REG - Mulberry Group PLC - Half Year Results
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RNS Number : 0630I Mulberry Group PLC 19 November 2025
Mulberry Group plc
Results for the twenty-six weeks ended 27 September 2025
Strong momentum, executing strategy at pace
Mulberry Group plc (the "Group" or "Mulberry"), the British luxury brand,
announces unaudited results for the twenty-six weeks ended 27 September 2025
(the "period").
aNDREA BALDo, CHIEF EXECUTIVE OFFICER, COMMENTED:
"This has been an encouraging first half as we continue to deliver our 'Back
to the Mulberry Spirit' strategy. We're still early in the turnaround, but the
foundations we've put in place are working, and we're starting to see that
reflected in performance.
We're strengthening our margin and improved our cash position through a
greater focus on full-price sales and disciplined cost management, while our
refreshed product offer and creative direction are reconnecting the brand with
customers. The strong response to new icons the Roxanne and Hackney shows that
Mulberry's distinctive spirit continues to resonate.
While we remain mindful of the wider trading environment, current momentum
gives us confidence as we enter the key festive trading period. We're focused
on maintaining this progress and continuing to build a stronger, resilient
business for the long term."
Financial Highlights
· Trading in line with the Board's expectations.
· The focus during the period was on executing the "Back to The
Mulberry Spirit" strategy previously outlined, and on operational discipline
to improve margins and cost control.
· Group revenue in the period down 4% to £53.9m (2024: £56.1m)
but with a strong reaction from Wholesale (+36%) aligned to the strategic
emphasis.
· Overall like-for-like Retail & Digital revenue declined 2%;
but in Retail Stores, both Full Price and Off Price, like-for-like revenue
increased 4% in the key markets (UK, Europe and USA), with positive momentum
building since Q2.
· Asia Pacific revenue was down 17% versus last year, driven by
like-for-like declines in stores (-14%) and store closures (-3%) as the
strategy of structure simplification continued.
· Gross margin increased to 69% (2024: 67%), from maintaining a full
price, non-discounted offering in Retail and Digital.
· Total operating expenses decreased 16% to £42.7m (2024: £50.7m)
as action was taken to manage the cost base and drive efficiencies, offset by
continued investment in marketing and brand.
· Reduced the underlying Group loss before tax to £7.4m (2024:
£15.3m) driven by stable gross profit, strong cost control, and a focus on
profitable locations in core markets.
· More than halved the reported loss before tax to £6.9m (2024:
£15.7m).
· We continue, as expected, on our path towards sustainable profit
and cash generation, unlocked through the £20m fundraise via Convertible Loan
Notes from our two largest shareholders.
Operating Highlights
· First product launch under new creative team successfully
delivered; the Roxanne family and continued evolution of iconic families
including the Bayswater 9 to 5.
· Strong engagement with new marketing campaigns to connect with new
and existing customers; including Cynthia Erivo as a brand ambassador in
September 2025.
· Optimisation of store network including closure of six stores in
Asia, and new wholesale agreements in the UK with John Lewis, Liberty and
Harvey Nichols.
· Strengthened senior management team with new Brand Director and
Chief Digital & Customer Officer.
· Cost base review resulting in underlying operating expenses down
by 13% for the period.
· Launch of new retail incentive scheme driving improved
performance; for example, European stores increased their revenue by 11% and
UK stores by 10%, versus the same stores year on year.
· The continued success of the buyback scheme enhanced Mulberry's
approach to the circular business model; the period saw a 46% increase in
pre-loved sales revenue compared to the same period last year.
Current Trading AND OUTLOOK
· Positive trading momentum continues, despite ongoing external
headwinds and inflationary pressures for the sector.
· Our strategy, which has restoring profitability at its core, means
as a brand we have focused significantly on reducing the volume of promotional
and marked down sales, emphasising margin over top line growth.
· Second half sees the launch of new product icons - the Hackney,
the Lennox and the Boston.
· Well set for the key festive trading period, with new Christmas
campaign launched in early November.
FOR FURTHER DETAILS PLEASE CONTACT:
Mulberry
Billie
o'Connor
Tel: +44 (0) 20 7605 6793
Headland (Public Relations)
Lucy Legh / Joanna clark
Tel: +44 (0) 20 3805 4822
mulberry@headlandconsultancy.com (mailto:mulberry@headlandconsultancy.com)
HOULIHAN LOKEY UK LIMITED (FINANCIAL ADVISER AND NOMAD)
Tim Richardson
Tel: +44 (0) 20 7389 3355
PEEL HUNT (CORPORATE BROKER)
JAMES THOMLINSON
TEL: +44 (0) 20 7419 8900
Overview
The wider macro-economic environment, including ongoing inflationary
pressures, continues to present uncertainty and challenges. We continue to
take appropriate cost actions and manage inventory levels to ensure they align
with revenue expectations for the remainder of this year and next. Trading for
the full financial year is expected to be weighted towards the second half
given the important festive trading period.
