Mothercare loses £21.5m

Mothercare has reported a loss of £21.5 million in its latest end of year results.

The loss, which was accumulated across the 52 weeks to 27 March 2021, was more than double that of the previous year. During the preceding 12-month period, the retailer experienced a loss of £8.5 million.

Total profit for the year was £13.1 million.

The company said that the group’s franchise partners, many of whom continue to be impacted by Covid-19 lockdowns, recorded sales of £94 million in the first 13 weeks of the current financial year. Mothercare has reported EBITDA of £2.5 million across the same period.

But based on the implementation of a new operating model, reduced cost structures, and the elimination of significant legacy issues, the British retailer expects a significant improvement on operating profits for this year.

"The past financial year has clearly been a challenging one, however, despite the backdrop of the pandemic, we have made a tremendous amount of progress in fundamentally transforming the Group,” said Clive Whiley, chairman of Mothercare. “We expect 2022 to be a year of further progress as we focus upon developing our strategy and future plans to optimise the Mothercare brand globally over the next five years.”

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