Shoe Zone PLC Result of GM and Interim Update (3671L)

TIDMSHOE

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 GBP69.9m [2019: GBP73.0m] and ended the period with a net cash 
  balance of GBP3.6m [2019: GBP3.3m]. 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 GBP5.4m, having utilised the existing GBP3.0m 
  bank facility. This morning, the Company received formal notice that 
  its application for a GBP15.0m 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                               Tel: [phone] 
    Anthony Smith (Chief Executive)             3000 
    Jonathan Fearn (Chief Financial Officer) 
 
   FinnCap Limited (Nominated Adviser &        Tel: [phone] 
    Broker)                                     0500 
    Matt Goode / Carl Holmes / Hannah Boros 
    (Corporate Finance) 
    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 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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April 29, 2020 09:58 ET (13:58 GMT)