Mothercare (MTC) investor relations material

Executive summary

• Worldwide retail sales by franchise partners fell 25% year-over-year to £90.7 million, mainly due to Middle East store closures and the planned exit from Boots.

• Adjusted EBITDA dropped to £0.8 million from £1.7 million, with an adjusted loss from operations of £0.5 million versus a £1.1 million profit last year.

• Net debt reduced significantly to £5.8 million from £17.1 million a year ago.

• New partnerships in South Asia (Reliance) and Turkey (Ebebek) are expected to drive future growth.

Financial highlights

• Revenue for the period was £11.6 million, down from £21.0 million year-over-year.

• Gross profit was £5.0 million, down from £8.0 million.

• Adjusted loss before taxation was £1.1 million, compared to a £1.4 million loss last year.

• Basic and diluted loss per share was (0.3)p, unchanged from the prior year.

• Net cash flow from operating activities was negative £0.7 million.

Outlook and guidance

• Focus for 2026 is on rebuilding scale and operations in the UK and globally, and refinancing existing debt.

• Forecasts show a generally cash-neutral position over the next 12 months, with growth expected in Turkey and India.

• Directors intend to resume dividend payments when financially prudent.