​Mothercare heralds ‘sounder footing' despite swelling losses

Pre-tax losses were up 19.9% to £87.3m while global sales fell 7.9% to £1.07bn.

UK sales were down 11.8% to £336.6m. Online sales dropped 8% to £140.1m. Like-for-likes crashed 8.9%.

The business grew in Russia, China and Indonesia but suffered in the Middle East.

Mothercare has suffered a turbulent year which included completing a CVA and restructuring the business in a tough market.

The business has now completed its CVA, which saw it nearly halve its store estate, cutting stores from 134 to 79 and reducing space by 30%.

It reorganised its corporate structure into three internal divisions – global brand, UK and business services – and reduced net debt from £44.1m to £6.9m.

It also sold its Early Learning Centre fascia to The Entertainer for £11.5m and signed a new sourcing partner, W E Connor.

Chief executive Mark Newton-Jones said: “We have achieved a huge amount this year, refinancing, restructuring and reorganising Mothercare to ensure a sustainable future for the business. While this major restructuring activity has resulted in significant headline losses for the year, the business is now on a sounder financial footing.

“The next phase of our strategic transformation plan is to develop Mothercare as a global brand, maximising the opportunities we see across many international markets.

“At the same time our primary focus in the UK will be the development of our online proposition, the introduction of enhanced credit options and more exclusivity in product, coupled with a reinforcement of our specialist and service credentials.

“In the early stages of this financial year, we are seeing some improving UK trends as we continue to rebuild to be the specialist retailer for parents and young children.”