Mothercare (MTC) investor relations material

Executive summary

• Revenue declined 42% year-over-year to £22.4m, with worldwide retail sales down 22% to £180.0m, mainly due to Middle East instability and the end of the UK Boots partnership.

• Adjusted EBITDA fell to £1.3m from £3.5m, and the statutory loss was £5.0m versus a £6.2m profit last year.

• The business remains asset-light, focused on global franchising, with 331 stores in 29 countries and a new joint venture in South Asia.

• Net borrowings increased to £5.7m, and the pension deficit stands at £35m, with contributions deferred to March 2027.

Financial highlights

• Revenue: £22.4m (down from £38.9m year-over-year).

• Adjusted EBITDA: £1.3m (down from £3.5m).

• Statutory loss: £5.0m (prior year: £6.2m profit).

• Adjusted loss after tax: £3.3m (prior year: £2.5m loss).

• Net borrowings: £5.7m (up from £3.7m).

• Cash and cash equivalents: £2.8m (down from £4.3m).

Outlook and guidance

• No material changes in market conditions are expected for FY27, but ongoing Middle East conflict remains a risk.

• Focus remains on supporting franchise partners and restoring critical mass, with new partnerships in South Asia and Turkey.

• The refinancing in February 2026 provides medium-term funding, but the facility remains in default and is repayable on demand.