10th Jul 2025 19:58
(Alliance News) - Mulberry Group PLC shares climbed on Thursday after it raised GBP20 million from stakeholders Frasers Group PLC and Challice Ltd, following confirmation of a sharp decline in annual sales.
Shares in the Somerset, England-based luxury handbag maker closed up 2.6% at 100.00 pence each. Shares in Frasers ended 1.3% higher at 666.50 pence.
Last month, Mulberry announced plans for a cash-call in order to help stabilise finances amid challenging conditions. The firm said it expected revenue of around GBP120 million for the financial year ended March 29, down 21% from GBP152.8 million in financial 2024.
Further, it projected underlying pretax loss of GBP23 million for financial 2025, similar to GBP22.6 million in financial 2024.
In annual results published on Thursday, Mulberry reported revenue of GBP120.4 million and underlying pretax loss of GBP23.7 million.
Pretax loss narrowed to GBP31.8 million from GBP34.1 million in the year prior.
On Thursday, Singapore-based Challice Ltd and Sports Direct-owner Frasers Group PLC, Mulberry's two largest shareholders, supported a GBP20 million new convertible loan note fundraise.
Additionally, Mulberry announced a retail offer for up to 1.3m shares at an issue price of 97.5 pence, the closing mid-price per share on July 9.
Meanwhile, Mulberry has named James France as a non-executive director to represent 37.1% stakeholder Frasers.
France is currently responsible for Fraser's global real estate portfolio.
The move follows the failed takeover attempt by Fraser's last year, which Mulberry called "untenable" at the time and said focus should be placed on improving sales.
In Mulberry's annual report, Chief Executive Officer Andrea Baldo stated: "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."
For 2026, Mulberry said trading in the first 11 weeks as been in line with expectations.
This includes an 18%, on-year decline in Retail, Digital and Wholesale revenue in the nine week to June 1. Mulberry also reported a 17% decline in Retail and Digital 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%.
CEO Baldo added: "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."
"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 EUR200 million in annual revenue and a 15% adjusted Ebit margin."
By Aidan Lane, Alliance News reporter
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