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  • 📈 Mothercare's ÂŁ24m South Asia Revival Plan

📈 Mothercare's £24m South Asia Revival Plan

Ministers Aim to Stop HS2's Costly Trainwreck!

October 21, 2024

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Mothercare's ÂŁ24m South Asia Revival Plan

  • Ministers Aim to Stop HS2's Costly Trainwreck!

  • ÂŁ300m Funding: Lendinvest's Path to Prosperity!

The summary: Mothercare is stepping up its game in South Asia with a ÂŁ24m boost, a new Reliance partnership, and a leaner loan, all while turning a profit despite a few sales hiccups.

The details:

  • Mothercare doubles down in Asia: Expanding into India, Nepal, Sri Lanka, Bhutan, and Bangladesh with a fresh ÂŁ24m boost, thanks to a new joint venture with Reliance Brands UK.

  • Reliance takes the wheel: Holding a 51% stake in the new partnership, Reliance ditches its old 30-year franchise for this deal, snapping up Mothercare’s South Asian IP.

  • New loan, less stress: Out with the old ÂŁ19.5m loan, and in with a new ÂŁ8m refinancing from Gordon Brothers, slashing bank facilities and keeping Mothercare nimble for FY25.

  • A tale of two numbers: Profits soared by 31% to ÂŁ2.9m, but sales took a 23% nosedive, thanks to a rocky Middle Eastern market.

Why it matters: Mothercare's pivot to South Asia with Reliance isn't just a geography shift—it’s a lifeline in a market brimming with potential nappies to sell. By slashing debt and forging a stronger partnership, they’re trading financial headaches for flexibility. And despite the sales dip, a 31% profit boost suggests they’ve still got some baby steps left in them.

The summary: Ministers are finally stepping in to rein in HS2's spiralling costs, promising to turn this high-speed fiasco into a rail success story—let's hope they don’t miss the train again!

The details:

  • Ministers are stepping in to "get a grip" on HS2's ballooning costs, with the bill now set to hit a jaw-dropping ÂŁ66bn.

  • Transport Secretary Louise Haigh didn’t mince words, calling the situation "dire" and promising swift action to fix what she sees as runaway spending.

  • Plans for the high-speed line to reach Crewe and Manchester remain in the bin, thanks to decisions by the previous Conservative government.

  • Regular crisis meetings with top brass, plus an independent review, are now on the cards in a bid to save face—and taxpayer cash.

Why it matters: With HS2 costs resembling a teenager's birthday party budget, it’s crucial that ministers rein in the chaos to avoid leaving taxpayers footing the bill for a rail dream gone rogue. Louise Haigh’s intervention suggests the government's finally realised that throwing money at a problem isn't the same as fixing it—who knew? Regular meetings and an independent review might just bring a bit of order to this costly carnival, ensuring we don’t end up with a high-speed line that’s more “high-speed” in name only.

The summary: Lendinvest has snagged a ÂŁ300m financing deal to help it bounce back from its rocky journey, aiming to jazz up the UK housing market with clever bridge financing while proving that even in tough times, there's always room for a bit of optimism!

The details:

  • Lendinvest's Back in the Game: After a dramatic tumble, Lendinvest has secured a ÂŁ300m financing deal with Barclays, HSBC, and BNP Paribas, extending their revolving warehouse agreement by three years—because who doesn’t love a good financial makeover?

  • Bridge to Prosperity: The funding will bolster Lendinvest’s mortgage business, particularly its snazzy bridge financing options—perfect for property investors wanting to spruce up their latest acquisitions to meet those pesky energy efficiency standards.

  • CEO’s Cheerful Chatter: Rod Lockhart, Lendinvest's chief, was positively glowing, proclaiming that this renewed facility demonstrates investors' faith in their business strategy. One might say it’s a “brilliant” vote of confidence, if you will.

  • A Bit of a Bumpy Ride: Despite a ÂŁ500m boost from JP Morgan and a hopeful outlook for profitability in 2025, Lendinvest's stock has taken a nosedive, plummeting 87% since its London debut. But hey, they say what goes down must come up—eventually!

Why it matters: Lendinvest’s newfound £300m financing is like a second chance at love for a company that’s had its fair share of heartbreak, showing that even the most battered can find a supportive partner in the banking world. With a focus on snazzy bridge financing and retrofits, they’re not just putting on a brave face; they’re rolling up their sleeves to help improve the UK housing market. If they can weather the storm and return to profit, we might just witness the property equivalent of a phoenix rising from the ashes—complete with a freshly painted exterior and energy-efficient windows!