Mulberry to raise £10m amid £34m loss in FY24
Group revenue was down 4% to £152.8m with increased revenues in the first half offset by a ‘challenging’ second half due to ongoing macroeconomic uncertainty
Mulberry has announced a plan to raise £10m as it faces a loss before tax of £34.1m for the year ended 30 March 2024.
The retailer attributed the result to reduced revenue and margin in the period, along with increased operational costs.
Group revenue was down 4% to £152.8m with increased revenues in the first half offset by a “challenging” second half due to ongoing macroeconomic uncertainty.
UK retail sales dipped 3% to £84.7m during the period, due to consumer spending habits being impacted by inflationary pressures. However, international sales rose 8% to £50m, driven by the US – up 17% to £11.3m – and Europe – up 34% to £10.2m.
In addition, the group has announced a separate offer to existing shareholders of the company of up to 750,000 new ordinary shares. The subscription and the retail offer will result in the Company raising total gross proceeds of up to approximately £10.75m.
The retailer has said that the proceeds will be used to strengthen the group’s balance sheet and provide financial flexibility to support plans being developed by new CEO Andrea Baldo and the management team to return the business to profitability and drive future growth.
Group revenue for the 25 weeks since the period end is 18% below the same period last year.
Chris Roberts, chairman, said: “Over the course of the year, the macro-economic environment presented significant challenges for the luxury sector, with markets across the globe facing a tightening of consumer spending. Whilst the financial performance for the year was disappointing, we believe that the combination of the appointment of a new CEO, our new debt facility and the capital raising announced today will put the group on a firm footing to ensure we are well set up for future growth.
“I, along with the wider board have been highly impressed with Andrea’s drive and tenacity in his first few weeks in post. We are confident in our long-term prospects as we move forward into this next chapter.”
Baldo added: “Since joining, I have been working closely with our teams in the UK and internationally to drive swift, decisive actions. In the short term, we are focused on enhancing operational efficiency and implementing targeted product, pricing and distribution strategies to regain market share in our core market of the UK.
“While these immediate measures are critical, I am now fully committed to conducting a comprehensive review to develop a refreshed strategy that will position the Group for both short-term recovery and long-term, sustainable growth.”
