26 June 2024
ProCook Group
plc
Annual
Results for the 52 weeks ended 31 March 2024
Good strategic progress and
trading momentum; clear route to accelerate profitable growth over
the medium term
ProCook Group plc ("ProCook" or "the
Group"), the UK's leading direct-to-consumer specialist kitchenware
brand, today reports its Annual Results for the 52 weeks ended 31
March 2024.
|
FY24
|
FY23
|
YoY
|
Revenue
|
£62.6m
|
£62.3m
|
0.4%
|
|
|
|
|
Gross Profit
|
£41.1m
|
£38.3m
|
7.2%
|
Gross profit margin%
|
65.7%
|
61.5%
|
420bps
|
|
|
|
|
Underlying profit / (loss) before
tax1
|
£1.0m
|
(£0.2m)
|
|
Underlying profit / (loss) before tax %
|
1.6%
|
(0.3%)
|
|
|
|
|
|
New customers acquired
('000)
|
687
|
692
|
(0.7%)
|
Number of active customers L12M
('000)2
|
1,047
|
991
|
+5.6%
|
12 month repeat rate
%3
|
21.3%
|
23.6%
|
(2.3%pts)
|
FY24 highlights
- Total
revenue of £62.6m increased by 0.4%, or 1.7% excluding the Amazon
channels which we exited over the last two years
- LFL
revenue decreased by 2.0% YoY reflecting improving trend and
building of momentum as we moved through the year
o LFL
Retail revenue grew by 2.8% reflecting new product launches and
continued focus on customer service
o LFL
Ecommerce declined by 8.7% primarily driven by disruption from the
transition to our new website platform which was completed during
the year and is now delivering stronger conversion rates and
reduced time to develop new customer features
- Grew
our share of the UK kitchenware market4, driven by
Retail channel outperformance
- Growth
in L12M active customers of +5.6% YoY to over one million
customers. Successfully attracted 687,000 new customers to shop
with the brand in FY24
- Gross
profit margin % improved as expected, following higher supply chain
costs and foreign exchange impacts in FY23, whilst improving value
for customers through meaningful price cuts on approximately 40% of
the range during the year
- Underlying PBT of £1.0m (FY23: Underlying LBT of £0.2m)
reflecting improved gross margins and strong cost discipline
despite significant inflationary cost pressures
- Launched the first two phases of our new small kitchen
electricals ranges winning multiple industry awards
already
- Completed the transition into our new Store Support Centre
providing capacity for growth, and delivering operational supply
chain efficiencies as expected
- Opened
two new stores in Trafford Centre and Watford and one upsize
relocation in Cheshire Oaks during the year
- Strong
cash management and careful inventory planning improved free cash
flow to £2.0m (FY23: outflow of £0.5m)
- Year-end net debt of £0.7m (FY23: £2.8m) with available
liquidity in cash and committed/ uncommitted facilities of £15.3m
at year end
A
refreshed strategy to accelerate growth over the medium
term
- Building on our specialist customer proposition, unique
business model and strong foundations to deliver sustainable and
profitable growth for all our stakeholders, targeting 100 retail
stores in the UK, £100m revenue, and 10% operating profit margin
over the medium term
- Strategic priorities:
1.
Accelerate profitable sales
growth: By expanding our store network, strengthening our
product offer, delivering best-in-class omnichannel customer
service and growing brand awareness and customer
engagement
2.
Improve our operating
efficiency: Through supply chain transformation and
developing resilient and scalable technology solutions
3.
Create an even better place to
work: By developing our teams and leadership capabilities
and building a high performance culture
4.
Being a force for good: By
reducing our environmental footprint and caring for our
communities
- New Leadership Team in place and energised to execute the
refreshed strategy to accelerate profitable growth over the medium
term
Current trading and outlook
The Group has had a strong start to
the new financial year with trading momentum continuing to build on
the trend established during the last financial year. During the
first quarter of FY25, we delivered like for like sales growth of
3.5% with positive year on year performance in both Retail (+2.4%
LFL) and Ecommerce channels (+5.5% LFL). Including the effect of
new stores (net of store closures last year) our total revenue
increased by 5.6%.
Whilst mindful of the uncertain
macro backdrop, we are confident in our unique specialist
proposition and encouraged by the improving momentum we have been
delivering over the last year.
In FY25 we expect to deliver modest
revenue growth, primarily driven by a recovery in Ecommerce sales
following the disruption last financial year, and the planned
opening of ten new stores in the year. We anticipate maintaining
gross margins, whilst delivering products at unbeatable value. Our
continued focus on cost discipline across our business is expected
to deliver further operating efficiencies which will allow us to
re-invest carefully to accelerate future profitable
growth.
Despite the continued macro-economic
and geo-political challenges, our refreshed strategy and
strengthened customer focus is beginning to deliver improved
performance and we have both the opportunity and a clear plan to
accelerate this further.
Lee
Tappenden, CEO, commented:
"We have made good strategic
progress and improved our trading performance throughout the last
year, growing revenue, returning to profitability, and reducing net
debt through positive cash generation.
"Our unique direct-sourced and
own-brand specialist proposition which offers high quality product
at unbeatable value, with outstanding customer service, resonates
very well with customers. This, combined with our strong
foundations and a fragmented marketplace, provides a significant
opportunity to raise brand awareness, expand our customer base, and
increase our market share. We have a clear plan to accelerate
profitable growth and we are focused on building a stronger
customer-focused business that will support our growth
ambition.
"Our performance during the first
quarter of FY25 demonstrates continuing momentum, and, whilst the
market remains subdued and uncertain, we are confident that we can
build on our recent performance, delivering sustainable and
profitable growth for all our stakeholders in the current financial
year and beyond."
For
further information please contact:
ProCook Group plc
Lee Tappenden, Chief Executive
Officer
Dan Walden, Chief Financial
Officer
|
investor.relations@procook.co.uk
|
MHP
Group (Financial PR Adviser)
Katie
Hunt
Catherine Chapman
|
procook@mhpgroup.com
Tel: +44
(0)7711 191 518
|
Next scheduled event:
ProCook expects to release its FY25
quarter two trading update in mid October 2024.
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 Store Support Centre 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.
Quarterly revenue performance
|
FY25 (52 weeks ending 30
March 2025)
|
£m
|
Q1
|
Q2
|
H1
|
Q3
|
Q4
|
H2
|
FY
|
Revenue
|
11.3
|
|
|
|
|
|
|
Revenue growth %
|
5.6%
|
|
|
|
|
|
|
LFL
revenue5
|
10.9
|
|
|
|
|
|
|
LFL growth %
|
3.5%
|
|
|
|
|
|
|
|
FY24 (52 weeks ending 31
March 2024)
|
£m
|
Q1
|
Q2
|
H1
|
Q3
|
Q4
|
H2
|
FY
|
Revenue
|
10.7
|
15.7
|
26.3
|
23.1
|
13.2
|
36.2
|
62.6
|
Revenue growth %
|
(6.7%)
|
(1.8%)
|
(3.8%)
|
3.0%
|
4.8%
|
3.6%
|
0.4%
|
LFL
revenue6
|
10.1
|
14.8
|
24.9
|
21.4
|
12.2
|
33.6
|
58.5
|
LFL growth %
|
(8.3%)
|
(2.1%)
|
(4.7%)
|
(0.6%)
|
1.5%
|
0.2%
|
(2.0%)
|
Notes
1 Underlying profit/ (loss) before tax is presented before
non-underlying items of £0.3m in FY24, and £6.4m in FY23
2 Number of active customers reflects those customers on our
database who have purchased in the last 12 months
3 12 month repeat rate reflects the % of customers first
acquired in a previous financial year which have made at least one
subsequent purchase in the following financial year
4 Management estimate based on internal sales data GFK market
weekly sales information
5 LFL (Like For Like) revenue in FY25 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 31 March
2024, inclusive of any stores which may have moved location or
increased/ decreased footprint within a given retail
centre.
6 LFL (Like For Like) revenue in FY24 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.
Chair's introduction
Since I joined ProCook shortly
before the IPO in November 2021, we have been through a period of
significant change as the Group became a larger and a
publicly-listed business. We have navigated extremely challenging
trading conditions which have affected consumers disposable income
and inflated our cost base, whilst making the right investment
decisions for continued long term growth. The journey has not been
easy, but we are beginning to see momentum build in the Group's
trading performance, returning ProCook to growth, profitability and
positive cash generation.
