British mother and baby products retailer Mothercare said monumental growth prospects from a burgeoning middle class in India and China will help offset expected tough trading in its main British market.
CEO Ben Gordon said the firm was well positioned to cope with uncertainty over how the new Liberal-Conservative coalition government would steer the UK economy.
'We are cautious about the UK, it's a difficult consumer environment. What's going to happen with a new government, the euro and the dollar is almost impossible to predict. However, we think Mothercare's in pretty good shape,' he said as the group posted flat full-year profits but hiked its dividend.
Gordon was bullish on overseas growth with Mothercare's 728 overseas stores in 51 countries representing just under 50% of total sales.
'There's 24 million babies born in India each year and 19 million in China. So we think there are monumentally large opportunities for us,' he said.
'China's economy has got back to double-digit growth, India's growing very close to double-digit, the middle classes are booming. We think these are huge opportunities for Mothercare,' the company CEO added.
In the current year the firm plans to open 38 more stores in India, taking the total to 70 and a further 10 in China, taking the total to 16.
Mothercare said it made underlying pre-tax profits of £37.2m sterling for the year to March 27. That compared with a forecast for about £38m and the £36.9m made the previous year. Group sales increased 5.9% to £766m.
Sales at British stores open over a year increased 3%, although they did fall for the first time in over four years in the fourth quarter when severe winter weather kept shoppers away from out-of-town stores. Total international sales rose 21.4% over the year.
Mothercare has benefited from its focus on selling essential products to parents, as well as strong growth in emerging markets and online, and the integration of the Early Learning Centre brand bought in 2007.
