REG - Mulberry Group PLC - FY25 Results and Fundraise of £20 million
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RNS Number : 5956Q Mulberry Group PLC 10 July 2025
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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
For immediate release
10 July 2025
Mulberry Group plc
Audited results for 52-week period ended 29 March 2025
and
Subscription for convertible loan notes by two major shareholders raising £20
million
and
Retail Offer up to a further £1.2 million to facilitate participation by
existing Minority Shareholders
and
Board appointment
Introduction
Mulberry Group plc (AIM: MUL) (the "Company", "Mulberry" or, together with its
subsidiary undertakings, the "Group"), the British sustainable lifestyle
brand, today announces its audited results for the 52-week period ended 29
March 2025 (the "period").
In addition, and further to its announcement of 20 June 2025, the Company is
announcing a fundraising of £20 million of additional capital which will be
utilised to accelerate its growth strategy (the "Fundraising").
The Fundraising has been effected by way of subscriptions for, in aggregate,
20,000,000 new convertible loan notes of £1.00 each (the "Loan Notes") by
Challice Limited ("Challice") and Frasers Group PLC ("Frasers"), both major
shareholders in the Company (together, the "Subscribers") (the
"Subscriptions"). Subject to the passing of necessary shareholder resolutions
(the "Resolutions") to be proposed at a general meeting of the Company to be
convened for 30 July 2025 (the "General Meeting"), the Loan Notes are
convertible into new ordinary shares of five pence each in the capital of the
Company ("Ordinary Shares") at a conversion price of 150 pence per Ordinary
Share, a premium of 53.8 per cent to the closing price of an Ordinary Share on
9 July 2025, the latest practicable date prior to this Announcement. The
Subscribers, which in aggregate are interested in 93.5 per cent. of the
Ordinary Shares, have irrevocably undertaken to vote in favour of the
Resolutions.
The Company is also undertaking a separate offer (the "Retail Offer") to
existing shareholders of the Company other than Challice and Frasers (the
"Minority Shareholders") of up to 1,259,610 new Ordinary Shares (the "Retail
Offer Shares"), at a price of 97.5 pence per Retail Offer Share (the "Issue
Price") via RetailBook Limited ("RetailBook") to enable Minority Shareholders
to participate in the Company's fundraising activities and maintain their
respective holdings in the Company. Full subscription of the Retail Offer
would raise an additional £1.2 million (before expenses) for the Company.
The net proceeds of the Fundraising and the Retail Offer will allow the
Company to make targeted investments to accelerate its future growth and meet
its stated medium term financial targets.
Further details of the Fundraising and the Retail Offer are set out below.
FY25 Results
Financial Summary
The Group's audited results for the 52-week period ended 29 March 2025
("FY25") show the following:
· In a year in which the global luxury market contracted, the Group experienced
a 21% decline in group revenue to £120.4m (2024: £152.8 million) reflecting
challenging macro-economic conditions.
· UK Retail and Digital revenue was down 20 per cent. with performance impacted
by macro-economic conditions, uncertainty and inflationary pressures which has
affected consumer spend and habits.
· North America Retail Revenue was 1 per cent. below the prior period, supported
by the opening of the Nordstrom online concession platform and a full year
trading of new Nordstrom stores.
· Underlying loss before tax of £23.7 million (2024: loss of £22.6 million)
due to reduced revenue due to macro climate impact, and margin also through
stock optimisation activities.
· Reported loss before tax of £31.8 million (2024: loss £34.1 million),
partially improved by operating cost savings during the year, which then
continue into the current financial year ("FY26").
· Gross margin of 66.8 per cent. (2024: 70.1 per cent.) driven by the inventory
optimisation in FY25 involved promotional and markdown activity, as well as
the mix of wholesale customers.
· Issue of new ordinary shares raising £10.35 million (before expenses) in
September 2024, to strengthen the Group's balance sheet and provide financial
flexibility during the macro climate impact in the second half of FY25 and
strategic changes.
Strategic Highlights
On 30 January 2025, the Company outlined a new strategy, "Back to the Mulberry
Spirit", to restore profitability through simplification, brand realignment
and enhanced customer connection. With a strengthened management team in
place, following the appointment of Andrea Baldo as CEO to the board of
directors of the Company (the "Board" or "Directors"), the Company is acting
at pace and has taken the following actions to execute this strategy:
· Simplification: Simplifying the Company for disciplined execution
· New commercial agreements with premium department stores including Liberty,
Flannels, Harvey Nichols and John Lewis.
· Targeted international expansion via retail partnerships with Nordstrom (US)
and David Jones (Australia).
· Right-sized store estate, re-focusing on UK and US markets with the closure of
12 loss making stores in Asia.
· Already delivered £5.9 million of annualised gross cost savings, achieving a
lower sustainable cost base in the current financial year.
· Brand refresh: Realigning Mulberry's identity as a British lifestyle brand and
reinvigorating its cultural relevance
· Restructured leadership team and launched the Creative Studio to embed
creativity at the heart of operations and strengthening strategic execution.
· Realignment of brand completed, new campaign successfully launched post
year-end
· Re-focused product offer with expansion of core icon families including
Islington, Amberley and Bayswater.
· Customer connection: Leveraging insights to deepen connections and drive
demand
· Engagement with tastemakers underway to boost brand desirability, along with
upcoming partnerships with influential talent.
· New incentive system in stores rolled out, based on conversion rate
objectives.
· Refined product development approach, moved to a "4 Seasons" model to improve
seasonal replenishment and align with market demand.
Current Trading and Outlook for FY26
· Trading year to date has been in line with the Board's expectations.
· For the nine weeks ended 1 June 2025, Group revenue across Retail, Digital and
Wholesale declined by 18 per cent year-on-year.
· Retail and Digital revenue declined by 17 per cent on a total basis,
reflecting the impact of planned closures of loss-making and underperforming
stores. On a like-for-like basis, Retail and Digital revenue declined by 5 per
cent.
· The Group's continued focus on optimising its store portfolio and on reduction
of mark down is expected to deliver a further £2 million improvement in
underlying EBITDA.
· Within this period, the Group's focus markets of the UK and North America
showed an improving trend in like-for-like performance, trading 1 per cent and
5 per cent behind the prior year respectively.
· Full-price Retail and Digital sales in both markets were ahead year-on-year,
demonstrating positive momentum in a challenging luxury environment and
reinforcing the strength of the brand and product offer.
· Mulberry.com continued to outperform the prior year, underlining the strength
of the Group's direct-to-consumer digital channel.
· Wholesale is well positioned for growth in FY26, supported by orders for the
Spring Summer 2026 collection being double digit % growth ahead of prior year,
the appointment of a new Wholesale Director to drive further international
expansion, and new partnerships with Harvey Nichols and Liberty in the UK.
· The Bayswater family remained the leading contributor to bag sales, while Mini
Bags delivered strong year-on-year growth, reflecting ongoing consumer demand
for trend-led product.
· The Group successfully launched a new brand campaign, A Return to Somerset,
celebrating Mulberry's heritage, values and distinctive brand voice, aimed at
reigniting brand desirability.
· Over the mid-term, the Company reiterates its ambition to achieve annual
revenue in excess of £200 million and to deliver an adjusted EBIT margin of
15 per cent.
Board appointment
The Company is pleased to announce the appointment to the Board, as a
non-executive director, of James France with effect from 30 July 2025 (the
"Board Appointment"). James France is a senior member of the Leadership Team
at Frasers with experience in Real Estate Optimisation and Business
Development, the Company's 37.1 per cent. shareholder, and will represent it
on the Board. A relationship agreement has been entered into between the
Company and Frasers to regulate the Board Appointment (the "Relationship
Agreement"). Further details relating to the Relationship Agreement are set
out below. Additional information on James France and the Board Appointment
will be announced separately.
Andrea Baldo, CEO, commented:
"We have made significant progress in laying the foundations for Mulberry's
turnaround. Since launching our 'Back to the Mulberry Spirit' strategy in
January, we have acted at pace to simplify the business, reduce costs, and
refocus on our most profitable channels and markets. This is an ambitious
transformation, underpinned by operational discipline and a commitment to
placing creativity at the heart of everything we do."
"At the same time, we are reinvigorating the brand to reassert its cultural
relevance and emotional resonance with customers. The launch of our new
campaign, 'A Return to Somerset', marks an important milestone, celebrating
our roots, values and the distinct British voice that defines Mulberry."
"Today, with our strategy clearly defined and delivering the expected results,
we received a further demonstration of the support from our shareholders. We
welcome the additional capital injection from both our major Shareholders,
which will enable us to keep moving with pace - investing in product, digital,
and international growth to deliver long-term value and the appointment of
James France to the Board."
"Whilst the external environment remains challenging, we are energised by the
opportunities ahead and remain focused on restoring profitability and
achieving our medium-term targets of over £200 million in annual revenue and
a 15 per cent. adjusted EBIT margin. I want to thank our teams across the
business. Their energy, creativity, and resilience have been instrumental in
driving the progress to date and will be just as vital in the journey ahead."
Enquiries:
Mulberry Group plc +44 (0) 20 7605 6793
Billie O'Connor (CFO)
Houlihan Lokey UK Limited - Nominated Adviser +44 (0) 20 7839 3355
Tim Richardson
Peel Hunt LLP - Broker +44 (0) 20 7418 8900
James Thomlinson / Andrew Clark
Headland - Public Relations Adviser +44 (0) 20 3805 4822
Lucy Legh / Joanna Clark / Eleanor Evans
mulberry@headlandconsultancy.com (mailto:mulberry@headlandconsultancy.com)
Background to and rationale for the Fundraising and the Retail Offer
As highlighted in the Company's announcement of 20 June 2025, following a post
period end review by the executive management, and in light of even more
challenging trading conditions seen at a macro level, the Board concluded that
the Company required additional capital to fund its growth strategy and
achieve its desired financial targets.
Key investment priorities targeted at unlocking future growth were highlighted
as:
· rebuilding core stocks, including the Company's 'iconic families' silhouettes
to drive sell through and momentum;
· investing in new, margin accretive revenue streams, such as outlets and the
wholesale channel;
· selective marketing spend, particularly in the Company's core markets of the
UK and the US, which will be aligned with profitable growth; and
· upgrades to existing customer engagement and eCommerce tools.
The Board also confirmed that the proceeds of the Fundraising were expected to
provide sufficient capital to enable the Company to become cash flow positive.
Having considered the Group's funding requirements and the limited
alternatives available to the Group with regards funding sources, the Board
has concluded that the Subscriptions by the Company's two largest shareholders
offer the most effective way to execute the Fundraising whilst minimising
cost, time to completion and maximising certainty. The Fundraising has been
structured in order to ensure that the net proceeds of the Subscriptions can
be received by the Company and put to work as soon as possible.
The Board believes that the Retail Offer provides an opportunity for Minority
Shareholders to participate in the Company's fundraising exercise and offers
protection from the potential dilutive impact of the Subscriptions. The Board
has concluded that the Fundraising and the Retail Offer are in the best
interests of all stakeholders and will promote the success of the Company for
the benefit of its members as a whole.
Details of the Subscriptions
The Company has raised £20 million (before expenses) by means of the
Subscriptions. Each Subscriber has entered into a subscription agreement
(each, a "Subscription Agreement" and together, the "Subscription Agreements")
agreeing, inter alia, to subscribe for Loan Notes in proportion to their
relative holdings of Ordinary Shares and to vote their existing holdings of
Ordinary Shares in favour of the Resolutions at the General Meeting. Challice
has subscribed for approximately £12.1 million of Loan Notes (the "Challice
Subscription") and Frasers has subscribed for approximately £7.9 million of
Loan Notes (the "Frasers Subscription").
The Subscription Agreements were conditional upon, inter alia, the Board
authorising the issue of the Loan Notes and the entry into of certain security
documentation.
