Positives25 Sep 2025 10:00
- Returned to statutory profit: £6.2m in FY25 (up from £3.3m in FY24).
- Net debt reduced to £4.5m (from £14.9m in FY24).
- Significant deleveraging achieved through the India JV deal.
- Working capital position improved to a £0.8m asset (vs. £17.5m liability in FY24).
- Shareholders’ equity deficit reduced to £9.4m (vs. £30.1m deficit in FY24).
- Joint Venture with Reliance (India/South Asia):
£16m cash received.
- 49% retained stake valued at ~£10.8m.
- Strengthened balance sheet and reduced financing needs.
- Turkey License Agreement (Ebebek): 10-year exclusive brand rights in Turkey.
- Access to 280 stores and ~£400m revenue partner.
- Option for sourcing and re-branding products globally.
- Demonstrated resilience of brand IP value with deals in South Asia and Turkey.
- Underlying international retail sales (ex-UK) were positive despite global uncertainty.
- UK contributed £20m sales and ~£1.3m EBITDA in FY25.
- ERP system launched – annual savings >£1m, improved supply chain integration.
Tighter cost controls delivered £2.1m in savings, including £0.5m from IT.
- Pension deficit cut dramatically: from £124.6m in 2020 to £35m (Staff Scheme).
- Executive Pension Scheme now in surplus, buy-out targeted for 2026.
-Trustees supportive, allowing deferrals of FY26 contributions.
- Mothercare remains a globally trusted heritage brand.
- Opportunities to expand: still absent in 8 of top 10 global markets by wealth/birth rate.
- Strong demand potential: ~30m births annually in addressable markets, only ~700k in the UK.
- Business model is asset-light, scalable, and can support much higher volumes.
- Successful refinancing with Gordon Brothers:
- Old £19.5m high-interest loan replaced with £8m lower-rate facility.
- Lower financing charges going forward.