Shoe Zone prepares to float next month as DFS boss Ian Filby becomes chairman

The 554-store retailer plans to float on AIM and is seeking to raise £50m through the float.

Shoe Zone will offer institutional investors between 40% and 50% of the business. Numis is acting as its adviser and broker.

It has also bolstered the board in preparation for the float, with Filby joining as non-executive chairman and non-executive director of Hornby, Charlie Caminada becoming non-executive director.

Shoe Zone chief executive Anthony Smith said: “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.

“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. 

“I am very proud of everything our management team and colleagues have achieved at Shoe Zone and I am confident and excited about our future as we embark on the next stage of our development.”

In the year to October 5, 2013 Shoe Zone generated pre-tax profit up 66.1% to £9.3m and sales of £193.9m up from £189.4m the previous year.

Shoe Zone is eyeing international expansion following the float, identifying Spain’s coastal regions and Poland as possible new territories.

It also aims to drive profitability through increased profit margins as it deals direct with its manufacturers and it will develop new product ranges, including web exclusives. Shoe Zone also wants to relocate smaller stores to larger ones and open five new stores each year and plans to refit 50 stores each year.