The Subscription Agreements contain customary warranties from each of the
Subscribers in favour of the Company.
Each of Challice and Frasers, which are interested respectively in 56.4 per
cent. and 37.1 per cent. of the Ordinary Shares, are considered to be related
parties to the Company for the purposes of the AIM Rules for Companies
published by London Stock Exchange plc (the "London Stock Exchange") (the "AIM
Rules"). Accordingly, pursuant to Rule 13 of the AIM Rules, the Subscriptions
are related party transactions.
Taking into account the background to and rationale for the Fundraising and
Retail Offer as set out above, Andrea Baldo, Billie O'Connor, Christophe Cornu
and Leslie Serrero, the Directors who are independent of Challice, consider,
having consulted with the Company's nominated adviser, that the terms of the
Challice Subscription are fair and reasonable in so far as shareholders of the
Company (the "Shareholders") are concerned.
Taking into account the background to and rationale for the Fundraising and
Retail Offer as set out above, the Directors consider, having consulted with
the Company's nominated adviser, that the terms of the Frasers Subscription
are fair and reasonable in so far as Shareholders are concerned.
Terms of the Loan Notes
The Company has agreed to issue the Loan Notes. The aggregate amount of the
Loan Notes is £20 million and they are convertible at a price of 150 pence
per Ordinary Share. The coupon payable under the Loan Notes is 7 per cent. per
annum, compounding annually, which will be rolled up and paid either on
repayment of the Loan Notes or settled, along with the principal amount, by
the issue of new Ordinary Shares on conversion (the "Conversion Shares"). To
the extent that they have not already been converted, the Loan Notes
automatically convert on their maturity date of 31 December 2029 (the
"Maturity Date"), in the event of a takeover offer made pursuant to the UK
Takeover Code or a disposal of substantially all of the business and assets of
the Company (each, an "Automatic Conversion Event"). The Loan Notes may be
redeemed in cash only in the following circumstances: (1) in the event that
there is an exit (a change of control of the Company or a sale of all or
substantially all of the Company's assets) in which both Challice and Frasers
sell all of their Ordinary Shares, in which case redemption is at the option
of the Subscriber, (2) upon an event of default or (3) at any time at the
option of the Company (subject to the terms of an intercreditor agreement
agreed with HSBC UK Bank plc).
The Loan Notes will be secured and subordinated to the Group's banking
facilities with HSBC UK Bank plc.
While the Loan Notes do not require the Company to maintain sufficient
Shareholder authority to satisfy a conversion of the Loan Notes in full,
Shareholders should be aware that if the Resolutions are not approved at the
General Meeting, the Company will be required to repay the aggregate sum of
the Loan Notes, together with any interest accrued, on the Maturity Date or in
the event of another Automatic Conversion Event. As set out below, both
Challice and Frasers have irrevocably undertaken to vote in favour of the
Resolutions.
On conversion of the Loan Notes, the Conversion Shares will, when issued, rank
pari passu in all respects with the existing Ordinary Shares including the
right to receive all dividends and other distributions declared, made or paid
after the relevant date of conversion.
The Retail Offer
In order to provide all Shareholders in the United Kingdom, other than those
participating in the Subscriptions, with an opportunity to participate in the
Company's fundraising plans and to offset the potential dilution of the future
conversion of the Loan Notes, the Company intends to carry out the Retail
Offer to raise up to a further £1.2 million by the issue of up to 1,259,610
Retail Offer Shares at the Issue Price on the terms to be set out in a
separate announcement to be made by the Company in due course. The Retail
Offer may not be fully subscribed and is not underwritten. The Retail Offer is
conditional upon, inter alia, the passing of the Resolutions at the General
Meeting and Admission (as defined below) becoming effective.
The General Meeting and voting undertakings
In order to provide the Company with the relevant Shareholder authorities to
issue new Ordinary Shares in connection with: 1) the conversion of any of the
Loan Notes; and 2) the Retail Offer, the Resolutions must be approved by a
relevant majority of Shareholders at the General Meeting.
A circular (the "Circular"), containing detail of, inter alia, the
Fundraising, the Loan Notes and the Retail Offer and a notice of the General
Meeting is expected to be posted to Shareholders on 14 July 2025. The General
Meeting is to be convened for 11:30 a.m. on 30 July 2025 and will be held at
the Company's offices at 30 Kensington Church Street, London W8 4EH. Copies of
the Circular will be made available on the Company's website at
www.mulberry.com/gb/investor-relations.
As part of the terms of their Subscriptions, both Challice and Frasers have
irrevocably undertaken to vote in favour of the Resolutions at the General
Meeting in respect of, in aggregate, 93.5 per cent. of the Ordinary Shares.
Admission, settlement and CREST
Application will be made to the London Stock Exchange for the admission of any
Retail Offer Shares taken up pursuant to the Retail Offer to trading on the
AIM market ("AIM") of the London Stock Exchange ("Admission"). It is expected
that Admission will take place on or before 8.00 a.m. on 31 July 2025 and that
dealings in the Retail Offer Shares on AIM will commence at the same time.
Following Admission, assuming the full take up of the Retail Offer Shares
pursuant to the Retail Offer, the Company will have 71,729,081 Ordinary Shares
in issue.
The Retail Offer Shares, when issued, will be fully paid and will rank pari
passu in all respects with the existing Ordinary Shares, including the right
to receive all dividends and other distributions declared, made or paid after
the date of issue. If all of the Retail Offer Shares are issued, it would
represent an increase of approximately 1.8 per cent. of the existing issued
ordinary share capital of the Company.
Expected timetable of principal events
Event Date
Retail Offer opens 10 July 2025
Publication of the Circular 14 July 2025
Retail Offer closes 18 July 2025
Latest time and date for receipt of proxy cards and CREST voting instructions 11:30am on 28 July 2025
in respect of the General Meeting
General Meeting 11:30am on 30 July 2025
Admission of the Retail Offer Shares 31 July 2025
If any of the above times and/or dates change, the revised time(s) and/or
date(s) will be notified to Shareholders by an announcement via a Regulatory
Information Services provider.
Relationship Agreements
As a result of the Board Appointment, the Relationship Agreement has been
entered into between Frasers and the Company. The principal purpose of the
Relationship Agreement is to ensure that the Company is capable at all times
of carrying on its business independently of Frasers. Under the Relationship
Agreement, Frasers has undertaken to the Company to ensure that:
· all transactions, agreements and arrangements entered into between any member
of the Group and Frasers or any of its associates will be made at arm's length
and on a normal commercial basis; and
· the Group is capable at all times of carrying on its business independently of
Frasers and its associates.
Frasers has a right to appoint one representative to the Board for so long as
Frasers, together with its associates, is interested 30 per cent. or more of
the Company's voting rights (or 30 per cent. of less of the voting rights
where Frasers' interest is reduced due to an issue of new equity securities by
the Company).
The Relationship Agreement will terminate automatically upon Frasers, together
with its associates, ceasing to hold an aggregate interest in Ordinary Shares
representing 30 per cent. or more of the Company's voting rights.
Challice, which entered into a relationship agreement with the Company in
2003, has entered into a new relationship agreement with the Company on
substantially the same terms as the Relationship Agreement save that Challice
maintains its right to appoint two representatives to the Board.
This Announcement should be read in its entirety. In particular, you should
read and understand the information provided in the "Important Notices"
section of this Announcement.
The person responsible for arranging the release of this Announcement on
behalf of the Company is Billie O'Connor, a director of the Company.
Audited results for 52-week period ended 29 March 2025
Chairman's Letter
This year marked a pivotal new chapter for Mulberry, defined by a strengthened
leadership team and the launch of a revitalised strategy.
In September 2024, we welcomed Andrea Baldo as our new Chief Executive
Officer. Andrea has over 20 years' experience leading brands in the fashion
industry, managing business transformations and driving improved performance.
Following a comprehensive review of the Company, Andrea took immediate action
to implement positive changes to improve operations. In addition, the Company
raised £10m of capital from our shareholders to provide the business with
greater flexibility to navigate the continued challenging trading environment.
We bolstered our executive team further in February 2025 with the appointment
of a new Chief Financial Officer, Billie O'Connor, who brings a wealth of
experience in the retail and consumer sectors, including driving turnaround
strategies. In the short number of months she has been in post, Billie has
brought a renewed sense of focus and rigour to our financial management. Her
early work has concentrated on strengthening our balance sheet and ensuring
the business is right-sized for future growth.
Along with a new leadership team, in January we launched our new strategy,
Back to the Mulberry Spirit. As well as reconnecting with the heritage of the
brand, the strategy consisted of a two-phased approach, focused first on
rebuilding gross margin and then on long-term revenue and margin goals,
including the ambition to achieve annual revenue of £200m+ and 15 % adjusted
EBIT margin in the mid-term.
With the new strategy only launching in January 2025, we expect to see
improvements in FY26. Nonetheless, the Board is encouraged by the pace of
execution and the early signs of progress. Management have made important
strides in re-energising the business and navigating a challenging
macroeconomic backdrop with resilience.
As we focus on executing our strategy to turnaround the business and restore
Mulberry to profitability, the Board do not believe it is prudent to pay a
dividend for the period under review.
I would like to thank every colleague across the business for their commitment
and collective effort this year, without whom this progress would not have
been possible.
Looking ahead, the Board is confident that the new strategy being executed by
the leadership team will deliver long-term, sustainable growth for
shareholders. We have entered this new chapter with energy, ambition,
strategic clarity and a renewed sense of purpose.
On behalf of the Board, I would like to thank our shareholders for their
continued support during this pivotal year. Your trust is greatly valued as we
embark on the next phase of our journey.
Christopher Roberts
Chairman
10 July 2025
CEO Statement
My observations
Roger Saul had an amazing vision for Mulberry. He created a brand that is
truly special, designing product with exceptional craftsmanship and an
authentic commitment to sustainability and community, that reflected modern
British style. This, coupled with a unique price point means the business
operates in a space that few others truly occupy.
Before I joined the Company, I could see these strengths clearly. However, it
was also evident to me that the business had lost its way. Teams had become
siloed, unable to act with speed and tenacity, and financial results were
consistently underwhelming. While the brand's resonance remains, it needs to
get back to its roots and to Roger Saul's amazing vision.
From day one, I took steps to ensure we were acting at pace, making immediate
changes while also setting the business up for long-term success. A key
priority was to improve cost discipline, strengthen the balance sheet and
streamline operations to become a leaner, more agile organisation. This meant
making some important changes, including right-sizing parts of our business,
streamlining teams and simplifying how we work. This forensic spending review
led to a reduction in operating costs of circa 25 per cent. on an annualised
basis vs FY24. In addition, by creating more focused and efficient processes,
we freed up the capacity to focus on our core strengths, whether that's
elevating design, improving stock position and service, or building deeper
relationships with our customers.
Our new strategy
In January, I launched our new strategy: Back to the Mulberry Spirit. It is a
plan to restore Mulberry to profitability through simplification, brand
realignment and enhanced customer connection.
At the heart of our strategy is a commitment to simplification - streamlining
the business to ensure disciplined execution and in turn drive sustainable
growth. This includes refining our geographical focus: doubling down on the UK
market where our roots and loyal customer base lie, exploring our approach to
the dynamic US landscape, and recalibrating our presence in Asia. It involves
taking a channel-agnostic approach in these markets with a more focused
product offering, reducing our reliance on promotions to maintain the
integrity of the product while preserving our distinct price positioning.
We are also returning the brand to its roots. This brand refresh is not about
reinvention, but about renewal. We will celebrate our British heritage with
pride, while appealing to fashion-forward consumers who are seeking
authenticity and style. As fashion shifts, now is the moment for Mulberry to
redefine the future of British luxury. This is not about following trends. It
is a strategic alignment with shifting consumer values around substance,
transparency and meaning. To do this, creativity will take centre stage. A
newly formed creative team will bring fresh energy and vision to our design
and storytelling, anchoring our collections in cultural relevance and seasonal
innovation.
