Mothercare Halves Losses As Online Sales Rise

Baby clothes retailer Mothercare (LSE: MTC.L - news) has said it halved its losses in the year ending 28 March.

Losses before tax shrunk to £13.1m from £26.1m from a year before, the company said.

Underlying profit before tax was up nearly 37% at £13m.

Group sales, however, were down 1.5% to £714m, brought down by falling UK sales amid the closure of 31 loss-making stores across the country.

But the company's online sales, where it has struggled, were up 18%, and now account for about 30% of total UK sales.

The company's new boss, Mark Newton-Jones, took over earlier this year as Mothercare's attempts to fight off strong competition, particularly online, faltered under Simon Calver, who quit in February.

"We are making good progress against all six pillars of our strategy and we will continue to build from this platform in the year ahead," Mr Newton-Jones said.

"There is still much to do and trading conditions may remain challenging, but we will stay singularly focused on our vision of being the leading global retailer for parents and young children."

Mothercare shares were up 0.9% in early trading.