Mothercare has suspended share trading on the AIM market due to missed deadlines for audited results, coinciding with refinancing talks.
- The suspension became effective on 1 October after failing to meet the 30 September deadline for publishing audited results.
- Refinancing negotiations with an existing lender and monetizing certain IP assets are in the final stages.
- Despite delays, Mothercare expects audited results to align with previous guidance indicating slight improvement from last year.
- Challenging market conditions, particularly in the Middle East, continue to impact Mothercare’s financial outlook.
Mothercare has temporarily halted the trading of its shares on the AIM market as of October 1, following a failure to meet the September 30 deadline to release its audited financial results for the year ending March 2024. This decision aligns with ongoing refinancing negotiations and the monetization of certain intellectual property assets aimed at recapitalizing the company.
The company is working closely with its existing lender to finalize a refinancing deal designed to reduce net indebtedness and lower ongoing cash financing costs. As part of this financial restructuring, the monetization of selected IP assets is expected to provide significant recapitalization support.
Mothercare anticipates releasing its 2023/24 audited accounts in the coming weeks. The firm remains optimistic that these results will align with its prior trading statement issued on May 10, which projected an EBITDA before adjusted items slightly exceeding the £6.7 million recorded in the previous year.
While dealing with its financial affairs, Mothercare continues to navigate the difficult market environment, especially in the Middle East, which accounts for a substantial 41% of its total retail sales. The company acknowledges that the challenges identified in its earlier statements persist, maintaining a stable yet cautious outlook for the near future.
Mothercare remains committed to resolving its financial challenges while maintaining operations in key markets.
