News

Mothercare produces first underlying UK profit for six years

Published on: May 18th, 2017

Company says it’s moving onto the next stage of its turnaround plan after posting the results.

Mothercare-480The results out today are a mixed bag. While total UK sales for the year ending in March were slightly lower, they were up by 1.1% on a like-for-like basis, and international sales rose by 10.6%. This leaves pre-tax profits up slightly to £19.7m.

The UK business overall still made an annual loss, but a smaller one, down by 31% to £4.4m, and softened significantly by the second half of the year. In addition, the company’s online sales are up 7.8% to account for 41% of UK retail sales.

CEO Mark Newton-Jones commented: “Following a difficult start to the year, the UK recovered in the second half, returning to underlying profit for the first time in six years. We are now in the third year of our turnaround and I am pleased to report that we have achieved much of what we set out to do from our six pillar strategy introduced in 2014. Whilst we are proud of what we’ve achieved to date, we believe we are only half way through the transformation of the Mothercare brand.”

Mark went on to warn that UK store numbers “will reduce over time”.

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