In September last year our new CEO
Lee Tappenden succeeded Daniel O'Neill, the Group's founder who has
now transitioned to a Non-Executive role. Lee has brought energy,
vision and different perspectives. In the months since Lee's
arrival, the pace of change and urgency of delivery has been
renewed, and we have greater clarity around strategic priorities
and direction. The open and ambitious culture built by Daniel over
the years, has been a galvanising force with our colleagues working
together to build a better business and to better serve our
customers.
Lee has established his new
Leadership Team for the next chapter, and we now have a majority of
women around the Leadership Team table having welcomed Marta Navas
as Ecommerce Director, Claire Tait as Marketing Director and Laurie
Haughton as Commercial Director. The right senior team is now in
place to accelerate profitable growth over the medium
term.
ProCook is a business which has a
unique position in its sector, with our own-brand and
direct-sourced specialist offer. Our customer proposition is
excellent, providing customers high quality products at unbeatable
value always with outstanding service both in-store and online.
Once discovered, customers are great advocates, but our market
share and brand awareness remain low providing significant
opportunity for growth, while our strong business foundations
provide a solid platform from which we can build on.
Our refreshed strategy is rightly
focused on capturing this growth opportunity. Our store network
today serves less than 40% of the UK population and by expanding
our physical footprint we will not only drive profitable sales
growth, but our increased physical presence will act as a beacon
for the brand helping to raise awareness. The launch of tableware
in 2019 and electricals in 2023 give us confidence that we can
continue to develop the product range, extending and adding new
categories and adding more seasonal relevance and inspiration which
we know our customers want. Whilst ProCook's customer service is
already excellent-rated, this will be elevated to a new level by an
even deeper focus on our customer which, accompanied by our brand
building activities particularly through digital channels, will
allow us to increase awareness, advocacy and loyalty.
Cost pressures remain high, and a
relentless focus on cost-discipline and operational efficiency is
critical. By improving supply chain effectiveness and use of
technology, the Group will reduce costs to serve and become more
nimble.
Dividend
In light of the continued macro
uncertainty, and the Group's plans to continue to invest in areas
which will support future performance and growth, the Board is not
recommending a dividend payment for this financial year in order to
preserve cash within the business during this period. The Board
will continue to review dividend payments in future periods in line
with the Group's Capital Allocation Policy.
Our
Board
I am committed to ensuring that the
Board remains focused on strategy development and execution whilst
we continue to take our governance commitments very seriously.
These two parallel tracks are key to generating a sustainable
business that delivers for all our stakeholders.
The Non-Executive Directors continue
to work very well with the Executives and wider Leadership Team,
providing relevant sector experience and skills with pragmatic
knowledge-sharing and insight, combined with appropriate challenge
on strategic, operational and governance matters.
In June, we welcomed Meg Lustman to
our Board as Non-Executive Director and Chair of the Remuneration
Committee. Meg brings over 35 years of retail experience to the
Board which will be invaluable as we continue to build on the
growing momentum in our performance.
Luke Kingsnorth, our Non-executive
Director and Remuneration Committee Chair, who has been with us
since IPO and added tremendous value over the last three years, has
now stood down from the Board to focus on other professional
commitments and I would like to thank him for his consistently high
quality contributions during his time with us.
Being a force for good
ProCook is a responsible retailer,
an ethos which is embedded in our proposition and cultural values.
We remain focused on listening to our colleagues and creating an
even better place to work. Our continued membership of the Real
Living Wage Foundation reflects our commitment to support our
people as best we can through the pressures of the cost-of-living
crisis, providing fair pay for all.
We are taking the right steps to
progress our ambition to achieve net zero by 2040 and, as a B Corp,
we believe that we can be a force for good, encouraging customers
and other organisations to make positive choices which help protect
our planet and better serve the communities we operate
in.
The support from all our people and
suppliers to our mission has been outstanding and on behalf of the
Board, I would like to express our sincere thanks.
Greg Hodder
Chair
25 June 2024
CEO's review
I am pleased to provide my first
report as CEO of ProCook and I would like to take the opportunity
to thank all ProCook colleagues for the very warm welcome and their
continued commitment, passion and customer-focus during what has
been an extremely challenging trading environment over the last two
years.
In the months since I joined, my
initial impressions of the business have been reinforced. The Group
has real strength in its own-brand, direct sourced model, providing
a specialist retail offer with a high quality product range. The
service delivered by our passionate colleagues in our retail stores
is outstanding, and this helps build strong loyalty once customers
find us.
I am pleased that the team under
Daniel O'Neill's leadership have invested wisely in capability and
infrastructure, building solid foundations to support future
growth.
These strong foundations and our
unique specialist proposition, combined with low brand awareness
and a fragmented marketplace, provide a significant opportunity for
us to accelerate profitable growth.
Building momentum and improving performance
Trading momentum has improved
throughout the last financial year and ProCook has returned to
profit and generated positive cash flows in FY24.
Market conditions have remained
challenging with the macro backdrop impacting customers' disposable
incomes and spending decisions. Total revenue of £62.6m was up 0.4%
year on year, and when excluding the impact of discontinued Amazon
EU channels that were exited last year, revenue increased by 1.7%
reflecting modest market share gains.
Gross margins recovered to 65.7%
(FY23: 61.5%) following the impact of heightened shipping costs in
last year's results, and with continued cost discipline the Group
has delivered an improved underlying profit before tax of £1.0m
(FY23: loss of £0.2m). Statutory reported profit before tax
increased to £0.7m (FY23: loss of £6.5m, including £4.4m of
impairment expenses).
Retail performance has remained
resilient with revenue increasing by 8.7% including like for like
growth of 2.8% and the impact of new and upsized stores. We took
the opportunity to close three smaller, less profitable, garden
centre stores in quarter four as lease break points became
available. Like for like growth was driven by product innovation
including the launch of new Electricals ranges, pricing
improvements for customers, and continued focus on delivering
outstanding customer service.
Ecommerce revenue declined by 11.5%
including a 2.8% point impact of the discontinued Amazon channels,
and lower sales on our own website which reduced by 8.7% year on
year. Performance on our own website was impacted by disruption
from the transition to a new platform which began in early Summer
and had lasting effects through to Black Friday, and has since
improved, delivering stronger conversion rates and reduced time to
develop new customer features.
The Group ended the financial year
with net debt of £0.7m (FY23: £2.8m) reflecting free cash flow
generation of £2.0m (FY23: outflow of £0.5m) and available
liquidity of £15.3m.
Our
strategy for growth
Over the last 28 years ProCook has
developed its business model to offer customers high quality
products at unbeatable value, delivered with outstanding
multichannel service. During the year the Group further improved
its excellent-rating from Trustpilot with over 110,000 5-star
reviews received and was again recognised by Which? as a
Recommended Provider ranking joint second in the UK by customer
review score.
Following a period of significant
growth before and during Covid-19, the Group has gone through a
period of significant change in the last two years, consolidating
operations, investing for future growth, and we have now
established our new Leadership Team for the next chapter after
welcoming our new Ecommerce, Marketing and Commercial Directors to
the team.
During the months since I joined the
Group, I have worked with the Board and
Leadership Team to develop a refreshed strategy to drive forward
our specialist proposition and unique business model with the
focus, energy and pace needed to accelerate our mission to become
the customers' first choice for kitchenware. Our plan will deliver
sustainable and profitable growth for all of our stakeholders and
we are targeting 100 retail stores in the UK, £100m revenue, and
10% operating profit margin over the medium term. The activities
which we will be pursuing in the years ahead are as
follows:
1.
Accelerate profitable sales growth
Expand our store network: Enabling more customers to shop in our stores by increasing
physical retail coverage towards 100 profitable stores across the
UK.
Strengthen our product offer: Creating more reasons to shop with us by adding extended
ranges and improving our seasonal and promotional campaigns, adding
more inspiration and broadening our appeal.
Deliver best in class omnichannel customer
service: Putting the customer first
to deliver even better service and a seamless experience across
in-store and online, however our customers want to shop with
us.
