Mothercare confirms full-year profit and net debt in line

6th May 2014 10:47

Baby-focused retailer Mothercare put out a statement confirming it retained the support of its banks as underlying profit before tax and net debt remained in line for the full year.The company released the update in response to recent media speculation regarding the need for breathing space in its banking facilities. "Mothercare is and expects to remain in compliance with the provisions and covenants of its facilities. Mothercare continues to discuss with its banks its future plans for the business and the consequential funding requirements, and is grateful to them for their continued support," it said.Newspapers reported at the weekend that Mothercare was renegotiating the terms of its bank loans just seven months after securing a £90m refinancing facility with HSBC and Barclays.Chief Executive Simon Calver departed February after a number of profit warnings.It is rumoured that the company is squeezing suppliers by adding a 2.5% charge on all invoices and stretching its repayment terms to 90 days.In April the company said it was profitable at group level and was focused on eliminating losses in its UK business.Shares in Mothercare spiked slightly on the update but were still down 4.28% to 178.75p at 10:55 on Tuesday.OH