in preparing the financial statements and their effect are disclosed in note 2.
The consolidated financial statements are presented in Sterling, which is also the Group's functional currency.
Amounts are rounded to the nearest thousand, unless otherwise stated.
Basis of consolidation
The consolidated financial statements incorporating the financial statements of Shoe Zone plc and its subsidiary undertakings are all made up to 3 October 2020. The results for all subsidiary companies are consolidated using the acquisition method of accounting.
Where the company has control over an investee, it is classified as a subsidiary. The company controls an investee if all three of the following elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control.
De-facto control exists in situations where the company has the practical ability to direct the relevant activities of the investee without holding the majority of the voting rights. In determining whether de-facto control exists the company considers all relevant facts and circumstances, including:
-- The size of the company's voting rights relative to both the size and dispersion of other parties who hold voting rights.
-- Substantive potential voting rights held by the company and by other parties. -- Other contractual arrangements. -- Historic patterns in voting attendance.
The consolidated financial statements present the results of the company and its subsidiaries ('the Group') as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the acquisition method. In the statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date on which control ceases.
Going Concern
The Directors consider that the business is a going concern and that it is appropriate to prepare the financial statements on a going concern basis. In reaching this conclusion, the Directors have assessed the Group's current performance and position and factors that may affect the Group's future prospects.
The Group's financial position is strong with healthy positive cash balances. It also has in place a GBP3.0m overdraft facility. During the pandemic the company took a CLBILS loan of GBP7.0m, this requires the group to comply with certain financial covenants, these have been met during the year and since year end. The directors have reviewed forecasts and projections and consider that the group has adequate banking facilities and cash resources to meet its operational and capital commitments.
With the prospect of high street stores reopening following the initial success of the government vaccine programme, we look forward to increased demand returning to our high street stores combined with maintaining the growth levels of our digital presence.
IFRS 16 Leases
IFRS 16 Leases is effective for the Group from 6 October 2019 and replaces existing lease guidance under IAS 17 Leases. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of all leases.
Leases in which the Group is a lessee
A majority of the Groups trading stores are leased. The Group also has a number of non-property leases relating to vehicles and other equipment.
Under IFRS 16 on commencement of a lease the Group recognises on the Balance Sheet a right of use asset and a lease liability representing its obligation to make payments under the lease.
The right of use asset is established as the cost value of the initial measurement of the lease liability adjusted for any lease payments made at or before commencement and any lease incentives received or premiums paid. The Group depreciates the right of use assets on a straight line basis from the lease commencement date to the earlier of the end of the useful life of the right of use asset or the end of the lease term. The Group assesses the right of use asset for impairment on a periodic basis. The Group has not factored the dilapidation provision into the right of use asset as the provision relates to general 'wear and tear' as opposed to structural changes.
The lease liability is initially measured as the present value of the remaining lease payments, discounted using the interest rate based on the Groups incremental borrowing rate. Subsequent to initial measurement, the liability will be reduced for lease payments made and increased by interest charged on the net liability value. The carrying value of the lease liability is periodically remeasured to reflect any modification event such as any change to in-substance fixed payments or change in the lease term. When the lease liability is remeasured the corresponding adjustment is reflected in the right of use asset or profit and loss account if the right of use asset is already reduced to zero.
The Group has elected to account for short term leases and leases of low-value assets using the practical expedient method. Instead of recognising a right of use asset and a lease liability, the payments for these are treated as an expense on a straight line basis over the term of the lease. The total value of leases/agreements where the company has used the practical expedient are disclosed in note 13.
Leases in which the Group is a lessor
Lessor accounting remains the same as that applied under IAS 17 and applied to previous accounting periods. At inception the lease is assessed as being an operating or finance lease. This assessment is based on an evaluation as to whether the lease transfers substantially all the risks and rewards to the underlying asset. If this is the case then the lease is identified as a finance lease. If not the lease is recognised as an operating lease.
The Group has a very small number of leases where it is intermediate lessor.
IFRS 16 transition note (continued)
The Group has adopted IFRS 16 Leases on 6 October 2019 using the modified retrospective approach. The cumulative effect of adopting IFRS 16 has been recognised as an adjustment to the opening balance sheet as at 6 October 2019, with no restatement of comparable information and a GBP4.2m adjustment (debit) to retained earnings.
