I have been in and out of these a few times :-)) ..... bumping around their bottom but starting to bounce a little ..... closed @ 87/90p on Friday.

They have fallen from grace because of poor distribution probelens caused by poor management and an out of House warehousing system. THis is being sorted and new guys have replaced the old .....

Great brand name and selling could be overdone ..... anyway I am in for a few @ 90p and will let them ride for a while - not a t trade. Recent director buying around this price


ains


bought @ 90p - currently moving up at 141/145p 13/05 = plus 56.66% net

Still ticking up on vague rumours ..... now 141/145p up 2.5% on the day and a massive 57% since we started 3 moths ago ..... volumes have been high for the last few days and we are on a new 8 month high for the shares


ains

A lot of profit taking yesterday but still way above our entry point. Might be prudent to take some profits at this time.

ains


Mothercare to go with kids' fashion
By Alison Smith
Published: May 16 2003 21:52 | Last Updated: May 16 2003 21:52


Mothercare, the struggling specialist retailer, will next week set out a sharp change in strategy that will put its high street stores at the centre of its plans for revival.




Ben Gordon, who took over as chief executive at the maternity and baby goods chain in December, intends to change the group's focus from expanding the number of large out-of-town stores to making better use of its 170-plus high street sites.

Mothercare plans to make fashion a much greater element in the high street stores, a move that will make it more directly competitive with retailers such as Next and Marks and Spencer in terms of children's wear.

The extra prominence and space given to clothing will be at the expense of items of equipment such as buggies and car seats, which will be restricted to a couple of the most popular models.

The approach was developed in a series of trials when the retailer experimented with what merchandise the high street stores should stock.

These revealed that though many people buy basics such as nappies and baby wipes from supermarkets, customers still expected to be able to buy these in Mothercare if they wished.

So the group has decided that the stores must still stock these to underpin the brand, which has proved resilient in spite of a consistently poor recent trading performance.

What were once ambitious plans to increase the number of out-of-town stores from 63 to at least 100 have been quietly scaled back, partly because of the difficulty finding suitable sites.

Even though the high street stores have not undergone a significant refurbishment programme for more than a decade, the revamp should be considerably cheaper than opening significant new out-of-town sites.

This will be particularly welcome in a group that is not only expected to report a pre-tax loss of 12m for the year just ended, but is also saddled with warehouse and distribution costs that it admits are too high.

Many of Mothercare's recent difficulties have been attributed to the warehouse at Daventry, Northamptonshire, which the group acknowledged last year was not ideally suited to its needs.

On arrival, Mr Gordon carried out a review of the supply chain and concluded that the least-worst course was for the retailer to continue to use the facility rather than undergo the upheaval of a further change.

May 17, 2003

TIMES Rumour of the day



MOTHERCARE fell 12p to 129p amid speculation that Thursdays full-year figures from the specialist retailer are likely to disappoint. There is also talk that Steven Glew, who joined as finance director in March after spells at Tesco and Booker, is weighing a rights issue to fund store refurbishments and provide additional working capital. Mothercare claims to have resolved problems at its Daventry warehouse.

Guardian


Saturday May 17, 2003
The Guardian

Mothercare, the babywear retailer which has enjoyed a rally of sorts since February, has been falling in recent days. Yesterday it fell 13p to close at

128.5p as new chief executive Ben Gordon prepared to deliver his first set of results next Thursday.
The man who led Disney Stores in Europe for three years issued a trading update a month after his arrival in December warning that lower than forecast sales over the peak Christmas period would "result in a trading outcome for the current year worse than expectations".

In March the company ousted finance director Mark McMenemy, replacing him with Steven Glew, who had been in a similar role at Booker before it was merged with Iceland.

Mr Glew having had a while to get to know the business, some dealers are suggesting that he is planning a clear-out. Thursday should also bring news on how distribution troubles with warehouse operators are to be resolved.

Interesting and will have an effect ....






Mothercare shocks with 20m pre-tax loss
By Richard Fletcher (Filed: 18/05/2003) S Telegraph


Mothercare, the troubled high street retailer, will announce record pre-tax losses of more than 20m this week - nearly double the 12m loss expected by City analysts.

The losses may overshadow ambitious plans by Ben Gordon, the newly appointed chief executive, to outline his strategy for reviving the fortunes of the maternity and baby goods retailer.

Following a gloomy trading update in January, City analysts had expected losses of 12m for the year to March 29. However, stock writedowns and the adoption of more conservative accounting policies have led to further exceptional items of at least 8m.

The company has not been under any obligation to disclose the spiralling losses because they relate to exceptional items. Since January's trading statement Mothercare shares have risen by 49 per cent.