Our third strategic focus is on deepening our relationship with our customers
- anticipating what they want and showing up wherever they shop. We are
investing in data and CRM platforms to unlock customer insights and transform
how we engage both online and in-stores. Personalisation and localisation is
also core to the customer experience, and we are looking at how we elevate
this service. Additionally, we will focus on our direct-to-consumer
operations, including implementing a new product launch structure that
enhances desirability and drives demand.
Focusing on delivery
To ensure executional excellence, I restructured and expanded the Executive
Committee with leaders whose experience spans design, operations, and finance.
I was pleased to appoint Azalee Beaux, Henrietta Gallina and Dharmini Chauhan
in December, alongside Billie O'Connor joining as our new CFO in February.
Their perspectives are helping to focus our priorities and drive delivery
across every part of Mulberry.
Collectively, we have taken action across all divisions and areas of our
operations. It is early days with our strategy but there are clear signs of
progress. Highlights include:
- Wholesale growth, through new partnerships with Liberty and Harvey Nichols to
reconnect with customers.
- Rightsizing our international offer, with a focus on the US through new
partnerships with Nordstrom.
- Launching our new brand campaign (post year-end). At its heart is a
celebration of our roots: a return to the values, visuals and voice that first
captured the imagination of our customers. The response has been
encouraging-not just in numbers, but in the renewed energy it has created
inside and outside the business.
FY25 Results
Mulberry's performance during FY25 was a reflection of the previous strategy
as well the challenging macro-economic conditions experienced across the
sector.
Group revenue declined to £120.4 million (2024: £152.8 million). UK Retail
and Digital LFL revenue was down 16 per cent. year on year, with performance
impacted by macro-economic conditions, uncertainty and inflationary pressures.
North America Retail Revenue was 1 per cent. below the prior period, supported
by the opening of the Nordstrom online concession platform and a full year
trading of new Nordstrom stores.
Underlying loss before tax was £23.7 million (2024: loss of £22.6 million)
due to reduced revenue due to macro climate impact, and margin also through
stock optimisation activities. Reported loss before tax was £31.8 million
(2024: loss £34.1 million), partially improved by operating cost savings
during the year, which then continue into the current financial year.
Gross margin was 66.8 per cent. (2024: 70.1 per cent.) driven by the inventory
optimisation in FY25 involved promotional and markdown activity, as well as
the mix of wholesale customers.
Outlook
Trading year to date has been in line with the Board's expectations.
While the external environment remains challenging, we are energised by the
opportunities ahead and remain focused on restoring profitability and
achieving our medium-term targets of over £200 million in annual revenue and
a 15 per cent. adjusted EBIT margin.
I'd like to thank all our teams for their support since I joined Mulberry in
September. You have embraced change with professionalism and purpose, and it's
that spirit that continues to move us forward.
With a renewed strategy and a focused team, we are confident in our ability to
honour Mulberry's heritage while unlocking sustainable long-term value for
shareholders.
Andrea Baldo
Chief Executive Officer
10 July 2025
Financial review
Loss before tax
£m 52 weeks ended 52 weeks ended Change
29 March 30 March
2025 2024
£ %
Revenue 120.4 152.8 (32.4) (21%)
Cost of sales (40.0) (45.7) 5.7 12%
Gross Profit 80.4 107.1 (26.7) (25%)
Net impairment charge (0.8) (8.6) 7.8 91%
Other operating expenses (107.1) (128.9) 21.8 17%
Other operating income 0.6 1.3 (0.7) (54%)
Operating loss (26.9) (29.1) 2.2 8%
Share of results of associates 0.1 - 0.1 -
Finance expense (5.0) (5.0) - -
Loss before tax (31.8) (34.1) 2.3 7%
The table above summarises the Group Income Statement, showing the improvement
of £2.3m in the loss before tax for the period of £31.8m (2024: loss before
tax £34.1m). Although revenue was 21% down on the prior period the business
took tough cost reduction actions in light of trade and rightsizing the
business resulting in the lower reported loss. Further details are discussed
within this Financial Review.
52 weeks ended 52 weeks ended Change
£m 29 March 30 March
2025 2024
£ %
Underlying loss before tax pre-SaaS costs (22.5) (17.4) (5.1) (29%)
SaaS costs (1.2) (5.2) 4.0 77%
Underlying loss before tax (23.7) (22.6) (1.1) (5%)
Net impairment charge (0.8) (8.6) 7.8 91%
Restructuring costs (3.1) (1.2) (1.9) (158%)
Store Closure credit/(charge) 0.5 (1.6) 2.2 138%
Strategic costs (1.0) - (1.0) -
Legal claim (1.3) - (1.3) -
Intangible asset write off (2.6) - (2.6) -
Provision for IT costs - (0.6) 0.6 100%
Gain on waiver of loan from non-controlling interest - 0.5 (0.5) (100%)
Reported loss before tax((1)) (31.8) (34.1) 2.3 7%
(1) Due to rounding some totals may not equal the sum of their component parts
but this does not affect the underlying value.
The table above shows the reconciliation from the reported loss before tax in
the period of £31.8m (2024: loss before tax £34.1m) to the underlying loss
pre and post-SaaS costs.
The Group's underlying loss for the period of £23.7m (2024: loss £22.6m),
was a result of reduced revenue and margin, which was partially offset by
actions taken by the business to reduce operating expenses as a response to
trading results and to right size the business. These actions also set up the
Group for the next financial year. The operating expenses table within this
financial review shows the operational costs decrease of £21.8m to £107.1m
for the period (2024: £128.9m). Underlying operating expenses decreased by
£12.9m to £95.1m (2024: £108.0m).
Reported loss before tax for the period of £31.8m (2024: loss £34.1m)
includes adjusting items of a net £8.1m charge (2024: £11.5m charge).
Intangible, fixed and right-of-use assets are subject to impairment based on
whether current or future events and conditions suggest that their recoverable
amount may be less than their carrying value. In the current year this
impairment review has resulted in a net charge of £0.8m (2024: £8.6m) across
ten stores (2024: ten). In the current period there was also a £2.6m (2024:
£nil) write off of an intangible asset relating to a specific software
project which was a part of the larger transformation programme.
During the period one UK store was closed (2024: one international store) and
a provision was made for the closure costs of 3 other international stores,
the associated credit of £0.6m has been shown within store closure credit. As
reported last period, the Bond Street store was closed resulting in a store
closure charge in the prior period of £1.6m.
In addition to the above the Group has adjusted for £3.1m (2024: £1.2m) of
redundancy costs following a review of the organisational structure aimed at
enhancing operational agility and £1.0m (2024: £nil) of costs for future
business strategic advice.
After the year end, a legal settlement was agreed with a former director in
relation to a dispute following their departure from the board. A total of
£1.3m has been accrued within the financial statements for FY25 for the
settlement and legal costs, in line with legal advice and approval by the
Board in July 2026.
Group revenue
£m 52 weeks ended 52 weeks ended Change
29 March 2025 30 March 2024
£ %
Group Digital 43.4 50.6 (7.2) (14%)
Stores 66.0 84.1 (18.1) (22%)
Retail (omni-channel) 109.4 134.7 (25.3) (19%)
Franchise and wholesale 11.0 18.1 (7.1) (39%)
Group revenue 120.4 152.8 (32.4) (21%)
UK Digital 28.0 33.8 (5.8) (17%)
Stores 39.8 50.9 (11.1) (22%)
Omni-channel - UK 67.8 84.7 (16.9) (20%)
North America Digital 7.4 8.0 (0.6) (8%)
Stores 3.6 3.1 0.5 16%
Omni-channel - North America 11.0 11.1 (0.1) (1%)
Asia Pacific Digital 4.1 5.7 (1.6) (28%)
Stores 14.7 22.0 (7.3) (33%)
Omni-channel - Asia Pacific 18.8 27.7 (8.9) (32%)
ROW Digital 3.9 3.1 0.8 26%
Stores 7.9 8.1 (0.2) (2%)
Omni-channel - Rest of World 11.8 11.2 0.6 5%
Retail (omni-channel) 109.4 134.7 (25.3) (19%)
Franchise and wholesale UK 0.9 1.4 (0.5) (36%)
North America 0.1 0.1 - -
Asia Pacific 1.9 3.7 (1.8) (49%)
Rest of World 8.1 12.9 (4.8) (37%)
Franchise and wholesale 11.0 18.1 (7.1) (39%)
Group revenue decreased by 21% over the prior period, with decreased revenues
in the first half continuing into a challenging second half which saw revenues
reduce by 23% over the same period last year.
H1 H2 FY
FY25 FY24 % Change FY25 FY24 % Change FY25 FY24 % Change
Group Digital 18.4 20.3 (9%) 25.0 30.3 (17%) 43.4 50.6 (14%)
Stores 32.3 39.4 (18%) 33.7 44.7 (25%) 66.0 84.1 (22%)
Retail (omni-channel) 50.7 59.7 (15%) 58.7 75.0 (22%) 109.4 134.7 (19%)
Franchise and wholesale 5.4 10.0 (46%) 5.6 8.1 (31%) 11.0 18.1 (39%)
Group revenue 56.1 69.7 (20%) 64.3 83.1 (23%) 120.4 152.8 (21%)
UK Retail revenue was 20% below the prior period. Overall performance in the
UK was impacted by macro-economic conditions, uncertainty and inflationary
pressures which has affected consumer spend and habits. Stock optimisation and
promotional activity supported revenue and improved working capital however
has impacted margin. In line with the overall trend seen in UK stores UK
Digital revenue was 17% below the prior period and represented 41% of UK
Retail revenue (2024: 40%).
North America revenue was 1% below the prior period, however full year results
were supported through the opening of Nordstrom online concession platform and
full year trading of Nordstrom stores opened in FY24 despite the closure of
two full price stores in the same year.
Asia Pacific Retail revenue decreased by 32% over the prior period. The region
has continued to see an economic downturn. China, Korea and Japan have all
experienced double-digit revenue decline compared to last year, driven by
economic conditions as well as the closure of unprofitable stores that were
exited towards the end of FY24. Growth in Australia stalled in FY25 with like
for like decline of 2% against last year driven by reduced stock availability
in Outlet and slower than anticipated growth in the new location of the New
Zealand store.
Rest of World Retail revenue, which includes Europe, increased by 5% compared
to the prior period. European stores performed in line with the prior year,
but European digital sales increased in the period due to improved product
availability where stock is now fulfilled from the UK warehouse.
As anticipated, Franchise and Wholesale revenue decreased by 39%, with third
party customers being impacted by the macro-economic conditions resulting in
lower orders and a wholesale customer converting to being a concession partner
in the prior period.
Gross Margin
£m 52 weeks 52 weeks Change
ended ended
29 March 30 March
2025 2024
£ %
Revenue 120.4 152.8 (32.4) (21%)
Cost of sales (40.0) (45.7) 5.7 12%
Gross profit 80.4 107.1 (26.7) (25%)
Gross profit margin 66.8% 70.1%
Gross margin during the period was 66.8% and £80.4m. The majority of the cash
margin decrease year on year was through revenue decrease. The 3.3% point
reduction year on year primarily relates to three factors combined. Firstly,
higher costs of production which were not passed onto customers in the current
year. Secondly, a higher cost per unit of production due to lower units being
produced in the year versus prior year (overhead absorption rate). And
finally, higher levels of promotional activity to increase sales and reduce
stock levels.
