Losses deepen at Mamas & Papas

However, directors are confident that “significant investment” in product development and stores will be key to driving growth.

The latest accounts for parent company Mamas & Papas (Holdings) show the business made a pre-tax loss of £12.3m, up from £6.6m, in the year ending March 26, 2017. Turnover fell to £121.1m, from £132.7m the previous year. Operating profit was £200,000, down from £4.4m.

In a report accompanying the accounts, chief executive Jason Greenwood said profitability was affected by the fall in turnover, principally within the wholesale business, and the weakening of Sterling against the US dollar.

Like-for-like sales in stores grew by six per cent during the year. E-commerce sales grew by eight per cent and now represent 28 per cent of all retail revenue.

Capital expenditure totalled £2.6m, including a £1m investment in stores. A further £700,000 was spent on the e-commerce platform and £300,000 on new product development.

The company completed a £10.3m sale and lease back of its headquarters in Huddersfield last May.

Mr Greenwood said: “The group continues to make significant investment in the development of world class, market leading products for the nursery industry, to explore opportunities for growth in all sales channels and to focus on improving the financial performance of its core business.”

Mamas & Papas is owned by private equity firm Blue Gem Capital Partners.

David and Luisa Scacchetti, who founded the business in 1981, retain a minority shareholding in the group along with their daughters Amanda and Olivia.