Under the modified retrospective approach the opening right of use asset can be measured in one of two ways:
a) As if the Group had applied IFRS 16 since the commencement date using its incremental borrowing rate at the date of initial application; or
b) Measured at an amount equal to the lease liability at the date of initial application.
The right of use assets for property leases were measured on a retrospective basis as if the new rules had always been applied. Other right of use assets were measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to the lease recognised in the balance sheet as at 6 October 2019.
The Group applies the practical expedient, not to reassess whether a contract is or contains a lease at the date of application. This means the Group applies IFRS 16 to all contracts entered into before 6 October 2019 and identified as leases in accordance with IAS 17 and IFRIC 4.
The Group has elected to use the exemptions proposed by the standard on lease contracts for which the lease term ends within 12 months as of the date of initial application, except for leases which are expected to be renewed or replaced by a lease with a term greater than 12 months. These leases are accounted for as short-term leases and the lease payments associated with them are recognised as an expense.
IFRS 16 transition note (continued)
The impact on the income statement for the 52 weeks ended 3 October 2020 is as follows:
52 weeks 52 weeks
ended 3 ended 3
October October
2020 2020
(excluding (including
IFRS 16 IFRS 16 IFRS 16
adjustments) adjustment adjustments)
GBP'000 GBP'000 GBP'000
Revenue 122,568 - 122,568
Cost of sales (109,870) (4,585) (114,455)
------------- ------------------ ------------------
Gross profit 12,698 (4,585) 8,113
Administration expenses (15,278) 1,350 (13,928)
Distribution costs (6,910) 15 (6,895)
------------- ------------------ ------------------
Profit from operations (9,490) (3,220) (12,710)
Finance income 10 - 10
Finance expense (217) (1,684) (1,901)
Loss before tax (9,697) (4,904) (14,601)
Taxation 2,698 - 2,698
------------- ------------------- ------------------
Loss after tax (6,999) (4,904) (11,903)
============= =================== ==================
IFRS 16 transition note (continued)
53 weeks 53 weeks 53 weeks
ended ended 5 ended
5 October October 5 October
2019 2019 2019
(excluding (including
IFRS 16 IFRS 16 IFRS 16
adjustments) adjustment adjustments)
GBP'000 GBP'000 GBP'000
Assets
Non-Current assets
Property, plant and equipment 22,143 - 22,143
Right of use assets - 61,662 61,662
Deferred tax asset 1,677 - 1,677
-----------
Total non-current assets 23,820 61,662 85,482
------------- ----------- -------------
Current assets
Inventories 28,511 - 28,511
Trade and other receivables 6,078 (4,153) 1,925
Derivative financial assets 2,726 - 2,726
Cash and cash equivalents 11,417 - 11,417
Corporation tax asset - - -
-----------
Total current assets 48,732 (4,153) 44,579
------------- ----------- -------------
Total assets 72,552 57,509 130,061
------------- ----------- -------------
Current liabilities
Trade and other payables (27,429) 4,595 (22,834)
Lease liabilities - (21,891) (21,891)
Derivative financial liability - - -
Bank Loan - - -
Provisions (715) - (715)
Corporation tax liability (440) - (440)
-----------
Total current liabilities (28,584) (17,296) (45,880)
------------- ----------- -------------
Non-current liabilities
Trade and other payables (2,432) 2,432 -
Lease liabilities - (46,798) (46,798)
Bank Loan - - -
Provisions (370) - (370)
Employee benefit liability (9,736) - (9,736)
-----------
Total non-current liabilities (12,538) (44,366) (56,904)
-----------
Total liabilities (41,121) (61,662) (102,784)
------------- ----------- -------------
Net assets 31,431 (4,153) 27,277
============= =========== =============
Equity attributable to equity holders
of the company
Called up share capital 500 - 500
Merger reserve 2,662 - 2,662
Cash flow hedge reserve 1,645 - 1,645
Retained earnings 26,623 (4,153) 22,470
------------- ----------- -------------
Total equity and reserves 31,430 (4,153) 27,277
============= =========== =============
IFRS 16 transition note (continued)
Under previous lease accounting standards (IAS 17), lease costs were recognised on a straight-line basis over the term of the lease and the Group would have recognised these costs within operating expenses this would have been recognised in the 52 week period ended 3 October 2020 if IAS 17 had still been applied. Under IFRS 16 these costs have been removed and replaced with depreciation of the right of use assets and no rent costs in the profit and loss account, which has resulted in an additional charge of GBP3.2m for the year ended 3 October 2020.
