MULBERRY GROUP (MUL) Trading Update summary

Fundraising and strategy update

• Intends to raise £20 million to support growth strategy and achieve medium-term targets of £200 million annual revenue and 15% EBIT margin.

• Transformation plan includes streamlining operations, refreshing the brand, and leveraging creativity and customer insights.

• Management team refreshed, new wholesale agreements secured, international expansion underway, and non-profitable stores exited.

• HSBC agreed to relax minimum liquidity covenant, releasing £6.5 million in short-term liquidity, backed by a guarantee from Challice Limited.

• Fundraising proceeds will be used to rebuild core stocks, invest in new revenue streams, selective marketing, and upgrade customer engagement tools.

Trading update and financial performance

• FY25 expected revenues around £120 million, down from £152.8 million in 2024, with an underlying loss before tax of about £23 million.

• Trading since FY25 year-end has been in line with expectations; no material revenue growth expected in the current year.

• Approximately £5.9 million in annualised gross cost savings identified and implemented, lowering the cost base.

• Actions taken include restructuring head office, exiting unprofitable stores, and enhancing operational efficiencies.

• Board confident that with additional funding, momentum can be accelerated to deliver targets.