IN BRIEF: Mothercare outlook still "highly uncertain" despite dividend

Mothercare PLC - Hemel Hempstead, England-based retailer of products for parents and young children - Says the liquidators of Mothercare UK Ltd, which entered administration in 2019, have announced the imminent payment of a further £800,000 cash dividend to a wholly-owned subsidiary, the secured lender to Mothercare UK.

Mothercare says this is "a helpful development", but warns that "it does not materially change the outlook for the business nor the matters disclosed in the announcement of [Friday]". Mothercare's stock plunged on Friday after it announced that its Middle East franchise partner is considering closing a "substantial majority" of stores in the region in 2027. If this occurs, which is the expected outcome, Mothercare anticipates "a material reduction in the company's order book for FY28 and a commensurate reduction in revenues, profits and cash flows". The firm also recently reported a sharp decline in annual revenue and swung to a loss, citing Middle East-related uncertainty and the end of its distribution deal with pharmacy chain Boots. "At this stage the outcome of the review and the longer-term solvency of the company remains highly uncertain," Mothercare says on Friday.

Current stock price: 0.13 pence, down 36% on Monday in London

12-month change: down 96%

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