Mulberry is a much-loved British icon with a rich heritage. While delivery of
the Board's strategic goals of becoming a global luxury brand, pursuing
international retail expansion, and big product launches has been hampered by
the ongoing challenging trading conditions, the Board is convinced there is a
clear path back to profitability driven by our focus on improving operational
flexibility to ensure we can always act with agility and pace.
The capital raising announced at the end of the period provides the financial
flexibility to support this. This funding is being used on rebuilding core
stocks including 'iconic families' silhouettes to drive sales, selective
marketing spend in core markets, and upgrades to existing customer engagement
and digital platforms.
Our CEO's initial review on joining focused on enhancing operational
efficiency and targeted product, pricing and distribution strategies to
improve margin and cash position and we are seeing initial results of the
strategy in the period's results.
STRATEGY
A Two-Phased Strategy
Strategic Priorities
In order to achieve these goals, the Board has set the following three
strategic priorities:
APPOINTMENT OF NEW BOARD MEMBER
On 30 July 2025 James France of Frasers Group plc ("Frasers") joined the Board
as a Non-Executive Director. Having joined Frasers' property division in 2016,
Mr. France is a senior member of the Frasers' leadership team and has been
instrumental in shaping Frasers' growth and investment approach to ensure
success in a dynamic retail landscape.
FINANCIAL REVIEW
Loss before tax
2025 2024
£'m £'m % change
Revenue 53.9 56.1 (4%)
Cost of sales (16.6) (18.8) 12%
Gross profit 37.3 37.3 -
Other operating expenses (42.7) (50.7) 16%
Other operating income 0.4 0.3 48%
Operating loss (4.9) (13.1) 63%
Share of results of associates - - -
Finance expense (2.1) (2.6) 21%
Loss before tax (6.9) (15.7) 56%
The table above summarises the Group Income Statement, showing the reported
loss before tax for the period of £6.9m (2024: £15.7m). Further details are
discussed within this Financial Review.
2025 2024
£'m £'m % change
Underlying loss before tax pre-SaaS costs (7.2) (14.4) 50%
SaaS costs (0.2) (0.8) 73%
Underlying loss before tax (7.4) (15.2) 52%
Store closure credit 1.0 0.8 27%
Strategic project costs - (0.4) 100%
Restructuring costs (0.5) (0.8) 34%
Reported loss before tax (6.9) (15.7) 56%
The table above shows the reconciliation from the reported loss before tax in
the period of £6.9m (2024: £15.7m) to the underlying loss.
The Group's underlying loss for the period of £7.4m (2024: £15.2m) was
delivered through stable gross profit, enhanced by the results of the review
of the operating cost base in implemented in FY25 and continuing cost control.
The operating expenses table within this financial review shows the
operational costs decrease of £8.0m to £42.7m for the period (2024:
£50.7m). Underlying operating expenses decreased by £6.6m to £42.9m (2024:
£49.5m).
Reported loss before tax for the period of £6.9m (2024: £15.7m), includes
adjusting items of a net credit of £1.0m (2024: credit £0.8m) for the
closure of five retail stores and UK head office restructuring costs of £0.5m
(2024: £0.8m).
Group revenue
Revenue analysis for the 26 weeks ended 27 September 2025 compared to the same
period last year is as follows:
2025 2024 Like For Like
£'m £'m % change % change
Digital 16.6 18.4 (10%) (9%)
Stores 30.0 32.3 (7%) 4%
Retail (omni-channel) 46.6 50.7 (8%) (2%)
Franchise and Wholesale 7.3 5.4 36% N/A
Group Revenue 53.9 56.1 (4%) N/A
Digital 10.0 11.8 (16%) (13%)
Stores 18.2 19.4 (7%) 10%
Omni-channel - UK 28.1 31.2 (10%) (1%)
Digital 2.1 1.7 22% 26%
Stores 4.0 3.6 10% 11%
Omni-channel - Europe 6.0 5.3 14% 16%
Digital 3.0 3.2 (6%) (8%)
Stores 1.7 1.7 2% (1%)
Omni-channel - USA 4.7 4.9 (4%) (6%)
Digital 1.6 1.7 (4%) (8%)
Stores 6.1 7.6 (20%) (14%)
Omni-channel - Asia Pacific 7.7 9.3 (17%) (14%)
Retail (omni-channel) 46.6 50.7 (8%) (2%)
Like for Like stores, or digital concessions, are defined as being open for a
full financial year and the store or concession must have traded for all weeks
1-26 in the prior period.
