Mothercare appoints first CEO in two years as profits drop
Mother and child retailer Mothercare has revealed a drop in interim profits today, coinciding with the appointment of Daniel Le Vesconte as its new Chief Executive Officer.
H1 results for the financial year revealed international retail sales by franchise partners reached £162.1 million, a drop from £184.3 million in 2021. Excluding sales from Russia, the business actually saw retail sales increase 15% over last year.
The business reported adjusted EBITDA of £3.2 million (a drop of £2.4 million from H1 in the year previous), reflecting the loss of contribution from Russia for the whole of the current period, which was around £2.9 million for the equivalent period last year.
Other financial highlights included:
- Group adjusted profit before taxation from operations of £2.9 million (H1 FY22: £5.2 million)
- Total Group profit before taxation of £0.8 million (H1 FY22: £4.0 million)
- Successfully completed the refinancing of the business, without further equity dilution
- Net debt reduced to £11.6 million (£13.3 million at 25 September 2021)
- Pension scheme deficit materially reduced to £42 million at 30 September 2022
Le Vesconte will join Mothercare in the new calendar year. He brings a "wealth of international brand experience" in direct to consumer, franchise, wholesale and licensing, having held senior leadership roles for several globally recognised brands including Abercrombie and Fitch, Hollister and Gilly Hicks, Dr Martens, and Vans (VF Corp).
Commenting on the appointment, Clive Whiley, Mothercare Chairman said: “I am delighted that Dan is joining Mothercare as our CEO. Dan’s extensive experience in the retail direct-to-consumer, wholesale and licensing sector will be a great asset to the team and me as we focus upon restoring critical mass and driving the Mothercare brand globally over the next five years.”
Dan Le Vesconte, added: “I am very excited to be part of the Mothercare team and look forward to working with our global stakeholders to spearhead the growth of the iconic Mothercare brand into the next generation.”