NEWS

Mothercare cuts losses as turnaround continues

Published on: 21st May 2015

The company’s ongoing turnaround for annual like-for-like sales in the UK and internationally have nudged higher and losses before tax halved.

Mothercare-wordpressThe retailer’s full-year results show numbers are moving in the right direction: losses have shrunk from £26.1 million to £13.1 million, sales at its UK shops — not including those closed in the year — rose for the first time in five years, and total sales moved 1% higher to £1.2 billion.

Mothercare chief executive, Mark Newton-Jones, described the past year as “extremely busy” following a £100m rights issue, a hostile takeover attempt, a refinancing and a series of store closures.

In the year to 28th March 2015, the company posted a pre-tax loss of £13.1m, down from £26.3m a year earlier. At an underlying level, Mothercare made a pre-tax profit of £10.5m but exceptional costs of £25.9m, relating to provisions made for onerous leases and losses on property disposals, pushed it back into the red.

Total group revenues fell from £724.9m in 2014 to £713.9m, but on a like-for-like basis they were 2% up in the UK and 5.6% up internationally.

Mark Newton-Jones said: “We are making good progress against all six pillars of our strategy and we will continue to build from this platform in the year ahead. There is still much to do and trading conditions may remain challenging, but we will stay singularly focused on our vision of being the leading global retailer for parents and young children.”

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