Financial Highlights
Revenue reduced to £74.6m (2015 H1: £78.2m) reflecting the closure of 23 loss making and temporary stores
Product gross margin improved to 61.1% (2015 H1: 60.5%)
Profit before tax of £1.91m (2015 H1: £2.0m)
Earnings per share decreased to 3.05p (2015 H1: 3.17p)
Strong cash conversion maintained with a 37.3% increase in net cash to £8.1m (2015 H1: £5.9m)
Increase in the interim dividend to 3.3p per share (2015 H1: 3.2p per share)
Operational Highlights
Further store portfolio improvements with 53 Grade 1 stores created in the period
Rent on renewals fell on average by 29.9% representing a £222k cost saving
Rent as a % of turnover is now 14% (2015: 14.7%)
Significant infrastructure investment at the Leicester distribution centre including new online fulfilment area resulting in efficiency savings
Non-desktop accounted for 70% of online visits to Shoezone.com (2015 H1: 64%)
Anthony Smith, Chief Executive of Shoe Zone plc, said:
"We have continued to make good progress with our store portfolio upgrade and rationalisation programme and I am pleased with the performance of the Group in what was another difficult period for the clothing and footwear industry. The Grade 1 format increased by 53 stores in the period and further additions will be made in the second half.
"We are excited to be launching our "Big Box" format in three locations in August. This will allow Shoe Zone to access the important out of town market, creating a new avenue for growth. We will provide an update on this trial at the Full Year results in January 2017.
"The Group has traded in line with management's expectations since the period end and the Board continues to look to the future with confidence."
