Mothercare losses widen in the year of the pandemic
Baby clothing and baby care group Mothercare has announced full year results for the 52 week period to 27 March 2021, with a statutory loss of £21.5 million, a bigger loss than the £8.5 million reported last year.
The company, which transformed itself into a brand-owning business that franchises its retail operations, has reported revenues of £85.8 million, a drop from £164.7 million a year earlier, partially due to COVID-19 affecting its operations.
The chain shut its 79 UK stores in January 2020 as part of its transformation plan and subsequently sealed a deal with Boots to sell goods across the chain and maintain its brand in the UK.
Net debt at Mothercare for the financial year reached £13.5 million, a reduction on the £22.1 million reported in 2020's results.
Clive Whiley, Chairman of Mothercare, commented: "The past financial year has clearly been a challenging one, however, despite the backdrop of the pandemic, we have made a tremendous amount of progress in fundamentally transforming the Group.
"We expect 2022 to be a year of further progress as we focus upon developing our strategy and future plans to optimise the Mothercare brand globally over the next five years. These are exciting times as, notwithstanding the continued impact of the pandemic in many of our franchise partners territories, without the distractions of the last three years we are seeking to accelerate the growth of the business and the Mothercare Brand. We look to the future with great optimism having established a strong and efficient platform with multiple opportunities for growth."