Tips update: Mothercare

Phil Oakley tipped children’s goods retailer Mothercare as a risky but potentially good value turnaround story back in May. But are the share still a buy?

I tipped children's goods retailer Mothercare(LSE:MTC) as a risky but potentially good value turnaround story back in May. So far the company looks as though it is making good progress at getting its house in order. It has raised just under £100m from its shareholders in a recent rights issue and it looks as though it has a sensible plan to get its troublesome UK business turned around from making losses and back into profit.The good news is that last week's half-year results gave some further grounds for cautious optimism.

Same-store sales (which exclude new store openings to make a meaningful year-on-year comparison of sales growth) in the UK have started to grow again. Admittedly the business has been up against soft comparisons from the year before, but getting sales to grow again, even from a relatively low base, is a creditable result.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Explore More
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.