Mothercare (MTC) H2 2025 earnings summary

Executive summary

• Worldwide retail sales by franchise partners fell 18% year-over-year to £230.6m, mainly due to Middle East uncertainty and the end of the UK Boots partnership.

• Adjusted EBITDA dropped to £3.5m from £6.9m, with an adjusted loss before tax of £2.5m (2024: £3.5m profit).

• A joint venture with Reliance in South Asia and refinancing reduced net borrowings to £3.7m (2024: £14.7m).

• The business remains asset-light, focused on global franchising and brand management.

Financial highlights

• Revenue: £38.9m (2024: £56.2m); profit from operations: £16.0m (2024: £6.7m).

• Statutory profit after tax: £6.2m (2024: £3.3m); adjusted loss: £2.5m (2024: £3.5m profit).

• Net borrowings at year-end: £3.7m; cash: £4.3m.

• Net liabilities improved to £9.4m from £30.1m, driven by the JV and debt reduction.

• Pension deficit reduced to £21.1m (2024: £24.2m).

Outlook and guidance

• Focus on restoring UK presence, expanding into new markets, and leveraging the South Asia JV and Turkey license.

• Board expects the business model can support higher volumes, with most incremental income dropping to the bottom line.

• Ongoing discussions with lenders and pension trustees to defer payments and renegotiate terms.