Grow brand awareness and customer engagement:
Helping more customers discover ProCook for the
first time, and encouraging more existing customers to shop with us
again by adding more personality and personalisation.
2.
Improve our operating efficiency
Supply Chain Transformation: Transforming our supply chain to better serve our retail
stores and customers, by increasing delivery frequency, reducing
out of stocks and improving availability whilst operating at a
lower cost.
Resilient and scalable Technology solutions:
Developing and evolving our technology solutions
and capabilities to support greater operational efficiency while
improving ease of use for our customers and colleagues.
3.
Creating an even better place to work
Developing our teams and our leadership
capabilities: Enhancing our service
and product training for all customer-facing colleagues to further
improve customer experience and focusing on our leadership
development to ensure we deliver on our accelerated growth
ambition.
Building a high performance culture:
Adding greater pace and urgency into our ways of
working to ensure our people are focused on the right priorities
and deliver effectively together as one team.
4.
Being a force for good
Reducing our environmental footprint:
Continuing the great work that has already been
achieved to help protect our planet, by progressing our action-plan
to deliver on our commitment of Net Zero by 2040.
Caring for our communities: Increasing our support for the local communities in which we
operate, acting as a force for good for society as a
whole.
Outlook for the year ahead
The Group has had a strong start to
the new financial year with trading momentum continuing to build on
the trend established during the last financial year. During the
first quarter of FY25, we delivered like for like sales growth of
3.5% with positive year on year performance in both Retail (+2.4%
LFL) and Ecommerce (+5.5% LFL). Including the effect of new stores
(net of store closures last year) our total revenue increased by
5.6%.
Whist mindful of the uncertain macro
backdrop, we are confident in our unique specialist proposition and
encouraged by the improving momentum we have been delivering over
the last year.
In FY25 we expect to deliver modest
revenue growth, primarily driven by a recovery in Ecommerce sales,
following the website transition disruption last financial year,
and the planned opening of ten new stores in the current year. We
anticipate maintaining gross margins, whilst delivering products at
unbeatable value. Our continued focus on cost discipline across our
business is expected to deliver further operating efficiencies
which will allow us to re-invest carefully to accelerate future
profitable growth.
Despite the continued macro-economic
and geo-political challenges, our refreshed strategy and
strengthened customer focus is beginning to deliver improved
performance and we have both the opportunity and a clear plan to
accelerate this further.
Lee
Tappenden
Chief Executive Officer
25 June 2024
CFO's review
Trading momentum has improved
throughout the year resulting in total continuing business revenue
growth of 1.7% year on year, while gross margins have increased by
420bps as expected. These impacts, combined with our focus on cost
discipline and delivering improved operating efficiency in the face
of significant inflationary cost pressures, has resulted in a
return to profit and positive cash generation.
Revenue
£m/
%
|
FY24
£m
|
FY23
£m
|
YoY growth
%
|
Revenue
|
62.6
|
62.3
|
0.4%
|
Ecommerce
|
22.7
|
25.6
|
(11.5%)
|
Retail
|
39.9
|
36.7
|
8.7%
|
|
|
|
|
LFL
Revenue
|
58.5
|
59.6
|
(2.0%)
|
Ecommerce
|
22.7
|
24.9
|
(8.7%)
|
Retail
|
35.8
|
34.8
|
2.8%
|
Total revenue in FY24 (the 52-week
period ending 31 March 2024) increased by 0.4% to £62.6m (FY23, the
52-week period ending 2 April 2023: £62.3m). Excluding the year on
year impact of the discontinuation of the Amazon EU channels in
FY23, total revenue grew by 1.7%. Trading performance improved
through the year with total like for like revenue returning to
growth in the fourth quarter.
We have marginally increased our
share in the UK Kitchenware market1 during the year,
driven by resilient Retail revenue growth which outperformed the
market. Our mix of revenue remains more heavily weighted to
Ecommerce (36%) than the wider market (26%).
Ecommerce revenue decreased by 11.5%
to £22.7m (FY23: £25.6m) including the £0.8m impact of lower sales
year on year from the discontinued Amazon channels. Like for like
revenue from our own website channels declined by 8.7% year on
year, largely the result of disruption caused by the transition to
our new website during the year.
Retail revenue increased by 8.7%
year on year to £39.9m (FY23: £36.7m), benefitting from the three
new stores opened last year and the two new stores opened in the
year, partly offset by the closure of three smaller garden centre
stores during the final quarter. Like for like Retail revenue grew
by 2.8% year on year. At the end of the financial year our UK
Retail estate comprised 57 stores.
1 Management estimates based on internal sales data and GFK
weekly kitchenware sales data.
Gross profit
Gross profit of £41.1m in FY24
(FY23: £38.3m) reflected improved gross margins of 65.7% (FY22:
61.5%) which were driven by the reduced impact of heightened marine
freight costs which had adversely impacted cost of goods sold over
the last financial year (+530 bps impact), and lower levels of
promotional activity year on year (+50 bps impact). These positive
effects were partly offset by our drive to improve our value
proposition, offering better pricing for customers across the
majority of the range from Q3 onwards, which was carefully applied
and monitored through the remainder of the year (-160 bps
impact).
Operating expenses and other income
Underlying operating expenses net of other
income
Total underlying operating expenses
net of other income were £39.0m (FY23: £37.6m) representing 62.3%
of sales (FY23: 60.3%). The growth in costs was driven by a number
of key factors:
- Expenses in relation to the two new stores and one relocation
upsize opened this year and the annualisation of the three new
stores opened last year: +£0.8m
- Annualisation of new Store Support Centre ("SSC") occupancy
costs compared to previous HQ and Distribution Centres:
+£0.8m
- Pay inflation and capability investment: +£2.0m
- Above the line marketing campaign investment:
+£0.6m
- Increased digital marketing costs driven by website disruption
(£0.8m) offset by volume reduction (-£0.9m): -£0.1m
- Lower costs from the discontinued Amazon EU marketplace
channels: -£0.6m
- Annualisation of FY23 £3m cost savings programme:
-£2.1m
Other income
Total other income of £49k in FY24
(FY23: £51k) related solely to rental income.
Non-underlying operating expenses
It is the Group's policy to disclose
separately such items that relate to non-recurring events and are
material in nature, and incurred outside of the normal business
operations, in order to provide a consistent and comparable view of
the underlying performance of the Group. Non-underlying operating
expenses in FY24 were £0.1m (FY23: £6.2m).
Consistent with prior years,
expenses in respect of employee share-based awards which relate to
the IPO event in FY22, which itself is non-recurring, have been
presented as non-underlying costs. These expenses are expected to
continue into FY25 up to the third anniversary of the IPO in
November 2024.
During FY24, the Group completed the
final elements of consolidation of warehouse operations into its
new SSC, with subsequent assignment of the two pre-existing
warehouse leases to new tenants later in the year. Operating and
finance expenses associated with the costs of transitioning into
the new site, dual occupancy of the new or previous sites, and exit
costs associated with the disposal of the two previous sites of
£1.2m in FY24 (FY23: £0.5m) have been presented as non-underlying
costs as these items are non-recurring, dual-running and
transition-related. Non-underlying finance expenses relate to
interest on lease liabilities relating to the disused
warehouses.
Assignment of the leases, resulting
in derecognition of the related right-of-use assets and liabilities
and disposal of related fixed assets, resulted in gains of £1.9m,
including the reversal of £1.1m of prior year impairment provisions
against these two sites which were treated as non-underlying costs.
The prior year impairment assessment considered a number of
estimation factors at that time, including the length of time each
property would remain vacant. The reversal in current year reflects
the leases being assigned to new tenants in shorter timescales than
those previously assumed.
During the year, there was a
significant amount of change in the Group's senior management team,
following the announcement that the Group's Founder Daniel O'Neill
would step down from his role as CEO and transition to a
Non-Executive Director role. The one-off costs associated with
recruiting a new CEO and a subsequent restructuring of the senior
management team totalling £0.7m have been treated as non-underlying
given their material and one-off nature. Management considers that
separate disclosure of this restructuring cost as non-underlying
provides additional useful information to the users of the
financial statements around the day to day trading performance of
the Group.