The Telegraph has also learnt that a dozen senior managers in Mothercare's operations and buying departments have left the retail group in recent weeks. Gordon is expected to outline plans on Thursday to take on Marks & Spencer and Next with a renewed focus on fashionable childrenswear.

Philip Green, the retail entrepreneur, is to meet Safeway this week to discuss his 3bn bid for the supermarket chain. In April, Green requested further financial details from Safeway. However, it refused to provide the information until Green agreed to meet the retailer and provide a copy of his own plans for the group

Market quite like the news and the shares are up 5% and have been higher


Results for the 52 weeks ended 29 March 2003

Key Financials



* Group sales up 1.1% to #431.7m (2002: #426.9m)

* Gross margins up 0.2 percentage point to 41.8%, with a 1.3 percentage
point improvement in the second half year

* Adjusted operating loss* #10.4m (2002: #3.0m)

* Exceptional charges and one-off items totalling #14.5m

* Loss before tax of #24.8m (2002: profit before tax of #0.1m)

* Balance sheet cash positive: operating cash inflow of #8.3m (2002:
outflow of #10.5m)

* Strong performances from Mothercare Direct and Mothercare International

* Basic loss per share 22.0p (2002: earnings per share 0.2p)

* No dividend (2002: 2.5p per share)



*Adjusted operating loss refers to the operating loss excluding exceptional
charges and one-off items of #14.5m. (See Results Summary).



Current Trading



* Encouraging current trading with UK like-for-like sales for the seven
weeks to 16 May 2003 up 2.8% and an increase in gross margins.



Ian Peacock, Chairman, said:



"Since joining Mothercare as Chief Executive in December 2002, Ben Gordon and
his management team have moved quickly to stabilise the business. While much
remains to be done to restore Mothercare to proper levels of profitability,
encouraging progress is being made."



Ben Gordon, Chief Executive, said:



"The business is now on a stable platform and we have developed a plan to turn
Mothercare around. We are focusing on five key areas:- the store proposition,
product and sourcing, supply chain, customer service and infrastructure. While
the turnaround programme will take some three years to complete, we are making
good progress in delivering our plan.



"During the fourth quarter of the year trading strengthened. We have continued
to build on this performance in the current year and, whilst it is too early to
say whether it is the start of a sustained improvement, the first seven weeks
have been encouraging."

LONDON (AFX) - Mothercare PLC, the maternity and baby goods retailer, slumped to a worse-than-expected full-year pretax loss, omitted its dividend and warned its turnaround programme will take three years to complete.
Nevertheless, the group, now run by former Walt Disney executive Ben Gordon, said it was encouraged by current trading.

For the 52 weeks to March 29 2003, Mothercare reported a pretax loss of 24.8 mln stg -- massively worse than analysts' expectations of a loss of around 12 mln stg and down from a pretax profit of 0.1 mln stg last time.

The retailer took exceptional charges and one-off items totalling 14.5 mln stg.

The adjusted operating loss (excluding the exceptional charges and one-off items) was 10.4 mln stg.

Group sales were up 1.1 pct to 431.7 mln stg.

Mothercare's gross margins were up 0.2 of a percentage point to 41.8 pct, with a 1.3 percentage point improvement in the second half.

Its balance sheet is cash positive -- operating cash inflow of 8.3 mln stg versus an outflow of 10.5 mln stg.

Basic loss per share totalled 22.0 pence versus earnings per share of 0.2 pence. No dividend was proposed versus a 2.5 pence payout last time.

In the first seven weeks of the new year to May 16 UK like-for-like sales were up 2.8 pct.

Gross margins have continued the improvement in performance experienced in the second half of last year, reflecting the benefits of better availability and a focus on full-price trading.

"The business is now on a stable platform and we have developed a plan to turn Mothercare around," said chief executive Gordon, who joined Mothercare last December.

"We are focusing on five key areas: the store proposition, product and sourcing, supply chain, customer service and infrastructure. While the turnaround programme will take some three years to complete, we are making good progress in delivering our plan."

"During the fourth quarter of the year trading strengthened. We have continued to build on this performance in the current year and, whilst it is too early to say whether it is the start of a sustained improvement, the first seven weeks have been encouraging."

Mothercare shares closed Wednesday at 122-1/2 pence, capitalising the company at 86.6 mln stg.

jdd/ak

Buyers coming in strongly now and all 8 mm's are blue - volumes arlready 2/3rds of the daily average within 45 minutes of opening



Shares up 8% intraday



ains

BBC NEWS


Mothercare falls into the red


The company had reviewed its contract
The High Street retailer Mothercare has made bigger-than-expected losses, cancelled its dividend and warned that its recovery programme will take longer that first thought.
But the new chief executive said he was encouraged by the company's progress.

