Mothercare refers to itself as “the highly trusted British heritage brand that connects with the parents of newborn babies and children across multiple product categories”. But do its shareholders feel the same connect?

Well, the market reacted positively Friday — with shares opening up 62% — following the release of its full-year results. Despite worldwide retail sales continuing to suffer there was positive news on profits and refinancing with fresh funds being channelled into a new joint venture in India and a whole new positive outlook.

Today’s results for the full year to 30 March show worldwide retail sales by its franchise partners fell 13% to £280.8 million from £322.7 million a year ago, dented by “challenges in its Middle Eastern markets”. Overall turnover fell 23% to £56.2 million as its total store count dipped 10% to 457 units. Online sales also fell 3% to £28.5 million.

Although adjusted EBITDA for the year stayed just ahead of last year’s £6.7 million (to £6.9 million) and remained ahead of analysts’ expectations, profit for the 53 weeks hit positive territory at £3.3 million from a loss of £0.1 million a year ago.

And the sales outlook? In the opening 26 weeks of FY25, the group’s Franchise Partners recorded total retail sales of £121.2 million, falling short of last year’s £137.3 million, with the decline largely resulting from a continuation of those Middle Eastern market concerns.

On a brighter note, Mothercare said it has just revised its financing arrangements, reducing secured debt facilities to £8 million. And taken together with the gross consideration of £16 million from Reliance Brands Holding, the de-leveraged can help the business “once more move forward with confidence and invest appropriately in the company’s future development”.

The funding will be used as a springboard in India to advance its new joint venture there “to leverage the full bandwidth of growth opportunities through connections with other businesses, the development of our branded product ranges and licensing beyond our historic boundaries” which currently include India, Bhutan, Bangladesh, Sri Lanka and Nepal.

An upbeat chairman Clive Whiley said in its trading statement: “We are now focused upon restoring critical mass alongside delivering our remaining core objectives. This is an exciting prospect for our partners, our colleagues and all our stakeholders alike as we finally leave behind the turmoil of recent years.”