Other Operating Expenses
£m 52 weeks 52 weeks Change
ended ended
29 March 30 March
2025 2024
£ %
Operating expenses 34.5 40.7 6.2 15%
Staff Costs 37.8 42.8 5.0 12%
Depreciation and amortisation 13.5 15.5 2.0 13%
Systems and comms 9.0 8.8 (0.2) (2%)
Foreign exchange loss/(gain) 0.3 0.2 (0.1) (50%)
Underlying operating expenses 95.1 108.0 12.9 12%
Restructuring costs 3.1 1.2 (1.9) (158%)
SaaS costs 1.2 5.2 4.0 77%
Store closure (credit)/charge (0.6) 1.6 2.2 138%
Strategic costs 1.0 - (1.0) -
Legal claim 1.2 (1.2) -
Intangible asset write off 2.6 - (2.6) -
New initiatives - Sweden and Australia - 7.1 7.1 100%
Provision for IT costs - 0.6 0.6 100%
Under recovery of overheads into inventory 3.5 5.2 1.7 33%
Non-underlying operating expenses 12.0 20.9 8.9 43%
Other operating expenses 107.1 128.9 21.8 17%
In light of the macro climate and hence trading, and actions taken by the
company, other operating expenses decreased by 17% to £107.1m (2024:
£128.9m), with underlying operating expenses also decreasing by 12%. Staff
costs decreased by £5.0m to £37.8m (2024: £42.8m) primarily due to
organisational restructuring and a reduction in headcount aimed at enhancing
operational agility.
In line with our inventory policy, an element of fixed production overheads is
absorbed into stock and expensed when the stock is sold. As production units
were lower than previously planned, a greater proportion of the fixed
overheads were expensed in the period. The impact of this, increased overheads
by £3.5m (2024: £5.2m).
In light of the March 2021 IFRIC agenda decision to clarify the treatment of
Software as a Service (SaaS) cost, during the period we expensed £1.2m (2024:
£5.2m) of SaaS costs, in line with the accounting for configuration and
customisation cost arrangements. SaaS costs reduced in the period as a number
of projects went live in the first half of the period. We increased technology
spend to £9.0m (2024: £8.8m) to support the investment in projects and
systems.
Taxation
The Group reported a tax charge of £0.4m (2024: charge £0.9m). While the
Group has made a loss overall there is a total tax charge for the year largely
driven by overseas taxes and deferred tax charges. It is not possible to
calculate a meaningful effective tax rate for the year. UK corporation tax is
calculated at 25% (2024: 25%) of the estimated taxable profit for the period.
Taxation for the other jurisdictions is calculated at the rates prevailing in
the respective jurisdictions.
Balance sheet
Net working capital, which comprises inventories, trade and other receivables
and trade and other payables, decreased by £18.7m to £6.6m at the period end
(2024: £25.3m).
This decrease was predominantly driven by a reduction in inventory of £14.9m,
principally due to the continuation of the stock optimisation programme which
aims to reduce and maintain stock covers across all lines through production
planning and selling strategies. 2026 will see some re-build of the inventory
level as part of the Back to the Mulberry Spirit strategy and the launch of a
4 Seasons approach.
At the period end, trade and other receivables totalled £13.1m (2024:
£15.5m), with the reduction primarily driven by lower Wholesale sales and the
timing of shipments around the period close. Trade and other payables
increased by £1.4m to £24.7m (2024: £23.4m) largely reflecting the timing
and value of outstanding payments and accruals relating to a post year end
legal settlement.
During the period the Group has signed a new £6.0m supplier trade finance
facility which is backed by UK Export Finance. The facility is committed for a
2-year period. At the period end the balance of the facility was £5.7m (2024:
£nil).
Dividends
The Board has taken the decision that no dividend will be declared for the
52-week period to 29 March 2025 (2024: £nil) and that the Group's resources
will be focused on growing the business.
Cashflow
£m 52 weeks RESTATED 52 weeks % Change
ended ended
29 March 30 March
2025 2024
£ %
Operating cash outflow ((1)) (10.9) (10.5) (0.4) (4%)
Cash movement in working capital 19.6 16.0 3.6 23%
Cash generated from operations 8.7 5.5 3.2 58%
Income taxes paid (0.6) (0.4) (0.2) (50%)
Net cash inflow from operating activities 8.1 5.1 3.0 59%
Acquisition of businesses - (0.2) 0.2 100%
Purchases of property, plant and equipment (1.2) (6.0) 4.8 80%
Acquisition of intangible assets (1.8) (3.8) 2.0 53%
Dividend received from associate 0.1 - 0.1 100%
Net cash used in investing activities (2.9) (10.0) 7.1 71%
Interest paid (5.0) (5.0) - -
Proceeds from loans from non-controlling interests - 3.9 (3.9) (100%)
Investment from non-controlling interest - 0.6 (0.6) (100%)
Proceeds from issue of shares 10.1 - 10.1 -
Proceeds from net borrowings - 17.4 (17.4) (100%)
Proceeds received under a supplier financing agreement 9.7 - 9.7 -
Repayment of loans from non-controlling interests - (1.2) 1.2 100%
Repayment of borrowings (5.9) - (5.9) -
Repayments under a supplier finance agreement (3.9) - (3.9) -
Dividends paid - (0.6) 0.6 100%
Principle elements of lease payments (9.1) (9.7) 0.6 6%
Net cash generated by financing activities (4.1) 5.4 (9.5) (176%)
Net increase in cash and cash equivalents 1.1 0.5 0.6 120%
(1) Operating cash flow represents operating loss for the period
adjusted for depreciation, amortisation, gain on lease modification and
disposals, loss on disposals of property, plant and equipment and intangible
assets.
(2) In the current year, the Group has reclassified interest paid
from operating activities to financing activities in the consolidated
statement of cash flows, in order to better reflect the nature of the cash
flows. Comparative figures have been reclassified to ensure consistency with
the current year's presentation.
The net increase in cash and cash equivalents of £1.1m (2024: increase of
£0.5m) included a £2.0m repayment of the Group's revolving credit facility
(RCF) and £3.8m of overdraft repayment shown within repayment of borrowings.
As a result of the financial performance in the period there was an operating
cash outflow of £10.9m (2024: £10.5m outflow). This cash outflow has been
offset by a decrease in net working capital which had a cash benefit of
£19.6m largely driven by the reduction in inventories of £14.6m as a result
of the stock optimisation program.
During the period investment in capital expenditure was reduced to £3.0m
(2024: £9.8m) as a number of projects went live in the first half of the
period. This spend supports investment in our upgrade of our warehouse
management systems and business planning tool.
On 4 October 2024 the Group issued 10,000,000 5p shares at a cost of £1 per
share to Chalice Limited and Frasers Group Plc. On 9 October 2024 the Group
issued a further 392,013 5p shares at a cost of £1 per share to other
shareholders. The total proceeds on the 10,392,103 shares issued net of costs
was £10,139,000. As a result of the share issue there has been no additional
proceeds from borrowings in the current year.
Borrowing Facilities
The Group had bank borrowings related to drawdowns under its RCF of £13.0m at
29 March 2025 (2024: £15.0m). The borrowings shown in the balance sheet also
include loans from minority shareholders in our North Asia subsidiaries of
£7.2m (2024: £7.3m) and an overdraft of £4.6m (2024: £8.5m).
The Group's net debt balance (comprising cash and cash equivalents, less
overdrafts and borrowings) at 29 March 2025 was £9.4m (2024: net debt of
£16.3m). Net debt comprises cash balances of £8.2m (2024: £7.1m) less bank
borrowings of £17.6m (2024: £23.4m), excluding loans from related parties
and non-controlling interests of £7.2m (2024: £7.3m). Net debt also excludes
lease liabilities of £39.9m (2024: £50.4m) which are not considered to be
core borrowings.
During the period the Group has amended its' RCF increasing the available
funds from £13.0m to £17.5m and re-negotiated covenants to reflect the
current trading environment. The facility continues to run until 30 September
2027 with security granted in favour of its lender. In addition, the Group
continues to have a £4.0m overdraft facility in the UK, which is renewed
annually. Further details regarding the bank facilities and their projected
utilisation are found in the Going Concern statement.
Key Performance Indicators
Key Performance Indicators (KPIs) help management to measure progress against
the Group's strategy. Currently the focus is on financial KPIs, which include
total revenue, gross margin and profit before tax, all of which are discussed
within this financial review.
Corporate Social Responsibility
Established in Somerset in 1971, Mulberry has grown to be the largest maker of
luxury leather goods in the United Kingdom. With a contemporary take on
British heritage and a focus on responsible craft, our ambition is to create
progressive luxury, which is made to last.
Sustainability has been part of the Mulberry ethos since the Brand's
inception, and in 2021 the Made to Last Manifesto detailed our commitment to
becoming regenerative and circular across every aspect of our business. In
2024 we achieved B Corp Certification in recognition of our purpose driven
approach to business.
Today, we are a global brand, but our values remain the same; we are committed
to improving our impact on people and the planet.
Our sustainability strategy
Made to Last is also the name given to our business sustainability strategy.
Climate, Circularity and Community are the guiding principles of our
sustainability journey, and we continue to drive our focus on the following:
Climate
· We are working to achieve net-zero greenhouse gas emissions (GHG) by 2035
across our direct (Scope 1 & 2) and indirect (Scope 3) operations.
· Our near-term emission reduction targets have been validated by the Science
Based Targets initiative (SBTi), underpinning our continued commitment to
building a business that places sustainability at the heart of luxury.
· We are focused on developing in setting initiatives that drive down our
greenhouse gas footprint - initiatives that include building a supply chain
founded on regenerative agriculture and investing in renewable energy.
· Since October 2022, 100% of our leather has been sourced from environmentally
accredited tanneries.
· We continue to introduce new, innovative lower impact materials into our
collections to replace conventional materials, such as our redeveloped BioVeg
Scotchgrain, as well as increasing the percentage of certified materials
within each range, such as Global Organic Textile (GOT) Standard cotton.
Circularity
· Our Lifetime Service Centre has been rejuvenating tens of thousands of
well-loved bags for over 35 years.
· The Mulberry Exchange is available in the UK, USA, China, South Korea, Japan
and Australia, and we continue to look at how we can increase accessibility
globally.
· We've actively participated in British Fashion Council's 'Circular Fashion
Innovation Network,' who's 2025 report outlines major progress and challenges
in transitioning the UK fashion industry toward a circular economy.
Community
· Since 2006, we have operated a flagship apprenticeship scheme in leather goods
manufacturing in Somerset, developing the next generation of craftspeople. In
total Mulberry have supported 168 employees to achieve their qualifications
with 47 of those still working in the business today.
· The exceptional team of craftspeople based in our two carbon neutral Somerset
factories develop and produce many of our iconic bags, and our wider network
of partners in the UK, Europe, and Asia make our small leather goods,
lifestyle pieces and non-leather products with just the same amount of skill
and attention to detail.
· We are an accredited Living Wage Employer. We work closely with our suppliers
to achieve the same throughout our entire supply chain.
· Our longstanding partnership with London-based charity The Felix Project aims
to tackle food poverty in the capital, utilising food which otherwise would
have gone to waste and providing healthy meals to those most in need.
· Somerset Community Foundation (SCF), in partnership with Mulberry, has
designed a fund which aligns with our Made to Last strategy, values and wider
teams. SCF find good causes which Mulberry supports by awarding grants from
our fund, ensuring our philanthropic efforts in the county deliver real
impact, helping those most in need.
CLIMATE
Sustainable leather
Bovine leather features in 85% to 90% of the products we make. To address the environmental issues related to cattle farming, we continue to cultivate a new approach to sourcing leather by building supply chain relationships with farmers committed to regenerative agriculture. Since October 2022, we have sourced 100% of our leather from tanneries with environmental accreditation, something which we began working on in 2018. We source finished leather directly from tanneries in Italy, Germany, Spain and Türkiye, and are developing a new supply of British leather in partnership with British Pasture Leather.
