Mothercare in black - divi restored

MOTHERCARE delighted its City followers today with a dramatic return to the black, accompanied by the restoration of dividend payments and news that sales are continuing to grow strongly.

Turnover for the 52 weeks to 27 March rose 3.5% to £446.9m, with a like-for-like increase of 5.9%. Before exceptionals, the group made £17.3m against a loss last time of £22.4m.

There is a final dividend of 4p. Chief executive Ben Gordon said the group aims to provide 'strong and steady' growth in this payout in future. Sales remain strong, with a like-for-like rise of 5.8% in the seven weeks to 14 May.

Gordon said growth in clothing sales and margins had been especially strong, particularly in the group's 165 High Street shops, with sales growth 12% above the average.

It plans to convert a further 40 stores by next March and will then turn its attention to its 68 out-of-town outlets, which Gordon said also made good progress last year.

He is keen to expand the Mothercare chain and has identified 40 further High Street and 20 out-of-town locations where the group could trade successfully.

New stores will be opened at the rate of up to 10 a year, including one at Thurrock Lakeside in Essex, which opens in September.

'We are well on track to turn Mothercare into an efficient speciality retailer with a globally respected brand. We are increasingly confident of Mothercare's potential to achieve sustained profitability and growth,' Gordon said.