24th May 2019 08:58
LONDON (Alliance News) - Mothercare PLC on Friday said it narrowed its loss in its recently ended financial year as it progresses on restructuring.
The retailer for parents and young children reported a pretax loss of GBP66.6 million for the 53 weeks to March 30 compared to the GBP94.0 million loss reported the year earlier, as operating costs were slashed by 29% to GBP47.3 million from GBP66.7 million.
However, revenue also declined by 12% to GBP513.8 million from GBP580.6 million the year before, due to the chain's UK store closure programme. Mothercare said it now has 79 stores, down from 134 in the prior year, representing a reduction in space of 30%.
"We have achieved a huge amount this year, refinancing, restructuring and reorganising Mothercare to ensure a sustainable future for the business," said Chief Executive Mark Newton-Jones. "Whilst this major restructuring activity has resulted in significant headline losses for the year, the business is now on a sounder financial footing."
Newton-Jones added: "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."
Mothercare said in its recently commenced financial year, it is seeing some improving UK trends as it continue to rebuild as the specialist retailer for parents and young children.
The stock was trading 13% higher early on Friday at 23.10 pence a share.
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