The Group carried out an impairment
assessment as at 31 March 2024 which did not result in any expense
(or reversal of previous expense) to the Consolidated Income
Statement. (2023: £3.3m in respect of Retail CGU impairment and
£1.1m) in respect of the Group's two pre-existing distribution /
head office sites).
Operating profit
Total underlying operating profit
for the period was £2.1m (FY23: £0.8m). Ecommerce operating
profitability improved from 17.9% of revenue to 23.5% benefitting
from the improved gross profit margins, exit of the EU marketplaces
and operational efficiencies year on year, partly offset by higher
digital marketing costs. Retail profitability improved from 14.5%
of revenue to 20.6%, also benefitting from revenue growth, improved
gross profit margins, and operating efficiencies. The total
operating profit from the Ecommerce and Retail channels combined
was £13.5m (FY23: £9.9m). Central costs increased by £2.3m year on
year driven by increased costs associated with the new SSC, pay
inflation and other central cost investments including brand
marketing campaigns.
£m
|
FY24
|
FY23
|
Underlying operating profit
|
|
|
Ecommerce
|
5.3
|
4.6
|
Retail
|
8.2
|
5.3
|
Central costs
|
(11.4)
|
(9.1)
|
Total
|
2.1
|
0.8
|
|
|
|
Underlying operating profit % of revenue
|
|
|
Ecommerce
|
23.5%
|
17.9%
|
Retail
|
20.6%
|
14.5%
|
Central costs
|
(18.3%)
|
(14.7%)
|
Total
|
3.4%
|
1.2%
|
Total reported operating profit,
after the £0.1m of non-underlying expenses set out above was £2.0m
(FY23: £5.4m operating loss).
Profit and earnings per share
Underlying profit before tax was
£1.0m (FY23: £0.2m underlying loss before tax).
During the year, there was a net
expense of £1.2m (FY23: £1.1m) in respect of financial items in the
period. Financial items included interest expenses on lease
liabilities and borrowings of £1.4m (FY23: £1.1m), and other gains
in respect of foreign exchange of £114k (FY23: £55k
loss).
After non-underlying items, reported
profit before tax was £0.7m (FY23: £6.5m loss before
tax). Reported profit after tax was £0.6m (FY23 restated:
£6.1m reported loss after tax).
The effective tax rate on underlying
profit before tax was 16.4% (FY23 restated: 6.7%).
Earnings per share
Underlying basic earnings per share
for the year increased to 0.77 pence (FY23 restated: -0.14 pence)
and underlying diluted earnings per share increased to
0.73 pence (FY23 restated: -0.14 pence).
Reported basic earnings per share
for the year increased to 0.56 pence (FY23 restated: -5.59 pence)
and reported diluted earnings per share for the year increased to
0.53 pence (FY23 restated: -5.59 pence).
Prior period restatement
The deferred tax asset in the
financial years ending 3 April 2022 and 2 April 2023 has been
restated in relation to share based payments. Further information
relating to this restatement is set out in the notes to the
Consolidated Financial Statements.
Cash generation and net debt
We have continued to carefully
manage our cash position during the year, resulting in free cash
flow of £2.0m (FY23: -£0.5m outflow) and a reduction in net debt to
£0.7m (FY23: £2.8m) with available liquidity headroom of £15.3m
(FY23: £13.2m).
£m
|
FY24
|
FY23
|
Reported profit before tax
|
0.7
|
(6.5)
|
Depreciation, amortisation,
impairment, and (profit)/ loss on disposal
|
3.1
|
9.5
|
Share based payments
|
0.2
|
1.1
|
Finance expense
|
1.4
|
1.1
|
Unrealised FX (gains)/
losses
|
(0.4)
|
0.5
|
Net working capital
|
3.6
|
3.8
|
Tax paid
|
(0.0)
|
(0.1)
|
Net
operating cash flow
|
8.6
|
9.3
|
Net capital expenditure
|
(1.9)
|
(5.2)
|
Interest
|
(1.3)
|
(1.1)
|
Payment of lease
liabilities
|
3.4
|
(3.6)
|
Free cash flow
|
2.0
|
(0.5)
|
Movement in borrowings
|
(2.0)
|
(1.0)
|
Dividends paid
|
-
|
(0.3)
|
Movement in cash and cash equivalents
|
0.0
|
(1.8)
|
|
|
|
£m
|
FY24
|
FY23
|
Cash and cash equivalents
|
2.0
|
2.0
|
Borrowings
|
(2.7)
|
(4.8)
|
Net
(Debt)/ Cash
|
0.7
|
(2.8)
|
The reported profit before tax in
the year includes £0.3m of non-underlying operating and finance
expenses, which resulted in £2.5m of cash outflow (FY23: £0.7m cash
outflow).
A reduction in net working capital
resulted in a cash inflow of £4.0m in the year (FY23: £3.8m)
reflecting our planned reduction of inventory and an increased
trade payable position. Inventory on hand at the year-end
(excluding inventory in transit) was £8.1m (FY23: £9.5m) down 14.9%
year on year. Total inventory at the year-end was £9.7m (FY23:
£11.5m).
Net capital expenditure of £1.9m in
the year primarily related to the final elements of investment in
the new SSC, and the two new stores and one upsized relocation
store which opened during the year. In the prior year, net capital
expenditure of £5.2m largely related to the investment in the new
SSC and new and relocating store investments.
As at 31 March 2024, the Group held
a current tax asset of £0.1m (FY23: £0.6m) and a deferred tax asset
of £0.7m (FY23 restated: £0.9m). We anticipate, based on our
current financial projections, that this deferred tax asset will be
utilised against taxable profits generated within the next two
financial years.
Banking agreements
The Group has access to a committed
£10m Revolving Credit Facility ("RCF") to provide additional cash
headroom to support operational and investment activities.
Additionally, the RCF agreement provides an accordion option,
subject to the lender's approval, to extend the facility by a
further £5m.
Shortly after the year-end, on the
19 April 2024, the Group successfully arranged a one-year extension
to the RCF which extends the expiry date out to April 2026.
Additionally, the terms in respect of the fixed charge cover
covenant were amended, in order to provide additional headroom
against that covenant in light of the Group's performance over the
last two financial years. The revised covenant test requires
EBITDAR to be no less than 1.30x fixed charges for the FY24 Q4 and
FY25 Q1 and Q2 test dates, and 1.40x thereafter. The leverage
coverage remains unchanged with net debt to be no greater than 2.0x
EBITDA. Both covenants are tested quarterly and are calculated on a
last 12 month rolling, pre-IFRS 16 basis.
The Group's ability to meet these
covenants has been stress tested as part of going concern and
viability considerations.
The Group has retained its access to
an existing uncommitted £6.0m trade finance facility, which is due
to expire on 31 August 2024, although is expected to be renewed at
that date. There is a performance KPI (inventory to payables
ratio), which is monitored on a quarterly basis, however, there are
no covenants or guarantees or other collateral associated with this
facility.
Capital allocation and dividend policy
In normal circumstances, the Board
currently believes that, to ensure operating flexibility through
the business cycle, it must maintain a minimum unrestricted cash/
debt headroom which the Board reviews on an annual basis, or more
frequently as required. Maintaining this headroom provides a level
of flexibility sufficient to fund the working capital and
investment needs of the Group (as well as set aside an appropriate
operating reserve for unexpected events).
The Group's dividend policy targets
an ordinary dividend pay-out ratio of 20-30% of profit after tax
during the financial year to which the dividend relates. The Board
anticipates, under normal circumstances, that it will consider
returning surplus cash to shareholders if average cash/ debt
headroom over a period consistently exceeds the minimum headroom
target, subject to known and anticipated investment plans at the
time.
The full capital and dividend policy
is available on the Group's website at www.procookgroup.co.uk.
Dividends
Due to the ongoing challenging
consumer environment and the uncertainty that it creates around
trading performance, and, therefore, taking a cautious and responsible decision to preserve cash within the
business during these times, the Board have
not recommended any final dividend in respect of FY24.
Treasury management
The Group is exposed to foreign
currency risk through its trading activities. The main source of
this relates to stock purchases from non-UK suppliers, which
accounts for approximately 95% of the Group's annual stock
purchases. To manage the exchange rate risk, a mixture of standard
("vanilla") forwards and outperformance trades are utilised. The
Group seeks target levels of coverage for future USD payments, as
determined by internal forecasts and the Group's Treasury
Management Policy.
