Mothercare turns corner with a return to the black

Mothercare has ended a four-year run of statutory losses and returned to the black two years into its turnaround plan.

Shares in the company, which is also behind the Early Learning Centre chain, leapt 8.25p, or almost 7%, to 126.4p as it revealed statutory profit of £9.7 million for its year ended March 26.

That compared with a £13.1 million loss last year. Profit before tax was up 51% at £19.6 million.

Boss Mark Newton-Jones, brought in after the retailer came close to collapse, said store refurbishment, better buying negotiations, growth online and more sales of full-price items meant Mothercare was now in a “solid position”.

Sales in the UK were up 3.6% on a like-for-like basis and Newton-Jones said a shift upmarket to more aspirational products had also helped grow transaction values.

But its international business remained weak with same-store sales down 4.5% due to currency swings, China’s slowdown and the oil price slump hitting its Russian and Middle Eastern operations.