Bouncing back at Mothercare

MOTHERCARE confounded the sceptics today with news of a recovery in sales since its disappointing Christmas. Like-for-like turnover in Britain rose by 1.1% in the 11 weeks to 26 March, giving a figure for the full year of 1.3%.

Underlying sales had fallen by 1.6% in the eight weeks to 7 January. Margins were in line with the group's expectations.

Chief executive Ben Gordon said the business had been resilient in the tougher trading environment and profits for the year just ended would match City profit forecasts.

These are in the £18m to £19.5m range, excluding the £6.5m exceptional cost of reorganising the group's distribution network. Construction of its new distribution centre is progressing to plan, the group said.

Mothercare's international operations continued their expansion, sales jumping 17.3% for the full year. Thirty new stores were opened in the year, taking its overseas total to 220.