Maternity and nursery retailer Mamas & Papas has reduced its losses from £11.6m to £9.1m for the year to 1 April 2018, its latest accounts filed at Companies House show.
Accounts for the holding company Mamas & Papas Holdings showed revenues staying relatively flat at £121.7m, up from £121.1m in 2017. The latest accounts cover a 53-week trading period.
Mamas & Papas, which operates 30 stores in the UK, said profit margins had been affected by the weakness of sterling.
Group operating costs rose by £670,000. However, the group managed to raise cash to pay down debt by selling and leasing back its head office property, which raised £10.3m and paid off a £6.2m loan.
Accounts for Mamas & Papas Ltd, the main retail subsidiary for the group, showed that losses before tax, interest and amortisation rose from £724,000 in 2017 to £5.4m, on a reduction of revenues from £100.4m to £94.9m.
In the strategic report Mamas & Papas holding company chief executive Jason Greenwood said: “The principal external risks include general economic conditions and the consequent impact on consumer spending, competitor actions, foreign currency movements fluctuating property and fuel costs and wage inflation.
“Sharp focus continued on our working capital and cash management with stocks reducing £7.5m and working capital outflow improving £2.4m year on year.”