Shoe Zone, which is headquartered in Leicester, has revealed that it may cancel the payment of its 2019 Final Dividend to conserve the Company’s cash balances during an expected period of challenging trading as a result of the Coronavirus.
The retailer’s board has decided to defer the payment of the 8.0 pence per share 2019 Final Dividend that was approved at the Company’s Annual General Meeting held on 5 March 2020.
The company noted that on 28 April 2020, in addition to providing a half year trading update ahead of the Company’s Interim Results on 19 May 2020, the Board will announce the intention to convene a General Meeting in May, where a resolution will be proposed to cancel the 2019 Final Dividend.
In a statement Shoe Zone said: “In recent days we have seen a reduction in footfall, across our estate, and whilst the full extent of the Coronavirus on the short and medium term retail environment is not yet clear, it is becoming ever more apparent that it will create significant disruption to people’s lives and shopping habits in the coming months.
“The decision to defer and take steps to propose the cancellation of the 2019 Final Dividend has been taken with the unanimous backing of the Board and is one of number of appropriate measures being implemented to conserve the Company’s cash balances and ensure the robustness of the business to protect it from a sustained period of challenging trading.”