Mothercare returns to half-year profit

21st Nov 2013 08:40

- Returns to half-year profit - UK losses reduced, strong International performance- Expects UK spending to remain subduedMother and baby products retailer Mothercare returned to profit in the first half of its financial year, its first interim underlying profit since 2010/11, as the UK reduced losses and International logged double-digit growth.The UK retailer booked an underlying pre-tax profit of £2.0m for the 28-week period to October 12th from a loss of £1.8m the same time a year earlier. Total group sales slipped to £376.3m during the period from £384.1m before.International like-for-like (LFL) sales rose 4.8%, while UK LFL sales fell 1.4%, an improvement from the 3.4% decline posted last year. Mothercare's Chairman Alan Parker said: "Our geographic diversification has supported these results amid some challenging trading conditions. The business is moving to a firmer footing."Mothercare is in the middle of three-year UK turnaround plan as the division battles against intense competition from online competitors and supermarkets. Mothercare UK saw the closure of a further 18 loss-making stores.Chief Executive Simon Calver said: "We continue to target a return to profit in the UK and the reduced UK operating loss this half year is a step in the right direction.We are planning for consumer spending to remain subdued in the UK during the second half of the year. We have made progress with our Transformation and Growth plan, but there is more to do."CJ