Some significant losses for the high street footwear retailer Shoe Zone this morning following the publication of a trading update. Pointing the finger squarely at the corrosive effect on consumer confidence from last year’s budget, the company culled its profit outlook for the year, noting that the number is now expected to come in at £2.5m, down from £5m. The dividend policy has also been suspended, although management were keen to stress that the company remains debt free and has more cash in the bank than it did a year ago. This did little to placate investors who had pushed the Shoe Zone share price down by around 20% shortly after the open.
Insurer Beazley issued interim results this morning which painted something of a mixed picture. Whilst written premiums grew by 2%, pre-tax profits fell by almost a third amidst rising claims, higher costs and softer premiums in some key areas. Management noted that they were looking at further evolution of the business and updates here would be provided before the end of the year, but the Beazley share price was down more than 6% in early trade.
Building solutions provider Hill & Smith also issued interim results today with revenues up 2%, operating profits 7% higher and news that the company will also kick off a £100m share buyback. Full year results remain unchanged, but management also noted an 80bps improvement in the operating margin and shareholders are being further rewarded with a 9% increase in dividends. The Hill & Smith share price was up more than 11% by 8.30am.
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