Updates

ShoeZone - Shares gain 36% since November tip

February 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The shares went into orbit after FY21 results. Sales were 3% lower at £119.1m. From a loss last year of £14.6m it moved to an underlying pretax profit of £8.4m (excluding a £1.1m benefit from released provisions in the period) for eps of 13.5p. Store revenue was down 14% at £88.6m but this reflected (1) reduced trading days with stores open for five fewer weeks; and (2) a net reduction of 50 stores to leave 410 as the small town centre sites continued to be culled in favour of higher quality larger ones, as I described in my November buy note. Interestingly, average lease length is now just 1.9 years and Shoezone reports that rent renewals negotiated in the period have fallen by 53%, delivering an annualised saving of £1.8m. < ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X