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Mothercare has revealed that the group’s profit for the 52 weeks to 26 March 2022 reached £12.1m, compared to its loss of £21.5m in the previous financial year.
The group has also reported that its international retail sales reached £385.3m, which is just under last year’s total of £358.6m. The group has also revealed that it has borrowed a total of £9.9m in FY22 compared to £12.1m in the previous year.
In addition, the brand reported an adjusted EBITDA of £12m, which is said to be ahead of market expectations while also surpassing last year’s result of £2.2m. According to Mothercare, this “reflects its focus on core international franchise and brand management competencies”.
As a result, the group’s pension scheme deficit materially reduced to £60m from £124.6m in March 2020 and has reportedly agreed on a reduction in payments with trustees to “significantly” reduce its annual cash cost going forward.
Clive Whiley, chairman of Mothercare, said: “The year under review was bookended by the Covid-19 pandemic and the Ukraine conflict, however, despite the persistence of these difficult global challenges, we have begun to demonstrate the potential of Mothercare as an asset light global franchising business.
“This represents an inflection point for the business, with the combined benefits of more normalised circumstances and the updated financing arrangements greatly enhancing our financial flexibility.”
He added: “Accordingly, whilst mindful of the global inflationary environment and its impact on both consumers and the business we remain positive on the long-term prospects for the Mothercare brand.”
