Mothercare revenues decline in FY23
The group’s net borrowing reached £12.4m in FY23, widening from £9.9m recorded at the end of 2022
Mothercare has reported that underlying profits slipped from £12m last year to £6.7m in the financial year ended 25 March, despite a 9% increase in net worldwide retail sales by franchise partners to £322.7m.
As a result, the group’s net borrowing reached £12.4m in FY23, widening from £9.9m recorded at the end of 2022.
The retailer said it expects to complete its refinancing shortly, as talks with shareholders and financing partners will continue to allow the company to have “adequate and appropriate financing for the future”.
In the first half of FY24, the group’s franchise partners recorded total retail sales of £132.5m, with the decline largely resulting from the continuing challenges in its Middle Eastern markets.
According to the group, it maintains that it is capable of exceeding £10m in operating profits, as it seeks to focus on restoring critical mass and monetising the Mothercare global brand.
Clive Whiley, chairman of Mothercare, said: “I am pleased with the progress Mothercare has made during the year as we continue our transformation towards an asset-light, global franchising business. Our priority over the last 12 months has been the continued execution of our transformation plan and cementing Mothercare’s future as a sustainable business model, for the benefit of all our stakeholders.
“I would like to thank our colleagues across the business, alongside our pension trustees and all other stakeholders, for their continuing support. Without this, we would not be in the profitable, cash generative position we are today.”
