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Mothercare slumps to loss as Middle East markets continue to struggle

2025-10-16 23:12:58 By

The former Mothercare on Solihull Retail Park is to become a B&M with a scheduled opening date of November 30

Mothercare has reported a slide into the red for the first half of the year, with difficulties in its Middle Eastern markets being a significant factor. The company recorded an adjusted pre-tax loss of £1.4m for the six months ending in September, a stark contrast to the £1.8m profit from the same period last year.

Global sales dropped by 12 per cent, attributed mainly to sluggish sales in the Middle East, as reported by City AM.

"Performance in our Middle Eastern region, especially in our largest single market, remains challenging where the shape of our partner’s retail offering in the country continues to adapt to address evolving consumer behaviour, pursuant to ongoing fiscal and legislative changes," said Clive Whiley, Mothercare's chair.

The retailer also faced challenges as franchise partners cleared out old stock. However, Whiley highlighted a positive development with the establishment of a £30m joint venture in South Asia with Reliance Brands, India's largest private sector corporation.

Mothercare has managed to reduce its secured debt facilities to £8m and has received £16m from Reliance Brands. This new partnership is set to encompass markets including Nepal, Sri Lanka, Bhutan, Bangladesh, and India.

Chief executive Daniel Whiley said the new India joint venture and refinancing had given the company a fresh start. "We have immediately utilised this new India joint venture and refinancing as a springboard for a de-leveraged Mothercare to explore the full bandwidth of growth opportunities through connections with other businesses, the development of our branded product ranges and licensing within and beyond our existing perimeters," Whiley added.

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Boohoo shareholders vote to keep co-founder on board in Mike Ashley battle

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Michelin Star restaurant Simpsons goes up for sale as chef announces retirement

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M&S and Waitrose meal deal sandwich supplier makes 'stronger than expected' recovery

Food manufacturer Greencore has reported a "stronger than expected" trading year as the company, known for producing meal deals for retailers such as M&S and Waitrose, sees a significant rebound in profitability with an eye on 2025. The Irish firm informed the market this morning that its like-for-like sales surged from 29.7% to 33.2% in the year ending 28 September, 2024, as reported by City AM. The company's adjusted operating profit soared by 27.8% to £97 million, bolstered by a series of customer contract renewals which are set to establish a "solid multi-year platform". Additionally, Greencore's adjusted EBITDA witnessed a 15.7% increase. Greencore's CEO Dalton Philips commented on the robust performance, acknowledging it came during a time "defined by cost inflation and muted consumer confidence". Philips elaborated: "Over the last 12 months we have remained focused on making high quality food, rebuilding our profitability, and positioning Greencore to be known as the UK’s leading convenience foods manufacturer." "We continue to make progress against each of our strategic objectives and are well positioned to continue this momentum in FY25 and over the longer term." In a move reflecting confidence in its financial health, the group has also returned £40 million to shareholders and declared an additional £10 million share buyback. The company stated that its robust balance sheet will facilitate investment "in the growth and efficiency of our business and to pursue M&A opportunities on a selective basis, while also enabling us to deliver increasing returns to shareholders."

EasyJet sees losses narrow and says demand for summer flights is 'continuing'

EasyJet has confirmed its full-year profit guidance after quarterly losses more than halved and booking momentum continued to build ahead of the busier Easter and summer months. The budget airline expects to report a headline pre-tax profit of £709m in 2025, up from a prior year haul of £610m and in line with consensus, as reported by City AM. It announced on Wednesday that quarterly passenger growth had increased seven per cent to 21.2m, while group revenue rose 13 per cent to £2.04bn. Losses in the three months ending 31 December narrowed from £126m to £61m, driven by the strong performance of its holiday arm, EasyJet Holidays. EasyJet Holidays delivered £43m in profit over the period, up around 40 per cent year-on-year. The division said it expects its customer base to grow by around a quarter in 2025. CEO Kenton Jarvis, the former EasyJet CFO who replaced Johan Lundgren at the turn of the year, said there had been "continuing demand" for flight and holiday bookings over the summer. First half bookings are already 93 per cent sold. "We have one million more customers already booked, with firm favourites like Palma, Faro and Alicante as well as new destinations like Tunisia and Cairo proving popular," Jarvis added. "All of this demonstrates positive progress towards our medium term target to deliver more than £1bn of profit before tax." Shares are up around 1.42 per cent over the last 12 months. Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, commented: "Demand trends have been strong, and with short-haul capacity across Europe remaining constrained, easyJet’s been able to hold prices firm." He also noted that "Passenger numbers were up 7% meaning its planes are flying even more full, on average, as consumers remain unafraid to spend their hard-earned cash chasing the sun. Alongside lower fuel prices, all of these dynamics are having a positive impact on profitability."

