REG-Pre-close trading update

MothercareAnnouncement

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Mothercare plc

Pre-close trading update

Mothercare plc ("Mothercare" or "the Company"), the leading specialist global
brand for parents and young children, today issues a pre-close trading update
for the 52 week period to 28 March 2026 (“FY26”). Comparatives are based
on the 52 week period to 29 March 2025. This update is based upon draft
figures pending finalisation of the year end audit.

•        Unaudited worldwide retail sales by franchise partners of
£180 million for the year, representing a decline of 22% on last year (19%
down at constant currency)

•        Adjusted EBITDA for FY26 at approximately £1.25 million

•        Net borrowings of £5.7 million at the year end (March
2025: £3.7 million).

•        Pension scheme deficit remains at £35 million as at 31
December 2025, which is the latest available estimate (March 2025: £35
million) on a technical provisions basis.

The performance reflects variously the end of our exclusive distribution
relationship with Boots at the end of 2025, foreign exchange rate impacts and
the longstanding uncertainty in our Middle Eastern markets, including the more
recent impact of the Iran war in the last month of the period.

EBITDA before adjusting items for FY26, is now expected to be approximately
£1.25 million, compared to the £3.5 million adjusted EBITDA for the period
to March 2025. We estimate that the impact of the war in the Middle East, in
the last month of the period under review, to be approximately £0.1m.

The underlying strength of the business is demonstrated by the fact that
excluding the Middle East and the UK, where we continue to believe that there
remains a greater opportunity for the brand and a new partner in the UK, on a
like for like basis our total retail sales were positive for the full year to
March 2026.

There has been no material change to the Group’s financial position since
the announcement made on 20 February 2026, setting out the successful and
timely refinancing of the Group’s debt facilities and the deferral of
contributions to the Group’s pension schemes.

Clive Whiley, Chairman of Mothercare, commented:

“Our results for last year reflect the impact of the continuing uncertainty
on our franchise partners’ operations in the Middle East, where any
longer-term impact upon supply chains remains unclear at this stage, and the
underlying profitability and cash generation of our asset-light franchise
system.

The full refinancing of our debt facilities in February 2026 has bought
additional time to engineer a more comprehensive solution to harvest the value
of the brand IP and the significant operational gearing available to an
expanded business. In these circumstances the recent financial performance has
been usefully resilient as we look to FY27, whilst acknowledging the impact of
the continuing disruption from events in the Middle East.

Given the external factors influencing some of the Company’s key operating
markets, our immediate priority remains to support our franchise partners,
ultimately for the benefit of our own underlying business, where the strength
of the Mothercare brand endures. We remain in discussions with several parties
to restore critical mass, a process greatly assisted by the recent alignment
of the first-charge debt instrument with our equity.

I would like to thank all of our colleagues and stakeholders for their support
and efforts in difficult circumstances, and the board remains determined to
optimise the brand IP for the benefit of all stakeholders.“

Investor and analyst enquiries to:

Mothercare plc            
                                                Email: investorrelations@mothercare.com
Clive Whiley, Chairman
Andrew Cook, Chief Financial
Officer                                     
               
                                          
Deutsche
Numis                                               
 Tel: 020 7260 1000
(NOMAD & Joint Corporate Broker)         
Luke Bordewich
Aneesh Oza

Cavendish Capital Markets
Limited                   Tel: 020 7220 0500
(Joint Corporate Broker) 

Matt Goode                                 

This announcement contains information that is inside information for the
purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as
amended (the Market Abuse Regulation ("MAR")). Upon the publication of this
announcement, such information will no longer constitute inside information.
Andrew Cook, the Company's CFO, is the person responsible for making the
notification for the purposes of Article 17 of MAR