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25.8M shares.
25 + Million buy, I wondered why the SP had been dropped we know why now.
Overall I'm very pleased with the latest news, they have been rebuilding the business very constructively. Due to COVID-19 I guess we all expected net sales to decline. A small EBITDA loss for the full-year," they said... this will be a fantastic achievement under the circumstances when you compare this to other retail businesses and the upside overheads bonus... P&L running a light ship. Great potential... keep up the good work Mothercare and all stay safe :)
GLA
Ironman
Mothercare (MTC) is expecting a pick-up in trading in 2022 and Shore Capital says the ‘change marathon’ is almost over for the retailer of all things baby and child related.
Analyst Clive Black reiterated his ‘buy’ recommendation after a trading update from the group that set out a small earnings loss in 2021 and a ‘cautiously better outlook’ for 2022, with sales expected to grow.
‘The journey has been long and hard for Mothercare and, frankly, it is an achievement that it has survived everything that has been thrown at it because this was a business with chronic pre-existing business health conditions,’ he said.
Black said that, while there were challenges ahead, it ‘feels like the vast majority of the heavy lifting has been done’.
‘The group has a more sustainable platform in which to trade and compete, including its partnership with Boots in the UK, which may at least mean more demonstrable upside progress can be chronicled in future as opposed to restructuring and firefighting,’ he said.
The shares closed up down 4.8%, or 0.6p, at 11p yesterday.
Tk yes you’re correct I was only referring to the £13.5 in terms on the existing loan I was a little miss leading there not intentional , everything else is relative to where MTC is today in terms of value.
I believe MTC is primed to rocket.
Are you sure about that manu, debt free?
The existing loan of £13.5m will be converted to new shares at 10p a share. That is share dilution. They have also been offered warrants up to 15m shares at 12p.
We then have new borrowing not at £13.5m but an extra £19.5m at 12% for 4 years.
Correct me if I’ve not understood the rns but to me we have increased the debt substantially.
The unusual trades from what I can see points to someone want's in, as for dilution that's to clear the debt so will make no difference to the SP if anything it will move up plenty we`ll be debt free.
These movements in the SP I believe are to let a big buyer in.
I can’t see a reason for the unusual trades this week. We still have the cloud of moving to the aim market and the share dilution coming up.
MM’s Dropping the SP again to let there mates in again.
So rigged.
Someone is thinking like a millionaire :)
Yes, hype of share activity this week.
Look at yesterday’s trades also
£1m buy order executed at 08.46 & SP currently up 13%. Hmmm.
Would be interesting to know if they moved the staff into the new head office or if everyone is working remotely. My guess is that the 100+ staff have never worked from the new head office which would prove the business is easily transferable. You would have to think that mtc is a target to be bought out, look at the mcap. Ask yourself why there hasn’t been a ceo appointed.
Tktowers Hi,
Agree with your comments, not concerned reference Baby boom comment from Pikachu2020 as Mothercare are worldwide not just UK. More interested in Mothercare baby market share V.S competitors "market positioning" and product sales on-line and in stores - product sales turnover around the world. As I write, noted Boots are doing half price on selected Mothercare clothing. As you state an update on delist from market Q1 and how this is progressing with junior aim market and New CEO that was mentioned last year would be welcome news for all us shareholders. Even though Covid-19 has seriously impacted retailers, I do believe Mothercare has great upside potential - lighter ship, debt reduced, national franchises, funding agreement and transformation plan in place. More frequent news would be beneficial to all concerned for this hopefully positive cash-generative franchise business in 2021 and onwards.
ATB,
Ironman
sizable £42k buy @ 11:01
Baby Boom is sound like a Baby Bust!
https://www.msn.com/en-gb/money/other/lowest-number-of-births-in-the-uk-since-records-began-predicted/ar-BB1cx6LD
Or lack of. When or are we going over to the AIM market, are we getting a new CEO and are we getting the share dilution on 31/1. How is the Boots deal going ? This share has gone stale and I believe the BoD need to keep us shareholders informed better. Hopefully a rns soon.
Have I missed something but have Mothercare appointed a new CEO ?
Looking forward to reading in-season sales results and latest update on CEO.
ATB
Ironman
From the recent RNS:
"Agreement reached with the holders of the Group's GBP13.5m convertible unsecured loans issued in 2018 and 2019 ("CULS") committing to convert these to equity on 31 January 2021 subject to certain conditions including the approval of certain matters by shareholders, including the relisting of the Group onto AIM."
https://www.ii.co.uk/analysis-commentary/shares-round-britvic-mothercare-ii514306
https://www.just-style.com/news/mothercare-secures-gbp195m-to-clear-debts_id140186.aspx
Good read and positive.
As unemployment increases, birth rate increases. More births will equate to increase in revenue. Next few years will see a baby boom.
Good luck all
Very positive transformation plan and I strongly believe they will deliver operation and financial performance in line with their business strategy going forward especially from 2021. Agreements - ten years franchise with Boots and twenty years with Alshaya Group supports this transformed light ship, whilst they continue to clear debt, increase sales and achieve new business accounts.
I certainly will continue to invest and increase my investment holding... the future is certainly very exciting.
Mothercare is significantly stronger now.
Solid RNS update and strong buy for me :)
ATB
Ironman
What does that mean though come end of January.. current share holders will be diluted?
I do think this is a growth stock and should be held with a long term view.
I refrained from investing in ASOS back in March when it was close to £1 a share afraid of being diluted as they were issuing new shares to generate cash, this was followed by them revealing stellar results..I think could have made about 5 fold the return : (
I am hoping the missed opportunity there I will see materialise with mothercare... fingers crossed.. GLA