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12/12/2016 · Shoe Zone PLC (SHOE) 

Shoe Zone company photo - Shoe Zone (AIM:SHOE) investment
This proven retailer, with an expanding online offering, is a well-managed outfit and worth a look at the current modest rating. With a strong net cash position and dividend yield of over 5% it has obvious attractions. (IHT QUALIFYING)

Shoe Zone (AIM:SHOE) is the largest specialist value footwear retailer, operating 510 stores across the UK and Ireland.

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(SHOE.L Share price since flotation. Source: Sharescope)

Background

Originally founded in 1917 as “Bensonshoe”, it was bought out by the Smith brothers in 1980 (whose grandfather had previously invested in the business). Anthony Smith, a son of former Chairman Michael Smith, is now Executive Chairman of the company. Charles Smith is Chief Operating Officer. Between them, the brothers own c. 50% of shares.

The IPO in 2014 allowed for a partial exit by the Smith family, but the company continues to have many of the typical features of a family business.

There are also a number of institutional investors controlling significant percentage stakes, which helps to explain the low daily trading volume of the shares (reported by the FT at 7,500) and the typical bid-ask spread of 8p (c. 4.5% of…

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