Mothercare swings to loss after first-half profits, revenues plummet

This diminution is mostly attributed to Mothercare's store closures successful the Middle East and its planned exit from its concern with Boots successful the UK. On a like-for-like basis, retail income decreased by 6%.

The institution operated from 344 stores worldwide during the period, down from 440 the twelvemonth before, with full store quadrate spare falling to 858,000 quadrate ft from 1.1m sq ft previously.

Online retail income for the play roseate somewhat to relationship for 11% of full retail sales, compared to 10% successful the archetypal fractional of the erstwhile fiscal year.

Mothercare expects to support a mostly cash-neutral presumption implicit the adjacent 12 months, with anticipated maturation successful retail income and income surpassing FY26 levels, particularly successful Turkiye and India.

The UK-based mum-and-baby covering retailer's gross plunged 45% to £11.6m - the effect of the ne dof the group's five-year exclusive concern with Boots.

The company's adjusted EBITDA fell to £0.8m from £1.7m successful the erstwhile year. It reported an adjusted nonaccomplishment from operations of £0.5m, compared to a £1.1m nett successful the anterior period.

The adjusted nonaccomplishment earlier taxation improved somewhat to £1.1m from a £1.4m nonaccomplishment reported past year.

Net indebtedness was reduced to conscionable £5.8m by the extremity of the half, astir a 3rd of the £17.1m reported past year.

Mothercare president Clive Whiley said: “Mothercare is making bully advancement against our strategical priorities. After the strategical and operational challenges of the past fewer years, our show successful the archetypal fractional shows that Mothercare has been stabilised arsenic a smaller and currency generative concern with greatly reduced debt. Our caller partnerships with Reliance successful South Asia and Ebebek successful Türkiye are present bearing fruit, underlining the intrinsic worth of and accidental for our brand.

Mothercare has made notable advancement successful its associated task with Reliance Brands, a subsidiary of Reliance Industries, for the South Asian market. This venture, valued astatine astir £30m, grants Reliance Brands perpetual rights to usage the Mothercare marque successful India, Sri Lanka, Nepal, Bangladesh, and Bhutan.

Despite receiving little revenues than before, Reliance Brands aims to summation retail income to astir £300m wrong 5 years, supported by plans to unfastened 50 caller stores successful 2026.

In Türkiye, Mothercare has entered a licensing statement with Ebebek Mağazacılık, granting exclusive rights to usage the Mothercare marque for a decade.

Ebebek Mağazacılık operates adjacent to 280 stores and has precocious expanded into the UK. This statement besides allows Mothercare to acquisition and rebrand products sourced by Ebebek Mağazacılık for merchantability extracurricular Türkiye.