Shoe Zone Share News (SHOE)

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.
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FTSE 100 - WINNERS
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Shire, up 3.9%. The Irish pharmaceuticals group was upgraded to Outperform from Neutral by Credit Suisse, though the bank cut its target price to 5,000 pence from 5,400p. Shire shares were trading at 4,272.00p. On Monday, Shire announced its long-awaited merger with US group Baxalta, a USD32.0 million cash and shares deal which will create a company with a leading position in the rare diseases segment of the drug industry.

Sports Direct International, up 3.5%. The sports clothing and equipment retailer said it holds an indirect interest representing 11.5% of the issued share capital of Iconix Brand Group and 2.3% of the issued share capital of Dick's Sporting Goods. Iconix is a brand management company which owns a portfolio of consumer brands across fashion, sports, entertainment and home. Dick's is a sporting goods and sports clothing retailer. Shares in the company were still down 18% since Friday last week, following the profit warning in which the company said it had been hit by deteriorating conditions on the UK high street and the effect of the mild winter weather, leaving the stock in danger of demotion from the FTSE 100.
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FTSE 100 - LOSERS
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J Sainsbury, down 1.3%. The grocer reported growth in total retail sales excluding fuel in its third quarter as the number of customer transactions rose, although like-for-like sales fell. Sainsbury's said total retail sales in the 15 weeks ended January 9 grew 0.8% excluding fuel, although they fell 0.7% including fuel. Like-for-like retail sales, meanwhile, declined 0.4% excluding fuel and 1.8% including fuel. Sainsbury's added that over 30 million customer transactions were made in the week before Christmas, which was up 2.6% year-on-year. Cantor Fitzgerald analyst Mike Dennis said the like-for-like performance excluding fuel came in ahead of the market consensus of a 0.7% decline and Cantor's own forecast of a 1.5% fall.
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FTSE 250 - WINNERS
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Tullow Oil, up 11%. The oil and gas producer said revenue and gross profit in 2015 is set to come in considerably lower than a year earlier as lower oil prices and lower production from Europe offset a small rise in production from its main asset in West Africa. The company also provided an update on the TEN project in Ghana, which is now 80% complete and on track to begin producing oil between July and August this year. That will help Tullow push production up to around 73,000 to 80,000 barrels per day in 2016. European production is expected to be in the range of 5,000 to 7,000 barrels a day this year.

Ted Baker, up 5.7%. The fashion retailer reported a rise in retail sales in its eight-week Christmas period and said it expects full-year results to be in line with its expectations. Ted Baker said retail sales in the eight weeks to January 9 grew 10% year-on-year. Gross margins were in line with expectations, and there was no significant promotional activity before Christmas, Ted Baker said, adding that it expects to end the year with a clean stock position.

Hays, up 2.6%. The recruiter said its net fee income grew in the second quarter, despite some weakness emerging in Asia Pacific as a result of the slowdown in the mining industry in Australia. Hays said its total net fee income for the quarter to the end of December grew 3.0%, with like-for-like constant currency growth of 7.0%. The strongest performance came in its Continental Europe and Rest of the World division, helped by a recovery in Germany and broad-based positive trading elsewhere in the region. Asia Pacific net fee income fell 8.0%, though, hit by the slowdown in the mining sector in Australia and general weakness across the region, caused by a weakening economy in China. UK & Ireland net fee income rose 1.0%, with growth slowing against tough comparators.
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FTSE 250 - LOSERS
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Dunelm Group, down 2.9%. The homewares retailer reported growth in sales in the first half of its financial year as it benefited from an extra six days in its winter sale, but warned the positive like-for-like trend would reverse in the current quarter. Dunelm said total sales in the 26 weeks ended January 2 grew 10% to GBP448.1 million year-on-year, growing 8.8% to GBP245.7 million in the 13 weeks to the same date. Like-for-like sales rose 4.6% to GBP404.9 million in the 26 weeks and 3.9% to GBP221.5 million in the 13-week period.
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MAIN MARKET AND AIM - WINNERS
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Shoe Zone, up 11%. The value shoe retailer reported a fall in pretax profit in its recently-ended financial year, as revenue declined in what it described as a difficult year for the footwear industry. The company said its pretax profit in the year ended October 3 fell 3.4% to GBP10.1 million from GBP10.5 million the year before, as revenue declined 3.5% to GBP166.8 million from GBP172.9 million. Shoe Zone is working to open more of its larger 'Grade 1' stores and close smaller 'Grade 3' stores, planning for its 56 new Grade 1 stores to be operational by the beginning of February. It will also trial what it calls 'Project Big Box' in August, which involves three stores twice the size of an average Grade 1 store.

Instem, up 8.8%. The healthcare sector IT provider aid its revenue for 2015 is set to come in ahead of market expectations after a strong year for the business. Instem said its revenue for the year to the end of December is expected to be GBP15.8 million, up from GBP13.4 million a year earlier, with recurring revenue rising to GBP9.6 million from GBP9.2 million. The group said the revenue growth has come from new and existing clients and said it has invested in its key growth markets over the course of 2015.
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MAIN MARKET AND AIM - LOSERS
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Independent Oil & Gas, down 41%. The oil and gas producer made a decision to delay its plans for the Skipper appraisal well in the UK North Sea, meaning it will have to secur an extension to the licence and an agreement with its lenders. "Whilst it has been a very difficult decision, it has undoubtedly become prudent to postpone the Skipper appraisal well given the significant further oil market weakness in recent weeks, as well as unsettled weather conditions in the North Sea," said Chief Executive Mark Routh.
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By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

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