Mothercare profit fall
MOTHERCARE posted a 52% fall in half-year profits today after the retailer took a hit from its acquisition of the Early Learning Centre (ELC).
The company booked losses of £2.9m from the first 16 weeks of its ownership, on top of a £4.4m charge for restructuring the business. As a result, pre-tax profits fell to £6.1m, although Mothercare said its underlying performance without the toy chain showed a 11% rise to £13.4m. Like-for-like sales were ahead 2.5% in the 28 weeks to October 13, with Mothercare up 2.8% in the first half and ELC ahead by 1.9% since the £85m acquisition in May. It added the integration of ELC was proceeding to plan, with 50 Mothercare stores due to carry ELC products through the festive period.
Coal station delay
A DECISION on whether to build Britain’s first coal-fired power station in more than 20 years has been deferred to a later date. Energy giant E.on UK sought permission last night from Medway Council to replace existing coal-fired units at Kingsnorth power station in Medway, Kent.
E.on UK says the £1bn investment to build two new cleaner coal units would produce power from coal more efficiently and more cleanly than ever before in the UK.
The units would produce enough energy to supply about 1.5 million homes and lead to a cut in carbon emissions of almost two million tons a year, E.on UK says. But more than 9,000 people have objected to the plans.
Halfords buoyant
RETAILER Halfords today said pre-tax profits climbed 16.4% to £47.6m in the first six months of the year. Sales were also up 8.5% to £400.7m.
Ian McLeod, chief executive, said: “Whilst acknowledging a challenging retail environment, we remain confident in our second half performance.”
