City briefs: Shoe Zone; Forterra
Profits at Leicester retailer Shoe Zone have fallen back for the six months to April 1.
The firm says increases in the National Minimum Wage mean that adjusted profit before tax will come in at £2.5m against £3.1m in 2022.
The first half results show Shoe Zone has increased revenues by almost 8% on last year to £75.4m this time round, with online sales up by 12.7% to £14.3m.
A statement from the firm said: “Shoe Zone delivered a robust and positive performance in the Period against a backdrop of consumer uncertainty and macroeconomic volatility. Total revenues increased by 7.9% having traded out of 52 fewer stores compared to 12 months ago and digital revenue within this increased by 12.7%. The performance further demonstrates the resilience of our business and the success of our ongoing strategy.”
Profits at Desford brickmaker Forterra will be 20% down on 2022 -in line with management expectations as inflation rises and demand recedes.
In a trading update for the four months to the end of April, Forterra made a profit of £109m.
Neil Ash, chief dxecutive of Forterra, said: “Trading conditions in the period have been challenging and we are therefore pleased to deliver a result in line with our expectations.
“Our expectations for the year are based upon an underlying fall in market demand of 20% relative to 2022. With the inventory reduction within our customer base still ongoing, the decline in demand we have seen in the period is greater than 20%. However, we do expect demand will improve as the year progresses, noting the improving conditions cited by the housebuilders over recent weeks.”