Given the level of USD transactions
and cover obtained via financial instruments, the Group is exposed
to a counter-party risk with each of the financial institutions
where arrangements are held. The Group manages this risk by
ensuring only highly credited institutions are used and limiting
the level of exposure with each.
The Group is also exposed to
interest rate risk where the Group has financial obligations that
give rise to a variable interest charge. To minimise the charges
and exposure driven by interest rates, the Group ensures that
credit facilities are used optimally in parallel with the latest
interest rate information and forecasts.
Tax
strategy
The Group's tax policy is to manage
its tax affairs in a responsible and transparent manner in line
with our commitment to high corporate governance standards. This
ensures the Group complies with the relevant legislation and has
due regard to our reputation and thus seek to promote the long-term
success of the Group and deliver sustainable shareholder
value.
A full copy of the Tax Strategy is
available on the Group's website at
www.procookgroup.co.uk.
Going Concern
The financial statements have been
prepared on a going concern basis. The Group has reported a profit
before tax of £0.7m after non-underlying items for the financial
year ended 31 March 2024 (FY23: loss before tax of £6.5m) and had a
net asset position of £8.4m as at 31 March 2024 (2 April 2023
restated: £7.7m), with a net current liabilities position of £1.2m
(2 April 2023: net current assets of £1.3m). The Group had net debt
(cash and cash equivalents less borrowings) of £0.7m at 31 March
2023 (2 April 2023: £2.8m) with available liquidity headroom of
£15.3m.
In their assessment of going concern
the Board has considered a period of at least 12 months from the
date of signing these financial statements. In considering whether it is appropriate to adopt the going
concern basis in the preparation of the financial statements, the
Directors have considered the Group's principal risks and
uncertainties and have assessed the impact of a range of downside
scenarios, including a severe but plausible downside scenario, on
the Group's expected financial performance, position, and cash
generation. The scenarios have been informed by a comprehensive
review of the macroeconomic environment, including consideration of
the recent fall in inflation, and anticipated decline in interest
rates, alongside geo-political tensions including the impacts on
our supply chain.
Consideration has been given to the
availability of facility headroom and covenant compliance within
the Group's financing facilities, the recently extended RCF
agreement and amended fixed charge covenant terms, details of which
are as follows:
- ProCook's bank facility agreements and the associated
covenants are set out in the CFO's Review within this annual report
and include a committed £10m RCF (expiring in April 2026, although
expected by management to be renewed at that date), with a £5m
accordion option to the RCF, subject to lender approval, and an
uncommitted £6m trade finance facility.
- Shortly after the year-end, on the 19 April 2024, the Group
successfully arranged a one-year extension to the RCF which extends
the expiry date out to April 2026. Additionally, the terms in
respect of the fixed charge cover covenant were amended, in order
to provide additional headroom against that covenant in light of
the Group's performance over the last two financial years. The
revised covenant test requires EBITDAR to be no less than 1.30x
fixed charges for the FY24 Q4 and FY25 Q1 and Q2 test dates, and
1.40x thereafter. The leverage coverage remains unchanged with net
debt to be no greater than 2.0x EBITDA. Both covenants are tested
quarterly and are calculated on a last twelve month rolling,
pre-IFRS 16 basis.
The base case for the scenario
modelling extends from the Group's annual budget plan that was
approved by the Board in March 2024 and updated in its most recent
forecast during quarter one and approved by the Board in June 2024.
Forecasts for FY26 are based on the Group's strategic objectives
and its five year financial plan, which projects forwards from the
latest FY25 forecast.
Key assumptions include Ecommerce
and Retail like for like revenue growth, gross margin performance,
the financial impacts of opening of new stores (including capital
investments and time to maturity), operational efficiencies being
delivered, investment in marketing activity, and the appropriate
level of inventory required to maintain strong product availability
for customers.
In their consideration of the Group's
principal risks and uncertainties the Board believes that the most
likely and most impactful risks that the Group faces are those
surrounding customer and macro-economic factors, and supply chain
disruption risk, both of which are heightened as a result of the
current macro-environment and geo-political tensions.
The Board has reviewed the potential
downside impact of these risks unfolding, modelled under a number
of scenarios including a severe but plausible downside scenario
which reflected the following assumptions:
- A significant reduction in customer demand and shopping
frequency, caused by continued disposable income pressures and
consumer caution in light of political uncertainty, and additional
cost impacts driven by continued supply chain disruption associated
with the Suez Canal diversions. The impacts of these factors have
been reflected in an 8% lower revenue performance in the FY25 year
compared to base case, increasing to a 16% decrease in FY26 and a
22% decrease in FY26, combining to reflect a 22% reduction in Group
revenue growth over the twelve month assessment period compared to
the base case.
- Included within this lower sales scenario, are fewer new store
openings in FY26 on the basis that there would be lower management
confidence of positive return on investment from such
openings.
- A reduction in gross margins in FY26 compared to the base case
by 100bps to reflect heightened supply chain costs.
Under this severe but plausible
downside scenario, and before mitigating actions, the Group would
remain comfortably within its available borrowing facilities
throughout the assessment period and remain compliant with the
fixed charge covenant test. However, it would breach the leverage
covenant at the Q2 FY25 test date given the level of planned and
committed inventory intake and new store openings during the first
half of FY25.
The Board has also reviewed a
reverse stress test which has been applied to the base case model
to determine the level of sales decline which would result in a
breach of financial covenants. A reduction in revenue, with no
mitigations applied, of approximately 8% from Q2 FY25 onwards would
be required to breach fixed charge covenants at that quarter-end
test date. A further reduction in revenue of 22% in FY26 would be
required to breach fixed charge covenants in that year.
The other downside scenario linked
to the key principal risks and uncertainties, which was considered
by the Board, had a less severe cumulative impact than the severe
but plausible downside scenario outlined above and in this scenario
neither of the covenants would be breached, and the Group would
remain comfortably within its available borrowing facilities
throughout the assessment period.
The Board has also considered the
potential impacts of climate change risks. These are not considered
to have a material effect on the Group's financial projections over
the assessment period.
If any of the downside scenarios
were to arise, including the severe but plausible downside scenario
and the reverse stress test scenario, there are a series of
mitigating actions that the Group could seek to implement to
protect or enhance financial performance and position including
to:
- Increase selling prices for products which have lower price
elasticity to help offset additional sourcing costs
- Increase promotional activity to accelerate trading
performance and reduce stock levels, or alternatively, reduce
promotional activity to better protect gross margins
- Reduce paid media marketing spend and postpone or reduce other
planned marketing activities
- Reduce variable costs in operational functions to reflect the
lower sales volumes
- Reduce central overhead costs (including headcount investment)
over the short or medium term
- Delay new store openings or capital expenditure in technology
and logistics
- Renegotiate or seek extended payment terms with suppliers on a
permanent or temporary basis
- Seek alternative forms of financing or new banking terms to
support working capital and investment requirements
Conclusion
The Board has undertaken a
comprehensive review and assessment of going concern including the
Group's financial projections, debt servicing requirements,
available facility headroom and liquidity, and its principal risks
and uncertainties. In the base case and downside scenarios which
the Directors have reviewed, the Group remains comfortably within
its available facility headroom, and no facility covenants would be
breached. However, the Directors recognise that under the severe
but plausible downside scenario, the Group could breach its
leverage covenant unless mitigating actions were to be successfully
applied sufficiently in advance to prevent such a breach, or were
it to agree a covenant waiver, new banking terms, or alternative
funding arrangements, none of which can be guaranteed. The
Directors therefore acknowledge that this potential breach
represents a material uncertainty which may cast significant doubt
on the Group's ability to continue as a going concern.
The Board considers the likelihood
of such a severe downside scenario materialising to be low and
recognises the range of mitigating actions available to the Group
to prevent such a breach occurring, and the positive and
long-standing relationship which the Group has with its banking
partner HSBC. The Directors therefore have a reasonable expectation
that the Group has adequate resources to continue in operational
existence and meet its liabilities as they fall due over the period
of at least 12 months from the date of approving these financial
statements. Accordingly, the financial statements have been
prepared under the going concern basis of accounting.