Q1 Q2 H1 2025
Revenue % change Revenue % change Revenue % change
£'m £'m £'m
Digital 8.2 (14%) 8.4 (5%) 16.6 (10%)
Stores 14.5 (17%) 15.4 5% 30.0 (7%)
Retail (omni-channel) 22.7 (16%) 23.9 1% 46.6 (8%)
Franchise and Wholesale 3.8 (9%) 3.5 192% 7.3 36%
Group revenue 26.6 (15%) 27.4 10% 53.9 (4%)
Group revenue down 4% to £53.9m (2024: £56.1m)
o UK retail sales declined 10% to £28.1m (2024: £31.3m), with store sales
down 7% and digital down 16% driven by closure of non-profitable stores and a
focus on reduced promotion online. UK Off Price sales grew ahead of Full Price
sales due to improved inventory management while store sales were less
impacted than digital from the reduction in promotions. Full Price stores
benefited from a new retail incentive scheme.
o Europe retail sales increased 13% to £6.0m (2024: £5.3m), supported by
strong performance predominantly in Ireland which grew by 25%, due to a full
half year of Brown Thomas, and European Mulberry.com growth.
o USA retail sales declined 4% to £4.7m (2024: £4.9m), with store sales up
2% and digital down 6%. Digital miss was driven by digital concessions rather
than Mulberry.com which was 5% up for the same period year on year.
o Asia Pacific retail sales decreased 17% to £7.7m (2024: £9.3m), with
digital sales down 6% and store sales down 20%. The region has experienced
double-digit revenue decline compared to last year, driven by economic
conditions as well as the closure of unprofitable stores.
o Franchise and wholesale revenue rose 36% to £7.3m (2024: £5.4m) driven
by new wholesale agreements in the UK including John Lewis, Liberty and Harvey
Nichols.
Q1 saw a decrease of 15% in Group revenue while Q2 revenue increased 10%; this
was distorted slightly by the timing of wholesale orders and therefore the
Retail (omni-channel) split was 16% decrease in Q1 and a Q2 increase of 1%
versus the same period last year.
Gross margin
2025 2024
£'m £'m % change
Revenue 53.9 56.1 (4%)
Cost of sales (16.6) (18.8) 12%
Gross profit 37.3 37.3 -
Gross profit margin 69.2% 66.5%
Gross profit margin during the period was 69.2% (2024: 66.5%), resulting in
Gross profit being in line with the prior period on lower revenue. This
improvement in gross margin rate year on year is related to improved full
price sales mix and optimised inventory management.
Other operating expenses
2025 2024
(Restated*)
£'m £'m % change
Operating expenses 16.7 16.2 3%
Staff costs 16.7 19.9 16%
Depreciation and amortisation 6.2 6.8 8%
Systems and comms 3.5 4.7 26%
Foreign exchange (gain)/loss (0.1) 0.2 (142%)
Underlying operating expenses 42.9 49.5 13%
SaaS costs 0.2 0.8 73%
Store closure credit (1.0) (0.8) 27%
Strategic project costs - 0.4 100%
Restructure costs 0.5 0.8 34%
Operating expenses 42.7 50.7 16%
* Prior period overhead absorption costs of £2.5m have been restated into
underlying operating expenses, from non-underlying operating expenses. The
total operating expenses remain unchanged from the reported prior period at
£50.7m.
Operating expenses decreased by 16% to £42.7m (2024: £50.7m), reflecting
ongoing cost discipline. A cost base review has resulted in underlying
operating expenses reducing by 13% for the first half versus the same period
last year.
In light of the March 2021 IFRIC agenda decision to clarify the treatment of
Software as a Service (SaaS) costs, during the period we expensed £0.2m
(2024: £0.8m) of SaaS costs which would previously have been capitalised, in
line with the accounting for configuration and customisation cost
arrangements. We expect to incur further SaaS costs in the second half.
Taxation
The Group reported a tax charge for the period of £0.1m (2024: £0.4m.) This
relates to prior and current period current tax charges.
Balance Sheet
Net working capital, which comprises inventories, trade and other receivables
and trade and other payables decreased by £0.4m to £10.5m at the period end
(2024: £10.9m). This decrease was driven by a reduction in inventories of
£2.0m as we continue to build stock cover from the low point at March 2025,
which has been offset by a reduction in trade and other payables of £2.6m,
due to timing of supplier payments.
At the period end, other trade receivables had decreased by £1.0m,
principally due to the timing of wholesale receipts at period end.
Lease liabilities (current and non-current) reduced by £12.8m to £32.6m
(2024: £45.4m) due to the release of regular lease payments made in the
period and store closures.
