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Sept. 25, 2020, 2:23 a.m. EDT

Mothercare says trading remains challenging

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By Matteo Castia

Mothercare PLC reported Friday a narrowed pretax loss for fiscal 2020 on lower losses from the closure of its U.K. retail division, and said that trading remains challenging due to the coronavirus pandemic.

The baby-products retailer, whose U.K. business entered administration in November, posted a pretax loss of 6.4 million pounds ($8.2 million) for the year ended March 28, compared with a loss of GBP18.0 million in fiscal 2019.

The company said the administration of Mothercare U.K. has been completed, including the transfer of brand rights and intellectual property to the group. The closure of its U.K. retail division led to the elimination of around GBP30.0 million of operating losses, it added.

Revenue fell to GBP164.7 million from GBP199.8 million a year earlier.

The company hasn't paid a dividend since February 2012 and it doesn't expect to do so until the business is returned to a sustainable and stable financial footing, Mothercare said.

"Trade continues to be challenging in the key markets of India and Indonesia due to the continuing impact of Covid-19 on footfall and consumer confidence," the retailer said.

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