Business
Full Year Results 2022
Full Year Results 2022.
About this update from Mothercare Plc
[{"type":"text","content":"\n \n \n \n Mothercare plc\n \n \n \n \n \n \n \n \n \n Full Year Results 2022\n \n \n \n \n \n \n \n \n \n Significant improvement in profitability reflects ongoing strategic transformation into an asset-light, global franchising business\n \n \n \n \n \n \n \n \n Mothercare plc (\"Mothercare\", \"the Company\" or \"the Group\"), the leading specialist global brand for parents and young children, today announces full year results for the 52 week period to 26 March 2022. Comparatives are based on the 52 week period to 27 March 2021.\n \n \n \n \n \n \n Key Highlights\n \n \n \n \n \n \n ·\n International retail sales by franchise partners of £385.3 million (2021: £358.6 million).\n \n \n \n \n \n ·\n Adjusted EBITDA of £12.0 million (2021: £2.2 million), ahead of market expectations, reflecting the Group's focus on core international franchise and brand management competencies, as an asset light global franchising business.\n \n \n \n \n \n ·\n Net borrowings of £9.9 million (2021: £12.1 million) at the year end.\n \n \n \n \n \n ·\n Pension scheme deficit materially reduced to £60 million as at 30 June 2022 (March 2020: £124.6 million) and agreed reduction in payments with Trustees to significantly reduce annual cash cost going forward.\n \n \n \n \n \n ·\n Post period end refinancing of the business, improving our financial flexibility notwithstanding the loss of revenue from Russia.\n \n \n \n \n \n ·\n The significant improvement in profitability evidences the full year impact of the establishment of a cost base that is appropriate for our business but still has the necessary skills and experience to deliver further growth, as the impact of Covid-19 diminishes.\n \n \n \n \n \n \n Current Trading & Outlook\n \n \n \n \n \n \n \n \n ·\n In the first twenty one weeks of FY23, the Group's Franchise Partners recorded total retail sales of £135 million (FY22: £117 million, excluding Russia; £150 million, including Russia) impacted by the permanent closure of the Russian retail business.\n \n \n \n \n \n ·\n Our medium-term guidance for the steady state operation, in more normal circumstances, of our continuing franchise operations remains that they are capable of exceeding £10 million operating profit.\n \n \n \n \n \n ·\n Whilst mindful...