Nando's to open new restaurants across UK after slashing loss

Nando’s has unveiled plans to open new restaurants across the UK after reducing its pre-tax loss during its latest financial year. The chain, renowned for its peri-peri chicken, intends to launch 14 sites during its current financial year, as reported by City AM. It has already opened new establishments in Edinburgh, Newcastle, Doncaster, Taplow, Bognor, Watford, Northampton and Belfast. In the year ending February 2024, Nando’s launched 17 restaurants, with 11 of these in the UK and Ireland. During that 12-month period, the chain’s revenue rose by 7.5 per cent to £1.37bn while its pre-tax loss was reduced from £86.2m to £50.1m. The group reported an operating profit of £59.8m for the year. Nando’s stated its sales had exceeded pre-pandemic levels due to "strong customer demand". Rob Papps, group chief executive of Nando’s, said the economic backdrop remains "uncertain" but it is pushing forward with more investment to drive growth. Nando’s said the latest growth plans come after a positive first quarter of its 2024-25 financial year, where it was "extremely encouraged by customer demand". However, it emphasised cost inflation has remained at "elevated levels", indicating it is still seeking to address its costs across the business. Nando’s said it made £86.6m of capital investment over the year, as it opened more stores and refurbished a number of restaurants. Papps stated: "The 2024 financial year saw Nando’s deliver a good sales performance and a return to pre-pandemic levels of operating profit driven by robust consumer demand for our flame-grilled peri-peri chicken supported by our strong brand and customer proposition." He added, "Despite the improved sales performance, ongoing cost pressure with energy, labour and food remained very challenging."

A well-established family business in Cornwall, specializing in taxi and coach hire services, has declared bankruptcy, r

As per Companies House records, the firm initiated creditors' voluntary liquidation on December 18th, a legal procedure that permits the directors of an insolvent company to shut down operations voluntarily. Kim Richards and Richard Tonks from BK Plus, a firm in Walsall, West Midlands, were designated as the joint liquidators. The Gazette officially announced this development on Boxing Day. Financial records from Companies House indicate that Summercourt Travel, which was founded approximately two decades ago, has outstanding debts exceeding £908,000. These include a director's loan of £280,000 to a creditor, £137,000 owed to Funding Circle in London, nearly £31,000 to HSBC, slightly over £29,000 to HM Revenue and Customs, and almost £21,000 to Haydock Finance Limited in Lancashire. Other creditors encompass Cornwall Council, various vehicle companies, utility providers, and even Amazon for a sum of £43. Despite the liquidation of Summercourt Travel, its directors Robert and Sam Ryder, along with company secretary Sharon Ryder, are still managing Merlin Vehicle Rental and Travel Cornwall. These businesses are situated at the same address as the now-defunct Summercourt. Online inquiries for Summercourt Travel are automatically redirected to the operational Travel Cornwall website, as reported by Cornwall Live. The website portrays the company as a "locally based family-run business offering a range of transportation services including taxis, minibuses, executive cars, and coach and bus services." It further states that the company's central location is ideal for providing services across Cornwall and beyond. Efforts have been made to contact Robert Ryder, whose email still mentions Summercourt Travel, and the liquidators for further comments. A spokesperson for BK Plus Limited stated: "Summercourt Travel Limited went into Creditors' Voluntary Liquidation on December 18, 2024, with Richard Tonks and Kim Richards of BK Plus appointed as Joint Liquidators by the company's members and creditors. "Before our appointment, the company had stopped trading, leading to one of its clients taking over employment contracts for 24 of its staff, while the remaining six were laid off. "Post-appointment, the liquidators will now focus on converting the company's assets into cash, communicating with creditors, and, as per standard insolvency procedures, examining the circumstances that led to the company's collapse."

