Mothercare’s pre-close trading update shows that despite a 40% drop in sales, the retailer expects to see a ‘positive but modest’ result this year.
In the update, Mothercare reported that its net franchisee retail sales globally were down by 40% to £326million for the year to 27 March 2021, due to the impact of COVID19 across all of the territories in which it operates.
Net debt has also been reduced to £12.1 million during the year, following the closure of all of its 79 stores in early 2020.
Chairman Clive Whiley commented: “Our performance in 2021 shows that, while 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 2021/22 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.”
Mothercare will release its preliminary results for the year to 27 March 2021 in late July.
