Bradford-based shoe retail group Stylo has warned that it does not expect to make an operating profit for the second half of the year after "weak" Christmas trading.

The group, which includes high street names such as Barratts, Saxone, and PriceLess, said that costs involved with its most recent acquisition, the high class Shellys chain, were also partly to blame.

The Apperley Bridge-based business, run by high profile chairman and chief executive Michael Ziff, said that trading at Barratts in particular had "continued to disappoint".

Stylo, which has endured a tough few years, bought Shellys for £1.5 million last April and had hoped the business would help contribute to a turnaround in fortunes.

But yesterday's statement warned: "The costs of disposing of Shellys clearance stock have continued into the second half year."

It said the firm's Christmas trading had been in common with many other high street retailers and has continued to be sluggish as indicated in the interim results announcement last October.

On that occasion, Mr Ziff admitted the firm had been caught out by the long, hot summer when it failed to stock a large enough number of sandals.

The company's results for the year to January 31 will also include costs relating to a pension fund deficit, it said, but that would be partly offset by gains on property disposals.

A valuation of the company's property portfolio has been carried out and that identified increased value which would not be incorporated into the next accounts but would partly uplift the impact of the negative trading.

Stylo shares fell 1.5 pence to 38 pence on yesterday's news and were today trading at 39.5 pence.

The company has a network of 361 of its own stores and 314 concessions throughout the UK.