Mulberry is a founding member of the Sustainable Leather Foundation (SLF). SLF provides a partnership platform for all stakeholders involved in the leather industry, as well as an audit and certification standard for organisations involved in the manufacture of leather, to measure their Environmental, Social and Governance performance against a set of recognised standards and limits. This industry standard includes a Social Audit Module, gathering data on wages and benefits, compulsory labour, worker age, working hours, staff development and representation, ethical business practices and non-discrimination practices. Mulberry has a representative on SLF's Advisory Board, ensuring the ongoing evolution of the Foundation meets the needs of brands and consumers. Mulberry's own UK factories have been audited by SLF in 2023 and 2025.
Material innovation
We source a variety of fabrics, materials and other components to create our collections and look to ensure their credentials align with our low-impact materials strategy. Our approach so far has been to make rolling changes to our conventional materials, such as cotton, as we develop each seasonal range, to improve its sustainability credentials.
We continue to introduce new, innovative lower impact materials into our collections to replace conventional materials, such as BioVeg Scotchgrain, as well as increasing the percentage of certified materials within each range, such as Global Organic Textile Standard (GOTS).
CIRCULARITY
The Mulberry Exchange
Mulberry bags are designed to lead many lives, so in 2020 we launched The Mulberry Exchange, our resale platform through which customers can trade in their existing Mulberry bags for credit towards a new purchase. Once we have bought back these pre-loved pieces, we authenticate and rejuvenate each bag before finding them loving new homes.
Repairs and restoration
Our Lifetime Service Centre has been rejuvenating thousands of well-loved bags for over 35 years. We know that our customers cherish, keep and care for their Mulberry bags and we support their commitment by offering accessible artisanal repair services. The team within our Lifetime Service Centre at The Rookery factory in Somerset are masters of restoration, breathing new life into thousands of pre-loved Mulberry pieces every year.
Waste and recycling
In the UK, we work with providers such as Biffa and First Mile to process any non-recyclable waste that would traditionally go to landfill, to create electricity for the National Grid. We send our mixed recycling for sorting and reprocessing into new products.
We have a zero-tolerance policy on destroying quality goods. We divert unsold seasonal stock to our global network of outlet stores, hold sample sales for customers and hold employee sales of samples and stock, with proceeds added to our Somerset Community Fund, or donated to other charitable causes.
Since 2020, we have been sourcing paper to be made into Mulberry packaging from a paper mill which specialises in paper derived from recycled coffee cups. Since we started using CupCycled paper, our partners at the James Cropper papermill have repurposed over 4.4 million coffee cups for Mulberry Green paper, that would otherwise have been sent to landfill. This paper is converted into Mulberry packaging including carrier bags and some boxes.
COMMUNITY
Sourcing transparency
Our international supply chain is based on sourcing quality raw materials and finished products which meet our quality and environmental expectations. Alongside our UK manufacturing facilities, we source from a select group of long-standing partners in Italy, Türkiye, China and Vietnam. We work with countries that have established skills and heritage within the leather industry and that can support our high-quality standards and progressive new-product-development programmes.
All our suppliers have signed up to our Global Sourcing Principles, which set out our minimum requirements for conducting business, including those of international law such as:
- the International Labour Organisation's Declaration on Fundamental Principles and Rights at Work: Freedom of association and the effective recognition of the right to collective bargaining.
- the elimination of all forms of forced or compulsory labour.
- the effective abolition of child labour.
- the elimination of discrimination in respect of employment and occupation; and
- a safe and healthy working environment.
Mulberry conducts regular audits of our finished goods suppliers using third party independent auditors. The audits are carried out against the Ethical Trading Initiative (ETI) Basecode and our Global Sourcing Principles. Generally, audits are semi-announced, meaning the supplier is informed of a 2-week window in which the audit will take place. Where non-compliances are found against the ETI Basecode or our Global Sourcing Principles, a corrective action is agreed between the auditor and the supplier. Satisfactory completion of these corrective actions is assessed by Mulberry's trained internal auditors and/or the Sustainability department and verified by a third-party independent auditor where necessary.
Each year, the Sustainability department send a Supplier Questionnaire to all Tier 1 and Tier 2 suppliers. This year we achieved a 87% response rate with over 90 responses recorded. To bolster transparency in the fashion industry, since 2023 we have publicly shared information identifying specific companies in our supply chain. This list is updated annually and can be found on our website.
Made in the UK
Our presence in the south-west of England harks back to our beginnings in 1971. The Rookery opened in Chilcompton, Somerset in 1989 and is our centre of excellence for product development and home to our development team, artisan studio and Lifetime Service Centre. Our second UK factory, The Willows, opened in Bridgwater in 2013 and is our main production site in the UK, housing seven production lines. At The Willows and The Rookery, we employ more than 300 people. Craftspeople joining follow a comprehensive training programme that equips them with the skills needed to craft Mulberry bags, whether that's cutting leather, edge inking, stitching or quality inspection.
Both The Rookery and The Willows have been carbon-neutral since 2019 and our
solar panels on the roof of The Willows generate renewable energy. Both sites
work with waste service providers who ensure no unrecyclable waste goes to
landfill and is recovered as energy instead. The cutting machines we use
minimise our cutting waste and we donate any unusable leather offcuts to local
craft groups, universities, schools and scrap stores. We regularly host
educational tours for colleges and university classes to engage the next
generation of talent in our heritage manufacturing in Somerset.
Culture and wellbeing
All our employees are ambassadors for Mulberry and we encourage them to live our employee values, which we believe help foster a culture of wellbeing and acceptance, where everyone is celebrated for their individuality. In our culture and environment, all employees can thrive, irrespective of their gender identity, sexual orientation, marital and civil partnership status, parental status, race or ethnicity, religion or religious belief, political opinion, physical appearance, age or disability. All our employees can access our intranet - The Tree - where we post company information, updates and employee achievements and encourage communication.
Charity Partnerships
The Mulberry Somerset Community Fund continues to offer funding to local charities, community interest companies (CIC) and groups in and around Somerset. The fund is held through our partnership with Somerset Community Foundation (SCF), a grant-making charity who facilitate local giving and philanthropy. Since its inception in 2021, we have donated over £58,000 through our fund.
We also continue to partner with The Felix Project, a London based charity set
up in 2016 to tackle food waste and food poverty. They collect and receive
food from hundreds of suppliers, including supermarkets, wholesalers, farms,
restaurants, and delis. Surplus food is then sorted and delivered to
front-line charities, primary schools, and holiday programmes in London. Since
the launch of our partnership, we have raised over £185,000. This has enabled
The Felix Project to fund nearly 700,000 meals for Londoners in need.
Diversity, equity and inclusion
To ensure we are successful in creating this environment for our employees, our Diversity, Equity and Inclusion (DE&I) Committee meets regularly to discuss our DE&I Strategy, as well as current news, personal experiences and those of our colleagues. The committee also works with the marketing department to create a communications calendar, recognising key moments such as International Women's Day, Mental Health awareness, Pride and Black History Month. This helps us reflect on and celebrate the success of our diverse employees.
Last year saw the launch of five Employee Resource Groups (ERGs) to ensure focussed discussion and awareness building on key topics. These are internal communities of Mulberry employees with shared identities and interests, brought to together to drive activities and progression across DE&I topics, formally supported by the business. Our ERGs are Accessibility, Disability & Neurodiversity; Ethnicity & Culture; Mental Health & Wellbeing; Proudly Mulberry and Women at Mulberry.
Gender equality
Since publication of our 2023 Gender Pay Gap Report, we have seen an increase in both the mean and median hourly pay gap year on year. There are several factors which contribute to Mulberry's gender pay gap. For this year's results, the difference can be explained by two main factors: the functions of our business (retail, supply chain, corporate) and associated pay scales, and the distribution of women and men at each quartile of the business.
Industry data shows us that 89% of industries in the UK have gender pay gaps in favour of men, even those with female-dominated occupations where this number falls to 66%. As with last year, we continue to be ahead in comparison to industry data provided by The Office of National Statistics. The median gender pay gap for full-time workers in 2024 was 7.1% in favour of men, whereas Mulberry is 0%.
Living Wage Employer
We are proud to be an accredited Living Wage Employer since 2021. This means that all UK employees will earn higher than the Government's minimum or National Living Wage. Living Wage is an independently calculated hourly pay rate based on the actual cost of living, calculated each year by the Living Wage Foundation. We continue to use available global benchmarks and insights to ensure our global employees earn a living wage comparable with their location.
Apprenticeships
Since 2006, we have operated a leather goods manufacturing apprenticeship
programme in conjunction with Bridgwater and Taunton College, which we run at
The Willows and The Rookery.
In 2017, we were Lead Employer in a national trailblazer group, developing the
Level 2 Leather Craftsperson Standard apprenticeship, which has since become
industry-recognised, offering graded results for apprentices in the leather
goods' industry.
Our Leather Goods Manufacturing apprenticeship programme continues to support
the upskilling of workers into the leather goods industry and in the period
saw us employ 3 new apprentices into the scheme. The programme has been
reinvigorated to encourage cross functional learning across several
departments within Mulberry, expanding the apprentices experience and
providing more exposure to the business.
We have developed the Mulberry Apprenticeship Exchange which provides our
apprentices with the opportunity to connect with other apprentices in
manufacturing and to collaborate, share insights and build confidence in
showcasing their skills and experiences. We have also donated portions of
our levy to small, local businesses to support their apprenticeship schemes.
Climate-related Financial Disclosures
This section of the Strategic Report constitutes Mulberry's Climate-related
Financial Disclosure (CFD) reporting, produced to comply with sections 414CA
and 414CB of the Companies Act 2006, as amended by the Companies (Strategic
Report) (Climate-related Financial Disclosure) Regulations 2022.
The CFD aims to provide stakeholders with the information they require to
undertake robust and consistent analysis of the potential financial impacts of
climate change on the business. The CFD requires the disclosure of information
aligned to its four core elements: governance, risk management,
climate-related risks and opportunities (strategy), and metrics and targets.
At Mulberry we recognise that climate change presents both climate-related
risks and opportunities for our business, stakeholders and the wider fashion
industry. As such, we acknowledge our responsibility to identify, assess and
manage principal climate-related risks and opportunities to ensure the
sustainable development of the business.
This disclosure, and the following assessments, have been conducted at the
group level and include all subsidiaries.
Governance
Mulberry has the following structures in place to ensure robust governance
across our business and operations:
Governance body Description
The Board of Directors The Board is comprised of two Executive Directors and five Non-Executive
Directors. The Board meets formally on a bi-monthly basis and is responsible,
among other things, for overall Group strategy, investments and capital
projects and for ensuring that an appropriate framework of internal control is
in place throughout the Group.
Audit Committee The Audit Committee is responsible for overseeing the financial reporting
process, ensuring that the financial statements are accurate and prepared in
accordance with applicable accounting policies and standards. It also monitors
and reviews internal control procedures. The Audit Committee convenes a
minimum of three times a year.
Nomination and Remuneration Committee The Nomination and Remuneration Committee is responsible for nominating
Directors to the Board and then determining the remuneration and terms and
conditions of employment of Directors and senior employees of the Group. The
Remuneration Committee meet at least once a year.
Overall responsibility for climate risk sits at the Board level.
Climate-related risks and opportunities have been reported to and considered
as part of the Audit Committee and Board meetings. The Board is responsible
for providing the final approval of the CFD.
Risk Management
Our risk management processes for identifying climate-related risks and
opportunities are:
· Monitoring external developments, such as evolving policies and regulatory
changes.
· Benchmarking of our own climate-related risks and opportunities against
industry peers; and
· Assessing key risk indicators, which help us gauge how effectively we are
managing various aspects of climate change and the energy transition.
In addition, an annual assessment is performed to identify and assess
climate-related risks and opportunities. Supported by third-party consultants,
this is overseen and managed by Finance with direct input from the
Sustainability team. This cross-functional approach ensures that
climate-related risks and opportunities are considered more holistically and
remain aligned with our overall business strategy.
