Results for 44 week reporting period reflect accounting treatment of staff share options and debt servicing
Footwear retailer Schuh has reported a pre-tax loss of £140,000 for the 44 weeks to January 28, 2012.
The results for the 44 weeks reflect the accounting treatment linked to staff exercising share options to cash in on a £37.3 million windfall following the Genesco takeover.
It's the first results published by the retailer since it was bought out by US-based sports and footwear retailer Genesco in June 2011 in a deal worth £125 million.
Schuh had reported pre-tax profits of £14.82 million for the full year to March 27, 2011.
A note in the results for the 44 weeks to January 28, 2012, states Schuh generated £19 million in cash from operating activities “to service debt”.
The results cover a 44-week period against 52 weeks for 2011 as the year-end has been changed from March to January.
Schuh said in a comparable 44-week basis, turnover for the 44 weeks rose by three per cent to £168.7 million though margins dropped from 11.5 per cent last year to two per cent.
The company said it invested £6 million expanding its store network and central operations.
Administrative expenses rose from £9.97 million for the year to March 2011 to £16.89 million for the 44 weeks to January 2012.
Earnings before tax, interest, depreciation and amortisation came in at £3.37 million against £18.7 million for the 2011 full year.
The senior team at Schuh, chief executive Colin Temple and finance director Mark Crutchley, were contracted to stay on by the new owners and could also reap cash bonuses of £25 million if the Livingston company hits performance targets by 2015.
Schuh has opened 16 new stores since the Genesco takeover and has recently launched three new Schuh Kids stores.