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LONDON - British luxury brand Mulberry Group plc (AIM:MUL) announced Thursday it has secured £20 million in funding from major shareholders Challice Limited and Frasers Group PLC through convertible loan notes, as it reported a 21% decline in annual revenue.
The company’s audited results for the 52-week period ended March 29, 2025, showed revenue fell to £120.4 million from £152.8 million in the previous year, amid what the company described as challenging macroeconomic conditions in the global luxury market.
Mulberry reported an underlying loss before tax of £23.7 million, compared to a loss of £22.6 million the previous year. The reported loss before tax improved slightly to £31.8 million from £34.1 million.
The convertible loan notes are priced at 150 pence per ordinary share, representing a 53.8% premium to the closing price on July 9. The company is also offering existing minority shareholders the opportunity to participate in a separate retail offer of up to £1.2 million.
Mulberry said it plans to use the funds to accelerate its growth strategy, which was outlined in January 2025 as "Back to the Mulberry Spirit." The plan focuses on simplification, brand realignment, and enhanced customer connection.
As part of its turnaround efforts, Mulberry has closed 12 loss-making stores in Asia, established new commercial agreements with premium department stores, and delivered £5.9 million in annualized cost savings.
For the nine weeks ended June 1, 2025, group revenue declined 18% year-on-year, with retail and digital revenue down 17%. However, the company noted that its focus markets of the UK and North America showed improving trends.
Mulberry also announced the appointment of James France, a senior member of Frasers’ leadership team, as a non-executive director effective July 30.
The company reiterated its mid-term ambition to achieve annual revenue exceeding £200 million and an adjusted EBIT margin of 15%.
This article is based on a press release statement from Mulberry Group plc.
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