Mothercare has delivered a record year of sales and profits and has benefited from the integration of the Early Learning Centre (ELC) sooner than expected.

For the 52 weeks to March 29, Mothercare’s group sales were up 35.8 per cent to£676.8 million. Underlying profit before tax was up 70.8 per cent to£38.6 million.

Pure profit before tax, which includes a one-off cost of£35.1 million following the integration of the Early Learning Centre and the property portfolio restructure that followed, was down 76.2 per cent to£4.5 million.

The retailer has announced a reshaping of its property portfolio to roll out ELC inserts to all remaining Mothercare out-of-town stores and some high street stores. The retailer will have 80 ELC inserts trading in Mothercare stores by Christmas. Mothercare also plans to roll out a store refit programme to its out-of-town stores.

It will also develop ELC internationally. Mothercare has more than 500 overseas stores in 48 countries.

Mothercare completed the acquisition of the ELC on June 19, 2007. The business incurred a pre-acquisition loss of£4.1 million from retail operations between April 1 and June 19, 2007, because of the seasonal nature of the business.

On a proforma basis – assuming the ELC had been owned for the past two financial years – total group sales rose 3.6 per cent to£703.6 million and group underlying pre-tax profits rose 42.9 per cent to£33 million, in the UK the figure was up 29.2 per cent. Sales at the international division rose 20.5 per cent. UK like-for-like sales were up 2.9 per cent.

Mothercare’s Direct in Home sales were up 19.7 per cent to£49.9 million and Direct in Store sales were up 43.5 per cent to£35.6 million.

Mothercare chief executive Ben Gordon said it had been “a transformational year” for Mothercare group.

He said: “Although there is some caution about the UK consumer environment, we are well placed as we enter the new financial year. Our prospects for growth are driven by further benefits from the acquisition of the Early Learning Centre, international expansion opportunities, strong momentum in our Direct business and the reshaping of the combined UK property portfolio.”

Topics