Profits boost as Mothercare completes turnaround

Babycare retailer Mothercare rounded off its three-year turnaround strategy by revealing a better-than-expected rise in annual profits today.

The group said it performed strongly in the 53 weeks to April 1, as it overcame a difficult trading environment to increase sales by 3% to £414.6m (€607.5m) and lift bottom-line pre-tax profits by 56% to £24.2m (€35.5m).

When Mothercare started the turnaround programme three years ago it made losses of £24.8m (€36.3m), but sales have risen 11.8% since then.

Changes have included the refurbishment of UK stores, the opening of a new distribution centre and the development of its international franchise arm.

The Mothercare franchise has 12 stores in Ireland.

The company said it was now well placed to develop to its full potential, including by further strengthening Mothercare’s brand presence worldwide.

Shares in Mothercare jumped 4% today as analysts cheered the full-year figures and the growth prospects outlined by the company.

Investec analyst Matthew McEachran said profits were 4% higher than he expected: “With prospects for the UK business as good as they have been for the last five years, this presents significant upside potential,” he added.