Mothercare made a loss before tax of 24.8m, compared with a profit of 100,000 last year.

The company has been struggling partly because a new distribution centre caused chaos, leaving stores with the wrong stock.

Ben Gordon, a former Walt Disney executive, who took over as chief executive of Mothercare in December, said: "The business is now on a stable platform and we have developed a plan to turn Mothercare around."

But he said the recovery plan would take three years.

Still ticking up and I recken there are a few shorts being closed as well as the genuine buying :-)



ains

still moving northwards with big vols - currently plus 10.61% on the day and 11th in all shares risers board



ains

Its time the goverment took a few more positive steps to stop this ... taxing them 99.99% if nec.


1m for ousted Mothercare trio
Jonathan Prynn, Evening Standard
22 May 2003

A FRESH 'rewards for failure' scandal emerged today when Mothercare said it paid almost 1m to three directors ousted in the year of the company's biggest-ever loss.



The specialist High Street retailer revealed the pay-offs as it announced a 25m slump into the red in the year to 29 March. The company was hit by protracted problems at a disastrous new central warehouse in Daventry, Northants, and poor trading that led to five profit warnings and a slump in its shares.



Former chief executive Chris Martin, who quit last July, has been paid compensation of 500,000, new boss Ben Gordon revealed today. One-time finance director Mark McMenemy, who also spent six months as acting chief executive after Martin's departure, left in March with 350,000. Ex-chairman Alan Smith left last August with 50,000.







The pay-offs will pour further fuel on City concerns that companies are not doing enough to limit pay-offs to directors who leave after poor performance.



Earlier this week, institutions voted down pay-off arrangements for GlaxoSmithKline chief executive JP Garnier that could have seen him walk away from the drugs giant with up to 22m.



Mothercare chief Gordon said the new team had sought to mitigate the compensation packages but insisted their hands were tied by their predecessors' contracts.



The company paid out 1.9m in redundancies last year, of which 900,000 went to the three directors and 1m - or about 33,000 each - to 30 other head office staff. One-off costs dragged the pre-tax loss to 24.8m. The previous year's 2.5p dividend has been axed

still ticking up @ 138/142 plus 14.29% on vols of 97OK

Worth mentioning that Baugur (icelandic group) has increased their stake to 3.54% saying it was attracted by the strong brand ...... hmmmmmmmmmmm ..... interesting

NOw up 14.69% on the day and more than 50% since we started



ains

might also be worth mentioning that Stuart Rose is looking for a high profile job :-)

(AFX-Focus) 2003-05-22 15:10 GMT: ROUNDUP Mothercare shares rise 14 pct despite near 25 mln stg FY loss
LONDON (AFX) - Mothercare PLC, the maternity and baby goods retailer, slumped to a 24.8 mln stg full year pretax loss, passed on a dividend payment, and warned its turnaround programme will take three years to complete.
But its shares soared over 14 pct as the group detailed its recovery strategy, reported encouraging current trading, and ruled out a rumoured cash call.

Ben Gordon, the former Walt Disney executive who became Mothercare's chief executive last December, said a year to March 29 2003 pretax loss of 24.8 mln stg versus a profit of 0.1 mln stg last time was "unacceptable", reflecting historic problems within the retailer particularly in distribution.

Mothercare's adjusted operating loss for the year to March 29 -- excluding exceptional charges and one-off items of 14.5 mln stg -- was 10.4 mln stg, better than analysts' expectations of an operating loss of around 12 mln stg, but way off last year's operating profit of 3 mln stg.

Group sales were up 1.1 pct to 431.7 mln stg.

Basic loss per share totalled 22.0 pence versus earnings per share of 0.2 pence. No dividend was proposed versus a 2.5 pence payout last time.

In his five months at the helm Gordon has tackled the distribution problems, re-negotiating Mothercare's contract with Tibbett & Britten Group PLC. Product availability has improved 10 pct and distribution costs have been cut from 8 pct of sales in the last year to a current running rate of 7 pct, with a target of 6.5 pct by March 2004.

He said that when he took up his post the retailer had a 10 mln stg overdraft. By changing supplier terms and tightening up cash management the overdraft had reversed to a net cash balance of 7.7 mln stg by the March year-end.

Mothercare has also secured its long-term financing with a 20 mln stg three-year loan facility from HSBC, making a rights issue unnecessary.

"We now feel we have the capital and the cash to turn the business around over the next three years," said Gordon.

He has also moved to re-invigorate trading by introducing new ranges, buying best selling lines in greater depth and focusing on full price trade.

Although comparatives are weak Gordon said he was encouraged by current trading -- UK like-for-like sales up 2.8 pct in the seven weeks to May 16 and an increase in gross margin (estimated by analysts to be up over 200 basis points).

