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Mothercare swings to profit in half-year results

It comes as the group said it had put initiatives in place to help improve its profitability once it returned to ‘more normal’ pre-pandemic levels of business

Mothercare has welcomed a return to profit in its latest half-year results, reporting a pre-tax profit of £3.6m in the period ended 25 September 2021, up from a loss of £13.2m the prior year.  

It comes as the group said it had put initiatives in place to help improve its profitability once it returned to “more normal” pre-pandemic levels of business, despite 10% of its partners’  global stores being closed at half-year end.

In its latest results, the group also noted that EBITDA was £5.6m, up from a H1 FY21 loss of £0.1m.

The group said this “demonstrates the benefit of the actions we have taken over recent years to transform the group and reflects the true potential in the business, despite the significant negative impact of Covid-19”.

Looking ahead, while the group “remains cautious” in light of ongoing pandemic restrictions and supply chain headwinds, it expects the second half of this financial year to deliver a similar performance to the first half. 

In addition, the group is said to have a “strong” order book from franchise partners for the autumn/winter 2022 season, the second season of its new elevated product offering.

It added that its medium-term guidance remains that the “steady state operation” of its existing franchise operations should exceed £15m operating profit. 

Clive Whiley, chairman of Mothercare plc, said: “I am pleased to announce results that demonstrate we are moving closer to unlocking the true underlying potential of Mothercare, reflecting the strong foundations we have created for the business over recent years, despite the impact that Covid-19 still has had over the period. 

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

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