Mothercare has warned of “material uncertainty” over its ability to continue trading if conditions deteriorate further, as annual revenue plunged 42 per cent.
It saw group revenue fall from £38.9m to £22.4m in the 52 weeks to 28 March 2026, while adjusted EBITDA dropped 63 per cent from £3.5m to £1.3m.
Mothercare swung to a £5m statutory loss during the period, compared with a £6.2m profit the year before, while net debt rose to £6.4m from £4.5m.
Worldwide retail sales through its franchise partners fell 22 per cent to £180m, which the retailer attributed to continued uncertainty across its Middle Eastern markets and the end of its exclusive distribution partnership with Boots in the UK at the end of 2025.
Trading has remained under pressure in its new financial year, with franchise partners recording sales of £58.5m in the first 19 weeks of FY27, down from £68.8m in the same period last year.
However, Mothercare said like-for-like sales outside the Middle East and UK were positive over the period.
The retailer said its base-case forecasts indicated it has enough cash to operate for at least the next 12 months, but warned that worsening trading or difficulties resolving its financial restructuring could leave it unable to meet its liabilities without additional funding.
The group’s £8.46m loan facility, which has been extended to December 2027, is currently in default after Mothercare breached financial covenants and is therefore technically repayable on demand.
Mothercare said its lender has not indicated that it intends to demand immediate repayment.
It is also seeking to renegotiate its defined benefit pension deficit repayment plan, with contributions deferred until March 2027 while a new payment schedule is agreed.
Mothercare chairman Clive Whiley said: “The recent financial performance has been resilient as we look to FY27,” despite challenges in the Middle East and the end of its Boots arrangement.
He added that the business remained in discussions to rebuild scale, supported by its recent refinancing.
The former high street stalwart closed all 79 of its UK stores after its domestic business fell into administration in 2019, and has since operated primarily as a global brand owner through franchise and licensing partners.
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