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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Mothercare - International profits up 42%

July 2010

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:
  • 584p
In spite of sentiment turning against shares in general retailers in recent months, Mothercare delivered respectable final results with pretax profit increasing 17% to £52m on turnover, which rose 10% to £1.1bn. Thanks to strong cash flow of £58m, net cash balances increased from £25m to £38m. In the UK, where operating profit increased 4% to £36.1m on sales, which crept up 2% to £590m, Mothercare has one over-riding growth initiative. This project comprises the rightsizing of its UK store estate, essentially closing down 90 of its smaller, lower profit high street stores where the leases have expired and opening 120 larger and more profitable out-of-town outlets. Last year it closed 29 high street stores and opened 10 out ...

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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.

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