Cash flow
2025 2024
£'m £'m % change
Operating cash inflow/(outflow) 0.2 (7.0) 103%
Net change in working capital (4.8) 15.7 (131%)
Cash (used)/generated by operations (4.6) 8.7 (153%)
Income taxes paid - (0.2) 97%
Net cash (outflow)/inflow from operating activities (4.6) 8.5 (154%)
Purchases of property, plant and equipment (0.1) (0.7) 90%
Acquisition of intangible assets (0.1) (1.2) 90%
Other 0.1 0.1 (35%)
Net cash used in investing activities (0.1) (1.8) 94%
Interest paid (2.1) (2.6) 21%
Proceeds from issue of shares 0.1 - 100%
Proceeds from convertible loan note 20.0 - 100%
Proceeds from net borrowings - 3.8 -
Proceeds received under a supplier financing agreement 10.3 - 100%
Repayment of net borrowings (8.1) (2.1) (295%)
Repayments under a supplier finance agreement (10.2) - (100%)
Principal elements of lease payments (6.3) (4.1) (53%)
Net cash generated by/(used in) financing activities 3.7 (2.4) 174%
Net (decrease)/increase in cash and cash equivalents (1.0) 1.7 (158%)
The net decrease in cash and cash equivalents of £1.0m (2024: increase of
£1.7m) included proceeds of £20m from the Group's previously announced
fundraising which were received in this reporting period. Following the
fundraising, £8.1m of net borrowings were re-paid.
As a result of the financial performance in the period there was an operating
cash inflow of £0.2m (2024: outflow £7.0m). This cash inflow has been offset
by an increase in net working capital which had a cash outflow of £4.8m
(2024: inflow £15.7m). The outflow was largely driven by the increase in
inventories of £4.9m to bring stock cover to an optimal level on core stock
lines.
Borrowing facilities
The Group had bank borrowings relating to drawdowns under its RCF of £9.5m at
27 September 2025 (2024: £17.5m). The borrowings shown in the balance sheet
also include the convertible loan note of £19.3m (2024: £nil), loans from
minority shareholders in the Chinese subsidiary of £6.9m (2024: £7.8m), and
an overdraft of £nil (2024: £6.4m). Shown separately on the balance sheet is
the liability under a supplier trade finance arrangement of £5.9m (2024:
£nil.)
The Group's net debt balance (comprising cash and cash equivalents, less
overdrafts and borrowings excluding loans from minority shareholders) at 27
September 2025 was £21.6m (2024: net debt of £16.4m), with available
liquidity of £18.5m. Net debt comprises cash balances of £7.2m (2024:
£8.8m) less bank borrowings of £9.5m (2024: £25.2m), and convertible loan
note of £19.3m (2024: £nil), excluding loans from related parties and
non-controlling interests of £6.9m (2024: £7.8m). Net debt also excludes
lease liabilities of £32.6m (2024: £45.4m) and liabilities under a supplier
finance arrangement of £5.9m (2024: £nil) which are not considered to be
core borrowings.
The Group continues to have a £17.5m RCF, a £6.0m supplier trade finance
facility which is backed by UK Export Finance and a £4.0m overdraft facility
in the UK.
Significant transactions in the period
Fundraise
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
initiative was concluded and funds received by 14 July 2025.
Retail Offer
On 10 July 2025 the Group announced a conditional offer of new ordinary 5p
shares to the remaining shareholders for an issue price of £0.975 per share.
On 31 July 2025 107,720 new shares were issued under the offer raising £0.1m
net of expenses.
CONSOLIDATED INCOME STATEMENT
26 WEEKS ENDED 27 SEPTEMBER 2025
Note
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
27 September 2025 £'000 28 September 2024 29 March 2025
£'000 £'000
Revenue 53,932 56,145 120,389
Cost of sales (16,588) (18,813) (39,953)
Gross profit 37,344 37,332 80,436
Impairment charge relating to intangibles - (161)
Impairment charge relating to property, plant and equipment - - (338)
Impairment charge relating to right-of-use assets - - (281)
Other operating expenses (42,663) (50,725) (107,149)
Other operating income 415 281 626
Operating loss (4,904) (13,112) (26,867)
Share of results of associates 36 11 42
Finance expense (2,079) (2,623) (4,995)
Loss before tax (6,947) (15,724) (31,820)
Tax charge 4 (78) (374) (381)
Loss for the period (7,025) (16,098) (32,201)
Attributable to:
Equity holders of the parent (6,605) (15,068) (30,376)
Non-controlling interests (420) (1,030) (1,825)
Loss for the period (7,025) (16,098) (32,201)
Basic loss per share 5 (10.0p) (27.0p) (49.8p)
Diluted loss per share 5 (10.0p) (27.0p) (49.8p)
All activities arise from continuing operations.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
26 WEEKS ENDED 27 SEPTEMBER 2025
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
27 September 2025 £'000 28 September 2024 £'000 29 March 2025
£'000
Loss for the period (7,025) (16,098) (32,201)
Items that may be reclassified subsequently to profit or loss;
Exchange differences on translation of foreign operations (213) 51 140
Total comprehensive expense for the period (7,238) (16,047) (32,061)
Attributable to:
Equity holders of the parent (7,108) (15,227) (30,413)
