Mothercare Ireland profits fall to €13k but outlook good

MOTHERCARE (Ireland) saw pre-tax profits fall from €47,972 to €13,209 in the year to the end of March 2010.

Turnover fell from €26.8 million to almost €21m last year. Gross profits were down from €10.8m to close to €9m.

The directors said they are satisfied with the results for the period and look forward to improving profitability in the coming periods, according to the accounts filed for Mothercare (Ireland) Limited for the year to March 28, 2010.

Some factors mentioned that could affect the future of the company included its ability to establish and maintain business relationships in a “highly competitive market” and its ability to adhere to the terms and conditions of the franchise agreement with Mothercare UK Limited.

“The company has adopted appropriate controls and have management with skills and experience to manage these risks and enable execution of the company’s business model,” the accounts read.

The number of staff fell from 201 to 175 in the year. Most of the staff were lost in retailing which fell from 164 to 140.

Staff costs fell from €3.5m to just over €3m.

Directors’ remuneration fell from €302,330 to €284,537.

Mothercare (Ireland) has traded as a separate standalone franchise to the main British-based company since 1992. The company has four people on its board of directors: Sean O’Shea, David Ward, Bernard Hamill and Jonathan Ward.

Mothercare operates 18 stores in Ireland. According to its website it said it is one of the leading parenting retailers in the world with stores in 48 countries.