Mothercare swings to half year loss
Mothercare has swung to a loss in the first half of its financial year following continued uncertainty in conditions in its Middle East markets.
In the six months 28 September, turnover dropped to £21 million from £29 million a year earlier as worldwide franchise sales declined by 12% to £121.2 million.
Mothercare has also reported an adjusted pre-tax loss of £1.4 million for the period compared to a profit £1.8 million profit at the same time in the prior year.
Clive Whiley, chairman of Mothercare, said: ” Our results continue to reflect the impact of the continuing uncertainty on our franchise partners’ operations in the Middle East.
“We are now focused upon restoring critical mass alongside delivering our remaining core objectives.
“This is an exciting prospect for all our partners, colleagues and stakeholders as we can finally leave behind the turmoil of recent years that Mothercare has successfully come through.”
Since the half-year end, the company has secured a refinancing deal and also formed a joint venture with Reliance Brands to strengthen its presence in the South East Asia region.
