Mothercare suspends shares due to delay in full year results

British retailer Mothercare has announced the temporary suspension of its shares on AIM as it awaits the publication of its audited full year results for the period to 30 March 2024.

The company said that it was typically required to publish its audited results by 30 September 2024, however it was in the “final stages of entering into definitive agreements to refinance its financing facilities”.

This process will be carried out with existing lenders alongside the monetisation of certain IP assets, Mothercare said in a regulatory filing, which would recapitalise the business while reducing the net indebtedness and ongoing cash financing costs.

Mothercare noted that given the delays, it was targeting the publication of the 2024 Audited Accounts “in the next few weeks following the conclusion of the audit”.

It added that results fell “in line with existing guidance” set out in its prior statement published 10 May 2024, in which it highlighted certain challenges that would impact its trading, including issues with its Middle Eastern operations.

Mothercare had already noted its intention to proceed with refinancing discussions in the report, 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.

For the year to 30 March 2024, it was anticipated that EBITDA before adjusting items would be marginally higher than the 6.7 million pounds achieved in the year prior, reflecting year-on-year improvement.

It was highlighted, however, that global economic conditions were impacting retail sales in many of Mothercare’s territories, a factor that the group said would continue to impact results in FY25.