Latest news with #CliveWhiley
Yahoo
10-05-2025
- Business
- Yahoo
Mothercare FY25 sales slide 18% on tough Middle East market
In the pre-close trading update for FY25 Mothercare also identified that some impact from the UK market contributed to the downturn due to the termination of its exclusive distribution agreement with Boots at the close of 2025. In the year ending 29 March 2025 (FY25), Mothercare said its earnings before interest, taxes, depreciation, and amortisation (EBITDA) to be around £3.5m 'in line with market expectations'. This projection is a significant drop from the £6.9m adjusted EBITDA reported for the period ending March 2024. The company again attributed this decline largely to the ongoing instability in the Middle East affecting franchise partner operations, which led to a reduction of Mothercare store count by 47, totalling 77 stores by March 2025. Mothercare chairman Clive Whiley said: 'Our results for last year reflect the impact of the continuing uncertainty on our franchise partners' operations in the Middle East. However, the de-leveraged business resulting from the recent India joint venture and refinancing, together with the ongoing support of our lender and pension trustees, is enabling us to continue to explore the full bandwidth of growth opportunities through connections with other businesses, the development of our branded product ranges and licensing within and beyond our existing perimeters.' Despite these challenges, Mothercare observed that excluding the UK market, retail sales on a like-for-like basis remained positive throughout the fiscal year to March 2025. This resilience occurred amidst widespread economic uncertainties. The company also noted that its franchise partners are still working through excess inventory resulting from reduced demand during the pandemic. While some territories are concluding this process, it is anticipated that these factors will continue to affect group results in FY26. Mothercare ended the year with £4.4m in cash, down from £5.0m in March 2024, and had fully drawn upon its revised loan facility of £8.0m. Current retail sales levels, especially in Middle Eastern markets, necessitate waivers for covenant tests, according to board forecasts. The company said it maintains regular and constructive discussions with its lender regarding these forecasts. Whiley added: 'Given the factors influencing some of the company's operating markets, our immediate priority remains to support our franchise partners, ultimately for the benefit of our own business. In that context we remain in discussions with several parties to restore critical mass alongside delivering our remaining core objectives. The underlying business has continually proved its resilience and the strength of the brand is evident from the interest it generates and the resultant discussions with potential strategic partners we are having.' "Mothercare FY25 sales slide 18% on tough Middle East market" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion United
09-05-2025
- Business
- Fashion United
Mothercare sales decline amid Middle East challenges, ends Boots distribution deal
Mothercare plc has issued a pre-close trading update for the 52-week period ending March 29, 2025 reporting unaudited retail sales of 231 million pound, an 18 percent decline from the previous year, primarily due to ongoing challenges in Middle Eastern markets. Adjusted EBITDA is expected to be approximately 3.5 million pounds, aligning with market expectations, but down from 6.9 million pounds in the prior year. Chairman Clive Whiley emphasized the company's resilience and ongoing discussions with potential strategic partners to restore growth and achieve core objectives. 'Our results for last year reflect the impact of the continuing uncertainty on our franchise partners' operations in the Middle East,' Whiley said. 'However, the de-leveraged business resulting from the recent India joint venture and refinancing, together with the ongoing support of our lender and pension trustees, is enabling us to continue to explore the full bandwidth of growth opportunities through connections with other businesses, the development of our branded product ranges and licensing within and beyond our existing perimeters,' he added. The reduction in sales is largely attributed to the persistent uncertainty affecting franchise partners in the Middle East, leading to a decrease in store numbers from 124 to 77 over the year. Additionally, the company is ending its exclusive distribution relationship with Boots in the UK by the end of 2025, aiming to explore new partnerships that better align with its brand strategy. Despite these challenges, Mothercare has managed to reduce its net borrowings to 3.7 million pounds, down from 14.7 million pounds the previous year, aided by a recent joint venture in India and refinancing efforts.
Fashion Network
08-05-2025
- Business
- Fashion Network
Mothercare to end UK Boots deal, India JV helps cut debt, Middle East sales drop
That £3.5 million EBITDA figure would mean a fall from the previous year's £6.9 million, driven by the 'uncertainty in the Middle East on our franchise partners' operations. Our franchise partner has reduced the store numbers of many of its brands and specifically for Mothercare our store numbers across the year have reduced by 47 to 77 stores at March 2025'. But it's not only the Middle East that's affecting sales and profits. The company said the fall in net worldwide retail sales by franchise partners from £281 million a year ago can also be partly blamed on the UK, albeit to a lesser extent than the Middle East. The company is clearly not happy with how its UK ops have been progressing and said it's ending its exclusive distribution relationship with Boots at the end of 2025, 'as we believe there is a greater opportunity for the brand and a new partner in the UK'. It added that when the UK is taken out of the mix, 'the underlying strength of the business is demonstrated that on a like-for-like basis our total retail sales were positive for the full year to March 2025, despite the prevailing global economic uncertainties'. Unfortunately for the company, 'in addition to the global economic uncertainties, in many of our territories our partners are still clearing inventory due to the suppressed demand during Covid-19. Whilst there are signs of this process concluding in some territories, we expect these factors will continue to impact the group results in FY26'. As for financing, at the year-end Mothercare had total cash of £4.4 million, down from £5 million a year earlier. Its revised loan facility remained fully drawn across the year. Forecasts for continuing operations show the group requiring waivers to its covenant tests. 'We continue to have regular and positive discussions with our lender, [which is] aware of our forecasts,' it said and added that 'the group does not require additional liquidity'. Chairman Clive Whiley remained cautiously upbeat. He said: 'Our results for last year reflect the impact of the continuing uncertainty on our franchise partners' operations in the Middle East. However, the de-leveraged business resulting from the recent India joint venture and refinancing, together with the ongoing support of our lender and pension trustees, is enabling us to continue to explore the full bandwidth of growth opportunities through connections with other businesses, the development of our branded product ranges and licensing within and beyond our existing perimeters. 'Our immediate priority remains to support our franchise partners, ultimately for the benefit of our own business. We remain in discussions with several parties to restore critical mass alongside delivering our remaining core objectives. The underlying business has continually proved its resilience and the strength of the brand is evident from the interest it generates and the resultant discussions with potential strategic partners we are having.'