Principal risks and uncertainties
The Board continually reviews and
monitors the risks and uncertainties which could have a material
effect on the Group's results. A summary of the principal risks is
set out below:
Risk
|
Impact
|
Strategy and business
change
|
Failure to identify and successfully
execute appropriate strategies to develop and grow the brand over
the medium to long term could be affected by a range of factors
including changes in competition or products, consumer behaviours
and trends, inadequate change management or leadership. This could
slow or limit the growth of the business, distract from and / or
damage the overall customer proposition, incur additional cost or
serve to demotivate colleagues if not led effectively.
|
Competition,
market and
macroeconomic
|
Failure to adapt to changing
consumer needs given external macro factors, and to maintain a
compelling customer offer compared to competitors could limit or
reduce profitability and opportunities for growth. Macroeconomic
factors which reduce consumer confidence and / or disposable
incomes or create additional cost pressures could impact revenue
growth and profit generation.
|
Brand and customer
|
Reputational damage leading to loss
of consumer confidence in ProCook products or services, which could
be caused by a variety of factors including customer data loss,
product quality, health and safety, level of direct marketing
activity, ethical or sustainability concerns, poor customer service
or, regulatory non-compliance.
|
Climate change
|
Any failure to implement our ESG
ambitions within acceptable timescales and deliver on stakeholder
expectations to reduce the environmental impact of our business and
progress towards our net zero targets. These include actions linked
to our ESG strategy and managing the potential consequences of
climate change on our business. Failure to meet the expectations of
our customers, colleagues, investors and other stakeholders, may
impact our brand reputation and future trading
performance.
|
Supply chain
|
Failure to source products
effectively and efficiently, potentially relating to geopolitics
surrounding Far East manufacturing reliance, or to ensure inventory
is maintained in the right volumes at the right locations could
adversely impact our short and medium term operational and
financial performance.
|
Technology platforms, data loss and
cyber security
|
Failure to develop and maintain
appropriate technology to support operations, or the loss of key
platforms or data due to cyber-attacks or other failures without an
adequate response, could lead to reputational damage, fines or
higher costs, or a loss of stakeholder and customer confidence in
our Brand.
|
Marketing effectiveness
|
Any failure to attract new customers
and retain existing customers in a cost-effective and engaging way
could impact short term performance and medium strategic growth
ambitions.
|
People and culture
|
Any failure to attract, retain and
develop the right talent, skills and capabilities or to
successfully protect and develop our culture could impact
operational activities including customer service and our
longer-term strategic objectives.
|
Finance and
treasury
|
Any failure to effectively manage
our financial affairs and ensure an appropriate financial position
and sufficient liquidity for future growth, or any failure in
financial planning, financial reporting, compliance with tax
legislation, or the maintenance of a robust financial control
environment, could impact our ability to deliver our strategic
objectives, as well as have an adverse impact on business
viability.
|
Regulatory and
compliance
|
Any failure to comply with legal and
regulatory obligations, or our wider corporate responsibility could
result in financial or legal exposures or damage our reputation
with our Stakeholders as a responsible brand.
|
Dan
Walden
Chief Financial Officer
25 June 2024
Consolidated Income Statement
For the 52 weeks to 31 March
2024
|
|
52 weeks ended 31 March
2024
|
52 weeks
ended 2 April 2023 (restated)1
|
£'000s
|
Note
|
Underlying
|
Non-underlying
|
Reported
|
Underlying
|
Non-underlying
|
Reported
|
Revenue
|
1
|
62,585
|
-
|
62,585
|
62,340
|
-
|
62,340
|
Cost of sales
|
|
(21,486)
|
-
|
(21,486)
|
(23,994)
|
-
|
(23,994)
|
Gross profit
|
|
41,099
|
-
|
41,099
|
38,346
|
-
|
38,346
|
Operating expenses
|
2
|
(39,025)
|
(145)
|
(39,170)
|
(37,645)
|
(6,159)
|
(43,804)
|
Other income
|
|
49
|
-
|
49
|
51
|
-
|
51
|
Operating profit/(loss)
|
|
2,123
|
(145)
|
1,978
|
752
|
(6,159)
|
(5,407)
|
Finance expense
|
|
(1,230)
|
(132)
|
(1,362)
|
(861)
|
(204)
|
(1,065)
|
Other gains/(losses)
|
|
114
|
-
|
114
|
(55)
|
-
|
(55)
|
Profit/(loss) before tax
|
|
1,007
|
(277)
|
730
|
(164)
|
(6,363)
|
(6,527)
|
Tax (expense)/credit
|
5
|
(165)
|
45
|
(120)
|
11
|
424
|
435
|
Profit/(loss) for the period
|
|
842
|
(232)
|
610
|
(153)
|
(5,939)
|
(6,092)
|
|
|
|
|
|
|
|
|
Total comprehensive income/(loss)
|
|
842
|
(232)
|
610
|
(153)
|
(5,939)
|
(6,092)
|
|
|
|
|
|
|
|
|
Earnings per ordinary share -
basic
|
7
|
0.77p
|
|
0.56p
|
(0.14)p
|
|
(5.59)p
|
Earnings per ordinary share -
diluted
|
7
|
0.73p
|
|
0.53p
|
(0.14)p
|
|
(5.59)p
|
1 The tax (expense)/credit and earnings per share, in the
financial year ending 2 April 2023 has been restated in relation to
deferred tax on share based payments. Further information relating
to this tax restatement is set out in note 5, and the impact on
earnings per share is set out in note 7.
Consolidated Statement of Financial Position
As at 31 March 2024
£'000s
|
Note
|
As at 31 March
2024
|
As at 2
April 2023
(restated)1
|
As at 3
April 2022
(restated)1
|
Assets
|
|
|
|
|
Non-current assets
|
|
|
|
|
Intangible assets
|
8
|
104
|
235
|
363
|
Property, plant, and
equipment
|
9
|
8,232
|
7,781
|
5,801
|
Right-of-use assets
|
10
|
20,522
|
25,450
|
20,985
|
Deferred tax asset
|
5
|
655
|
894
|
702
|
Total non-current assets
|
|
29,513
|
34,360
|
27,851
|
Current assets
|
|
|
|
|
Inventories
|
|
9,716
|
11,515
|
16,759
|
Trade and other
receivables
|
|
3,742
|
2,240
|
1,975
|
Current tax asset
|
|
145
|
611
|
271
|
Cash and cash equivalents
|
|
2,005
|
1,962
|
3,782
|
Total current assets
|
|
15,608
|
16,328
|
22,787
|
Total assets
|
|
45,121
|
50,688
|
50,638
|
Liabilities
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
|
10,431
|
7,276
|
8,278
|
Lease liabilities
|
10
|
3,347
|
2,836
|
2,844
|
Provisions
|
|
253
|
200
|
173
|
Borrowings
|
|
2,754
|
4,716
|
5,540
|
Total current liabilities
|
|
16,785
|
15,028
|
16,835
|
Non-current liabilities
|
|
|
|
|
Trade and other payables
|
|
48
|
954
|
816
|
Lease liabilities
|
10
|
19,295
|
26,430
|
19,605
|
Provisions
|
|
565
|
612
|
444
|
Total non-current liabilities
|
|
19,908
|
27,996
|
20,865
|
Total liabilities
|
|
36,693
|
43,024
|
37,700
|
|
|
|
|
|
Net
Assets
|
|
8,428
|
7,664
|
12,938
|
Equity and reserves attributable to Shareholders of ProCook
Group plc
|
|
|
Share capital
|
|
1,090
|
1,090
|
1,090
|
Share option reserve
|
|
4,099
|
6,891
|
5,801
|
Share Premium
|
|
1
|
1
|
1
|
Retained earnings
|
|
3,238
|
(318)
|
6,046
|
Total equity and reserves
|
|
8,428
|
7,664
|
12,938
|
1 The deferred tax asset in the financial years ending 3 April
2022 and 2 April 2023 has been restated in relation to deferred tax
on share based payments. Further information relating to this
restatement is set out in note 5, and the impact on earnings per
share is set out in note 7.
