Mothercare has posted falling sales and sliding profits after it swung to a loss during the first half.
Mothercare reported a loss before tax of £1.4m for the 26 weeks to September 28, 2024, down from a profit before tax of £1.8m in the previous year.
Adjusted EBITDA during the half fell 53% to £1.7m, compared to £3.6m in the first half of last year.
Turnover for the period dropped to £21m from £29m during the same period last year while worldwide retail sales by franchise partners also fell from £137.2m to £121.2m.
Mothercare attributed the decline in sales to “unchanged conditions” in the Middle East, one of its largest markets.
Mothercare chair Clive Whiley said: “Since the half-year end we announced both a new £30m joint venture for the South Asian region, with Reliance Brands Holding UK Limited and subsequent revised financing arrangements, reducing secured debt facilities by 60% to £8m and our annualised cash interest cost by over 75%.
“We have immediately utilised this new India joint venture and refinancing as a springboard for a deleveraged Mothercare to explore the full bandwidth of growth opportunities through connections with other businesses, the development of our branded product ranges and licensing within and beyond our existing perimeters.
“Our results continue to reflect the impact of the continuing uncertainty on our franchise partners’ operations in the Middle East. We are now focused on restoring critical mass alongside delivering our remaining core objectives. This is an exciting prospect for all our partners, colleagues and stakeholders as we can finally leave behind the turmoil of recent years that Mothercare has successfully come through.”
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