The company reported an adjusted EBITDA of £6.7 million for FY23. However, this figure was down from £12 million reported in the previous year. Furthermore, net borrowings at year-end rose to £12.4 million, compared to £9.9 million in FY22, the company said in a press release.

In terms of group performance, Mothercare faced a decline in both turnover and adjusted operating profit. Turnover decreased by 11 per cent, falling to £73.1 million from £82.5 million last year. Adjusted operating profit experienced a steeper decline, falling 44 per cent from £11.1 million to £6.2 million.

The first twenty-five weeks of FY24 have seen the group's franchise partners record total retail sales of £132.5 million, a decline from £156.8 million in FY23. This drop is primarily attributed to continuing challenges in the Middle Eastern markets.

However, Mothercare's medium-term outlook remains optimistic. The company maintains that under more normal circumstances, its continuing franchise operations are capable of exceeding £10 million in operating profit. The company also sees opportunities for further global expansion.

"I am pleased with the progress Mothercare has made during the year as we continue our transformation towards an asset-light, global franchising business. Our priority over the last 12 months has been the continued execution of our transformation plan and cementing Mothercare's future as a sustainable business model, for the benefit of all our stakeholders,” said Clive Whiley, chairman of Mothercare.

Fibre2Fashion News Desk (DP)