Non-controlling interests (130) (820) (1,648)
Total comprehensive expense for the period (7,238) (16,047) (32,061)
CONSOLIDATED BALANCE SHEET
AT 27 SEPTEMBER 2025
Unaudited Unaudited Audited
27 September 2025 £'000 28 September 2024 £'000 29 March 2025
£'000
Non-current assets
Intangible assets 4,149 8,258 5,230
Property, plant and equipment 13,152 17,219 14,702
Right-of-use assets 23,348 30,591 26,738
Interests in associates 398 93 450
41,047 56,161 47,120
Current assets
Inventories 23,102 25,079 18,223
Trade and other receivables 12,069 13,120 13,107
Current tax asset - - 45
Cash and cash equivalents 7,200 8,761 8,200
42,371 46,960 39,575
Total assets 83,418 103,121 86,695
Current liabilities
Trade and other payables (24,694) (27,259) (24,715)
Liabilities under a supplier finance arrangement (5,869) - (5,726)
Current tax liabilities (24) (290) -
Lease liabilities (8,784) (10,526) (10,153)
Borrowings (16,368) (25,175) (17,596)
(55,739) (63,250) (58,190)
Net current liabilities (13,368) (16,290) (18,615)
Non-current liabilities
Trade and other payables (2,189) (2,155) (2,318)
Lease liabilities (23,690) (34,898) (29,735)
Borrowings (19,326) (7,785) (7,229)
(45,205) (44,838) (39,282)
Total liabilities (100,944) (108,088) (97,472)
Net liabilities (17,526) (4,967) (10,777)
Equity
Share capital 3,529 3,004 3,524
Share premium account 21,874 12,160 21,779
Own share reserve (396) (490) (365)
Capital redemption reserve 154 154 154
Foreign exchange reserve (503) (379) (290)
Retained earnings (33,880) (12,070) (27,405)
Equity attributable to holders of the parent (9,222) 2,379 (2,603)
Non-controlling interests (8,304) (7,346) (8,174)
Total equity (17,526) (4,967) (10,777)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
26 WEEKS ENDED 27 SEPTEMBER 2025
Share premium account £'000 Own share reserve £'000 Capital re-demption reserve £'000 Foreign exchange reserve £'000 Non-controlling interest £'000
Share Retained earnings £'000 Total
capital £'000 Total equity £'000
£'000
As at 1 April 2024 3,004 12,160 (438) 154 (430) 2,955 17,405 (6,526) 10,879
Loss for the period - - - - - (15,068) (15,068) (1,030) (16,098)
Other comprehensive expense for the period - - - - 51 - 51 - 51
Total comprehensive expense for the period - - - - 51 (15,068) (15,017) (1,030) (16,047)
Credit for employee share-based payments - - - - - (9) (9) - (9)
Impairment of shares in trust - - (52) - - 52 - - -
Non-controlling interest foreign exchange - - - - - - - 210 210
As at 28 September 2024 3,004 12,160 (490) 154 (379) (12,070) 2,379 (7,346) (4,967)
Loss for the period - - - - - (15,308) (15,308) (795) (16,103)
Other comprehensive expense for the period - - - - 89 - 89 - 89
Total comprehensive expense for the period - - - - 89 (15,308) (15,219) (795) (16,014)
Issue of shares 520 9,619 - - - - 10,139 - 10,139
Charge for employee share-based payments - - - - - 98 98 - 98
Impairment of shares in trust - - 125 - - (125) - - -
Non-controlling interest foreign exchange - - - - - - - (33) (33)
As at 29 March 2025 3,524 21,779 (365) 154 (290) (27,405) (2,603) (8,174) (10,777)
Loss for the period - - - - - (6,605) (6,605) (420) (7,025)
Other comprehensive expense for the period - - - - (213) - (213) - (213)
Total comprehensive expense for the period - - - - (213) (6,605) (6,818) (420) (7,238)
Issue of shares 5 95 - - - - 100 - 100
Charge for employee share-based payments - - - - - 99 99 - 99
Impairment of shares in trust - - (31) - - 31 - - -
Non-controlling interest foreign exchange - - - - - - - 290 290
As at 27 September 2025 3,529 21,874 (396) 154 (503) (33,880) (9,222) (8,304) (17,526)
CONSOLIDATED CASH FLOW STATEMENT
26 WEEKS ENDED 27 SEPTEMBER 2025
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
27 September 2025 £'000 28 September 2024 £'000 29 March 2025
£'000
Operating loss for the period (4,904) (13,112) (26,867)
Adjustments for:
Depreciation and impairment of property, plant and equipment 1,714 2,063 4,577
Depreciation and impairment of right-of-use assets 3,560 3,745 7,623
Amortisation and impairment of intangible assets 967 982 2,115
Gain on lease modifications and lease disposals (1,203) (802) (1,228)
Loss on sale of property, plant and equipment - 65 217
Loss on sale of intangibles - - 2,568
Share-based payments expense/(credit) 99 (9) 89
Operating cash inflow/(outflow) before movements in working capital 233 (7,068) (10,906)
(Increase)/decrease in inventories (4,853) 8,080 14,619
Decrease in receivables 1,038 2,333 2,346
(Decrease)/increase in payables (990) 5,332 2,590
Cash (used)/generated by operations (4,572) 8,677 8,649
Income taxes paid (6) (208) (550)
Net cash (outflow)/inflow from operating activities (4,578) 8,469 8,099
Investing activities:
Purchases of property, plant and equipment (68) (704) (1,152)
Acquisition of intangible fixed assets (117) (1,188) (1,818)
Dividend received from associate 71 109 109
Net cash used in investing activities (114) (1,783) (2,861)
Financing activities:
Interest paid (2.060) (2,623) (4,995)
Proceeds from issue of shares 100 - 10,139
