Mothercare PLC (LSE:MTC)'s woes continued as the nursery products supplier slipped into the red in its latest half-year as sales faltered.
The group had already flagged that franchise sales dropped 12% to £121 million in the half year ending 23 September, with ongoing problems in the Middle East where inventory levels have been an issue.
As a result, interim group revenues dropped to £21 million from £29 million and there was a swing from a profit of £1.8 million in the comparable half-year to a loss of £1.4 million.
In October, the group announced a £30 million joint venture with India’s Reliance Brands, which has reduced debt to £8 million and will be the springboard for a recovery through branded products and licensing, said chairman Clive Whiley.
In the Middle East, Whiley said the aim is to restore critical mass.
Shares fell 3.6% to 4p.