Mothercare predicts that it will generate a ‘modest’ profit this year despite a 40 per cent drop in sales.
The maternity care retailer, which has been in administration in the UK since 2019, reported worldwide franchise retail sales of £326m for the financial year to March 2021.
The £216m drop in sales reflects the impact of Covid-19 on various markets around the world, the company said.
Mothercare reported a net debt of £12.1m at year end. The company said it performed “broadly in line” with expectations and now predicts a small EBITA profit for the year ended 27 March 2021.
Clive Whiley, Chairman of Mothercare, said: “Our performance in 2021 shows that whilst we are not immune to the impact of the pandemic on our franchise partners’ operations around the world, we have ended the year in a far stronger position than we started it. Our resilient performance and financial position bears out the robustness of the Mothercare business today, delivering what will be a positive if modest EBITDA result for the year. We enter FY22 as a conservatively financed, cash generative and profitable business.
“We expect 2022 to be a year of further progress and we can now focus upon developing our strategy and future plans to optimise the competencies and attributes of Mothercare over the next five years. That is an exciting prospect for all of our staff and stakeholders as we hopefully exit this most uncertain of times.”
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