Mothercare Tightens Debt and Bets on Reliance and Ebebek to Rebuild Global Scale

Mothercare ( (GB:MTC) ) has provided an update.

Mothercare reported a sharp contraction in its interim performance for the 26 weeks to 27 September 2025, with worldwide franchise retail sales down 25% to £90.7 million, turnover nearly halved to £11.6 million and adjusted EBITDA falling to £0.8 million, leading to an adjusted operating loss of £0.5 million. The decline reflects store closures in the Middle East and its planned exit from Boots, but the group has materially reduced net debt to £5.8 million and is positioning itself as a smaller, cash-generative business. Chairman Clive Whiley highlighted significant progress on strategic partnerships, including a South Asian joint venture with Reliance Brands and a 10‑year licensing deal with Turkish specialist Ebebek, both designed to rebuild scale, expand store footprints and open new routes to market. With Reliance targeting rapid expansion and Ebebek bringing substantial buying and distribution power, Mothercare aims to use these alliances, alongside planned refinancing of its facilities, to reignite growth in global retail sales and restore its market presence following years of geopolitical and pandemic-related disruption.

The most recent analyst rating on (GB:MTC) stock is a Hold with a £2.50 price target. To see the full list of analyst forecasts on Mothercare stock, see the GB:MTC Stock Forecast page.

Spark’s Take on GB:MTC Stock

According to Spark, TipRanks’ AI Analyst, GB:MTC is a Neutral.

Mothercare’s overall stock score reflects significant financial challenges and bearish technical indicators. While the stock appears undervalued, the lack of dividend yield and financial instability are concerning. Strong shareholder support is a positive, but market challenges persist.

To see Spark’s full report on GB:MTC stock, click here.

More about Mothercare

Mothercare plc is a British heritage brand and international franchise operator focused on products for parents of newborn babies and young children, spanning multiple categories and sold primarily through overseas franchise partners and online channels. The group has transitioned away from UK-owned retail operations to a capital-light, franchise and licensing-led model, targeting key growth markets such as South Asia and Turkey while leveraging its intellectual property and brand strength globally.

Average Trading Volume: 168,857

Technical Sentiment Signal: Sell

Current Market Cap: £13.79M

For a thorough assessment of MTC stock, go to TipRanks’ Stock Analysis page.