The high street footwear retailer Shoe Zone fired a warning shot over the broader health of the UK economy with a trading update this morning. Looking at the first two and a half months of the new trading year, management highlighted deteriorating consumer confidence and unseasonable weather as impacting performance. However in addition, wage and National Insurance contribution increases will prove so punitive that the company will now close some marginal stores, has halved full year profit guidance and suspended the dividend. The Shoe Zone share price was down 42% at 9am.
FTSE-250 listed IntegraFin, the owners of the Transact IFA platform, published full year results this morning. Funds Under Direction grew by 17% to more than £64bn whilst user numbers also rose, but targeted price reductions combined with cost pressures will stand to take a toll in the medium term. Despite optimism that the political uncertainty which blighted 2024 may now be abating, investors appear to be zoning in on the overhead burden, with the IntegraFin share price down by 8% in early trade.
The biomass renewable energy company Active Energy saw its shares resume trading today after a hiatus of almost a six months following delays in filing accounts. With management having petitioned shareholders to delist – and fail in their bid – the company’s valuation had plummeted so even just a modest amount of buying interest today is sufficient to generate some eye-popping returns in early trade. Shortly after the open, the Active Energy share price is reported as almost 250% higher – but it did start with a close to zero valuation.
Most read news on Investegate this morning
Half-year Report - - Oberon Investments Group Plc (OBE)
Trading Update - - Shoe Zone (SHOE)
Kingfisher announces sale of Brico Dépôt Romania - - Kingfisher (KGF)
