LONDON (ShareCast) - Baby goods retailer Mothercare hailed signs of improvement in its lacklustre UK business as it posted a first-half pre-tax profit of £5.5m compared to last year's loss of £11m.
The group said it had made progress towards establishing itself as a full-price retailer in the UK, where it has faced competition from supermarkets and online retailers.

It pledged to focus on improving the style, quality, design and innovation of its products while modernising presentation online and in store.

International profits for the 28 weeks to 11 October remained unchanged compared to last year's results, in spite of headwinds from currency devaluation in many of the firm's major markets.

But international like-for-like sales rose 4.9%, while UK like-for-like sales were up 1.5% against a 1.4% fall last time.

Mothercare chief executive Mark Newton-Jones cautioned shareholders that trading in the retail sector remained challenging.

This year, the firm has faced profit warnings, the appointment of a new chief executive, the launch of a £100m rights issue and a rejected takeover bid.

Despite the tough conditions, Newton-Jones said: "We are making progress building the foundations for the future of the business both in the UK and across our international territories."

Shares rose 4.75p or 2.7% to 178p at 09:32 in London.

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