"The business is now on a stable platform and we have developed a plan to turn Mothercare around," he said.

The retailer is now focusing on five key areas to deliver the recovery -- the store proposition, product and sourcing, supply chain, customer service and infrastructure.

Mothercare currently trades from 173 high street outlets and 68 out-of-town stores.

Gordon said the retailer's key focus on the store side will be the in-town outlets which have been neglected in recent years. Two new high street formats -- Mother and Baby and Mothercare Lite -- are being tested, with encouraging results so far.

However, 15 underperforming high street outlets will close over the next 12 months.

Numis is forecasting a year to end-March 2004 pretax loss of 2 mln stg, despite comments from Mothercare that they would be disappointed not to return to the black.

Meanwhile, Baugur Group hf, the Icelandic retail group, announced it has raised its holding in Mothercare to 3.54 pct.

At 2.42 pm Mothercare shares were up 17-1/2 pence at 140, capitalising the company at 99 mln stg.

james.davey@afxnews.com

jdd/sk

22 May 2003, This Is Money



On the High street, Mothercare, the childresnwear retailer, rallied 19 1/2p to 142p. Investors shrugged off full-year losses of nearly 25m, concentrating instead on its recovery strategy, encouraging trading news and its decision to rule out a rumoured cash call.




2003 Associated Newspapers Ltd

[ idiot wrong thread edit - while we're here though...sing a song ]

Ticking up again @ 147/149


May 23, 2003

Mothercare losses fail to dim recovery hopes
By Sarah Butler TIMES



SHARES in Mothercare, the specialist retailer, surged 16 per cent yesterday as Ben Gordon, the new-broom chief executive, laid out his strategy for recovery.
Optimism for the future overshadowed the revelation that the struggling mother-and- baby chain had suffered a 25 million pre-tax loss for the year to March 29 and cancelled the dividend. Sales edged up 1.1 per cent to 431.7 million Exceptional costs included almost 1 million in compensation paid to three directors who quit last year. Redundancy payments to other staff cost a further 2 million, while store closures cost 3 million.

City analysts took heart from the 2.4 per cent rise in underlying sales in the past quarter and a 2.8 per cent increase in the first seven weeks of the new financial year.

Matthew McEachran, at Investec Securities, said: Only time will tell whether the market will get fully behind Mr Gordon, but today was an important first step. He made quite a compelling presentation, but we will require more evidence of an improving performance. He added that it was difficult to attribute strong sales in January to the influence of Mr Gordon, who would have been in the company for only a few weeks at that time.

Mr Gordon, who joined in December, said it would take three years to turn the business round.

He said: There have been lots of promises from Mothercare in the past that have never been delivered. I am asked all the time, Why is that? and one thing is that there has been little investment. A key part of the recovery is investment in systems and stores and putting the basic retailing disciplines back.

Mr Gordon plans to close 15 unprofitable stores, refresh high street outlets and invest in new IT systems to help to improve efficiency. A three-year 20 million debt facility with HSBC has been negotiated to fund the turnround.

However, Mothercares distribution centre in Daventry run by Tibbett & Britten, the source of many of the retailers problems, is to remain in place for the time being.

Mr Gordon said the distribution set-up would be reviewed over the next three years to devise the most cost-effective way of creating a more efficient system. He said that distribution costs had come down to 7 per cent of sales from above 8 per cent, but admitted: Its still expensive.

One analyst said that store refurbishments had been tried before to no avail and that a string of failed recovery plans from several previous management teams made it difficult to believe in the latest recovery plan. My worry is that they are under-cooking the likely costs of the turnaround programme, the analyst said.

Refurbishing the stores and redesigning the supply chain from scratch could end up costing quite a lot of money.

namnews


UK: MOTHERCARE TO CLOSE 15 TOWN CENTRE STORES
Mothercare will close 15 town-centre stores within the next year as it announced the beginning of a 3- year recovery process yesterday. The closures represent 8% of the retailer's 173-strong town-center store portfolio. CEO Ben Gordon said the stores that will close have consistently underperformed and are unlikely to see their performance improve with the measures currently being put in place. The group's 68 out-of-town stores will remain unaffected. Gordon yesterday outlined a three-year recovery program for Mothercare, which has failed to capitalize on the 600,000 births that occur in the U.K. annually.

Although the chains pre-tax loss was higher than had been expected, the share price rose almost 16 per cent to 142p, partly on news that Baugur, the Icelandic group with an eye for undervalued UK retailers, had taken a 3.67% stake. A spokesman for Baugur said it had wanted to raise its stake because it was attracted by the group's strong brand: "There is an underlying strength in the company and it represents good value. There was also some faint encouragement as underlying UK sales rose