Each identified risk was evaluated based on its potential impact and
likelihood, and assigned a risk rating of high, medium, or low. Risks
classified as 'high' underwent further analysis to assess their financial
materiality and determine whether they qualify as principal risks.
Climate-related opportunities were assessed using a similar approach to
evaluate their financial significance. In line with UK CFD guidelines,
Mulberry discloses only those risks and opportunities deemed to be principal.
This assessment process is conducted annually to ensure our understanding and
management of climate-related risks and opportunities remains current and
robust.
Strategy
Scenario Analysis
To analyse the resilience of the business, Mulberry has undertaken a
qualitative scenario analysis. This analysis assesses potential impacts under
three climate scenarios, referencing the Intergovernmental Panel on Climate
Change (IPCC) Representative Concentration Pathways (RCPs) and the IPCC Shared
Socioeconomic Pathways (SSPs).
Within each scenario, we have identified physical hazards, transitional
implications as well as any associated opportunities. The high warming
scenario (slow transition) has been used to examine Mulberry's exposure to
physical hazards, and the low warming scenario (fast transition) has been used
to assess Mulberry's exposure to transitional implications.
The scenarios presented are not forecasts of future events or outcomes and
should not be interpreted as the foundation for Mulberry's operational
strategies or financial reporting.
Going Concern
In determining whether the Group's accounts can be prepared on a going concern
basis, the Directors considered the Group's business activities and cash
requirements together with factors likely to affect its performance and
financial position. The Group's going concern assessment covers the period
through to the end of July 2026, which extends beyond 12 months from the date
of approval of these financial statements in July 2025.
The Group had a net liability position of £10.7m at 29 March 2025, decreasing
from a net asset position of
£10.9m at 1 April 2024, reflecting turnaround costs incurred during the year
(including redundancies, corporate
restructuring and executive director exit costs) and continued losses in the
year as a result of a challenging macroeconomic environment.
The Group continues to take appropriate cost actions, manage inventory levels
and drive commercial initiatives to improve profitability and cash generation.
Since the period end, the following action has also been implemented:
· On 20 June 2025, the Group announced a new fundraising initiative via a
convertible loan note of £20m, with both its major shareholders Challice
Limited and Frasers Group Plc, to further strengthen the balance sheet. The
total amount raised may increase through a retail offer extended to other
shareholders.
Borrowing facilities
The Group's net debt balance at 29 March 2025 was £9.4m (2024 £16.3m), with
available liquidity of £11.8m (2024: £2.0m). Net debt comprises cash
balances of £8.2m (2024: £7.1m) less bank borrowings of £17.6m (2024:
£23.4m). Bank borrowings related to drawdowns under its RCF of £13.0m (2024:
£15.0m) and an overdraft of £4.6m (2024: £7.1m).
Since the period end, the Group has agreed with its lender to relax the
minimum liquidity covenant for a period, in order to access the additional
liquidity and continue to deliver its growth strategy. This relaxation of the
covenant will fall away at the point the fundraise completes and the cash is
injected into the business. The Group also agreed with its lender to relax
performance covenants until 1 January 2027, to reflect the current macro
trading environment. The facility continues to run until 30 September 2027
with security granted in favour of its lender.
In addition to the RCF facility, the Group signed a new £6.0m supplier trade
finance facility with its lender in July 2024, which is a committed facility
and backed by UK Export Finance. The facility is committed for a two-year term
with renewal scheduled for 19 July 2026, which falls towards the end of the
Group's assessed going concern period. The Group retains access to a £4.0m
overdraft facility, which is uncommitted in nature. As part of the going
concern assessment, the Directors have considered scenarios both including and
excluding uncommitted facilities. Whilst the overdraft is subject to annual
renewal, it has recently been renewed by the lender through to July 2026,
demonstrating continued support.
Basis of going concern statement
The Directors have undertaken a detailed assessment of the Group's ability to
continue as a going concern for the 12-month period from the date of approval
of these financial statements, taking into account current and anticipated
trading performance, macroeconomic headwinds, and available financing
facilities.
The Group is currently executing a strategic management turnaround, with a
clear focus on stabilising performance and returning to sustainable profitable
growth over the medium term. Reflecting this approach, the Group's FY26 budget
was prepared on a more prudent basis than in prior years, incorporating more
conservative revenue growth assumptions and tighter cost controls. Management
has effectively demonstrated cost control by delivering cost reductions during
FY25 and into run rate FY26 sustaining operations at this lower run-rate post
year end.
Base case scenario
The Directors' base case scenario is based off the Board-approved FY26 budget,
three-year plan and includes uncommitted facilities and has been updated to
include £20m for the expected proceeds from the shareholder fundraise
announced in June 2025. The Group considers its overdraft to form part of its
uncommitted facilities, as it is inherently uncommitted in nature. In
addition, while the supplier trade finance facility is currently fully
committed, it will be regarded as uncommitted from its next renewal date in
July 2026. The FY26 budget assumes a 1% growth in revenue versus FY25 (17%
revenue reduction versus FY24) primarily driven by the ongoing adverse
macro-economic conditions globally and a focus on exiting loss-making stores.
It also includes cost increases relating to inflationary cost pressures,
offset by cost savings such as headcount reduction and the closure of certain
stores, in light of the current trading environment. Most of these were
actioned before the start of the year, or already committed to and are taking
place in the new financial year. The four months to July 2026 from the
three-year plan included in the going concern period assumes a 14% increase in
revenue versus FY26 as it is anticipated that the strategic turnaround
continues to take effect. The Directors compared the base case scenario
against external analysis of anticipated market growth in different
geographies, and the analysis supported our strategic approach and revenue
assumptions, including market opportunities.
Under the base case scenario, which reflects this cautious outlook, the Group
maintains adequate liquidity and financial headroom throughout the going
concern period, including ongoing compliance with its minimum liquidity
covenant. The Directors have also considered the base case scenario without
uncommitted facilities, with the Company continuing to meet its minimum
liquidity covenant within the going concern period.
While the renewal of the STF facility in July 2026 is not yet contractually
confirmed, management expects the facility to be renewed in line with recent
discussions regarding the Company's overdraft facility and ongoing engagement
with the lender. In the event that the STF facility is not renewed, the
Company would be required to either explore other facilities with the lender
to maintain compliance with the minimum liquidity covenant from August 2026
onwards, or implement alternative mitigating actions within management's
control, which have not been modelled.
Downside scenario
The Directors have considered a downside scenario which models a further 4.0%
revenue reduction in Group revenue against the base case scenario, based on a
worsening view on future economic activity and sales trends globally. The
downside scenario includes uncommitted facilities and mitigations within
management's control, as the Directors consider these operational levers to be
plausible in a downside scenario. The mitigations include a reduction in
production costs and stock purchases relating to the decline in sales and a
reduction in uncommitted marketing spend and capital expenditure.
In the downside scenario, the Group is forecast to retain sufficient headroom
against its minimum liquidity covenant, supported by existing operational
levers. The Directors have also considered the downside scenario without
uncommitted facilities, with the Company continuing to meet its minimum
liquidity covenant within the going concern period. If the Company was
unsuccessful with renewing or replacing its overdraft and supplier trade
finance facility in July 2026, the Company would be required to explore other
facilities or implement mitigating actions to remain compliant with the
minimum liquidity covenant from August 2026 onwards. However, based on
historical precedent when renewing its banking facilities and management's
reasonable expectations given the recent renewal of the overdraft facility to
July 2026, the Directors consider this scenario to be remote.
Reverse stress tests
In addition, a reverse stress test was conducted to assess the point at which
compliance with its minimum liquidity covenant would no longer be maintained.
The first reverse stress test scenario models a decline in revenue, excludes
uncommitted facilities, includes repayment of the STF facility in July 2026
and includes mitigations within management's control. This analysis indicated
that in a scenario without uncommitted facilities, Group revenue would need to
decline by 5.5% below the base case before a covenant breach might occur in
July 2026.
Management has also considered the impact when factoring in uncommitted
facilities due for renewal in the going concern period, showing an improvement
in the threshold to 10.5%.
The outcome of these reverse stress test scenarios indicates the presence of a
material uncertainty that may cast significant doubt over the Group's ability
to continue as a going concern in the severe but plausible scenario of a
prolonged and extreme macro economic downturn without the successful renewal
or replacement of the uncommitted facilities.
Consideration of the key factors in the going concern assessment:
· The Company has achieved positive post year end performance versus the base
case scenario, with signs of a successful strategic turnaround. In addition,
the base case is based off of a conservative budget for FY26, with growth
expected in FY27. As such, management does not believe revenue will fall by
5.5% below the base case in the period to July 2026.
· Revenue modelled in the reverse stress test scenario after including
uncommitted facilities would be below the level achieved during 2020/21 after
the impact of COVID.
· The reduction in inventories during the period (£14.8m) demonstrates that
inventory levels can be managed.
· If trading was to be challenging over the key trading periods, there is time
to react and take further unmodelled mitigating actions before a covenant
breach in over 12 months at July 2026, including stock optimisation programmes
to manage inventory levels and cost reduction activities, including store and
concession closures where appropriate.
· Management considers the strong relationship with its lenders and have
concluded that although the uncommitted facilities have been excluded from the
reverse stress test scenario, management expects both the overdraft and the
supplier trade finance facility to be renewed in July 2026.
Going concern conclusion
The Directors acknowledge the existence of a material uncertainty in the
severe but plausible scenario of three events in parallel - a prolonged macro
climate downturn, coupled with the non-renewal of uncommitted facilities and
an inability to mitigate this impact through cost savings and working capital
management.
However, given the prudent basis of the base case, the range of available
unmodelled mitigations and possible other funding options, and the strategic
actions underway to support the turnaround - including cost optimisation,
stock efficiency programmes, and the rationalisation of underperforming stores
- the Directors are confident in the Group's ability to meet its obligations
as they fall due. Furthermore, the Group retains a supportive shareholder base
and strong banking relationships, as evidenced by the increase in debt
facilities in 2024, recent renewal of the overdraft facility to July 2026 and
the announcement on 20 June 2025 of a minimum £20m fundraising initiative,
underwritten by the majority shareholder, to further strengthen the Group's
balance sheet.
Notwithstanding this material uncertainty, the Directors consider it
appropriate for the Group to continue to adopt the going concern basis of
accounting in preparing the Annual Report and Financial statements.
Group income statement
52 WEEKS ENDED 29 MARCH 2025
52 weeks ended 52 weeks ended
29 March 30 March
2025 2024
£'000 £'000
Revenue 120,389 152,844
Cost of sales (39,953) (45,704)
Gross profit 80,436 107,140
Impairment charge relating to intangibles (161) -
Impairment charge relating to property, plant and equipment (338) (1,239)
Impairment charge relating to right-of-use assets (281) (7,334)
Other operating expenses (107,149) (128,938)
Other operating income 626 1,234
Operating loss (26,867) (29,137)
Share of results of associates 42 31
Finance income - 1
Finance expense (4,995) (5,019)
Loss before tax (31,820) (34,124)
Tax (381) (860)
Loss for the period (32,201) (34,984)
Attributable to:
Equity holders of the parent (30,376) (33,505)
Non-controlling interests (1,825) (1,479)
Loss for the period (32,201) (34,984)
Basic loss per share (49.8p) (58.6p)
Diluted loss per share (49.8p) (58.6p)
All activities arise from continuing operations.
