Mothercare has temporarily halted the trading of its shares on the AIM market due to a delay in publishing audited results.
- The retailer missed the deadline for its audited results for the year ending March 2024 because of ongoing refinancing discussions.
- Mothercare is finalising a refinancing deal aimed at significantly reducing its net debt and ongoing cash financing costs.
- The company expects to release its 2023/24 audited accounts within weeks, anticipating results in line with previous guidance.
- Challenges in the Middle Eastern market, which accounts for a significant portion of sales, persist into the new financial year.
Mothercare has made the decision to suspend trading of its shares on the AIM market after missing the deadline for publishing its audited results. This move, effective from 1 October, follows ongoing delays as the company is deeply engaged in refinancing negotiations.
The company is working on finalising a refinancing deal with its current lender. This deal includes monetising certain intellectual property assets, which is expected to fundamentally recapitalise Mothercare, thereby reducing its net indebtedness and ongoing cash financing costs. Mothercare aims to conclude these negotiations soon.
Despite these delays, Mothercare plans to publish its audited accounts for the fiscal year 2023/24 within the next few weeks. The company anticipates that the results will align with existing guidance from its trading statement in May, which projected an EBITDA, excluding adjusted items, slightly above the previous year’s £6.7 million.
In May, Mothercare highlighted the challenging market conditions in the Middle East, a region that contributes to 41% of its total retail sales. As of now, it confirms that the trends and challenges identified earlier remain largely unchanged, indicating a continued difficult trading environment in that region.
Mothercare is navigating complex financial challenges as it seeks to stabilise its operations and financial standing.
