Mother and baby products retailer Mothercare said reduced losses in its home market and growing international sales helped the group to its first half-year underlying profit since 2010/11.(Carton Display)

The store chain, which operates in 60 countries, on Thursday revealed underlying profits of £2m for the last six months, up from a loss of £1.8m a year ago.(Carton Display)

Like-for-like international sales through Mothercare's 1,150 overseas shops rose 4.8%, but like-for-like sales at British stores fell 1.4% in the period. That was an improvement on the 3.4% fall recorded last year, but total UK sales were down 7.5% as a result of store closures.(Carton Display)

The UK operations are still in the red, although underlying losses fell 12% to £15m. The firm is in the middle of three-year turnaround plan to revitalise a business hit hard by fierce competition from supermarkets and online rivals.

The shares closed down 13p at 400p. Two years ago they were changing hands at 160p.

Chief executive Simon Calver, who is closing unprofitable stores and investing in products and delivery to improve the group's fortunes in the UK, (Carton Display)said he expected consumer spending in Britain to remain subdued in the second half of the year.

He added: "We continue to target a return to profit in the UK and the reduced UK operating loss this half year is a step in the right direction."(Carton Display)