Mothercare has today reported that its pre-tax profits were at £5.5m in the six months to the 11 October.
The mother and baby goods retailer this morning posted that international like-for-like sales were up by 4.9% in the six months to mid October, while UK like-for-likes rose 1.5%. Total sales were down in both markets however, to £397.5m from £399.3m internationally and £235.6m from £238.4m in the UK.
The mother and baby goods retailer has had rather a tumultuous year. From a profit warning to rejecting a takeover approach by US competitor Destination Maternity Corp as well as a £100m rights issue announcement. The company said it will use the money from said rights issue, declared in September, to expand its existing store reduction plan, undertake a store refurbishment and relocation program, to invest in new systems and technology, and to reduce debt.
Chief Executive Mark Newton-Jones, who was appointed in March of this year, said:
“With the support of our shareholders we have successfully completed the rights issue, which now gives us the financial resources and flexibility to implement our strategy.
Whilst it is still early days the results, this morning, show some improvement. In the UK, we have made progress towards re-establishing ourselves as a full price retailer. For this approach to be sustainable, we must continue to improve our style, quality, design and innovation in product while modernising our presentation both online and in store. Our International partners continue to see growth opportunities and are encouraged by our plans to modernise the UK business.”
He remains confident about the future and added:
“Trading conditions remain challenging, but we are making progress building the foundations for the future of the business both in the UK and across our International territories. Our vision is clear, to be the leading global retailer for parents and young children.”