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Published
Nov 25, 2021
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Mothercare now seeing its "true potential" after return to profit

Published
Nov 25, 2021

Mothercare has returned to profit after a bruising pandemic trading period and is now “close to unlocking its true potential”, the mother and baby products specialist said Thursday.


Mothercare


The company, which now operates as a brand-owning business that franchises out its retail operations, reported a pre-tax profit of £3.6 million for the 26 weeks ended 25 September, compared with a loss of £13.2 million for the same period a year earlier, following the “significant negative impact Covid-19 still has had over the period”. Adjusted EBITDA came in at £5.6 million, overturning a loss of £0.1 million in the year ago period.

In the previous 12 months to March, its statutory loss had ballooned to £21.5 million from a loss of £8.5 million a year ago.

The London-listed company's turnover, however, slipped slightly to £41.7 million for the 26-week period from £44.4 million for a comparative 28-week year-ago period, noting that more than 10% of its partners' global stores remained shut at the end of the first half. The total number of franchise stores in the period stood at 740 compared to 793 in the previous half-year.

However, it noted there’s a strong order book from franchise partners AW22, “the second season of our new elevated product offering following positive feedback from global franchise partners”.

An upbeat chairman Clive Whiley said the earnings bounce “demonstrates the benefit of the actions we have taken over recent years to transform the group despite the significant negative impact of Covid-19.”

He added that with positive feedback to its new product ranges, and a lean operating structure, “we enter the second half with growing confidence for our future prospects.”

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