MOTHERCARE today said it was continuing to cut costs as it launches its new UK and Ireland franchise with Boots.
Over the last financial year, Mothercare said it transitioned the business to refocus on brand management and the design, development and sourcing of product to support its international franchise partners. It is now serving 791 stores across 40 countries.
Mothercare has announced its full year results for the 52 week period to March 28 2020. Comparatives are based on the 53 weeks to March 30 2019.
The loss from continuing operations for the full year was £7.2 million, which compared with a £21.1 million loss the year before.
Total profit for the year was £14.4 million, compared with a £97.0 million loss in the comparative period.
The administration of Mothercare UK has also been completed, including the transfer of brand rights and intellectual property into the group.
Mothercare said it had eliminated around £30 million of operating losses through the closure of the UK retail division.
Clive Whiley,the chairman of Mothercare, commented: “We have diligently managed our way through to mitigate the impact of the COVID-19 pandemic during this period of global crisis, and we emerge in better shape than we went into it.
“We continue to reduce costs and improve our efficiency. We are excited to launch our new UK and Ireland franchise with Boots, restoring the Mothercare brand to its home territory.
“We have entered into a new 20 year franchise agreement with Alshaya, our largest partner. We have successfully rolled out our innovative, working capital light arrangements with our manufacturing and franchise partners.
“We are now singularly focused upon building Mothercare as a global brand, both in our existing territories and beyond. We are confident with these foundations now in place Mothercare can move forward as a profitable and cash generative international franchise business, generating revenues through an asset-light model in some 40 international territories.”
“This would not have been possible without the support of all of our stakeholders whom, on behalf of the board, I would like to thank for enabling us to get to this point. As a result, from today, Mothercare can look forward to a brighter and stable future once more.”
By Greg Wright
Source: Yorkshire Evening Post