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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Mothercare

January 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • MTC
  • Price:
  • 626p
The shares have put on £1 since last month, helped by first half results showing a 22% jump in underlying pretax profit to £12.2m. Turnover rose 2.5% to £397m, while eps increased 22.6% to 10.3p. The main driver was its international side where franchisee retail sales rose 17% to £293m, exceeding UK retail sales for the first time. 112 stores opened in H1 taking the total to 840 in 53 countries, while the target for the year is 150.In the UK sales fell 0.4% to £295m, with like-for-like sales down 3.8%, due to strong comparatives and the “cannibalisation†effects on smaller stores by opening larger parenting stores in the same catchment area. Meanwhile, seven new parenting stores opened in H1 with at least 10 ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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