Mothercare PLC Share price movement and media speculation (5507G)
March 02 2018 - 6:00AM
UK Regulatory
TIDMMTC
RNS Number : 5507G
Mothercare PLC
02 March 2018
02 March 2018
MOTHERCARE PLC
Statement re share price movement and media speculation
Mothercare plc, the leading global retailer for parents and
young children, notes the recent movements in its share price and
media speculation and provides an update.
Since our trading statement of 8 January 2018, our trading and
financial performance has remained broadly in line with the Board's
expectations. Given the successful management actions on cash
generation, we now expect net debt at year-end to be slightly
better than the GBP50 million previously guided, and for adjusted
group profit before tax to be at the lower end of the previously
guided range of GBP1-5m.
Reflecting the more challenging trading environment and our
seasonal cash flows, we are working with our financing partners
with respect to our financing needs for FY19 and beyond. We
forecast our borrowings to increase towards the limit of our total
committed and non-committed facilities at various points from the
start of the new financial year, and will therefore require waivers
of certain financial covenants. We are also exploring additional
sources of financing to support and maintain the momentum of our
transformation programme. All of these discussions are ongoing.
As previously announced and as part of our transformation
strategy we have taken decisive action to reduce our central cost
base. The business is also continuing with its planned strategy of
reducing the UK store estate whilst increasing digital
capabilities, with over 40% of our sales now being taken through
digital channels.
A further announcement will be made in due course.
Mark Newton-Jones, Chief Executive Officer of Mothercare plc,
said:
"The retail sector continues to face a number of pressures that
are clearly having a profound impact on the sector as a whole.
Against this backdrop we are performing in line with our
expectations and remain a cash generative business, but we also
need to push ahead with our transformation strategy to meet our
customers' needs and continue adapting to evolving shopping habits
around the world.
We are working together with all our stakeholders, including
colleagues, franchisees, financiers, suppliers and pensions
trustees on this next phase of our transformation and their part in
delivering these plans. The support already being shown gives us
confidence that, despite the challenges, there remains a clear way
forward for Mothercare to realise its ambition to be the leading
global retailer for parents and young children."
ENDS
Investor and Analyst enquiries to:
Mothercare plc
Mark Newton-Jones, Chief Executive Officer 01923 694935
Glyn Hughes, Chief Financial Officer 01923 694935
Media enquiries to:
MHP Communications:
Simon Hockridge / Tim Rowntree 020 3128 8789
Notes:
1. This announcement contains inside information for the
purposes of Article 7 of Regulation (EU) No 596/2014.
2. The person responsible for the release of this announcement
is Alice Darwall, Mothercare Group General Counsel and Company
Secretary at Mothercare plc, Cherry Tree Road, Watford,
Hertfordshire, WD24 6SH.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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