REG-Further re pension contributions deferral

MothercareAnnouncement

20/10/2025 07:02

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Mothercare plc
Pension contributions deferral

Mothercare plc ("Mothercare", "the Company" or "the Group"), the highly
trusted British heritage brand, that connects with the parents of newborn
babies and children across multiple product categories throughout their early
life as parents, today announces the outcome of the request to the Trustee to
further defer pension contributions.

In our full year 2025 results announcement we noted that the Group’s Pension
Trustee had agreed to defer the first six months’ payments of pension
contributions due in the year to March 2026 and that we had requested a
further deferral of such payments for the remainder of this financial year to
support the Company’s cash flows whilst we are exploring growth
opportunities. We are pleased to announce that the Trustee has agreed to
extend the deferral of contributions to March 2026.

The total contributions due in the year to March 2026 that are deferred amount
to £3.0 million. This sum together with the remaining contributions due, will
be paid in accordance with a new schedule of contributions to be put in place
no later than 31 March 2026 and which will include a resumption of
contributions from 19 April 2026 at a level that the Trustee considers to be
affordable.

We also highlighted in our full year 2025 results announcement that the Group
expected to breach the liquidity financial covenant of our £8 million debt
facility and we have subsequently breached this covenant, which means the
facility is now repayable on demand. The Group continues to benefit from the
ongoing support of its lender and as set out in that announcement we continue
to have regular and positive discussions with them. Our lender has not
indicated that they require immediate repayment of the facility. Whilst during
certain points of our working capital cycle we have not met the liquidity
financial covenant, we continue to have sufficient cash to trade for the
foreseeable future.

The Board of Mothercare is very grateful for this significant support that
both the Group’s Pension Trustee and our lender have provided. This deferral
and forebearance allows the Company to focus on, evaluate and conclude the
multiple ongoing strategic discussions with greater flexibility as we seek to
restore critical mass, especially in the UK market. We also continue to
explore other options to mitigate the pension scheme deficit.

Investor and analyst enquiries to:

 Mothercare plc Clive Whiley, Chairman Andrew Cook, Chief Financial Officer  Email: investorrelations@mothercare.com           
 Deutsche Numis (NOMAD Joint Corporate Broker) Luke Bordewich                Tel: 020 7260 1000                                
 Cavendish Capital Markets Limited (Joint Corporate Broker) Matt Goode       Tel: 020 7220 0500                                
 Media enquiries to: MHP Rachel Farrington Tim Rowntree                      Email: mothercare@mhpgroup.com Tel: 07739 312199