The impact on net financing expense in the 52 week period ended 3 October 2020 was GBP1.7m.
The net impact of applying IFRS 16 to the profit for the period in the 52 week period ended 3 October 2020 was a reduction of GBP4.9m after tax. This difference to profit for the period represents a timing difference in the recognition of costs under IFRS 16 compared to IAS 17. IAS 17 recognises costs on a straight-line basis, whereas under IFRS 16 finance charges are recognised in relation to the value of the lease liability and costs will therefore reduce as the liability reduces.
The Group has adopted IFRS 16 Leases retrospectively from 6 October 2019, but has not restated comparatives for the 2019 reporting period, as permitted under the specific transition provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognised in the opening balance sheet on 6 October 2019.
On adoption of IFRS 16, the Group recognised lease liabilities in relation to leases which had previously been classified as 'operating leases' under the principles of IAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate as of 5 October 2019. The weighted average lessee's incremental borrowing rate applied to the lease liabilities on 5 October 2019 was 2.94% and was 1.82% at 3 October 2020. If the discount rate was changed by 0.13% this would result in an increase of liabilities in excess of GBP300,000.
The presentation of cash flows arising from leases where the Group is a lessor has also changed. Up to 5 October 2019, cash flows relating to such leases were treated as part of operating cash flow. On transition to IFRS 16, the cash flows relating to capital repayments are required to be presented as financing cash flows.
For leases previously classified as finance leases, the entity recognised the carrying amount of the lease asset and lease liability immediately before transition as the carrying amount of the right of use asset and the lease liability at the date of initial application. The measurement principles of IFRS 16 are only applied after that date.
(i) Practical expedients applied on transition
In applying IFRS 16 for the first time, the group has used the following practical expedients permitted by the standard:
-- applying a single discount rate to a portfolio of leases with reasonably similar characteristics
-- relying on previous assessments on whether leases are onerous as an alternative to performing an impairment review - there were no onerous contracts as at 6 October 2019
-- accounting for operating leases with a remaining lease term of less than 12 months as at 6 October 2019 as short-term leases
-- excluding initial direct costs for the measurement of the right of use asset at the date of initial application, and
-- using hindsight in determining the lease term where the contract contains options to extend or terminate the lease.
The Group has also elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for contracts entered into before the transition date the Group relied on its assessment made applying IAS 17 and Interpretation 4 determining whether an arrangement contains a Lease.
(ii) Measurement of lease liabilities
The following is a reconciliation of total operating lease commitments at 5 October 2019 (as disclosed in the financial statements to 5 October 2019) to the lease liabilities recognised at 6 October 2019.
Total operating lease commitments disclosed
at 5 October 2019 51,070
GBP'000
Recognition exemptions
Leases of low value assets (14)
Leases with remaining lease term of less than
12 months (95)
Contracts reassessed as lease contracts (prior
year operating lease commitment errors) 6,637
Adjustments as a result of a different treatment
of extension and termination options 12,313
Variable lease payments not recognised -
Other adjustments relating to commitment disclosures (165)
-------
Operating lease liabilities before discounting 69,746
Discounted using incremental borrowing rate (1,113)
Finance lease obligations 56
Total lease liabilities recognised under IFRS
16 at 6 October 2019 68,689
=======
(iii) Other non-current assets
Sublease assets have been recognised in respect of finance leases under IFRS 16 for a number of the properties which are subleased to third parties. The finance lease is assessed by reference to the right of use asset under the head lease rather than the underlying asset. A number of subleases continue to be accounted for as operating leases which has resulted in no change to their accounting treatment under IFRS 16.
(iv) Lease liabilities
A lease liability is recognised under IFRS 16, representing the Group's contractual obligation to minimum lease payments during the lease term. The lease liability is initially measured at the present value of the remaining lease payments, discounted using the rates based on the Group's incremental borrowing rate. The weighted average discount rate used to discount the lease liability as at 5 October 2019 was 2.94 %. The element of the liability payable in the next 12 months is shown within current liabilities, with the balance shown in non-current liabilities.
