Mothercare profit up 22 per cent

MOTHER and baby goods retailer Mothercare posted a 22 per cent rise in first-half profit, with a strong performance overseas offsetting a weak UK outcome.

Mothercare, with more than 1,200 stores in 54 countries, said today it made an underlying pretax profit of 12.2m in the 28 weeks to October 9.

Worldwide sales rose 7.5 per cent to 590.2m, with overseas retail sales overtaking British retail sales for the first time.

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International sales were up 17.3 per cent, reflecting 112 new overseas stores, but UK sales fell 0.4 per cent.

"The UK consumer environment remains uncertain and we continue to plan cautiously," said chief executive Ben Gordon.

Mothercare is paying an interim dividend of 6.4 pence, up 16.4 per cent.

Shares in Mothercare have lost eight per cent of their value over the last six months, hit by its warning in July that profit margins would suffer from price cuts and promotions as it seeks to attract cash-strapped shoppers.

The stock closed at 528 pence last night, valuing the business at 466m.

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