Proceeds from convertible loan notes 20,000 - -
Proceeds from new borrowings - 3,752 -
Proceeds received under a supplier financing agreement 10,282 - 9,647
Repayment of borrowings (8,096) (2,051) (5,878)
Repayments under a supplier finance agreement (10,220) - (3,921)
Principal elements of lease payments (6,274) (4,100) (9,092)
Net cash generated/(used) in financing activities 3,732 (5,022) (4,100)
Net (decrease)/increase in cash and cash equivalents (960) 1,664 1,138
Cash and cash equivalents at beginning of period 8,200 7,138 7,138
Effect of foreign exchange rate changes (40) (41) (76)
Cash and cash equivalents at end of period 7,200 8,761 8,200
Notes to the condensed financiAL statements
26 WEEKS ENDED 27 SEPTEMBER 2025
1. GENERAL INFORMATION
Mulberry Group plc is a company incorporated in the United Kingdom under the
Companies Act 2006. The half year results and condensed consolidated
financial statements for the 26 weeks ended 27 September 2025 (the interim
financial statements) comprise the results for the Company and its
subsidiaries (together referred to as the Group) and the Group's interest in
associates. The interim financial statements for the 26 weeks ended 27
September 2025 have not been reviewed or audited.
The information for the 52 weeks ended 29 March 2025 does not constitute
statutory accounts as defined in section 434 of the Companies Act 2006. The
statutory accounts for that period were approved by the Board of Directors on
10 July 2025 and have been filed with the Registrar of Companies. The
auditor's report on those statutory accounts was not qualified, although
included an emphasis of matter in respect of material uncertainty around going
concern and did not contain statements under section 498(2) (3) of the
Companies Act 2006. The report stated that should there be an extreme and
prolonged decline in trading performance which is over and above the current
trading levels and the level of mitigating actions including promotional
activity was not achieved, then the Group would breach its covenants during
the going concern period. This would give rise to a material uncertainty,
which may cast significant doubt on the Group and parent company's ability to
continue as a going concern, meaning it may be unable to realise its assets
and discharge its liabilities in the normal course of business.
2. ACCOUNTING POLICIES AND BASIS OF PREPARATION
The accounting policies and methods of computation followed in the interim
financial statements are consistent with those published in the Group's Annual
Report and Financial Statements for the 52 weeks ended 29 March 2025.
These condensed consolidated interim financial statements for the 26 weeks
ended 27 September 2025 have been prepared in accordance with the Disclosure
and Transparency Rules of the Financial Services Authority and with
International Accounting Standards (IAS) 34, Interim Financial Reporting, in
accordance with the requirements of the Companies Act 2006. This report should
be read in conjunction with the Group's financial statements for the 52 weeks
ended 29 March 2025, which have been prepared in accordance with UK-adopted
International Financial Reporting Standards in conformity with the
requirements of the Companies Act 2006.
The Annual Report and Financial Statements are available from the Group's
website (www.mulberry.com) or from the Company Secretary at the Company's
registered office, The Rookery, Chilcompton, Bath, England, BA3 4EH.
CONVERTIBLE LOAN NOTES
The interest-bearing element of convertible loan notes are initially recorded
at fair value and are subsequently measured at amortised cost using the
effective interest rate method. The Group has determined that the conversion
feature of the loan notes should be classified as a derivative financial
liability. Derivative financial instruments are initially recorded at fair
value and are subsequently remeasured to their fair value at each reporting
date. The resulting gain or loss is recognised in the income statement
immediately.
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
Preparation of the condensed consolidated interim financial statements
requires the Directors to make certain estimates and judgements that affect
the measurement of reported revenues, expenses, assets and liabilities.
The critical accounting judgements and key sources of estimation uncertainty
applied in the preparation of the condensed consolidated interim financial
statements are consistent with those described on pages 74-75 of the Group's
Annual Report and Financial Statements for the 52 weeks ended 29 March 2025.
PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the Group's growth
strategies are subject to a number of risks and uncertainties that could
adversely affect the Group's future development. The principal risks and
uncertainties for the Group and the key mitigating actions used to address
them are consistent with those outlined on pages 30-33 of the Group's Annual
Report and Financial Statements for the 52 weeks ended 29 March 2025.
