Strong trading momentum has continued through June and early July, driving a second material upgrade to our forecasts in as many months. Zeus forecast adjusted PBT for FY23E increases by 28.6% to £13.5m, in line with Management’s guidance of “not less than £13.5m”. We continue to think that Shoe Zone’s ex-cash PE of 9.0x FY23 is undemanding for a well-run business with a solid strategy, strong control over cost management, and consistent, high, cash generation.
