Mothercare turnaround plan helps to narrow losses

Baby products retailer Mothercare hailed its turnaround plan this morning, as its underlying pre-tax loss narrowed.

The struggling retailer, which is six months into a three-year turnaround plan, said this morning it made an underlying pre-tax loss of £0.6m in the half year to 13 October, down from a loss of £4.4m over the same period last year.

UK like-for-like sales fell 3.4 per cent over the six months, slimmed down from a seven per cent plunge over the same period last year.

As part of the plan, Mothercare closed 31 stores over the six months and said it was on track to close 50 in total for the year.

The retailer has stepped up its fight to halt declining sales by taking on LoveFilm boss Simon Calver as its new chief executive in April, who has pledged to be “ruthless” on costs.