Mothercare has reported widening losses and a drop in full-year turnover as the pandemic put a spanner in the works of the maternity and childrenswear specialist’s ongoing transformation strategy.
For the year to March 27, the company’s statutory loss widened to 21.5 million pounds from 8.5 million pounds a year earlier, while its turnover fell 47.9 percent to 85.8 million pounds.
Adjusted EBITDA was 2.2 million pounds, down from 6.2 million pounds.
The company estimates that over 80 percent of its partners’ global retail locations are currently open, but said trade continues to be “challenging” in the key markets of Russia, India, Indonesia and Malaysia due to Covid.
Chairman Clive Whiley said the past financial year has been “challenging”, but added that “a tremendous amount of progress” has been made in “fundamentally transforming the group”.
Mothercare posts 47.9 drop in FY turnover
The company has undergone a significant restructuring in recent years. In August 2020, it announced the launch of a “more sustainable and less capital-intensive” business model from the AW20 season onwards.
That came after the company put its UK business into administration in 2019, which saw the closure of all 79 of its stores.
In March, Mothercare moved from The London Stock Exchange to the junior market, AIM, as part of its restructuring.
“We expect 2022 to be a year of further progress as we focus upon developing our strategy and future plans to optimise the Mothercare brand globally over the next five years,” Whiley said in a release.
“These are exciting times as, notwithstanding the continued impact of the pandemic in many of our franchise partners territories, without the distractions of the last three years we are seeking to accelerate the growth of the business and the Mothercare Brand.”
Whiley said the company looks to the future “with great optimism having established a strong and efficient platform with multiple opportunities for growth”.