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.