Mothercare losses widen as sales slow

Mothercare reported a pre-tax loss of £87.3m in the year to end of March 2019 compared to £72.8m in the previous year.

The firm said its sales had fallen following the closure of a third of its stores from 134 to 79 as part of their restructuring process following a company voluntary arrangement (CVA). This led to consumer concerns about buying products.

Mark Newton-Jones, the chief executive, said: “While this major restructuring activity has resulted in significant headline losses for the year, the business is now on a sounder financial footing,

“The next phase of our strategic transformation plan is to develop Mothercare as a global brand, maximising the opportunities we see across many international markets.”

Clive Whiley, the chairman said: “We remain determined to differentiate Mothercare as a textbook recovery case, in parallel demonstrating that boards can and should foster a greater alignment between their debt and equity providers.”