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
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
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March 08, 2021 02:00 ET (07:00 GMT)
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