Group statement of comprehensive income
52 WEEKS ENDED 29 MARCH 2025
52 weeks ended 52 weeks ended
29 March 30 March
2025 2024
£'000 £'000
Loss for the period (32,201) (34,984)
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations 140 (1,105)
Total comprehensive expense for the period (32,061) (36,089)
Attributable to:
Equity holders of the parent (30,413) (34,773)
Non-controlling interests (1,648) (1,316)
Total comprehensive expense for the period (32,061) (36,089)
Group balance sheet
AS AT 29 MARCH 2025
29 March 30 March
2025 2024
£'000 £'000
Non-current assets
Intangible assets 5,230 8,700
Property, plant and equipment 14,702 18,754
Right-of-use assets 26,738 34,307
Interests in associates 450 206
47,120 61,967
Current assets
Inventories 18,223 33,159
Trade and other receivables 13,107 15,453
Current tax asset 45 -
Cash and cash equivalents 8,200 7,138
39,575 55,750
Total assets 86,695 117,717
Current liabilities
Trade and other (24,715) (23,354)
payables
Liabilities under a supplier finance arrangement (5,726) -
Current tax liability - (123)
Lease liabilities (10,153) (9,909)
Borrowings (17,596) (23,474)
(58,190) (56,860)
Net current (liabilities)/assets (18,615) (1,110)
Non-current liabilities
Trade and other (2,318) (2,155)
payables
Lease liabilities (29,735) (40,485)
Borrowings (7,229) (7,338)
(39,282) (49,978)
Total liabilities (97,472) (106,838)
Net (liabilities)/assets (10,777) 10,879
Equity
Share capital 3,524 3,004
Share premium account 21,779 12,160
Own share reserve (365) (438)
Capital redemption reserve 154 154
Foreign exchange reserve (290) (430)
Retained earnings (27,405) 2,955
Equity attributable to holders of the parent (2,603) 17,405
Non-controlling interests (8,174) (6,526)
Total equity (10,777) 10,879
Group statement of changes in equity
52 WEEKS ENDED 29 MARCH 2025
Share Share premium account Own share reserve Capital redemption reserve Foreign exchange reserve Retained earnings Total Non-controlling interests Total
capital £'000 £'000 £'000 £'000 £'000 £'000 £'000 equity
£'000 £'000
Balance at 1 April 2023 3,004 12,160 (896) 154 675 38,110 53,207 (6,441) 46,766
Loss for the period - - - - - (33,505) (33,505) (1,479) (34,984)
Other comprehensive expense for the period - - - - (1,105) - (1,105) - (1,105)
Total comprehensive expense for the period - - - - (1,105) (33,505) (34,610) (1,479) (36,089)
Charge for employee share-based payments (Note 32) - - - - - 25 25 - 25
Impairment of shares in trust - - 458 - - (458) - - - -
Adjustment arising from investment by non-controlling interests - - - - - - - 611 611
Adjustment arising from acquisition of non-controlling interests - - - - - (620) (620) 620 -
Non-controlling interest foreign exchange - - - - - - - 163 163
Dividends paid (Note 14) - - - - - (597) (597) - (597)
Balance at 30 March 2024 3,004 12,160 (438) 154 (430) 2,955 17,405 (6,526) 10,879
Loss for the period - - - - - (30,376) (30,376) (1,825) (32,201)
Other comprehensive income for the period - - - - 140 - 140 - 140
- -
Total comprehensive income/(expense) for the period - - - - 140 (30,376) (30,236) (1,825) (32,061)
- -
Issue of shares (Note 28) 520 9,619 - - - - 10,139 - 10,139
Charge for employee share-based payments (Note 32) - - - - - 89 89 - 89
Impairment of shares in trust - - 73 - - (73) - - -
Non-controlling interest foreign exchange - - - - - - - 177 177
Balance at 29 March 2025 3,524 21,779 (365) 154 (290) (27,405) (2,603) (8,174) (10,777)
Group cash flow statement
52 WEEKS ENDED 29 MARCH 2025
52 weeks ended RESTATED 52 weeks ended
29 March 30 March 2024
2025 £'000
£'000
(26,867) (29,137)
Operating loss for the period
Adjustments for:
Depreciation and impairment of property, plant and equipment 4,577 6,191
Depreciation and impairment of right-of-use assets 7,623 16,654
Amortisation and impairment of intangible assets 2,115 1,760
Gain on lease modification and lease disposals (1,228) (6,100)
Loss on sale of property, plant and equipment 217 601
Loss on disposal of intangible assets 2,568 29
Gain on waiver of loan from non-controlling interest - (504)
Share-based payments expense 89 25
Operating outflow before movements in working capital (10,906) (10,481)
Decrease in inventories 14,619 15,188
Decrease in receivables 2,346 4,495
Increase/(decrease) in payables 2,590 (3,707)
Cash generated from operations 8,649 5,495
Income taxes paid (550) (343)
Net cash inflow from operating activities 8,099 5,152
Investing activities:
Interest received - 1
Acquisition of businesses - (238)
Purchases of property, plant and equipment (1,152) (5,948)
Proceeds from disposal of property, plant and equipment - -
Acquisition of intangible assets (1,818) (3,835)
Dividend received from associate 109 -
Net cash used in from investing activities (2,861) (10,020)
Financing activities:
Interest paid (4,995) (5,019)
Proceeds from loans from non-controlling interests - 3,934
Investment from non-controlling interest - 611
Proceeds from issue of shares 10,139 -
Proceeds from new borrowings - 17,374
Proceeds received under a supplier financing agreement 9,647 -
Repayment of loans from non-controlling interests - (1,171)
Repayment of borrowings (5,878) -
Repayments under a supplier finance agreement (3,921) -
Dividends paid - (597)
Principle elements of lease payments (9,092) (9,802)
Net cash generated by financing activities (4,100) 5,330
Net increase in cash and cash equivalents 1,138 462
Cash and cash equivalents at beginning of period 7,138 6,872
Effect of foreign exchange rate changes (76) (196)
Cash and cash equivalents at end of period 8,200 7,138
Cash and cash equivalents comprise cash and short-term bank deposits with an
original maturity of three months or less. The carrying amount of these assets
at the end of the reporting period as shown in the consolidated statement of
cash flows can be reconciled to the related items in the Consolidated balance
sheet position as shown above. Cash and cash equivalents does not include bank
overdrafts that are not integral to the cash management of the Group.
In the current year, the Group has reclassified interest paid from operating
activities to financing activities in the consolidated statement of cash
flows, in order to better reflect the nature of the cash flows. Comparative
figures have been reclassified to ensure consistency with the current year's
presentation.
1. GENERAL INFORMATION and statement of compliance
Mulberry Group plc is a public company, limited by shares, incorporated in the
United Kingdom under the Companies Act 2006 and is registered in England and
Wales.
These financial statements are presented in pounds Sterling because that is
the currency of the primary economic environment in which the Group operates.
The consolidated financial statements have been prepared in accordance with
UK-adopted International Accounting Standards.
The financial information set out in this document does not constitute the
Group's statutory accounts for the period ended 29 March 2025 or the period
ended 30 March 2024 but is derived from those accounts.
Statutory accounts for the period ended 30 March 2024 have been delivered to
the registrar of companies. The auditors have reported on those accounts;
their report was (a) unqualified, and (ii) did not contain a statement under
section 498 (2) or (3) of the Companies Act 2006.
Statutory accounts for the period ended 29 March 2025 will be delivered to the
registrar of companies in due course. The auditors have reported on those
accounts; their report was (i) unqualified, and (ii) did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006. The
Auditor's report on these accounts did contain an emphasis of matter in
relation to the fact that a material uncertainty existed that may cast doubt
on the Group's ability to continue as a going concern. As set out above the
directors have identified a material uncertainty which may cast significant
doubt on the entity's ability to continue as a going concern, meaning it may
be unable to realise it assets and discharge its liabilities in the normal
course of business. Notwithstanding this material uncertainty, the Directors
consider it remains appropriate to continue to adopt the going concern basis
in the preparation of the financial statements.
The financial statements for the period ended 29 March 2025 (including the
comparatives for the period ended 30 March 2024) were approved and authorised
for issue by the Board of Directors on 10 July 2025.
This results announcement for the period ended 29 March 2025 was also approved
by the Board on 10 July 2025. Whilst the financial information included in
this statement has been compiled in accordance with the recognition and
measurement principles of UK-adopted International Accounting Standards, this
statement does not itself contain sufficient information to comply with
UK-adopted International Accounting Standards. Full Financial Statements that
comply with IFRS are included in the 2025 Annual Report.
2. ADOPTION OF NEW AND REVISED STANDARDS
New and amended standards adopted by the Group
In the current period, the Group has applied a number of amendments to IFRS
Standards issued by the International Accounting Standards Board (IASB) that
are mandatorily effective for an accounting period that begins on or after 1
January 2025. Their adoption has not had any material impact on the
disclosures or on the amounts reported in these financial statements.
At the date of approval of these financial statements, the Group has not
applied the following new and revised IFRS Standards that have been issued but
are not yet effective:
· Amendment to IFRS 9 and IFRS 7 - Classification and measurement
of financial instruments
· Amendments to IAS 21 - Lack of exchangeability
· Amendments to the Classification and Measurement of Financial
Instruments - Amendments to IFRS 9 Financial Instruments and IFRS
7 Financial Instruments: Disclosures
· IFRS 18 Presentation and disclosure in financial statements
The Directors do not expect that the adoption any Standards which have been
issued but not yet effective to have a material impact on the financial
statements of the Group in future periods.
3. SIGNIFICANT ACCOUNTING POLICIES
Basis of accounting
The financial statements have been prepared in accordance with UK-adopted
International Accounting Standards in conformity with the requirements of the
Companies Act 2006.
For the period ended 29 March 2025, the financial period runs for the 52 weeks
to 29 March 2025 (2024: 52 weeks ended 30 March 2024).
The financial statements are prepared under the historical cost basis except
for financial instruments that are measured at fair values at the end of each
reporting period as explained in the accounting policies below. The principal
accounting policies adopted are set out below.
Going concern
The Directors have, at the time of approving the financial statements, a
reasonable expectation that the Company and the Group have adequate resources
to continue in operational existence for the foreseeable future. As a result,
they continue to adopt the going concern basis of accounting in preparing the
financial statements
4. BUSINESS AND GEOGRAPHICAL SEGMENTS
IFRS 8 requires operating segments to be identified on the basis of internal
reports about components of the Group that are regularly reviewed by the Chief
Operating Decision Maker (CODM), defined as the Board of Directors, to
allocate resources to the segments and to assess their performance.
Inter-segment pricing is determined on an arm's length basis. The Group also
presents analysis by geographical destination and product categories.
(a) Business segment
The Group continues to extend its omni-channel network in order to support the
Group's global growth ambitions. Mulberry has thus become increasingly reliant
on individual market-level profitability metrics to enable them to make timely
market-centric decisions that are operational and investment in nature. It is
therefore appropriate for the segmental analysis disclosures to be a regional
view of segments (being UK, Asia Pacific and Other International) to reflect
the current business operations and the way the business internally reports
and the information that the CODM reviews and makes strategic decisions based
on its financial results.
The principal activities are as follows:
The Group designs, manufactures and manages the Mulberry brand for the segment
and therefore the finance income and expense are not attributable to the
reportable segments.
The accounting policies of the reportable segments are the same as described
in the Group's financial statements. Information regarding the results of the
reportable segment is included below. Performance for the segment is assessed
based on operating profit/(loss).
