Mothercare (MTC)

Mothercare MTC Logo

The leading global retailer for parents and young children.

23-Nov-2017 – 83.5p – £138.8m – PER 7.32

Interim Results For The 28 Week Period To 7th October 2017 – “Continued transformation of the brand, converting into positive UK like-for-likes set against a challenging consumer backdrop” – Doesn’t exactly seem transformational to me.

I just can’t get interested here. Still too many negatives even though online sales are up 57% and now make up 42% of Revenue. I just see people in the future using a collective market (Amazon) than a specific one – It’s usually cheaper and delivery can be within 2 hours.

8-Jan-2018 – 62p – £105.9m – PER 8.99

Trading Update For The 12 Weeks To End December 2017 – Ouch! UK LFL sales down 7.2% (international down 3%), online sales down 6.9% and lower margins.

A share already on my Avoid list and one that will remain there.

12-Apr-2018 – 17p – £29.0m – PER 6.97

Q4 Trading Update For The 12 Weeks To 24 March 2018 – Uninspiring – Continues “to explore additional sources of financing to support and maintain the momentum of our transformation programme”.

Remains on my Avoid list.

22-Nov-2018 – 17.56p – £60m – PER n/a

Results For The 28 Week Period To 6th October 2018 – Loos Before Tax of -£6.2m (-£2.6m last time), Net Debt due to an equity raise down from £44.1m to £21.5m. International showing signs of recovery, UK still slowing.

Remains on my Avoid list.

9-Jan-2019 – 15.5p – £53m – PER n/a

Trading Update For The 13 Weeks To 5th January 2019 – Challenging, on track with cost saving plan – FY unchanged.

Remains on my Avoid list.

4-Apr-2019 – 22p – £76m – PER 38

Trading Update For Q4 2019 (12 Weeks To End March 2019)  – FY Profit to be in-line with market expectations, on track to deliver £19m of annual cost savings.

This is a weird as I see them forecast to make a loss – Anyway, it remains on my Avoid list for now.

24-May-2019 – 20p – £69m – PER 35.8

Results For The 12 Months To End March 2019 – Revenue down -13.5% (from £654.5m to £566.3m), LBT down -19.9% (from £72.8m to £87.3m) – Ongoing operation figures slightly better. Net Debt at £6.9m (£44.1m last time).

Has a corner been turned here? I don’t (think so) know! Anyway, I still don’t see a long term future here – Need kids or baby stuff, Amazon, Simples! Remains on my Avoid list.

26-Jul-2019 – 20p – £67m – PER 17.8

Q1 Trading Update – FY PBT to be “broadly comparable to the prior year, inclusive of an estimated negative impact of £2 million of adopting IFRS16”.

For reasons I have mentioned many times previously I reman uninterested here.

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