Upper Crust owner SSP sees profit soar despite 'disappointing' European performance

Upper Crust owner SSP has reported a 23% increase in operating profit to £206m, up from £167m last year, despite a "disappointing" performance in continental Europe. The firm's pre-tax profit also saw a significant rise of 35%. This was driven by strong sales growth, with revenue increasing by 14% year-on-year to £3.4bn. The London-listed company, which operates cafes, bars and restaurants in train stations and airports, attributed the positive results to good performances in North America, the UK and Asia-Pacific, as reported by City AM. Patrick Coveney, CEO of SSP, said: "SSP has strong fundamentals and benefits from the global travel market’s sustained long-term growth trends This was clearly visible in the FY24 performance in three of our four regional markets," However, he acknowledged that Continental Europe performed below expectations, impacting Group EPS and free cash flow. Coveney revealed plans to accelerate the firm's "profit recovery plan" in continental Europe through a number of renewed and extended contracts. The company reported "encouraging" trading in the first eight weeks of the new financial year, with revenue up 13% on the same period last year. Looking ahead, it estimates revenue of between £3.7bn-£3.8bn and an operating profit of £230m-£260m for the next year.

Marston's profits jump 64% as pre-Christmas bookings offer hope for bumper year

Marston's, the esteemed pub operator headquartered in Wolverhampton, has reported a robust performance that exceeded market expectations, buoyed by pre-Christmas bookings and signalling potential for another prosperous year. The company announced this morning that its total revenue for the year ending 28 September, 2024, climbed to £898.6 million, marking a three per cent increase from £872.3 million in the previous 12 months, as reported by City AM. Pre-tax profits at Marston’s surged by an impressive 64.5 per cent, rising from £25.6 million to £42.1 million, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw a 13 per cent uptick. Justin Platt, Marston’s chief executive, described the period as a "defining year" for the firm, which followed their strategic move away from brewing to "embark on a new chapter". The group, which boasts ownership of over 1,339 pubs across the UK, had divested its 40 per cent share in Carlsberg Marston’s Brewing Company (CMBC) back to the Danish brewer for £206 million in July. Platt commented on the sale's significant impact: "The sale of our stake in CMBC has been transformational, enabling us to significantly reduce debt, increase our flexibility and focus on what we do best: running great local pubs." He highlighted the positive outcomes of their focused approach and refreshed strategy, which are reflected in the strong financial results, including a 4.8 per cent rise in like-for-like sales that outpaced the market. Additionally, Marston's net debt was reduced to £883.7 million, indicating a substantial decrease of over £301.7 million. Looking towards the festive season, the current trading period leading up to Christmas is showing promising signs, with bookings already surpassing those of the previous year.

On the Beach brings back dividends and launches £25m share buyback for investors

On the Beach has initiated a £25m share buyback and promised substantial full-year dividends for investors, following a surge in demand for its package holidays to record levels in 2024. The Manchester-based company announced plans to reintroduce a final dividend of 2.1p per share, marking the first full-year payout since the pandemic affected the travel sector, as reported by City AM. This decision comes after On the Beach reported record bookings for the third consecutive year, capitalizing on the travel boom that has swept across Europe in recent years. The company's total transaction value (TTV) reached £1.2bn, a 15% year-on-year increase, alongside revenue of £128.2m, up 14%. On an adjusted basis, pre-tax profit rose by 25% to £31m. In a statement to the market, On the Beach informed investors that its forward order book had reached record levels, with winter bookings to date up by 25%. "Current trends and strategy give us confidence that summer 2025 will be significantly ahead of summer 2024," the company added. Chief Executive Shaun Morton attributed the performance to a combination of initiatives, including the company's announcement of a landmark partnership deal with its long-term budget airline partner, Ryanair. "The partnership has facilitated an improved customer journey for those booking Ryanair flights as part of an On the Beach package, whilst enabling increased operational efficiency and a greater focus on areas of strategic value." "What’s more, the agreement and significant upgrades to our technology have supported a doubling of our addressable market, following the addition of city breaks to our offering alongside planned investment in Ireland."

Pizzeria Franco Manca confirms Liverpool opening date

Franco Manca, the popular pizzeria chain, is set to open a new branch in Liverpool. The company, which first opened its doors in 2008 on Market Row in Brixton Market, has since expanded to over 70 locations across the country. The new Liverpool restaurant will be housed in the former Rennies Art Gallery building in Bold Street, offering seating for 90 diners indoors and an additional 20 outside. The grand opening is scheduled for Saturday, December 7. The former art gallery has been under renovation for several weeks, with the plywood hoarding finally coming down last week. The menu features traditional favourites such as mozzarella and basil and cured ham and mushroom pizzas, alongside more unique offerings like truffle pesto-based pizzas with smoked burrata and mushrooms or spiced chicken with a roasted courgette base. To mark the opening, the restaurant will be giving away 1,000 free pizzas, reports the Liverpool Echo. The chain already has two restaurants in Manchester city centre, with another in Didsbury and another in the Trafford Centre.