Mothercare posts profits for first time in five years

Pre-tax profits were �9.7 million compared with a �13.1m loss last year
Pre-tax profits were �9.7 million compared with a �13.1m loss last year

Mothercare shares rose 5% after the retailer reported its first full-year profits for five years as the company’s turnaround under chief executive Mark Newton-Jones begins to yield results.

The firm said that pre-tax profit came in at £9.7 million compared with a loss of £13.1m last year as “digitally enabled millennials” helped drive growth.

Like-for-like sales in the UK rose 3.6% and online sales rocketed by 15%.

Mr Newton-Jones said: “The results highlight the significant progress we are making towards returning the UK to profitability.

“Improvements to our customer offer, both in store and online, and the look and feel of the store estate are driving like-for-like sales growth for a second consecutive year.”

Despite the group profit, the firm still posted a £6.4m loss in the UK. At its international arm, Mothercare’s underlying profit came in at £40.3m, a fall of 12%.

Mr Newton-Jones added: “Conditions for our international business remain challenging.

“The issues are primarily at a macro level, with economic and currency headwinds persisting.”