Group income statement
52 weeks ended 29 March 2025
UK North America Asia Pacific Other International Eliminations Total
£'000 £'000 £'000 £'000 £'000 £'000
Revenue
Omni-Channel 113,336 10,968 18,865 11,803 (45,560) 109,412
Franchise and Wholesale 850 79 1,907 8,141 - 10,977
Total revenue 114,186 11,047 20,772 19,944 (45,560) 120,389
Segment (loss)/profit (11,906) (499) (4,245) 1,470 (15,180)
Central costs (3,553)
Store closure credit 547
Restructuring costs (3,106)
Impairment of intangibles (161)
Impairment of property, plant and equipment (338)
Impairment of right-of-use assets (281)
Strategic costs (982)
Legal claim (1,250)
Intangible asset write off (2,563)
Operating loss (26,867)
Share of results of associates 42
Finance income -
Finance expense (4,995)
Loss before tax (31,820)
UK North America Asia Pacific Other International Central Total
£'000 £'000 £'000 £'000 £'000 £'000
Segment cost of sales 64,525 2,653 7,877 10,458 (45,560) 39,953
Segment depreciation, amortisation and impairment 8,370 858 3,253 (82) 1,916 14,315
Segment staff costs 32,361 2,205 5,756 1,712 2,390 44,424
Segment capital expenditure 1,585 4 478 34 - 2,101
Segment assets 57,848 5,607 10,894 5,382 6,964 86,695
Segment liabilities 64,507 6,194 15,158 4,024 7,589 97,472
5. Alternative Performance Measures
A reconciliation of reported loss before tax to underlying loss before tax is
set out below:
Reconciliation to underlying loss before tax: 52 weeks ended 52 weeks ended
29 March 30 March
2025 2024
£'000 £'000
Loss before tax (31,820) (34,124)
Store closure (credit)/charge (547) 1,576
Restructuring costs 3,106 1,241
Impairment charge related to intangibles 161 -
Impairment charge related to property, plant and equipment 338 1,239
Impairment charge related to right-of-use assets 281 7,334
Strategic costs 982 -
Legal claim 1,250 -
Intangible software costs 2,563 -
IT Project costs - 647
Gain on waiver of loan from non-controlling interest - (504)
Underlying loss before tax - non-GAAP measure (23,686) (22,591)
Adjusted basic loss per share (40.1p) (40.1p)
Adjusted diluted loss per share (40.1p) (40.1p)
In reporting financial information, the Group presents Alternative Performance
Measures (APMs), which are not defined or specified under the requirements of
IFRS. The Group believes that these APMs, which are not considered to be a
substitute for, or superior to, IFRS measures, provide stakeholders with
additional helpful information on the performance of the business. These APMs
are consistent with how the business performance is planned and reported
within the internal management reporting to the Board of Directors. Some of
these measures are also used for the purpose of setting remuneration targets.
The Group makes certain adjustments to the statutory profit or loss measures
in order to derive APMs. Adjusting items are those items which, in the opinion
of the Directors, should be excluded in order to provide a consistent and
comparable view of the performance of the Group's ongoing business. Generally,
this will include those items that are largely one-off and material in nature
as well as income or expenses relating to acquisitions or disposals of
businesses or other transactions of a similar nature. Treatment as an
adjusting item provides stakeholders with additional useful information to
assess the year-on-year trading performance of the Group.
Store closure (credit)/charge
During the period one UK store was closed (2024: one international store) and
a provision was made for the closure costs of three other international stores
(2024: no stores). The store closure (credit)/charge relates to the following
items (released)/charged to the Income Statement:
52 weeks ended 52 weeks ended
29 March 30 March
2025 2024
£'000 £'000
Release of lease and other liabilities (1,670) (17,711)
Write-off of right-of-use assets 442 11,777
Contribution towards new assignee rentals - 5,205
Financial guarantee for remaining lease rentals 456 2,155
Lease exit and redundancy costs 225 150
(547) 1,576
The disposal of the leases resulted in net cash proceeds of £nil (2024:
£nil).
Restructuring costs
During the period the Group carried out a further review of its cost base and
as a result incurred redundancy costs of £3,106,000 (2024: £1,241,000).
Impairment of intangible assets
During the period the Group impaired the costs of acquired software within an
international subsidiary.
Impairment charge related to property, plant and equipment and right-of-use
assets:
The fixed assets and right-of-use assets of Retail stores are subject to
impairment based on whether current or future events and conditions suggest
that their recoverable amount may be less than their carrying value. The
recoverable amount of each store is based on the higher of the value in use
and fair value less costs to dispose. Value in use is calculated from expected
future cash flows using suitable discount rates, management assumptions and
estimates on future performance. The carrying value for each store is
considered net of the carrying value of any cash contribution received in
relation to that store. For impairment testing purposes, the Group has
determined that each store is a separate cash-generating unit (CGU). Each CGU
is tested for impairment if any indicators of impairment have been identified.
The value in use of each CGU is calculated based on the Group's latest budget
and forecast cash flows. Cash flows are discounted using the weighted average
cost of capital (WACC) and are modelled for each store through to their lease
expiry or break date. No lease extensions have been assumed when forecasting.
The Group also tests whether there should be any reversal of previously
impaired assets.
The results of this assessment are shown in the table below:
52 weeks ended 52 weeks ended
29 March 30 March
2025 2024
£'000 £'000
Impairment charge related to property, plant and equipment - 6 stores (2024: 9 847 1,438
stores)
Reversal of impairment charge related to property, plant and equipment - 4 (509) (199)
stores (2024: 1 store)
Net impairment charge related to property, plant and equipment 338 1,239
Impairment charge related to right-of-use assets - 5 stores (2024: 9 stores) 1,753 8,443
Reversal of impairment charge related to right-of-use assets - 4 stores (2024: (1,472) (1,109)
1 store)
Net impairment charge related to right-of-use assets 281 7,334
Strategic costs
During the period the Group incurred costs of £982,000 for future business
strategic advice (2024: £nil).
Legal claim settlement
After the year end, the Group entered into a legal settlement agreement with a
former director in relation to the resolution of a dispute following their
departure from the Board. The settlement does not relate to services provided
and is therefore not classified as remuneration. It was made on legal advice
and approved by the Board in July 2025.
A total amount of £1.3m has been recognised within administrative expenses in
the income statement. As at the reporting date, the full amount was accrued
within trade and other payables.
Intangible asset write off
During the period the Group has written off a specific software project which
was part of a larger transformation programme resulting in a charge to the
income statement of £2,563,000 (2024: £nil).
6. OTHER OPERATING EXPENSES
52 weeks ended 52 weeks ended
29 March 30 March
2025 2024
£'000 £'000
Other operating expenses have been arrived at after charging/(crediting):
Impairment of intangibles 161 -
Impairment of property, plant and equipment 338 1,239
Impairment of right-of-use assets 281 7,334
Amortisation of intangible assets 1,954 1,760
Depreciation of property, plant and equipment 4,239 4,952
Depreciation of right-of-use assets 7,342 9,320
Net foreign exchange loss 335 210
Store closure (credit)/charge (547) 1,576
Staff costs 44,424 50,196
Other operating expenses 49,402 60,924
107,149 128,938
7. EARNINGS PER SHARE (EPS)
52 weeks ended 52 weeks ended
29 March 30 March
2025 2024
pence pence
Basic loss per share (49.8) (58.6)
Diluted loss per share (49.8) (58.6)
Underlying basic loss per share (40.1) (40.1)
Underlying diluted loss earnings per share (40.1) (40.1)
Earnings per share is calculated based on the following data:
52 weeks ended 52 weeks ended
29 March 30 March
2025 2024
£'000 £'000
Loss for the period for basic and diluted earnings per share (32,201) (34,984)
Adjusting items:
Restructuring costs* 2,330 992
Store closure (charge)/credits* (565) 2,266
Impairment charge for intangible assets 161 -
Impairment charge related to property, plant and equipment* 335 1,266
Impairment charge related to right-of-use assets* 385 6,532
Strategic costs* 737 -
Legal claim* 938 -
Intangible software costs* 1,922 -
IT project costs* - 485
Gain on waiver of loan from non-controlling interest - (504)
Loss for the period for underlying basic and diluted earnings per share (25,958) (23,947)
*These items are included net of £1,891,000 (2024: £496,000) of the
corresponding tax expense.
52 weeks ended 52 weeks ended
29 March 30 March
2025 2024
Million Million
Weighted average number of ordinary shares for the purpose of basic EPS 64.7 59.7
Effect of dilutive potential ordinary shares: share options - -
Weighted average number of ordinary shares for the purpose of diluted EPS 64.7 59.7
The weighted average number of ordinary shares in issue during the period
excludes those held by the Mulberry Group plc Employee Share Trust.
IMPORTANT NOTICES
This Announcement may contain, or may be deemed to contain, "forward-looking
statements" with respect to certain of the Company's plans and its current
goals and expectations relating to its future financial condition,
performance, strategic initiatives, objectives and results. Forward-looking
statements sometimes use words such as "aim", "anticipate", "target",
"expect", "estimate", "intend", "plan", "goal", "believe", "seek", "may",
"could", "outlook" or other words of similar meaning.. By their nature, all
forward-looking statements involve risk and uncertainty because they relate to
future events and circumstances which are beyond the control of the Company,
including, inter alia, United Kingdom domestic and global economic business
conditions, market-related risks such as fluctuations in interest rates and
exchange rates, the policies and actions of governmental and regulatory
authorities, the effect of competition, inflation, deflation, the timing
effect and other uncertainties of future acquisitions or combinations within
relevant industries, the effect of tax and other legislation and other
regulations in the jurisdictions in which the Company and its affiliates
operate, the effect of volatility in the equity, capital and credit markets on
the Company's profitability and ability to access capital and credit, a
decline in the Company's credit ratings; the effect of operational risks; and
the loss of key personnel. A s a result, the actual future financial
condition, performance and results of the Company may differ materially from
the plans, goals and expectations set forth in any forward-looking statements.
Any forward-looking statements made in this Announcement by or on behalf of
the Company speak only as of the date they are made. Except as required by
applicable law or regulation, the Company expressly disclaims any obligation
or undertaking to publish any updates or revisions to any forward-looking
statements contained in this Announcement to reflect any changes in the
Company's expectations with regard thereto or any changes in events,
conditions or circumstances on which any such statement is based.
Houlihan Lokey UK Limited ("Houlihan Lokey"), which is authorised and
regulated by the Financial Conduct Authority (the "FCA") in the United
Kingdom, is acting exclusively for the Company and no one else in connection
with the Fundraising and/or the Retail Offer, and Houlihan Lokey will not be
responsible to anyone other than the Company for providing the protections
afforded to clients of Houlihan Lokey or for providing advice in relation to
the Fundraising and/or the Retail Offer or any other matters referred to in
this Announcement. Neither Houlihan Lokey nor any of its affiliates owes or
accepts any duty, liability, or responsibility whatsoever (whether direct or
indirect, whether in contract, in tort, under statute or otherwise) to any
person who is not a client of Houlihan Lokey in connection with the matters
referred to in this announcement, any statement contained herein or otherwise.
Houlihan Lokey's responsibilities as the Company's nominated adviser under the
AIM Rules for Nominated Advisers are owed solely to the London Stock Exchange
and are not owed to the Company or to any director of the Company or to any
other person.
Peel Hunt LLP is authorised and regulated by the FCA in the United Kingdom and
is acting exclusively for the Company and no one else in connection with the
Fundraising and/or the Retail Offer, and Peel Hunt will not be responsible to
anyone other than the Company for providing the protections afforded to its
clients or for providing advice in relation to the Fundraising and/or the
Retail Offer or any other matters referred to in this Announcement.
No representation or warranty, express or implied, is or will be made as to,
or in relation to, and no responsibility or liability is or will be accepted
by the Houlihan Lokey, Peel Hunt or by any of their respective Representatives
as to, or in relation to, the accuracy or completeness of this Announcement or
any other written or oral information made available to or publicly available
to any interested party or its advisers, and any liability therefor is
expressly disclaimed.
No statement in this Announcement is intended to be a profit forecast or
estimate, and no statement in this Announcement should be interpreted to mean
that earnings per share of the Company for the current or future financial
years would necessarily match or exceed the historical published earnings per
share of the Company.
The price of shares and any income expected from them may go down as well as
up and investors may not get back the full amount invested upon disposal of
the shares. Past performance is no guide to future performance, and persons
needing advice should consult an independent financial adviser.
Neither the content of the Company's website nor any website accessible by
hyperlinks on the Company's website is incorporated in, or forms part of, this
Announcement.
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