Consolidated statement of cash flows
For the 52 weeks to 31 March
2024
|
|
52 weeks
ended
|
52 weeks
ended
|
£'000s
|
Note
|
31 March
2024
|
2 April
2023
|
Cash flows from operating activities
|
|
|
|
Profit/(Loss) before tax
|
|
730
|
(6,527)
|
Adjustments for:
|
|
|
|
Depreciation of property, plant, and
equipment
|
9
|
936
|
967
|
Amortisation of Intangible
assets
|
8
|
131
|
128
|
Loss on disposal of property, plant,
and equipment
|
2
|
457
|
37
|
Gain on disposal of
leases
|
2
|
(2,301)
|
(75)
|
Depreciation of right-of-use
assets
|
10
|
3,945
|
4,034
|
Impairment of non-current
assets
|
2
|
-
|
4,405
|
Unrealised FX
(gains)/losses
|
|
(411)
|
518
|
Share Based Payments
|
|
514
|
1,090
|
Cash outlay on exercise of share
options
|
|
(360)
|
-
|
Finance expense
|
|
1,362
|
1,065
|
Operating cash flows before movements in working
capital
|
|
5,003
|
5,642
|
Decrease/(Increase) in
inventories
|
|
1,799
|
5,244
|
Increase in trade and other
receivables
|
|
(1,459)
|
(413)
|
Increase/(Decrease) in trade and
other payables
|
|
3,255
|
(1,233)
|
Increase in provisions
|
|
5
|
195
|
Income taxes paid
|
|
(9)
|
(97)
|
Net
cash flows from operating activities
|
|
8,594
|
9,338
|
Investing activities
|
|
|
|
Purchase of property, plant, and
equipment
|
9
|
(1,844)
|
(4,928)
|
Lease inception costs
|
|
(71)
|
(460)
|
Lease incentives received
|
|
60
|
204
|
Net
cash used in investing activities
|
|
(1,855)
|
(5,184)
|
Financing activities
|
|
|
|
Interest paid on
borrowings
|
|
(367)
|
(294)
|
Interest paid on lease
liabilities
|
10
|
(982)
|
(771)
|
Proceeds from borrowings
|
|
23,974
|
18,689
|
Repayment of borrowings
|
|
(25,923)
|
(19,701)
|
Lease principal payments
|
10
|
(3,398)
|
(3,625)
|
Dividends paid
|
|
-
|
(272)
|
Net
cash (used in) financing activities
|
|
(6,696)
|
(5,974)
|
Net
movement in cash and cash equivalents
|
|
43
|
(1,820)
|
Cash and cash equivalents at
beginning of the period
|
|
1,962
|
3,782
|
Cash and cash equivalents at end of period
|
|
2,005
|
1,962
|
Consolidated statement of changes in equity
For the 52 weeks to 31 March
2024
£'000s
|
Note
|
Share
capital
|
Share Premium
|
Share Option Reserve
|
Retained earnings
|
Total
equity
|
As at 3 April 2022
(restated)1
|
|
1,090
|
1
|
5,801
|
6,046
|
12,938
|
Total comprehensive loss for the
period (restated)
|
|
-
|
-
|
-
|
(6,092)
|
(6,092)
|
Employee Share Based Payment
Awards
|
|
-
|
-
|
1,090
|
-
|
1,090
|
Ordinary dividends
paid
|
6
|
-
|
-
|
-
|
(272)
|
(272)
|
As at 2 April 2023
(restated)1
|
|
1,090
|
1
|
6,891
|
(318)
|
7,664
|
Total comprehensive profit for
the period
|
|
-
|
-
|
-
|
610
|
610
|
Employee Share Based Payment
Awards
|
|
-
|
-
|
514
|
-
|
514
|
Exercise of share
options
|
|
-
|
-
|
(3,306)
|
2,946
|
(360)
|
As at 31 March 2024
|
|
1,090
|
1
|
4,099
|
3,238
|
8,428
|
1 The deferred tax asset in the financial years ending 3 April
2022 and 2 April 2023 has been restated in relation to deferred tax
on share based payments, with resulting decreases to retained
earnings in each period. Further information relating to this
restatement is set out in note 5, and the impact on earnings per
share is set out in note 7.
Notes to the consolidated financial
statements
For the 52 weeks ending 31 March
2024
General Information
The financial information set out
herein does not constitute the Company's statutory financial
statements for the periods ended 31 March 2024 or 2 April 2023, but
is derived from those financial statements. The financial
statements were approved by the Board of directors on 25 June 2024.
Statutory financial statements for 2024 will be delivered to the
Registrar of Companies in due course.
The auditors have reported on those
financial statements; their reports were (i) unqualified, (ii)
contained a reference to the material uncertainty in respect of
going concern to which the auditor drew attention by way of
emphasis without modifying their report, (iii) did not contain a
statement under Section 498 (2) or (3) of the Companies Act
2006.
Basis of preparation
These consolidated financial
statements have been prepared in accordance with International
Accounting Standards in conformity with the requirements of the
Companies Act 2006, UK-adopted IFRS as issued by the International
Accounting Standards Board. The consolidated Group financial
statements are presented in Pounds Sterling, being the Group's
functional currency, and generally rounded to the nearest thousand.
They are prepared on the historical cost basis, unless otherwise
stated.
The Directors have, at the time of
approving the financial statements, a reasonable expectation that
the Company and Group have adequate resources to continue in
operational existence for the foreseeable future. Thus, they
continue to adopt the going concern basis of accounting in
preparing the financial statements. Further information on going
concern is set out in the CFO's Review.
1. Revenue
Group revenue is not reliant on any
single major customer or group of customers. Management considers
revenue is derived from one business stream being the retail of
kitchenware and related products and services.
Customers interact and shop with the
Group across multiple touchpoints and their journey often involves
more than one channel. The Chief Operating Decision-Maker is the
Board of Directors of ProCook Group plc. The Board reviews internal
management reports on a frequent basis, and in line with internal
reporting, the channel reporting below indicates where customers
complete their final purchase transaction.
During the financial year ended 31
March 2024, all of the Group's operations were carried out in the
UK, the Group ceased its trading operations in the European Union
during the financial year ended 2 April 2023. All revenue is from
external customers.
|
52 weeks
ended
|
52 weeks
ended
|
£'000
|
31 March
2024
|
2 April
2023
|
United Kingdom
|
62,585
|
61,550
|
European Union
|
-
|
790
|
Total revenue
|
62,585
|
62,340
|
2. Operating expenses
Operating profit/(loss) for the
periods is stated after charging:
|
52 weeks
ended
|
52 weeks
ended
|
£'000
|
31 March
2024
|
2 April
2023
|
Depreciation of tangible fixed
assets
|
936
|
967
|
Amortisation of intangible
assets
|
131
|
128
|
Depreciation of right-of-use
assets
|
3,945
|
4,034
|
Impairment of tangible fixed
assets
|
-
|
1,944
|
Impairment of right-of-use
assets
|
-
|
2,461
|
Variable lease payments
|
637
|
785
|
Gain on disposal of
leases
|
(2,301)
|
(75)
|
Loss on disposal of property, plant,
and equipment
|
457
|
37
|
3. Non-underlying items
Consistent with prior years,
expenses in respect of employee share-based awards which relate to
the IPO event in FY22, which itself is non-recurring, have been
presented as non-underlying costs. These expenses are expected to
continue into FY25 up to the third anniversary of the IPO in
November 2024.
During FY24, the Group completed the
final elements of consolidation of warehouse operations into its
new Store Support Centre ("SSC"), with subsequent assignment of the
two pre-existing warehouse leases to new tenants later in the year.
Operating and finance expenses associated with the costs of
transitioning into the new site, dual occupancy of the new or
previous sites, and exit costs associated with the disposal of the
two previous sites of £1.2m in FY24 (FY23: £0.5m) have been
presented as non-underlying costs as these items are non-recurring,
dual-running and transition-related. Non-underlying finance
expenses relate to interest on lease liabilities relating to the
disused warehouses.
Assignment of the leases, resulting
in derecognition of the related right-of-use assets and liabilities
and disposal of related fixed assets, resulted in gains of £1.9m,
including the reversal of £1.1m of prior year impairment provisions
against these two sites which were treated as non-underlying costs.