ALTERNATIVE PERFORMANCE MEASURES
In reporting financial information, the Group presents an APMs, which is 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 the 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.
A reconciliation of reported (loss)/profit before tax to underlying loss
before tax is set out below:
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
27 September 2025 £'000 29 September 2024 £'000 29 March 2025
£'000
Reconciliation to underlying loss before tax
Loss before tax (6,947) (15,724) (31,820)
Store closure credit (979) (773) (547)
Restructuring costs 541 824 3,106
Strategic project costs - 424 982
Impairment charge related to intangibles - - 161
Impairment charge related to property, plant and equipment - - 338
Impairment charge related to right-of-use assets - - 281
Legal claim - 1,250
Intangible software costs - 2,563
Underlying loss before tax - non-GAAP measure (7,385) (15,249) (23,686)
Underlying basic loss per share (10.9p) (26.7p) (40.1p)
Underlying diluted loss per share (10.9p) (26.7p) (40.1p)
Store closure charge
During the period 5 stores (2024: 1 store) were closed. The credit on
disposal comprises the release to the income statement of lease and other
liabilities of £1,197,000 (2024: £802,000) and the charge of lease exit
costs of £218,000 (2024: £29,000).
Restructuring costs
During the period the Group continued its restructuring programme which began
in the second half of the prior period and incurred redundancy costs of
£541,000 (2024: £824,000).
3. 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 net debt balance (comprising cash and cash equivalents, less
overdrafts and borrowings excluding loans from minority shareholders) at 27
September 2025 was £21.6m (2024: net debt of £16.4m), with available
liquidity of £18.5m. Net debt comprises cash balances of £7.2m (2024:
£8.8m) less bank borrowings of £9.5m (2024: £25.2m), and convertible loan
note of £19.3m (2024: £nil), excluding loans from related parties and
non-controlling interests of £6.9m (2024: £7.8m). Net debt also excludes
lease liabilities of £32.6m (2024: £45.4m) and liabilities under a supplier
finance arrangement of £5.9m (2024: £nil) which are not considered to be
core borrowings.
The Group's full year financial statements for the period ended 29 March 2025
were announced on 10(th) July 2025 and the Directors concluded that there were
adequate resources for the Group to continue as a going concern for the
foreseeable future. However, the Directors acknowledged the existence of a
material uncertainty in the severe but plausible scenario of either a
prolonged macro climate downturn or the non-renewal of uncommitted facilities,
and an inability to mitigate this impact through cost savings and working
capital management. The Directors have continued to review the 12-month
forecasts including their resilience in the face of possible downside
scenarios.
Based on the assessment outlined above, the Directors have a reasonable
expectation that the Group has access to adequate resources to enable it to
continue to operate as a going concern for the foreseeable future. For these
reasons, the Directors consider it appropriate for the Group to continue to
adopt the going concern basis of accounting in preparing the Interim Report
and financial statements.
4. TAXATION
The tax charge relates to prior period and current period current tax
charges.
5. EARNINGS PER SHARE ('EPS')
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
27 September 2025 29 September 2024 29 March 2025
Basic loss per share (10.0p) (27.0p) (49.8p)
Diluted loss per share (10.0p) (27.0p) (49.8p)
Underlying basic loss per share (10.9p) (26.7p) (40.1p)
Underlying diluted loss per share (10.9p) (26.7p) (40.1p)
Earnings per share is calculated based on the following data:
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
27 September 2025 29 September 2024 29 March 2025
Loss for the period for basic and diluted earnings per share (7,025) (16,098) (32,201)
Adjusting items:
Restructuring costs * 406 618 2,330
Store closure (credit)/charge * (1,003) (773) (565)
Strategic costs - 318 737
Impairment charge related to intangibles - - 161
Impairment charge related to property, plant and equipment* - - 335
Impairment charge related to right-of-use assets* - - 385
Legal claim - 938
Intangible software costs - 1,922
Underlying loss for the period for basic and diluted earnings per share (7,622) (15,935) (25,958)
*These items are included net of tax
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
27 September 2025 Million 29 September 2024 29 March 2025
Million Million
Weighted average number of ordinary shares for the purpose of basic EPS 70.1 59.7 64.7
Effect of dilutive potential ordinary shares - - -
Weighted average number of ordinary shares for the purpose of diluted EPS 70.1 59.7 64.7
The weighted average number of ordinary shares in issue during the period
excludes those held by the Employee Share Trust.
6. 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 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.
As previously advised in the Group's Annual Report and Financial Statements
for the 52 weeks ended 29 March 2025 due to the increased significance of the
USA region to the Group, USA, which was previously reported as part of the
Other International region, is now reported in its own segment. The reportable
segments are now UK, Europe, USA and Asia Pacific (Other International has
been renamed as Europe). The segmental reporting for the 52 weeks ended 29
March 2025 on the new basis was previously disclosed in the Annual Report and
is shown below. The segmental reporting for the 26 weeks ended 28 September
2024 has been restated to reflect the revised segments.
