SHOEZONE has warned it is set to slump to an annual loss as it blamed the Iran war and Budget woes for weakening confidence.
The discount high street chain said the Middle East conflict was pushing up shipping and transport costs, which is set to impact its bottom line.
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Shoezone has warned it is set to slump to an annual loss Credit: Alamy
Shares in the group, which employs more than 2,000 staff across the UK, plunged by 22 per cent in morning trading yesterday.
The firm said it expects an underlying pre-tax loss of between £1million and £2million for the year to October 3, against previous guidance for profits of £1million.
The Leicester-based company said its first quarter had seen “challenging trading conditions, principally due to a continued weakening in consumer confidence, the last two Budgets and political issues in the Middle East”.
It added: “These macro-economic factors have increased customer caution, leading to lower footfall with a reduction in revenue and profit.”
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Shoezone has previously hit out at “highly adverse” Government policies amid deepening trading woes, which have sent its shares tumbling to the lowest level in more than five years.
It said profits fell by more than two-thirds to £3.3million in the year to last September and store sales dropped 10.3 per cent as it ended the year with 28 fewer shops.
The group said recently that Government policies had sent its business costs surging.
It has 53 smaller format high street stores and 206 larger stores.
IRAN COST RISE
CRODA INTERNATIONAL, which supplies ingredients for anti-ageing creams, beauty products, farming and medicines, is hiking prices because of the Iran conflict.
The British speciality chemicals group said energy and raw material costs had soared and told investors it had already raised prices in Asia and Europe this month.
The company warned the conflict was disrupting global supply chains and costs.
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THE City watchdog is facing legal action over its £9.1billion car finance compensation plan after claims millions of drivers could be short-changed.
Consumer Voice said it is launching a challenge to the Financial Conduct Authority’s redress scheme, arguing the payout formula is flawed.
Under plans, most people missold car finance will be paid using a “hybrid” model rather than receiving full commission redress.
Consumer Voice says that shuts out most complaints.
The FCA insists its scheme is the “fairest way” forward.
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SpaceX is not alone, with a wave of giant flotations building this year, such as OPENAI, valued at £630billion and TikTok owner ByteDance at £222billion.
Britain also features with fintech stars Revolut valued at £55billion.
