Shoe Zone has announced that ahead of its FY 2020 results, it expects to report a statutory loss before tax of approximately £14.6m an increase from £11.3m in 2019.
The group also expects to report revenues of approximately £122.6m, dropping from £162m the previous year.
The increase in the anticipated loss before tax from previous guidance has related to the impact of the company’s recently adopted “new accounting standard, IFRS 16 (Leases)” on the group’s financial statements, and therefore is not a result of any change in trading guidance.
As previously announced, Shoe Zone continues to have a material net cash balance sheet position, with the board continuing to anticipate that the group has “sufficient liquidity” available to it.
This is with the assumption that there are no further material Covid-19 related restrictions mandated by the government over and above those already known.
Shoe Zone ended the year with 460 stores, having opened ten Big Box stores and closed 40 stores during the period due to both the pandemic and local lockdown restrictions.
The company had previously revealed no dividend will be paid in relation to FY20 as debt repayment is now being “prioritised” by its board.
At the time, Anthony Smith, CEO, said: “Shoe Zone has ended an incredibly challenging year with a robust plan and sufficient funding in place to ensure the future survival of the business.
“However, it is very difficult at this stage to provide meaningful guidance on the future outlook, given the material uncertainty in the wider economy.”
Shoe Zone will report its results for the 52-week period on the 8 March 2021.