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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Mothercare

May 2004

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
Mothercare has released its pre-close trading update for the year ended 31 March, which showed total UK store sales ahead by 3.1% and like-for-like sales up by 5.9%.  However, the last 11 weeks showeda slight slowdown in same store growth to 4.7%, reflecting tougher comparables. Encouragingly the gross margin improvement in the first half has been sustained throughout the year. Chief executive,Ben Gordon's, improvements to product quality, range and availabilityhave continued, with the progress in clothing being a big driver ofthe turnaround, and enjoying the benefits of better buying combinedwith lower markdowns. The refit program is also running smoothly with35 High Street stores completed out of a portfolio of aroun ...

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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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