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Mothercare Plc H1 Loss Widens On Weak Revenues - Quick Facts

Mothercare Plc (MTC.L), a specialist retailer for parents and young children, reported Tuesday that its first-half loss before taxation from continuing operations was 21.2 million pounds, wider than last year's loss of 18.5 million pounds.

Loss for the period attributable to equity holders of the parent was 19.2 million pounds, compared to loss of 15.6 million pounds.

Loss per share from continuing operations, meanwhile, narrowed to 6.2 pence from 8.5 pence last year.

Adjusted loss before taxation from continuing operations was 5.8 million pounds, compared to loss of 10.5 million pounds a year ago.

Adjusted International profit before taxation was 12.2 million pounds, compared to 15.5 million pounds a year ago.

Total Group revenue declined 13.2 percent to 234.1 million pounds from last year's 269.8 million pounds. Worldwide sales fell 8.4 percent to 452.3 million pounds from 493.9 million pounds a year ago.

International retail sales went down 1.6 percent on a reported basis and 5.3% in constant currency.

The company reported continuation of difficult trading conditions in the UK. UK like-for-like sales declined 2%, reflecting challenges for both stores and online trading;

The UK business, Mothercare UK Limited, entered administration after the period end on November 5.

Mark Newton-Jones, CEO of Mothercare plc, said, "We believe that, without the financial and management burden of running a UK retail operation, we can singularly focus Mothercare on its global international franchise. This opportunity for this business is best demonstrated by the fact that there are 130 million babies born every year across the world, compared to 700,000 in the UK?, and the Group will now look to drive value for shareholders by harnessing that potential."

The company noted that its UK division will be disclosed as a discontinued operation in the FY19/20 year-end financial statements

Further, the Company announced that Nick Wharton is stepping down as a non-executive director and will be replaced by Brian Small, after a suitable handover period.

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