(v) Amendment to IFRS 16 for COVID-19 related rent concessions
On 28 May 2020, the IASB issued COVID-19 related Rent Concessions - Amendment to IFRS 16 Leases (the amendment). The Board amended the standard to provide optional relief to lessees from applying IFRS 16 guidance on lease modification accounting for rent concessions arising as a direct consequence of the COVID-19 pandemic. The amendments do not apply to lessors.
As a practical expedient, a lessee may elect not to assess whether a COVID-19 related lease concession from a lessor is a lease modification. A lessee that makes this election accounts for any qualifying change in lease payments resulting from the COVID-19related rent concession the same way it would account for the change under IFRS 16 if the change were not a lease modification. A lessee may elect to apply the practical expedient consistently to contracts with similar characteristics and in similar circumstances.
The Group received rent free periods or discounts on some property leases during the year. In addition, some rental payments were deferred. Such amendments have been accounted for as if the lease is unchanged and a separate lease liability recognised where payments have been deferred.
The practical expedient applies only to rent concessions occurring as a direct consequence of the COVID-19 pandemic and only if all of the conditions described in IFRS 16 paragraph 46B are met. This amendment was effective for financial periods beginning on or after 1 June 2020, however, this amendment has been adopted early by the Group as permitted.
The Group received discounts and free rental periods amounting to GBP0.2m which have been recognised as a credit in the income statement.
The Group has not factored the dilapidation provision into the right of use as the provision relates to general 'wear and tear' as opposed to structural charges. Under IFRS 16 cash payments for the lease liability are recognised within financing activities. In the prior period operating lease payments under IAS 17 are recognised in operating activities. This has no net impact on the cash flow.
Revenue
Revenue is measured at the fair value of consideration received or receivable net of discounts, returns and VAT. Revenue is recognised when the company has transferred the significant risks and rewards of ownership to the buyer at the point of sale in the shop. At the point of sale a provision is made for the level of expected returns based on previous experience.
Internet sales are recognised when the goods have been paid for, despatched and received by the customer.
Exceptional Items
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
The Directors reviewed the treatment of non-underlying items, it was not considered appropriate to show any non-underlying items for the current year or prior year.
Property, plant and equipment
Items of property, plant and equipment are initially recognised at cost. As well as purchase price, cost includes directly attributable costs.
Depreciation is provided on all items of property, plant and equipment so as to write off their carrying value over the expected useful economic lives. It is provided at the following rates:
Freehold and long leasehold - 50 years on a straight line basis
Short leasehold and leasehold improvements - 5-10 years on a straight line basis
Fixtures and fittings - 5-10 years on a straight line basis
Motor vehicles - 3-5 years on a straight line basis
No depreciation is provided against freehold land. Depreciation is provided against freehold shop properties writing off the original cost less estimated residual value over the useful economic life of the property which is estimated to be 50 years.
Assets under construction
Whilst held under assets under construction, no depreciation is charged on the assets. Once the project is completed, the asset will be transferred to the correct fixed asset category.
Impairment of non-financial assets
The carrying values of non-financial assets are reviewed in conjunction with an independent third party for impairment when there is an indication that assets might be impaired. When the carrying value of an asset exceeds its recoverable amount, the asset is written down accordingly.
Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the asset's cash generating unit (i.e. the smallest group of assets in which the asset belongs for which there are separable identifiable cash flows).
Impairment charges are included in the consolidated income statement in cost of sales, except to the extent they reverse previous gains recognised in the consolidated statement of comprehensive income.
Inventories
Inventories are initially recognised at cost on a first in first out basis, and subsequently at the lower of cost and net realisable value. Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.
Financial assets
The Group classified its financial assets into the categories, discussed below, due to the purpose for which the asset was acquired. The Group has not classified any of its financial assets as held to maturity.
The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Cash and cash equivalents include cash in hand and deposits held at call with banks.
Loans and receivables
Loans and receivable assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods to customers (e.g. trade receivables), but also incorporate other types of contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment.
The Group's loans and receivables comprise trade and other receivables and cash and cash equivalents included within the consolidated statement of financial position.
Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in payment) that the Group will be unable to collect all of the amounts due under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable. For trade receivables, which are reported net, such provisions are recorded in a separate allowance account with the loss being recognised within administrative expenses in the consolidated income statement. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.
Financial liabilities
The Group classified its financial liabilities as other financial liabilities which include the following:
-- Trade payables and other short-term monetary liabilities, which are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method.
-- Bank loan - external loan which is valued at its amortised cost and incurs interest.
-- Finance costs are charged to the profit and loss account over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Derivative financial instruments and hedging activities
Hedge accounting is applied to financial assets and financial liabilities only where all of the following criteria are met:
At the inception of the hedge there is formal designation and documentation of the hedging relationship and the Group's risk management objective and strategy for undertaking the hedge.
-- For cash flow hedges, the hedged item in a forecast transaction is highly probable and presents an exposure to variations in cash flows that could ultimately affect profit or loss.
-- The cumulative change in the fair value of the hedging instrument is expected to be between 80-125% of the cumulative change in the fair value or cash flows of the hedged item attributable to the risk hedged (i.e. it is expected to be highly effective).
-- The effectiveness of the hedge can be reliably measured.
-- The hedge remains highly effective on each date tested. Effectiveness is tested quarterly.
The Group uses derivative financial instruments such as forward foreign exchange contracts to hedge its risks associated with foreign currency fluctuations. Such derivative financial instruments are initially measured at fair value and subsequently remeasured at fair value. The fair value of forward foreign exchange contracts is calculated by reference to current forward exchange rates for contracts with similar maturity profiles.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in cost of sales in the income statement.
Amounts accumulated in equity are reclassified to inventories in the period when the purchase occurs, matching the hedged transaction. The cash flows are expected to occur and impact on profit and loss within 12 months from the year end.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss previously recognised in equity is retained in equity and is recognised when the forecast transaction is ultimately recognised in cost of sales in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement.
Deferred taxation
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the statement of financial position differs from its tax base.
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised.
The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the deferred tax liabilities or assets are settled or recovered. Deferred tax balances are not discounted.
Deferred tax assets are offset when the Group has legally enforceable rights to set off current tax assets against current tax liabilities and the deferred tax liabilities relate to taxes levied by the same tax authority on either:
-- the same taxable group company; or
-- different company entities which intend to either settle current tax assets and liabilities on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax assets and liabilities are expected to be settled or recovered.
Provisions
Provision for dilapidations is made at the best estimate of the expenditure required to settle the obligation at the reporting date, where material, discounted at the pre-tax rate reflecting current market assessments of the time value of money and risks specific to the liability. A dilapidation provision is only recognised on those properties which are likely to be exited. Where such property is identified the full costs expected are recognised. This provision relates to the liability of 'wear and tear' incurred on the leasehold properties and does not include any removal of shop refits as experience indicates that liabilities do not arise for removal of shop refits. Dilapidations are not included in IFRS 16 as they relate to 'wear and tear' and not structural alterations to the buildings.
Foreign exchange
Transactions entered into the Group entities in a currency other than the functional currency are recorded at the average monthly rate prevailing during the period. Foreign currency monetary assets and liabilities are translated at the rates ruling at the reporting date.
Foreign exchange differences are recognised in the profit and loss account.
Retirement benefits - defined contribution and benefit schemes
The Group operates both defined benefit and defined contribution funded pension schemes. The schemes are administered by trustees and are independent of the Group.
Contributions to defined contribution schemes are charged to the consolidated statement of comprehensive income in the year to which they relate.
Defined benefit scheme surpluses and deficits are measured at:
-- the fair value of plan assets at the reporting date; less
-- plan liabilities calculated using the projected unit credit method discounted to its present value using yields available on high quality corporate bonds that have maturity dates approximating to the terms of the liabilities; plus
-- unrecognised past service costs; less -- the effect of minimum funding requirements agreed with scheme trustees.
Re-measurements of the net defined obligation are recognised directly within equity. These include actuarial gains and losses, return on plan assets (interest exclusive) and any asset ceilings (interest exclusive).
Service costs are recognised in the income statement, and include current and past service costs as well as gains and losses on curtailments.
