Mothercare suspends share trading on AIM market after missing its audited results deadline amidst refinancing talks.
- The suspension is effective from 1 October and follows a missed deadline for publishing audited results.
- Mothercare is near finalising a refinancing deal with its current lender, potentially reducing debt and cash financing costs.
- The company plans to publish its delayed audited accounts soon, expecting results in line with previous guidance.
- Challenges in the Middle East market, accounting for 41% of sales, persist into the new financial year.
Mothercare has announced the temporary suspension of trading in its shares, effective 1 October, due to missing the deadline to publish audited results for the financial year ending March 2024. This move is occurring amidst ongoing refinancing negotiations.
The retailer is in the final stages of securing a refinancing deal with its current lender. This arrangement is expected to fundamentally recapitalise the business by reducing net indebtedness and lowering ongoing cash financing costs through monetisation of certain intellectual property assets.
The audited accounts, initially delayed, are expected to be published over the coming weeks. Mothercare anticipates these results will align with previously communicated expectations outlined in its trading statement from 10 May. At that time, the company projected an EBITDA before adjusted items to be slightly above the £6.7 million achieved in the prior year.
Challenges continue in the Middle East market, which remains a significant part of Mothercare’s sales, contributing to 41% of total retail revenue. The trends highlighted in May concerning these challenges are largely unchanged as the company moves into the new fiscal year.
Mothercare is navigating financial restructuring amidst persistent market challenges, aiming to stabilise its operations.
