StockMarketWire.com - Mothercare swung to an adjusted loss before tax of £700,000 in the 28 weeks to 7 October from a profit of £5.9 million the year before.

The company said its business transformation plans are progressing, with UK like-for-like sales up 2.5%.

UK online like-for-like sales grew by 5.3%, while margins rose by 34 basis points.

In total, 97 stores are now in the modern "club" format, representing 75% of the store estate.

But the group admitted in recent weeks it has seen a softening in the UK market with lower footfall and spend.

Mothercare said international performance remains challenging, primarily driven by the key Middle East market, with constant currency sales down by 7.7%.

The group's statutory loss before tax was £16.8 million compared with a loss of £800,000 the year before.

Mark Newton-Jones, chief executive of Mothercare, said in the UK the group is reducing its cost base as it becomes "a leaner and simpler" business.

"We have identified opportunities to go faster in this respect," he said.




Story provided by StockMarketWire.com