Net interest expense (income) is recognised in the income statement, and is calculated by applying the discount rate used to measure the defined benefit obligation (asset) at the beginning of the annual period to the balance of the net defined benefit obligation (asset), considering the effects of contributions and benefit payments during the period.
Gains or losses arising from changes to scheme benefits or scheme curtailments are recognised immediately in profit or loss.
Settlements of defined benefit schemes are recognised in the period in which the settlement occurs.
Dividends
Dividends are recognised when they become legally payable. In the case of interim dividends to equity shareholders, this is when declared by the directors. In the case of final and special dividends, this is when approved by the shareholders at the AGM.
2 Segmental information
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker has been identified as the management team including the Chairman, Chief Executive and Finance Director.
The Board considers that each store is an operating segment but there is only one reporting segment as the stores qualify for aggregation, as defined under IFRS 8.The Directors now consider digital to be its own operating segment. Management reviews the performance of the Group by reference to total results against budget. The total profit measures are operating profit and profit for the year, both disclosed on the face of the consolidated income statement. No differences exist between the basis of preparation of the performance measures used by management and the figures in the Group financial statements.
52 weeks 53 weeks
ended 3 ended
October 5 October
2020 2019
GBP'000 GBP'000
Revenue
United Kingdom stores 100,098 146,928
Digital 19,296 10,592
Republic of Ireland stores 2,678 3,838
Other 496 689
-------- ----------
122,568 162,047
======== ==========
There are no customers with turnover in excess of 10% or more of total turnover.
52 weeks 53 weeks
ended 3 ended
October 5 October
2020 2019
GBP'000 GBP'000
Non-current assets by location:
United Kingdom 59,349 22,124
Republic of Ireland 5 19
59,354 22,143
======== ==========
Digital fixed and current assets have not been disclosed due to the immaterial value. The contribution is GBP4m (2019: GBP3.0m)
The Group has only one operating and reporting segment which reflects the Group's management and reporting structure as viewed by the board of directors.
3 Dividends
52 weeks 53 weeks
ended ended
3 October 5 October
2020 2019
GBP'000 GBP'000
Dividends paid during the year at Nil (2019:
19.5p) per share Nil 9,750
============ ==========
No final dividend is proposed for shareholders on the register (2019: 8.0p) per share.
4 Contingent liabilities
Shoe Zone plc and its subsidiary undertakings have given a duty deferment guarantee in favour of HM Revenue and Customs amounting to GBP800,000 (5 October 2019: GBP800,000).
5 Share Capital
3 5
October October
2020 2019
GBP'000 GBP'000
Share capital issued and fully paid
50,000,000 ordinary shares of 1p each 500 500
500 500
======== ========
Ordinary shares carry the right to one vote per share at general meetings of the company and the rights to share in any distribution of profits or returns of capital and to share in any residual assets available for distribution in the event of a winding up.
6 Earnings per share
Earnings per share is calculated by dividing profit for the year by the weighted average number of shares outstanding during the year.
52 weeks 53 weeks
ended ended
3 October 5 October
2020 2019
GBP'000 GBP'000
Numerator
(Loss)/Profit for the year and (Loss)/earnings
used in basic and diluted EPS - 5,714
============= ===========
As the company recorded a loss this year the EPS is nil.
3 October 5
2020 October
2019
Denominator
Weighted average number of shares used in
basic and diluted EPS 50,000,000 50,000,000
========== ==========
7 Ultimate controlling party
The company is controlled by the Smith family albeit there is not a single controlling party.
8 Posting of Annual Report and Accounts and Notice of Annual General Meeting
The Group's Annual Report and Accounts for the 52 week period to 3rd October 2020, which includes a notice of the Annual General Meeting ("AGM") will today be posted to shareholders and will be available on the Group's website www.shoezone.com . The AGM will be held at 10 am on 31st March 2021 at the Group's Head Office, Haramead Business Centre, Humberstone Road, Leicester LE1 2LH.
Although in normal circumstances members are encouraged to attend the AGM in person, in light of the current UK Government guidance restricting gatherings, members are requested not to attend the AGM in person and those arriving at the venue will not be permitted access.
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END
FR BRGDXIDGDGBU
(END) Dow Jones Newswires
March 08, 2021 02:00 ET (07:00 GMT)
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