Mothercare Plc Announced FY2019 Results

Mothercare Plc Announced FY2019 Results

Global retailer Mothercare Plc is the leading specialists for the parents and young children. The group reported its full year financial results for the year ended March 30, 2019. The general retailer’s total revenue, including continuing and non-continuing operations, stood at £566.3 mn and recorded a decline of 13.5% against the previous financial year.

The retailer’s adjusted pre-tax loss for the year under review stood at £8.6 mn against a loss of £6.8 mn in the year-ago. However, the group’s pre-tax loss for the year under review stood at £87.3 mn against a loss of £72.8 mn in 2018.

From the continuing operations standpoint, retailer for parents and young children reported revenue of £513.8 mn as compared with the revenue of £580.6 mn recorded in the FY18 period. Revenue from the continuing operations slumped by 11.5% on a YoY basis.

Retailer’s international sales slumped by 4.7% on a like-for-like basis. On a constant currency basis, international sales declined by 0.3% against 5.7% decline in FY18. Total international sales on a reported basis slumped by 11.0% to £ 177.2 mn.

Sales in the UK on a like-for-like basis declined by 8.9%, and UK’s online sales slumped by 8.0% to £140.1 mn from £ 152.3 mn in the corresponding previous year. Total UK sales for the year under assessment declined by 11.8% to £336.6 mn from £381.5 mn reported in the last financial year.

Majority of the reorganisation, refinancing and restructuring initiatives have been completed. The group is left with 79 stores, post completion of the store closure programme and is well positioned to serve and support the UK customer base.

The group has sold out its Early Learning Centre and their Head Office. The proceeds realised out of sales will be utilised towards bringing down their debt. In the early months of this financial year, the retailer is observing some improving trends in the UK market.

Share Performance

1Yr-Daily price chart (as on May 24, 2019), after the market closed. (Source: Thomson Reuters)

On May 24, 2019, shares of MTC closed at GBX 22.25 and surged by around 8.3% or 1.7 points against the previous day closing price. Shares have touched a 52w high of GBX 29.25 and a 52w low of GBX 14.40.

From the simple moving average standpoint (SMA), shares were trading above the 30-days, 60-days and 200-days simple moving average price.

Today’s volume in the stock of 3,030,574 was considerably above the three months average traded volume of 541,236.92 at the London Stock Exchange.

The company’s stock beta was 1.17, reflecting higher volatility as compared to the benchmark index. The outstanding market capitalisation of the group stood at around £76.04 mn, which ranks it among the small-cap stock listed on the London Stock Exchange.