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 segment 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
26 WEEKS ENDED 27 SEPTEMBER 2025
Asia Pacific
UK Europe USA £'000 Eliminations £'000 Total
£'000 £'000 £'000 £'000
Revenue
Omni-channel 61,010 6,018 4,728 7,705 (32,861) 46,600
Wholesale 1,336 5,114 44 838 7,332
Total revenue 62,346 11,132 4,772 8,543 (32,861) 53,932
Segment (loss)/profit (4,776) 3,696 (212) (2,113) (3,405)
Central costs (1,937)
Store closure credit 979
Restructuring costs (541)
Operating loss (4,904)
Share of results of associates 36
Finance expense (2,079)
Loss before tax (6,947)
Asia Pacific
UK Europe USA £'000 Central Total
£'000 £'000 £'000 £'000 £'000
Segment cost of sales 40,586 4,740 1,019 3,104 (32,861) 16,588
Segment depreciation and amortisation 3,715 420 275 874 957 6,241
Segment capital expenditure 129 - - 32 - 161
Segment assets 54,988 6,025 5,271 10,876 6,258 83,418
Segment liabilities 54,782 3,439 4,419 11,996 26,308 100,944
26 WEEKS ENDED 28 september 2024 (restated*)
Europe (restated*) USA (restated*)
UK £'000 £'000 Asia Pacific Eliminations £'000 Total
£'000 £'000 £'000
Revenue
Omni-channel 51,019 5,330 4,900 9,267 (19,774) 50,742
Wholesale 343 4,128 36 896 5,403
Total revenue 51,362 9,458 4,936 10,163 (19,774) 56,145
Segment (loss)/profit (8,020) 1,457 (423) (4,047) (11,033)
Central costs (1,604)
Store closure credit 773
Restructuring costs (824)
Strategic project costs (424)
Operating loss (13,112)
Share of results of associates 11
Finance expense (2,623)
Loss before tax (15,724)
Europe (restated*) £'000 USA (restated*)
UK £'000 Asia Pacific Central Total
£'000 £'000 £'000 £'000
Segment cost of sales 28,062 5,358 1,252 3,915 (19,774) 18,813
Segment depreciation and amortisation 4,108 326 324 1,073 959 6,790
Segment capital expenditure 792 - - 198 - 990
Segment assets 71,162 3,832 6,433 13,339 8,355 103,121
Segment liabilities 72,931 3,411 7,534 16,147 8,065 108,088
*As described above Europe and USA which were previously reported as Other
International, are now reported in their own segments for clarity.
52 WEEKS ENDED 29 MARCH 2025
UK Europe USA Asia Pacific Eliminations £'000 Total
£'000 £'000 £'000 £'000 £'000
Revenue
Omni-channel 113,336 11,803 10,968 18,865 (45,560) 109,412
Wholesale 850 8,141 79 1,907 10,977
Total revenue 114,186 19,944 11,047 20,772 (45,560) 120,389
Segment (loss)/profit (11,906) 1,470 (499) (4,245) (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 expense (4,995)
Loss before tax (31,820)
UK Europe USA Asia Pacific Central Total
£'000 £'000 £'000 £'000 £'000 £'000
Segment cost of sales 64,525 10,458 2,653 7,877 (45,560) 39,953
Segment depreciation and amortisation 8,370 (82) 3,253 1,916 14,315
858
Segment capital expenditure 1,585 34 4 478 - 2,101
Segment assets 57,305 5,925 5,607 10,894 6,964 86,695
Segment liabilities 64,507 4,024 6,194 15,158 7,589 97,472
For the purposes of monitoring segment performance and allocating resources
between segments, the Chief Operating Decision Maker, which is deemed to be
the Board, monitors the tangible, intangible and financial assets. All assets
are allocated to the reportable segment.
(b) Product categories
Leather accessories account for around 90% of the Group's revenues, of which
bags represent over 70% of revenues. Other important product categories
include small leather goods, shoes, soft accessories and women's
ready-to-wear. Net asset information is not allocated by product category.
7. CONVERTIBLE LOAN NOTE
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 participating, funds were received by 14 July
2025.
The interest-bearing element of the convertible loan notes were initially
recorded at fair value and subsequently remeasured at amortised cost using the
effective interest rate method. The value of the loan notes including accrued
interest at 27 September 2025 is £19.3m and is classified as borrowings
within non-current liabilities.
The conversion feature of the loan notes has been classified as a derivative
financial liability and was initially recorded at fair value and subsequently
remeasured to fair value at the balance sheet date. The fair value of the
derivative at 27 September 2025 is £0.5m and is included within trade and
other payables in current liabilities.
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