NURSERY products firm Mamas & Papas is predicting further growth – despite slumping to a pre-tax loss.

Rising costs in the Far East and tough trading conditions in the UK contributed to losses of £1.6m for the Huddersfield-based firm during 2010-11 compared with profits of £4.7m for the previous year.

But group turnover for the year to April 3, 2011, rose by 7.3% to £135.2m against £125.9m in 2010.

Mamas & Papas, which has 1,500 staff in total and 500 staff at its Colnebridge HQ, opened six new stores in 2011 – including ones in Lincoln, the Trafford Centre at Manchester, Birmingham and Swansea to take its total to 56.

The firm, founded almost 30 years ago by husband and wife David and Luisa Scacchetti, also invested in its home shopping and online businesses.

The wholesale arm posted a £3m loss on turnover of £96m while its retail operations – with stores in the UK and Republic of Ireland – reported a pre-tax loss of £256,000 on sales of £99.8m.

However, retail sales grew by 8.6% to £99.89m from £91.9m last time while gross profit for the division rose to £39.6m from £36m.

Finance director Jason Greenwood said: “In 2010/11, we continued to grow our UK retail business and to support this we have invested heavily in the Yorkshire based head office, warehouse and distribution facilities.

“Whilst this investment has a short-term impact on our reported profit, we remain a privately-owned business that repeatedly invests in the medium and long-term term future.”

In 2010/11 the business made a major investment at its Huddersfield distribution centre by implementing a new warehouse management system to secure its UK retail store roll-out and its international development.

Mr Greenwood said the company had also established trading agreements across Europe, Asia & North America, adding: “2012 will be an exciting year for the business as we realise this overseas sales potential.

“In 2012 our products will be seen in destinations to include Europe, Russia, South Africa, the USA, Canada, Australia and the Gulf.”

Said Mr Greenwood: “Our story for 2010-11 is a positive story of a UK-based retailer which continued to invest in its product, colleagues, customers and the UK high street.

“The business is satisfied with its performance in a trading year that saw significant investment to support a hugely successful programme of store roll outs and general expansion.”