The share price of Mothercare surged by as much as 40 percent in early trading this morning after the full year results shown signs of its turnaround progress.
Its loss from continuing operations was slashed to £7.2m (2019: £21.1m loss) while its total profit for the year stood at £14.4m – an increase of 114.8%.
The key driver behind the total profit increase was related to a gain on the loss of control of Mothercare UK and Mothercare Business Services of £46.2m.
Commenting on the results was Clive Wiley, Chairman of Mothercare:
“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.”
The share price of Mothercare is currently trading at 11.40p.