Market's view on Mothercare

Published on April 2024

  • There is speculation about the fate of a loan related to the company with expectations of clarity within a week.
  • Discussions include personal anecdotes such as participating in lotteries, underlining a sense of needing luck in the current economic climate.
  • One watcher expresses a desire for the company to be bid at 11p per share to facilitate personal financial plans, such as paying off a loan.
  • A critical voice highlights that the company’s UK market presence is limited to a specific retailer with a restricted product range, and a significant portion of sales are international.
  • The cost and value of the company’s products are debated, with suggestions that similar products are available at lower prices elsewhere.
  • It is mentioned that the company still operates and places orders, though volumes have decreased due to overstocking in certain markets and the loss of the Russian market.
  • Payment processes are reportedly still regular, with direct payments from a major franchisee in the Middle East.
  • Concerns are raised about previous management strategies and the potential for a future sale of the company, possibly when financial reserves are low.
  • It has been over five months since any significant corporate news was released, raising questions about the company’s current operational status.
  • Comparisons are made with another company that faced difficulties but was eventually bought at a low price.
  • There are expectations of a potential takeover due to reduced debt and improved EBITA projections.
  • The company is expected to update the market around the first week of May, with some watchers hopeful for positive news.
  • Discussions reflect on the share purchase levels of significant stakeholders, including the chairman, and the implications of such investments.
  • There is anticipation of an imminent trading update, suggesting a focus on recent performance and future outlook.
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