Mothercare Regulatory News (MTC)

13 Oct 2005 07:00

Mothercare PLC13 October 2005 13 October 2005 MOTHERCARE PLC PRE-CLOSE TRADING UPDATE Mothercare plc today issued the following update on trading. The statement isbeing made in respect of Mothercare's half year ended 8 October 2005. Company PerformanceFor the 28 weeks to 8 October 2005, representing the first half of the financialyear, total sales including International, were up 3.0%. (28 weeks to 9 October2004 up 2.5%). UK performance 28 Weeks to 13 Weeks to 28 Weeks to 8 October 2005 8 October 2005 9 October 2004Total UK Sales % +1.0 +1.8 +0.8UK Store Sales % +0.6 +1.5 +0.9UK Store like-for-like % -1.0 -0.3 +2.4 The sales performance of our UK business continues to be driven by improvedproduct ranges, stores and customer service levels supported by a more robustdistribution network. Total UK sales includes growth of 9% from our Direct business which hasincreased total UK sales growth by 0.4%. Net new space has contributed 1.6% to sales growth, we have opened six new UKstores and closed five stores, taking the total number of UK stores at the endof the half year to 232. Overall UK gross margins have increased modestly in the period despite thechallenging trading environment. Our sourcing strategy continues to producebenefits. InternationalInternational sales have increased by 17%. The underlying growth is driven bystrong franchisee like-for-like sales, combined with our continuingInternational store opening programme. We have opened 29 International storesduring this period, taking the total to 247. Additionally we have recentlysigned a franchise agreement to open some 40 stores in India over the next fiveyears, the first of which will open in April 2006. Ben Gordon, Chief Executive, said:"The work we have done to strengthen the business is evident in our performance,with our UK business showing resilience in what remains a difficult tradingenvironment. Further, the strength of our growing International businessbalances our dependence on the UK market. We will open our first stores in Indianext year, a key milestone in the delivery of our International growthstrategy." The full financial performance for the first half of the year (28 weeks to 8October 2005) will be reported when Mothercare Interim results are announced on17 November 2005. Enquiries to:Mothercare plcBen Gordon, Chief Executive 01923 206001Steven Glew, Finance Director 01923 206187Brunswick Group LLPCatherine Hicks / Anna Jones 020 7404 5959 This information is provided by RNS The company news service from the London Stock Exchange