Mothercare has posted a decline in revenue and international sales as it continues efforts to “refinance the group” and ensure “adequate and appropriate financing for the future”.
The retailer recorded £29m in revenue in the 26 weeks to September 23, down from £38.5m in the same period last year.
International retail sales by franchise partners decreased 15% year on year from £162.1m to £137.2m. The group said this reflects “difficult trading conditions in the Middle East”, which is down 20% on last year.
Total group profit before tax reached £2m, compared with £0.8m last year, while adjusted EBITDA rose by 12% to £3.6m due to “tighter control of costs”.
The retailer’s medium-term guidance remains unchanged as it believes its continuing franchise operations can deliver around £10m operating profit.
Mothercare chair Clive Whiley said: “These results are testament to our continued drive to preserve the strength of the Mothercare brand in a fast-changing retail and macroeconomic trading environment.
“Against significant headwinds in the Middle East, one of our core markets, we are pleased that our business model and disciplined approach to cost has resulted in an increase in profitability for the first half.”