Reuters
15-04-2025
- Business
- Reuters
De La Rue's final deal looks surprisingly positive
LONDON, April 15 (Reuters Breakingviews) - De La Rue's (DLAR.L), opens new tab rocky road on the public market may end on an unexpected high. On Tuesday, the UK banknote printer said, opens new tab it had accepted a 263-million-pound ($348 million) offer from U.S. private equity group Atlas. For a company that has spent years breaking itself up while battling seemingly terminal decline, it's a reasonable outcome. De La Rue has been around for over 200 years. In its earlier life, the company expanded across the globe and ended up winning contracts from clients as diverse as the Bank of England and far-flung money-printing authorities in Mauritius and Kuwait. But the decline of cash in recent decades, and the loss of a contract for printing British passports in 2018, have caused financial pain and plenty of profit warnings. In 2022 the company had a public fight with its auditor EY over a warning in its accounts that the company may struggle to survive as a going concern. Then in 2023 the group requested to defer payments intended for its pension scheme and activist shareholder Crystal Amber Fund called for a new chair and business plan. The shares then traded at a fraction of their current value. Enter Clive Whiley in 2023. Since his appointment to lead the board, De Le Rue's shares have increased nearly fourfold thanks to a focus on cutting costs. The group is also in the process of selling its authentication business, which helps governments detect fraud, to U.S. industrial technology company Crane NXT (CXT.N), opens new tab. Buyout group Atlas is effectively taking over the remaining banknote business, the last vestige of a once-sprawling empire. The rise of digital money might, in one sense, make that seem like a dicey bet. In 2023, opens new tab in the United Kingdom, opens new tab, for example, only one in five transactions were made in cash, according to the British Retail Consortium. Yet Atlas may have its eye on the classic private-equity playbook of boosting cash flows by taking an even greater axe to costs. There appears to be some scope to boost profitability. Ten years ago, the business operated with an EBITDA margin of nearly 20%, which has since declined to under 13%. And the authentication-division sale will bring in 300 million pounds next month, which implies net cash for De La Rue of about 100 million pounds, according to a person familiar with the business, giving Atlas plenty to play with. For a centuries-old company, there seems to be a surprisingly large amount of value left to extract. Follow @aimeedonnellan, opens new tab on X U.S. private equity firm Atlas on April 15 said it had agreed to buy British banknote printer De La Rue for 263 million pounds. The 130 pence per share all-cash deal implies a 16% offer premium to De La Rue's closing price on April 14. Shares in De La Rue were up almost 16% to 129.54 pence as of 1053 GMT on April 15. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Sky News
06-04-2025
- Business
- Sky News
Banknote printer De La Rue close to £300m sale of authentication arm
De La Rue, the Bank of England's currency printer, is closing in on the £300m sale of one of its two core businesses – a move that will pave the way for a takeover of its remaining operations. Sky News has learnt that De La Rue is expected to announce to the London Stock Exchange as soon as Monday morning that it has received agreement on a binding offer for its authentication arm from Crane NXT, the US-listed group. Banking sources said the deal - first announced last October - was now expected to be completed at the end of this month. The sale of the authentication division, which works with government clients by providing traceability software to help detect fraud, will leave De La Rue locked in talks with potential buyers of its market-leading currency printing business. De La Rue is running a formal sale process under Takeover Panel rules, with a string of parties said to have expressed an interest in it since the period began late last year. Among its potential suitors has been Edi Truell, the prominent City financier and pensions entrepreneur. De La Rue's directors, led by chairman Clive Whiley, have been exploring several alternatives to maximise value for long-suffering shareholders, including a standalone sale of the currency-printing business or other proposals to acquire the entire company. Its balance sheet has been under strain for years. In 2023, De La Rue was forced to seek breathing space from its pension trustees by deferring tens of millions of pounds of payments into its retirement pot. Soon after that, the company parachuted in Mr Whiley, a seasoned corporate troubleshooter, as chairman, with a mandate to repair its battered finances. Since then, its stock has recovered strongly and is up 31% over the last year. Its banknote printing arm is one of the world's market leaders in the sector, and has contracts with leading central banks around the world. In recent years, the British company has been beset by a series of corporate mishaps, including a string of profit warnings, a public row with its auditor and challenges in its operations in countries including India and Kenya. De La Rue traces its roots back to 1813, when Thomas De La Rue established a printing business. Eight years later, he began producing straw hats and then moved into printing stationery, according to an official history of the company. Its first paper money was produced for the government of Mauritius in 1860, and in 1914 it began printing 10-shilling notes for the UK government on the outbreak of the First World War.
