The market sent shares in mother-and-baby products retailer Mothercare (MTC) up 5 per cent on the back of these full-year numbers, giving bosses an effective pat on the back for a seemingly successful turnaround of the UK business. Like-for-like sales rose 3.6 per cent at home, comfortably beating last year's growth rate of 2 per cent which, along with stronger margins, helped the group report statutory profits for the first time in five years.
However, the international picture still appears quite gloomy. Chief executive Mark Newton-Jones said a host of factors had worked against the group last year, including, but not limited to, a softening in several oil-based economies, the devaluation of the rouble in Russia and the tightening of consumers' belts in Asia Pacific. However, it's his belief that "these things are cyclical" and that Mothercare "must continue to invest internationally" while the group waits for a macro recovery to materialise. This will involve further store openings and refurbishments, as well as further investments in the online catalogue.
Analysts at Numis expect pre-tax profits of £21m for the year ending March 2017, giving EPS of 10p, up from £19.5m and 9.3p a share in FY2016.
| MOTHERCARE (MTC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 124p | MARKET VALUE: | £211m | |
| TOUCH: | 123.8-124p | 12-MONTH HIGH: | 298p | LOW: 101p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 33 | |
| NET ASSET VALUE: | 52p* | NET CASH: | £13.5m | |
| Year to 26 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012** | 813 | -103 | -80.3 | 1.5 |
| 2013** | 749 | -27.0 | -20.6 | nil |
| 2014 | 725 | -26.0 | -31.0 | nil |
| 2015 | 714 | -13.1 | -12.6 | nil |
| 2016 | 682 | 9.7 | 3.8 | nil |
| % change | -4 | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of £54m, or 31.5p a share | ||||
