Mamas & Papas suffers second straight year of loss

2744
Mamas & Papas
// Nursery specialist retailer records a second consecutive year of loss
// Turnover also declined Y-o-Y
// Board “comfortable” given challenging backdrop, but sales have declined since 2011

Mamas & Papas has suffered a second consecutive loss-making year, as it continues to try and overcome the challenges facing the nursery sector.

According to accounts filed recently at Companies House, the retail division of the maternity and nursery firm saw operating improve slightly year-on-year, from £4.41 million to £4.31 million for the 52 weeks ending April 1, 2018.

Meanwhile, its EDITDA came in at a loss of £2.38 million for period, a slightly deeper than the £2.33 loss recorded the year prior.

Mamas & Papas’ annual turnover also reduced from £78.19 million to £72.94 million year-on-year, which was attributed to the closure of loss-making stores in the prior year.

The board was “comfortable” with the performance of Mamas & Papas’ retail arm given the ongoing pressures on promotional activity and aggressive pricing in the sector, despite the fact that the baby and nursery specialist has suffered declining sales since 2011.

Mamas & Papas highlighted that online transactions now make up 30 per cent of its total sales.

Mamas & Papas was founded in 1981 in Huddersfield by David and Luisa Scacchetti, whose family retain a minority stake in the company.

It is currently owned by Blue Gem Capital Partners, the same private equity firm behind the Liberty London department store and Jack Wills.

Mamas & Papas operates 31 stores in the UK and almost 900 staff.

Click here to sign up to Retail Gazette‘s free daily email newsletter