Shoe Zone provides solid year-end trading update

Disclosure: I own shares in Shoe Zone.

A solid pre-close trading update from Shoe Zone (LON:SHOE) this morning should mean that the forecast 9.4p total dividend is in the bag, giving a prospective yield of about 5%.

Although total sales are expected to have fallen from £172.9m to £166.8m due to net store closures, pre-tax profit is expected to be in line with expectations and net cash at the end of the year was £14.2m, a 56% increase on the same point last year.

That’s good news for shareholders, as it means that Shoe Zone trades on a cash-adjusted P/E of just 10.2, assuming Stockopedia’s broker forecast for earnings per share of 15.8p is correct.

I added Shoe Zone to my value portfolio in June and also took a close look at the company in my weekly Stockopedia column in September.

Naturally I continue to hold.

Disclaimer: This article is provided for information only and is not intended as investment advice. Do your own research or seek qualified professional advice before making any trading decisions.