Profits at Bradford-based footwear company Stylo are continuing to fall, with bad weather and increasing costs among the factors blamed for the decline.

The retailer, which operates high-street stores such as Barratts, PriceLess, Shellys and Shutopia, made a loss of £7.5 million in the 26-week period to August 4. Like-for- like sales fell by 4.37 per cent during the period, off a fall in revenue of £4.5 million to £100 million.

The figures resulted in a basic loss per share of 24p as the company plunges further into the red following a loss of £7 million at its preliminary results in April this year.

Michael Ziff, chairman and chief executive of the firm, said: "The poor performance of the group is a reflection of a number of factors including an exceptionally difficult and competitive shoe market with low barriers to entry, increasing costs in the form of rents, business rates, minimum wage and power costs, increases in interest rates and unseasonal weather."

Mr Ziff also made references to the strategic recovery programme which Stylo launched in February this year.

The programme aimed to dispose of unprofitable stores, begin an investment programme and seek new sources to help improve margin levels.

Mr Ziff said: "We have made progress in each of these areas and I am confident that we will remain well positioned to take advantage of any improvements in the retail environment."

In the past financial year Stylo has closed 12 loss-making shops and opened one new store.

It has also invested in a refit programme for 25 of its shops.

The firm has also been given notice to close a further 26 concession outlets with Dorothy Perkins during the spring of next year, a factor which Mr Ziff predicted would impact upon the firm's full-year results next year.

The results were not entirely negative, with Sthe company managing to reduce net debt during the period by £2.2 million to £42.2 million.

It also announced that Bay Trading had struck a concession arrangement with Stylo to allow it to trade out of ten of its stores.

However, Mr Ziff indicated that it would be troublesome to make any predictions for the company's short-term prospects.

"It is always difficult to discuss expectations for the full year at this stage, particularly in light of the factors that I have previously highlighted which affect the environment in which we operate," Mr Ziff said.