Business
Pre-Close Trading Update
Pre-Close Trading Update.
About this update from Mothercare Plc
[{"type":"text","content":"\n\n \n \n\n Pre-Close Trading Update\n\nMothercare plc Pre-close trading update Mothercare plc (\"Mothercare\" or \"the Company\"), the leading specialist global brand for parents and young children, today issues a pre-close trading update for the 52 week period to 29 March 2025 (“FY25”). Comparatives are based on the 53 week period to 30 March 2024. This update is based upon draft figures pending finalisation of the year end audit. Highlights Unaudited worldwide retail sales by franchise partners of £231 million for the year, representing a decline of 18% on last year (14% down at constant currency on a 52 week period to March 2024), with the decline largely resulting from the unchanged trading conditions in our Middle Eastern markets. Adjusted EBITDA for FY25 at approximately £3.5 million, in line with market expectations.Net borrowings of £3.7 million at the year end (March 2024: £14.7 million) ), significantly reduced as a result of the recently announced India joint venture and refinancing.Pension scheme deficit remains at £35 million (March 2024: £35 million) on a technical provisions basis. EBITDA before adjusting items, for the financial year to 29 March 2025, is now expected to be approximately £3.5 million, compared to the £6.9 million adjusted EBITDA for the period to March 2024. This has been largely driven by the continuing impact of the uncertainty in the Middle East on our franchise partners’ operations. Our franchise partner has reduced the store numbers of many of its brands and specifically for Mothercare our store numbers across the year have reduced by 47 to 77 stores at March 2025. Unaudited net worldwide retail sales by franchise partners were £231 million, compared to £281 million for the previous financial year. The majority of the reduction is the Middle East and to a lesser extent the UK as we are ending our exclusive distribution relationship with Boots at the end of 2025, as we believe there is a greater opportunity for the brand and a new partner in the UK. The underlying strength of the business is demonstrated by the fact that excluding the UK, on a like for like basis our total retail sales were positive for the full year to March 2025, despite the prevailing global economic uncertainties. As previously reported, in addition to the global economic uncertainties which are impacting our retail sale...