MOTHERCARE is to spend £20m a year on expanding its large-scale Mothercare World store format.

The retailer was posting its first set of results since changing its name from Storehouse in July, a move that followed the sale of its Bhs chain for £200m to retail entrepreneur Philip Green earlier this year.

Mothercare said sales grew by 4.7 per cent in the 28 weeks to October 14. Like-for-like sales, stripping out the effect of income from new stores, were ahead 2.2 per cent, an increase on the one per cent growth seen in the same period last year.

Pre-tax profits, at £2.2m, were distinctly more healthy than the £15.7m loss reported last time round.

Chief executive Chris Martin said the larger, out-of-town Mothercare World format had the potential to expand from its current 62 sites to at least 100 as it moves increasingly on to the high street.

The expansion programme will begin next year once a new supply chain is put in place through new logistics partner Tibbett & Britten.

Mothercare would not say where any of the new stores would be, or if any where planned for the North-East.

The development of Mothercare World is a key element of the Mothercare recovery programme., which has already seen the closure of 82 under-performing stores, mostly smaller, high-street shops.

Mr Martin said £25m had been earmarked for the programme this year, and the chain would be likely to spend £20m a year thereafter.

Turnover from the Mothercare stores which the group is keeping slipped to £211.8m, against £230.4m.

The chain now has a total of 257 stores in the UK and 167 overseas franchises.