MOTHER and baby retailer Mothercare has reported a slump in profits after warehouse-related problems set back its recovery.

The group has also confirmed its chairman would be stepping down.

Mothercare, which issued two profit warnings at the turn of the year, has commissioned searches for two non-executive directors, one of whom will replace chairman Alan Smith, who has been with the firm since 1996.

The announcement came as Mothercare revealed pre-tax profits before exceptional costs for the year to March 30 slid to £4.2m, from £10.2m.

The group's figures suffered following its move to a new warehouse in Daventry, Northamptonshire last August.

Problems at the warehouse led to severe stock shortages in its stores during the autumn.