Shoe Zone confirms intention to float on AIM

Discount footwear retailer Shoe Zone has announced plans to float on London's Alternative Investment Market next month. The leading budget shoe chain, which runs 554 shops and employs more than 4,000 people, is expected to raise up to 50 million pounds in an IPO in May, while valuing the firm

between 90 and 100 million pounds.

The family-owned business stated that it will list between 40 and 50 percent of its share capital on London’s AIM, a market of the London Stock Exchange plc, and that the proceeds of the placing would be paid to Shoe Zone Group, a company controlled by chief executive Anthony Smith and chief operating officer Charles Smith.

Commenting on the intention to float, Smith said: "Shoe Zone has a strong market position as a leading UK specialist value footwear retailer and we believe we are well placed to benefit from any growth in the UK footwear market.

“We have a robust track record of consistent and profitable growth with a cash generative business model which we expect will deliver an attractive yield for investors.”

In the year ending October 5, 2013 the company made pre-tax profits of 9.3 million pounds, an increase of 66.1 percent on the previous 12 months, and generated revenues of 193.9 million pounds compared to 189.4 million pounds in the previous year.

Shoe Zone set to float on London's Alternative Investment Market

Ahead of the upcoming IPO, Shoe Zone has bolstered its board with the appointment of DFS chief executive Ian Filby as a non-executive chairman and Charlie Caminada as a non-executive director. Filby has 30 years of experience in the retail sector having also worked at The Boots Company and Alliance Boots in various roles, while Caminada has more than 20 years’ executive board experience of brand building for entertainment, media and retail organisations. They both join Jeremy Sharman the Company’s other non-executive director.

Smith added: "We are delighted that both Ian Filby and Charlie Caminada have agreed to join our Board as this adds both retail and public company experience to the team which will be invaluable in our life as a listed company."

Shoe Zone has been trading on the UK high street since 1996 and sells more than 20 million pairs of shoes a year. In addition to its retail network, Shoe Zone also has a well-established multichannel offering, with its online turnover increasing by 27 percent in 2013.