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Full year losses widen at Mothercare

By Prachi Singh

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Report

Mothercare plc, for its 53 week period to March 30, 2019, said total group adjusted loss including discontinued operations before taxation and foreign currency revaluations of was 11.6 million pounds (14.7 million dollars) compared to 2.3 million pounds in 2018, with statutory loss before tax of 87.3 million pounds (110.6 million dollars) against 72.8 million pounds last year. Total group revenue declined 11.5 percent to 513.8 million pounds (651.3 million dollars).

Commenting on the group’s performance, Mark Newton-Jones, CEO of Mothercare, said in a statement: "We have achieved a huge amount this year, refinancing, restructuring and reorganising Mothercare to ensure a sustainable future for the business. The majority of that work is now done, including the completion of our store closure programme, leaving us with 79 stores, which are well positioned to support our UK customer base. In the early stages of this financial year, we are seeing some improving UK trends."

The company’s international retail sales declined 0.3 percent in constant currency and 3.9 percent in actual currency. However, Mothercare continued to face difficult trading conditions in the UK with UK like-for-like sales declining 8.9 percent against the prior year. Total UK sales declined 11.8 percent.

During the year under review, Mothercare completed the UK store closure programme, following the CVA process. UK estate now comprises 79 stores, down from 134 in the prior year, representing a reduction in space of 30 percent. The company also announced the sale of the Early Learning Centre to the Entertainer for 11.5 million pounds plus 2 million pounds of contingent consideration and the sale and leaseback of the Watford Head Office for 14.5 million pounds.

Picture:Facebook/Mothercare

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