Mothercare makes more international progress as UK improves

22nd May 2014 07:40

Baby goods retailer Mothercare reported further progress in its international business and said sales at its struggling UK arm were improving.Mothercare said total worldwide network sales rose 0.5% to £1.2bn, with total international sales up 6.4% despite significant currency headwinds.Total UK sales fell 7.5% as the group closed 35 more loss-making stores as part of an overhaul of the British business, which has been facing tough competition.But UK like-for-like sales fell 1.9%, on an improving trend after a 3.6% decline last year.Group underlying pre-tax profit in the year to March 29th rose 61% to £9.5m, but pre-tax losses after one-off and non-underlying items rose 10% to £26.3m, which included a non-underlying, non-cash foreign currency charge of £14.9m.Mothercare is looking for a new chief executive after the departure of Simon Calver in February, which followed a profit warning in January.Chairman Alan Parker said third quarter trading was a disappointment but fourth quarter trading recovered and the annual results matched management's expectations set in January."This momentum has been maintained into this quarter, and we look forward to sustaining this improvement in the new financial year," Parker said.Shares rose 0.75p to 138.75p in early trading in London.PW