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Mothercare blames loss on 'weak economic environment' Mothercare reports loss after weak UK sales
(about 1 hour later)
Mothercare has reported a half-year loss, which it said illustrated the extent of the challenges facing its UK operations "in a weak economic and consumer environment". Mothercare has reported a half-year loss of £81.4m and said it is launching a review of its UK business.
It made a pre-tax loss of £81.4m in the six months to 8 October, compared with a profit of £300,000 a year earlier. The firm, which sells goods for mothers-to-be, babies and children, said its UK business was suffering from a "weak" consumer environment.
The firm, which sells goods for mothers-to-be, babies and children, said like-for-like UK sales fell 7%. Like-for-like UK sales were 7% lower, while total UK sales fell 4.3%. In contrast, overseas sales were up 15.7%.
Total overseas sales rose 15.7%, while total UK sales fell 4.3%. The hefty loss came after Mothercare wrote down the value of assets and took charges related to UK store closures.
Mothercare, which opened a further 81 international outlets during the six months, did not release a like-for-like overseas sales figure. Stripping out the one-off costs, the pre-tax loss for the six months to 8 October was £4.4m.
'Difficult' time Mothercare said in May that it would close 110 UK stores. The retailer - which also owns Early Learning Centre stores - has 353 UK stores and 969 overseas outlets.
The company was hit by a number of one-off costs during the six months, including a write-down of £55m, and a UK property restructuring charge of £19.8m following its announcement in May that it would close 110 stores. The company opened 81 international outlets during the six month period.
Without these one-off factors, its pre-tax loss was reduced to £4.4m. Total revenues rose to £412.9m from £397.1m a year earlier.
Mothercare's total half-year revenues rose to £412.9m from £397.1m a year earlier. Alan Parker, Mothercare's executive chairman, said the company had experienced a "difficult" six months.
Alan Parker, Mothercare's executive chairman, said the company had seen a "difficult" six months. Announcing the review of the firm's UK operations, he said he was "confident that we can return to a profitable and sustainable business in the UK over time".
He announced that the company would now be launching a review of its UK operations, and was "confident that we can return to a profitable and sustainable business in the UK over time".
Mothercare is continuing to search for a new chief executive following the announcement that Ben Gordon would stand down by mutual consent on 17 November.Mothercare is continuing to search for a new chief executive following the announcement that Ben Gordon would stand down by mutual consent on 17 November.