TIDMPROC
RNS Number : 7360Q
ProCook Group PLC
20 October 2023
20 October 2023
ProCook Group plc
Second quarter trading update
Holding market share in difficult trading conditions
ProCook Group plc ("ProCook" or "the Group"), the UK's leading
direct-to-consumer specialist kitchenware brand, today reports on
Q2 trading results for the 16 weeks ended 15 October 2023.
Quarter Two Year to date
GBPm FY24 YoY(1) FY24 YoY(1)
Revenue 15.7 (1.8%) 26.3 (3.8%)
Ecommerce 5.3 (17.0%) 9.1 (20.2%)
Retail 10.4 8.3% 17.2 7.9%
LFL Revenue(2) 15.0 (1.8%) 25.3 (4.4%)
Ecommerce LFL(2) 5.3 (11.3%) 9.1 (14.6%)
Retail LFL(2) 9.8 4.1% 16.1 2.6%
Trading update
Total revenue of GBP15.7m in the second quarter was -1.8% year
on year or +0.8% on a continuing business basis, excluding the
impact of the exit from Amazon EU last year resulting in a modest
UK market share gain. Like for like revenue was -1.8% in quarter
two, with improvements in both Ecommerce and Retail channels
compared to quarter one (Q1: -7.9%). We have also seen a
continuation of the channel shift back towards physical Retail
stores that we have experienced over the last two years.
The second quarter results reflect a strong Summer Sale
performance during July and August, aided by considerably more
favourable weather year on year. Trading in September and into
early October has been markedly softer, with lower footfall and
traffic, and customers increasingly seeking out greater value and
promotional offers.
First half revenue of GBP26.3m was -3.8% year on year, or -1.2%
excluding the exit from Amazon EU during the last financial year.
On a like for like basis, first half revenue was -4.4% year on
year, an improving trend compared to prior year (H1: -16.2%, H2:
-5.9%).
Net debt at the end of the first half was GBP3.2m (FY23 year
end: GBP2.8m) with available liquidity of GBP12.8m.
Outlook
We have made strong progress with our strategic priorities in
the first half of the year, launching phase one of our new
Electricals range in August, transitioning to our new website
during September, and launching our new brand campaigns featuring
celebrity chef Matt Tebbutt this week. We are focused on providing
even greater value to our customers through our direct sourced
own-brand business model, underpinned by service excellence, whilst
maintaining cost discipline across our business operations.
The Group typically generates around 60% of full year sales in
the second half of the financial year. We are well prepared for
this peak trading period, with strong product availability and
offers planned.
However, the Board remains cautious with regards to the FY24
outlook given the highly challenging market conditions which
persist, and the current trading volatility and sales trends over
recent weeks, with customers seeking more value and taking more
time to research before committing to purchase.
Whilst forecasting the specific timing and pace of the market
recovery is challenging, the Board is confident it will recover
given the attractive market dynamics. When it does recover, the
Board believes ProCook is well positioned to deliver improved
financial performance and further market share gains given the
strength of the brand and operating model.
Lee Tappenden, Chief Executive Officer, commented:
"My first few weeks with ProCook have reinforced my appreciation
of our unique customer proposition, product quality and service
excellence across our business. I am highly excited by the many
opportunities we have to further develop our proposition and
business in the next chapter ahead of us.
"Trading conditions remain challenging, and we continue to
operate in an uncertain consumer and macroeconomic environment. We
are focussed on delivering even greater value for our customers
throughout the important peak trading period and beyond.
"We continue to build on ProCook's strong foundations to
strengthen our proposition and brand awareness, expand our product
range and store portfolio, and invest in the areas that will
improve our operational efficiency and capacity. This will leave us
well placed to capture the many growth opportunities available to
us as trading conditions improve."
(1) YoY reflects year on year performance between the relevant
financial periods of FY24 (52 weeks ending 31 March 2024) and FY23
(52 weeks ended 2 April 2023).
(2) LFL (Like For Like) revenue reflects:
- Ecommerce LFL - ProCook direct website channel only.
- Retail LFL - Continuing Retail stores which were trading for
at least one full financial year prior to the 2 April 2023,
inclusive of any stores which may have moved location or increased/
decreased footprint within a given retail centre.
For further information please contact:
ProCook Group plc investor.relations@procook.co.uk
Lee Tappenden, Chief Executive Officer
Dan Walden, Chief Financial Officer
MHP Group (Financial PR Adviser) procook@mhpgroup.com
Katie Hunt Tel: +44 (0)7711 191 518
Catherine Chapman
Next scheduled event:
ProCook expects to release its FY24 interim results in mid
December 2023.
Notes to editors
ProCook is the UK's leading direct-to-consumer specialist
kitchenware brand. ProCook offers a direct-to-consumer proposition,
designing, developing, and retailing a high-quality range of
cookware, kitchenware and tableware which provides customers with
significant value for money.
The brand sells directly through its website, www.procook.co.uk
, and through 58 own-brand retail stores, located across the
UK.
Founded over 25 years ago as a family business, selling cookware
sets by direct mail in the UK, ProCook has grown into a market
leading, multi-channel specialist kitchenware company, employing
over 600 colleagues, and operating from its HQ in Gloucester.
ProCook has been listed on the London Stock Exchange since
November 2021 (PROC.L).
Further information about the ProCook Group can be found at
www.procookgroup.co.uk .
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END
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