Mothercare shares suspended after deadline for results is missed

Shares in Mothercare have been suspended after the struggling baby and maternity retailer missed the deadline for its audited results.
On Tuesday morning, the retailer asked the London Stock Exchange to stop investors from being able to buy and sell its shares, which trade on the junior Aim market.
The company said it had missed the September 30 deadline because it was in the final stages of completing a refinancing deal with its existing lender. It expects the deal, alongside a plan to monetise its global brand IP, to “fundamentally” recapitalise the business while reducing the debt and cash financing costs.
The business said it had been “taking into account these matters” as it prepared the annual accounts with its auditors.
Mothercare noted that, given the delays, it was targeting the publication of its annual accounts “in the next few weeks following the conclusion of the audit”.
It said it expects the results to be in line with guidance given in a trading statement in May, and confirmed that the trends outlined in that statement — including the challenges facing its Middle Eastern operations — remained broadly unchanged into the new financial year.
Mothercare, founded by Selim Zilkha and Sir James Goldsmith in 1961, designs, sources and supplies clothing, toys and other essential items for babies and their parents. The retailer now trades via a franchise model after it was forced to close its 79 stores in the UK in 2020, following a collapse into administration. The company had struggled amid fierce competition, too much debt and a big depreciation line from previous acquisitions that hampered profitability.
In more recent times, Mothercare has pinned a slowdown in sales on difficult trading conditions in the Middle East due to legislative changes and tough competition.
The company highlighted on Tuesday that global economic conditions were impacting retail sales in many of its territories, a factor that the group said would continue to impact results in the next financial year.
For the year to March 30, it expects earnings before interest, taxes, depreciation, and amortization (ebitda) before adjusting items to be marginally higher than the £6.7 million achieved in the year prior.
Mothercare had already noted its intention to proceed with refinancing discussions in May, stating at the time that it was “well advanced” in looking for financing alternatives intending to give both additional flexibility and reduce cash financing costs.