The retailer said that a decline in clothing sales and higher costs from opening new food stores were partly to blame for the 64% fall.
Sales were flat at £10.6bn in the year to the end of March 2017.
Chief executive Steve Rowe revealed that like-for-like sales in his first full year in charge fell by 1.9% in the UK.
The slide followed a 5.9% fall in the three months to April.
The fact that Easter fell later this year hit the company hard, although Mr Rowe added that the fall was also partly due to a push for more clothes being sold at full price.
Clothing and home sales revenue still fell by 3.4%, although food performed better, falling just 2.1% in the fourth quarter.
Mr Rowe said the company remained "on track" with its turnaround plans announced last year, which include opening new food-only stores, selling clothing and homewares in fewer stores and cutting back on discounting.
"We are almost exactly where we thought we would be and we are pleased with what we delivered this year," he said.
The firm was hit by a number of sizeable one-off costs, including £156m to make changes to its pension scheme, £132m on international store closures, and another £49m on changes to its UK store estate and "onerous lease charges" related to that estate.
A further £44m was absorbed by M&S Bank being hit by charges incurred in relation to insurance mis-selling.
Excluding these one-off costs, profits were down 10% to £613.8m.
The baby care chain said it would slash its 152-strong UK store estate further to between 80 and 100 shops as it moves to the "second phase" of an overhaul.
Mothercare has already been axing loss-making shops and refurbishing its estate to boost flagging UK sales, having shut 21 stores in the year to March 25.
Chief executive Mark Newton-Jones said he wants stores to be focused on key locations nationwide, while acting as specialist advice and service points to support online sales.
He said: "We are clear in the role our stores will play for the future, by offering specialist advice and service and first class product presentation.
"Store numbers will reduce over time as we focus on a regional presence in key conurbations across the UK."
His turnaround efforts have been helping return the UK arm to health, with the group seeing its first underlying profit for six years in the final half of its financial year - with a surplus of £4.4 million.
The UK remained loss-making overall in the year, with underlying losses of £4.4 million after a "difficult" first half, but this was narrowed from losses of £6.4 million the previous year.
Mobile phone customers could soon be able to dump their network provider by text.
Ofcom says people shouldn’t need to make a potentially long and uncomfortable phone call to their operator in order to switch networks, as they currently have to.
Research conducted by the regulator also shows that these calls can often be disrupted, causing further stress.
According to Ofcom, 38 per cent of people trying to switch network providers have been hit by one major problem during the process.
These include temporarily losing service, issues with keeping a number and even difficulties with getting through to the mobile provider in the first place.
The proposed new system, which is called Auto Switch, should save consumers time and money.
All they would need to do is text their current provider, which would have to respond by texting back a cancellation code, or a PAC code for customers intending to keep their number, as well as relevant account information, such as early termination charges or credit.
Customers can then pass their code to their new provider.
Ofcom says the entire switching process could be completed within one working day.
The regulator would also ban operators from charging for notice periods after the date of the switch, meaning customers will be protected from having to pay for both their old and new package at the same time.
A consultation on the proposals will run until 30 June, before a final decision is made in autumn.
Ofcom had previously been exploring a system in which a customer’s new network would be responsible for conducting the switch.
However, those plans would have cost the industry £87 million over ten years, rather than the £44 million under the new proposals.
Hong Kong’s flagship airline Cathay Pacific said Monday it would cut 600 staff including a quarter of its management, as part of its biggest shakeup in two decades to repair its bottom line.
In March the company posted its first annual net loss in eight years, citing intense competition as lower cost airlines, particularly from mainland China, eat into its market share.
It pledged at the time to slash costs by 30 percent after its $74 million net loss in 2016 reversed a $773 million profit in the previous year.
In a company statement Monday, the airline said it would shed 190 management roles as well as 400 non-managerial positions at its Hong Kong head office.
“We have had to make tough but necessary decisions for the future of our business and our customers,” said CEO Rupert Hogg.
“Changes in people’s travel habits and what they expect from us, evolving competition and a challenging business outlook have created the need for significant change.”
No pilots, cabin crew or frontline employees would be affected but they would be asked “to deliver greater efficiencies and productivity improvements”, the statement said.
Aviation analyst Corrine Png told AFP the company was moving “in the right direction” as it looked to transform the business and improve cost competitiveness.
“The challenge is when you start to cut staff head count... you really have to keep the staff morale high,” she said.
“They haven’t really touched the frontline-pilots, cabin crew, customer service-so at least this part hopefully will reduce the possibility of compromising the product.”
Singapore Airlines (SIA) also reported a net loss of Sg$138.3 million ($99.4 million) in the fourth quarter last Thursday, causing full-year net profit to drop by more than half from the previous year.
It said in a statement that a “wide-ranging review” of the company’s network, fleet, services and organisational structure was underway.
Intense competition has continued to hit premium carriers despite an expansion of international air travel in the region, as mainland Chinese airlines aggressively scale up long-haul routes.
Cathay announced a major restructuring programme in January after posting its first annual net loss since 2008 at the height of the financial crisis.
The airline is also losing premium travellers as it comes under pressure from Middle East rivals that are expanding into Asia and offering more luxury touches.
“Job cuts is obviously the most effective measure in the short term but Cathay’s problem is not coming from within, it’s growing competition from outside from full-service peers in the mainland and Middle East to budget carriers,” Yu Zhanfu of Roland Berger Strategy Consultants told Bloomberg News.
“Cathay has been suffering decline in both yield and load factor. That’s what Cathay needs to urgently address by sharpening their competitiveness externally,” Yu added.
The staff cut is the first major announcement since Hogg replaced Ivan Chu on May 1 as part of a management overhaul.
Cathay shares rose more than 3 per cent in early trade but pared gains to sit 1.6 per cent higher in the afternoon.
The 13-year-old company will open two restaurants in Washington DC in the next year after the cash injection, which gives Spice a “significant” minority stake.
Co-founder John Vincent said Leon has the funds to grow significantly in the US, but is proceeding with caution.
“The principle is to fire bullets, then cannon balls. No one from the UK goes to America and sees it as an easy ride. Just because we speak the same language doesn’t mean to say we have the same culture. We’ll learn so much and make tonnes of mistakes.”
Fersen Lambranho, chairman of Spice’s controlling shareholder GP Investments, said Leon had “immense potential to become global”.
“We see Leon as an opportunity to replicate the great success of a former investment, Fogo de Chão, a Brazilian steakhouse that expanded into the US and is now listed on the Nasdaq.”
