Last checked at 1 Apr 2010 07:00
MOTHERCARE PLC
PRE-CLOSE TRADING UPDATE
Mothercare plc, today issued an update on trading for the full year (52 weeks) and the fourth quarter (11 weeks) ended 27 March 2010.
Full year
§ Total worldwide network(1) sales up 10.0% to £1.1 billion
§ Total group sales up 5.9%
§ UK like-for-like(1) sales up 3.0%
§ Total UK sales up 2.0%
§ Direct in Home sales up 16.3%
§ International retail sales(1) up 20.2%
§ International like-for-like sales(1) up 2.2%
§ Full year IFRS share based payment charge(2) estimated at £14.4m
§ Total 1,115 stores in 52 countries; 387 in UK and 728 overseas
Fourth quarter
§ Total group sales up 3.3%
§ UK like-for-like sales down 1.6%
§ Total UK sales down 0.9%
§ Direct in Home sales up 15.3%
§ International retail sales up 19.3%
Ben Gordon, Chief Executive said:
"Our brands have performed well around the world and our worldwide network sales for the full year exceeded £1 billion for the first time. International finished a record year with strong momentum, with retail sales growth of 19.3% in the fourth quarter on top of 40.0% growth last year. We have opened 119 stores in 29 countries outside the UK in the year giving a total of 728, and during the year Mothercare entered Australia for the first time. Our new joint venture in India is performing particularly well and we are planning at least 38 new stores in the coming year taking the number of stores in India to 70.
"In the UK, like-for-like sales for the full year were up 3.0%. In the fourth quarter the extreme weather conditions adversely impacted performance, resulting in an extension of our winter sale, although the impact was offset by tight cost control. Our UK property strategy is progressing well, with 29 smaller in-town stores closed and 10 larger out-of-town Parenting Centres opened in the year. The wholesale partnership with Boots announced in February remains on track to launch in the Autumn. We continue to manage the business tightly in an uncertain consumer environment and are well placed as we enter the new financial year."
Enquiries to:
Mothercare plc
| Ben Gordon, Chief Executive | 01923 206001 |
| Neil Harrington, Finance Director | 01923 206187 |
| Joanne Russell, Head of Investor Relations | 01923 694900 |
Brunswick Group
| Anita Scott/Catriona McDermott
| 020 7404 5959 |
Note 1 - "Like-for-like" sales are defined as sales for stores that have been trading continuously from the same selling space for at least a year and include Direct in Home and Direct in Store. International retail sales are the estimated retail sales of our overseas franchise partners and joint ventures. "Network" sales are total UK sales plus International retail and wholesale sales.
Note 2 - The group operates long-term, share based incentive schemes. The share based payment charge, which is volatile, is calculated on a fair value basis in accordance with IFRS 2. The charge is based on a number of factors including the Mothercare plc share price in relation to the FTSE General Retailers Index and the growth in underlying profits - both measured over a series of three-year cycles. Over the three years to 27 March 2010, Mothercare outperformed the FTSE General Retailers Index by 120%. Over the three years to 31 March 2009, underlying profits grew by 91.0%. This has resulted in an increase in the IFRS 2 charge from £7.6 million in 2008/09 to £14.4 million in 2009/10.
Note 3 - Mothercare plc expects to announce preliminary results on 20 May 2010.