Mothercare Regulatory News (MTC)

16 Jan 2008 07:00

Mothercare PLC16 January 2008 16 January 2008 MOTHERCARE PLC THIRD QUARTER TRADING UPDATE Mothercare plc today issued an update on trading for the 13 weeks to 11 January2008. This trading update incorporates the sales of the Early Learning Centre ('ELC')for the 29 weeks since acquisition. For ease of analysis, certain figures arealso presented on a "comparable" basis(1). Group performance . Group sales in the third quarter up 61.0% (up 3.4% on a comparable basis). Group sales year-to-date up 35.5% (up 4.3% on a comparable basis) The integration of the two businesses is progressing well and we are pleasedwith the performance of the 21 ELC inserts in Mothercare stores over the peaktrading period. UK performance . UK like-for-like sales(2) in the third quarter up 3.4%. UK sales in the third quarter up 68.3% (up 2.9% on a comparable basis). UK sales year-to-date up 36.7% (up 2.4% on a comparable basis) +---------------------------+----------------+-----------------+|Comparable Basis |Third Quarter |Year-to-Date |+---------------------------+----------------+-----------------+|UK sales* |+2.9% |+2.4% |+---------------------------+----------------+-----------------+|UK like-for-like sales* |+3.4% |+2.8% |+---------------------------+----------------+-----------------+|UK store sales |+1.9% |+1.2% |+---------------------------+----------------+-----------------+|UK store like-for-like |+2.5% |+1.6% ||sales | | |+---------------------------+----------------+-----------------+ * UK sales and UK like-for-like sales include Direct in Home sales, which were up 201.6% (up 11.9% on a comparable basis) in the third quarter and up 111.7% (up 17.2%) year-to-date. International performance . 66 new overseas franchise stores opened year-to-date, giving a total of 483 stores in 48 countries.. International sales in the third quarter up 24.5% (up 7.4% on a comparable basis due to the timing of shipments which is expected to unwind in Q4). International sales year-to-date up 29.5% (up 16.1% on a comparable basis) Ben Gordon, Chief Executive said: "This is a strong performance for the newly enlarged Mothercare group over theChristmas trading period. The group is benefiting from our strategy ofpositioning Mothercare as the leading specialist brand for parents around theworld. This is now strengthened by the Early Learning Centre, the integration ofwhich is progressing well. "In the UK, positive store sales growth was boosted by the strong onlinebusiness, and the International business continues to grow rapidly. Whilst thereremains a degree of caution about the UK consumer environment, we expect profits(3) for the full financial year to be near the top end of analysts'expectations." Enquiries to: Mothercare plcBen Gordon, Chief Executive 01923 206001Neil Harrington, Finance Director 01923 206187 Brunswick GroupCatherine Hicks/Anna Jones 020 7404 5959 Note 1 "Comparable" basis assumes that ELC had been owned for the same period in boththe current and prior years and excludes discontinued activities. Note 2 "Like-for-like" sales are defined as sales growth for stores that have beentrading continuously from the same selling space for at least a year. Sales fromELC inserts in Mothercare stores are included where they are trading in existingMothercare space. Like-for-like sales are presented on a comparable basis. Note 3 "Profit" is defined as Group Underlying Profit Before Taxation, which excludesprofit on disposal of property interests, amortisation of intangible assets(excluding software), one-off integration costs and the non-cash IAS 39adjustment. The results of ELC are included only from date of acquisition("statutory" basis) and therefore exclude ELC's pre-acquisition EBITA loss of£4.1 million in the current financial year. Fourth quarter trading update Mothercare plc expects to issue a fourth quarter trading update on 3 April 2008ahead of its preliminary results announcement for the 52 weeks ended 29 March2008 on 22 May 2008. This information is provided by RNS The company news service from the London Stock Exchange