Mothercare (MTC) Trading update summary

Financial performance

• Worldwide retail sales by franchise partners reached £180 million, down 22% year-on-year (19% at constant currency).

• Adjusted EBITDA for FY26 is approximately £1.25 million, compared to £3.5 million in FY25.

• Net borrowings increased to £5.7 million at year end, up from £3.7 million in March 2025.

• Pension scheme deficit remains at £35 million as of December 2025.

Key operational factors

• End of exclusive distribution with Boots and Middle East uncertainty, including the Iran war, impacted results.

• Excluding the Middle East and UK, like-for-like retail sales were positive for the year.

• Estimated impact of the Middle East war in the last month was approximately £0.1 million.

Strategic and refinancing updates

• Debt facilities were successfully refinanced in February 2026, deferring pension contributions.

• No material change in financial position since the February 2026 refinancing announcement.

• Ongoing discussions with potential partners to restore critical mass and optimize brand IP.