Mothercare warns of trading uncertainty as revenue falls 42%

Mothercare has issued a warning of ‘material uncertainty’ regarding its ability to continue trading if market conditions deteriorate. The London-listed baby products retailer reported a 42% plunge in annual revenue, falling from £38.9 million to £22.4 million for the year ending March 28, 2026.

The company swung to a statutory loss of approximately £5 million, compared to a profit the previous year. Financial pressures include a rise in net debt to £6.4 million and a breach of financial covenants, which has placed its £8.46 million loan facility in default. While the lender has not yet demanded immediate repayment, the facility is technically repayable on demand.

Several factors contributed to the decline, including instability in Middle Eastern markets and the conclusion of an exclusive UK distribution partnership with Boots at the end of 2025. Although the company believes it has sufficient cash to operate for at least the next 12 months, auditors noted that the group may be unable to meet its liabilities without additional funding or successful financial restructuring.

Following the closure of its UK high street stores in 2020, Mothercare has pivoted its business model to focus on international franchise partners and product manufacturing for other retailers.