THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

Mothercare plc

Pre-close trading update

Mothercare plc ("Mothercare" or "the Company"), the leading specialist global brand for parents and young children, today issues a pre-close trading update for the 52 week period to 28 March 2026 (“FY26”). Comparatives are based on the 52 week period to 29 March 2025. This update is based upon draft figures pending finalisation of the year end audit.

•        Unaudited worldwide retail sales by franchise partners of £180 million for the year, representing a decline of 22% on last year (19% down at constant currency)

•        Adjusted EBITDA for FY26 at approximately £1.25 million

•        Net borrowings of £5.7 million at the year end (March 2025: £3.7 million).

•        Pension scheme deficit remains at £35 million as at 31 December 2025, which is the latest available estimate (March 2025: £35 million) on a technical provisions basis.

The performance reflects variously the end of our exclusive distribution relationship with Boots at the end of 2025, foreign exchange rate impacts and the longstanding uncertainty in our Middle Eastern markets, including the more recent impact of the Iran war in the last month of the period.

EBITDA before adjusting items for FY26, is now expected to be approximately £1.25 million, compared to the £3.5 million adjusted EBITDA for the period to March 2025. We estimate that the impact of the war in the Middle East, in the last month of the period under review, to be approximately £0.1m.

The underlying strength of the business is demonstrated by the fact that excluding the Middle East and the UK, where we continue to believe that there remains a greater opportunity for the brand and a new partner in the UK, on a like for like basis our total retail sales were positive for the full year to March 2026.

There has been no material change to the Group’s financial position since the announcement made on 20 February 2026, setting out the successful and timely refinancing of the Group’s debt facilities and the deferral of contributions to the Group’s pension schemes.

Clive Whiley, Chairman of Mothercare, commented:

“Our results for last year reflect the impact of the continuing uncertainty on our franchise partners’ operations in the Middle East, where any longer-term impact upon supply chains remains unclear at this stage, and the underlying profitability and cash generation of our asset-light franchise system.

The full refinancing of our debt facilities in February 2026 has bought additional time to engineer a more comprehensive solution to harvest the value of the brand IP and the significant operational gearing available to an expanded business. In these circumstances the recent financial performance has been usefully resilient as we look to FY27, whilst acknowledging the impact of the continuing disruption from events in the Middle East.

Given the external factors influencing some of the Company’s key operating markets, our immediate priority remains to support our franchise partners, ultimately for the benefit of our own underlying business, where the strength of the Mothercare brand endures. We remain in discussions with several parties to restore critical mass, a process greatly assisted by the recent alignment of the first-charge debt instrument with our equity.

I would like to thank all of our colleagues and stakeholders for their support and efforts in difficult circumstances, and the board remains determined to optimise the brand IP for the benefit of all stakeholders.“

Investor and analyst enquiries to:

Mothercare plc                                                             Email: [email protected]
Clive Whiley, Chairman
Andrew Cook, Chief Financial Officer                                                     
                                          
Deutsche Numis                                                 Tel: 020 7260 1000
(NOMAD & Joint Corporate Broker)         
Luke Bordewich
Aneesh Oza

Cavendish Capital Markets Limited                   Tel: 020 7220 0500
(Joint Corporate Broker) 

Matt Goode                                 

This announcement contains information that is inside information for the purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (the Market Abuse Regulation ("MAR")). Upon the publication of this announcement, such information will no longer constitute inside information. Andrew Cook, the Company's CFO, is the person responsible for making the notification for the purposes of Article 17 of MAR.