Shares in Mothercare surged by more than 60 per cent today after the British baby-care products retailer said it had swung back into profitability over the past financial year.

Mothercare has reported a GBP12.1m profit for the year, saying it has seen significant improvement in profitability since its strategic transformation into a global franchising business.

Reporting on the 52-week period to 26 March, Mothercare said international retail sales of its franchise partners amounted to GBP385.3m up from GBP358.6m a year earlier.

Group turnover came in at GBP82.5m compared to GBP85.8m and adjusted EBITDA rose to GBP12m from GBP2.2m a year earlier.

Group adjusted operating profit for the period was 11.1m up fron 0.2m and group adjusted profit after tax was GBP9m compared with a GBP8.6m loss a year earlier.