Shoe Zone is set to return up to \u00a33.47m to shareholders through a share buyback programme after reporting continued positive trading.<\/p>\n
The footwear retailer said its cash and equivalents stood at around \u00a37m ahead of its original budget as of 25 July. The board also maintained its expectation of an adjusted loss before tax of no more than \u00a31m for the financial year ending 3 October.<\/p>\n
The buyback began on 11 August and is scheduled to run until 26 October, unless the company reaches the maximum number of shares it has authority to repurchase sooner.<\/p>\n
Shoe Zone has appointed Zeus Capital to manage the programme independently on its behalf. Shares bought back will initially be held in treasury before being cancelled periodically.<\/p>\n
The programme operates under shareholder authority granted in March and is subject to limits on the price Shoe Zone can pay for its shares.<\/p>\n
The company said the relatively low liquidity of its shares means purchases could account for a significant proportion of daily trading volumes on AIM. As a result, the buyback will not rely on the regulatory safe-harbour exemption for market purchases.<\/p>\n
Shoe Zone\u2019s directors and their connected parties, who collectively hold more than half of the company\u2019s issued shares, will not sell any shares as part of the programme.<\/p>\n
The company has also confirmed that neither Charles Smith nor Anthony Smith will be required to make a mandatory takeover offer if their respective holdings increase above 30% as a result of the buyback, following confirmation from the Takeover Panel.<\/p>\n
Shoe Zone operates 253 stores across the UK alongside its digital business and employs around 2,050 people. Its larger-format stores also stock brands including Skechers, Hush Puppies, Rieker and Lilley & Skinner.<\/p>\n
The retailer sells around 13.3 million pairs of shoes in an average year, with an average selling price of about \u00a313.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Leicester-based retailer plans to repurchase shares after reporting a stronger-than-expected cash position<\/p>\n","protected":false},"author":266702,"featured_media":2093081,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47995],"coauthors":[127717],"class_list":["post-2113788","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retail","tag-featured-story","tag-leicestershire"],"yoast_head":"\n