The prior year impairment assessment considered a number of
estimation factors at that time, including the length of time each
property would remain vacant. The reversal in current year reflects
the leases being assigned to new tenants in shorter timescales than
those previously assumed.
During the year, there was a
significant amount of change in the Group's senior management team,
following the announcement that the Group's Founder Daniel O'Neill
would step down from his role as CEO and transition to a
Non-Executive Director role. The one-off costs associated with
recruiting a new CEO and a subsequent restructuring of the senior
management team totalling £0.7m have been treated as non-underlying
given their material and one-off nature. Management considers that
separate disclosure of this restructuring cost as non-underlying
provides additional useful information to the users of the
financial statements around the day to day trading performance of
the Group.
The Group carried out an impairment
assessment as at 31 March 2024 which did not result in any expense
(or reversal of previous expense) to the Consolidated Income
Statement. (2023: £3.3m in respect of Retail CGU impairment and
£1.1m in respect of the Group's two pre-existing distribution /
head office sites).
|
52 weeks
ended
|
52 weeks
ended
|
£'000
|
31 March
2024
|
2 April
2023
|
SSC transition-related
costs
|
1,213
|
545
|
Net profit on reassignment of
leases
|
(1,867)
|
-
|
Senior management restructuring
costs
|
718
|
-
|
Share based payments
|
81
|
1,209
|
Impairment expense
|
-
|
4,405
|
Non-underlying operating expenses
|
145
|
6,159
|
Non-underlying finance
expense
|
132
|
204
|
Non-underlying loss before tax
|
277
|
6,363
|
4. Segmental reporting
The Chief Operating Decision Maker
(CODM) is the Board of Directors and segmental reporting analysis
is presented based on the Group's internal reporting to the Board.
At 31 March 2024, the Group had two operating segments, being
Ecommerce and Retail. Central costs are reported separately to the
Board. Whilst central costs are not considered to be an operating
segment, it has been included below to aid reconciliation with
operating profit as presented in the Consolidated Income
Statement.
|
|
|
|
52 weeks
ended
|
52 weeks
ended
|
£'000
|
31 March
2024
|
2 April
2023
|
Revenue
|
|
|
Ecommerce
|
22,695
|
25,653
|
Retail
|
39,890
|
36,687
|
Total revenue
|
62,585
|
62,340
|
Operating profit/(loss)
|
|
|
Ecommerce
|
5,325
|
4,588
|
Retail
|
8,220
|
5,319
|
Central costs
|
(11,422)
|
(9,155)
|
Non-underlying operating
costs
|
(145)
|
(6,159)
|
Operating profit/(loss)
|
1,978
|
(5,407)
|
Finance costs
|
(1,230)
|
(861)
|
Other (losses)/gains
|
114
|
(55)
|
Non-underlying finance
costs
|
(132)
|
(204)
|
(Loss)/profit before tax
|
730
|
(6,527)
|
5. Tax expense
The tax expense for the periods
presented differ from the standard rate of UK corporate income tax
applicable in the financial year. The differences are explained
below:
|
52 weeks
ended
|
52 weeks
ended
|
£'000
|
31 March
2024
|
2 April
2023
(restated)
|
Current taxation
|
|
|
Corporate income tax charge for the
period
|
-
|
-
|
Adjustments in respect of previous
years
|
(119)
|
(243)
|
|
(119)
|
(243)
|
Deferred tax
|
|
|
Origination and reversal of
temporary differences
|
336
|
(479)
|
Impact of change in tax
rate
|
-
|
-
|
Adjustments in respect of prior
periods
|
(97)
|
287
|
Total tax (credit)/expense
|
120
|
(435)
|
The tax charge reconciles with the
standard rate of UK corporate income tax as follows:
|
52 weeks
ended
|
52 weeks
ended
|
£'000
|
31 March
2024
|
2 April
2023
(restated)
|
Profit on ordinary activities before
tax
|
730
|
(6,527)
|
UK Corporate income tax at standard
rate of 25% (2023: 19%)
|
183
|
(1,240)
|
Factors effecting the charge in the
period:
|
|
|
Tax effect of expenses that are not
deductible for tax purposes
|
153
|
(20)
|
Adjustments in respect of prior
years
|
(119)
|
(243)
|
Other permanent
differences
|
(128)
|
-
|
Fixed asset differences
|
9
|
-
|
Adjustments in respect of prior
periods (deferred tax)
|
(97)
|
287
|
Adjustments to brought forward
values
|
(13)
|
-
|
Remeasurement of deferred
tax
|
132
|
781
|
Total taxation expense/(credit)
|
120
|
(435)
|
The taxation expense for the period
as a percentage of underlying profit before tax (the effective tax
rate) was 16.4% (2023: 6.7%).
The standard rate of UK corporate
income tax was 25% for the 52 weeks ended 31 March 2024 (2 April
2023: 19%). Deferred tax balances reflect future corporation tax
rates of 25%.
The deferred tax asset has arisen
due to accelerated capital allowances on items of property, plant
and equipment, the timing of future vesting dates in respect of
share-based payments and carried forward losses from the previous
financial year. The amounts have been presented on a net basis to
follow the way in which they will be recouped by the
Group.
The deferred tax assets recognised
as at 3 April 2022 and 2 April 2023 have been restated. Both
financial years showed an overstated deferred tax asset due to the
deferred tax on future-vesting share based payments having
previously been recognised based on the fair value of the options
granted instead of the available future tax relief (the available
tax relief being based on the difference between exercise price and
market value as at the reporting date, accruing over the time
period from grant until vest date).
Restated brought forward
movements:
£'000
|
Short-term
timing differences
|
Accelerated capital allowances
|
Share
based payments
|
Carried
forward losses
|
Total
|
Deferred tax asset as at 3 April
2022 (as reported)
|
-
|
(479)
|
1,654
|
-
|
1175
|
Remeasurement of deferred tax on
share options
|
-
|
-
|
(473)
|
-
|
(473)
|
Deferred tax asset as at 3 April 2022
(restated)
|
-
|
(479)
|
1,181
|
-
|
702
|
(Debit)/Credit to profit and
loss
|
-
|
(601)
|
(838)
|
1,631
|
192
|
Deferred tax asset as at 2 April 2023
(restated)
|
-
|
(1,080)
|
343
|
1,631
|
894
|
Movement in the year:
£'000
|
Short-term
timing differences
|
Accelerated capital allowances
|
Share
based payments
|
Carried
forward losses
|
Total
|
Deferred tax asset as at 2 April
2023 (restated)
|
-
|
(1,080)
|
343
|
1,631
|
894
|
(Debit)/Credit to profit and
loss
|
112
|
(516)
|
(132)
|
297
|
(239)
|
Deferred tax asset at 31 March 2024
|
112
|
(1,596)
|
211
|
1,928
|
655
|
Carried forward tax losses arise
from the losses incurred during the previous financial year. The
recognition of the deferred tax asset in relation to the carried
forward losses is judged to be appropriate given the Group's
projections of sufficient future taxable profits against which such
deferred tax assets could be offset.
6. Dividends
|
52 weeks
ended
|
Dividend
per
|
52 weeks
ended
|
Dividend
per
|
£'000
|
31 March
2024
|
share
(pence)
|
2 April
2023
|
share
(pence)
|
Final dividend for the period ended
3 April 2022
|
-
|
-
|
272
|
0.9
pence
|
Interim dividend for the period
ended 2 April 2023
|
-
|
-
|
-
|
-
|
The FY22 final dividend of £1.0m was
declared representing 0.9 pence per share, however £0.7m of this
dividend was waived by certain shareholders. The final dividend was
paid to the shareholders on the register at close of business on 2
September 2022. No dividends were declared or paid in the 52 weeks
to 31 March 2024.
7. Earnings per share
Basic earnings per share is
calculated by dividing the profit for the period attributable to
equity holders of the Group by the weighted average number of
ordinary shares in issue.
Diluted earnings per share is
calculated by dividing the profit for the period attributable to
ordinary equity holders of the parent by the weighted average
number of ordinary shares in issue during the period plus the
weighted average number of ordinary shares that would have been
issued on the conversion of all dilutive potential ordinary shares
into ordinary shares.
|
52 weeks
ended
|
52 weeks
ended
|
|
|
31 March
2024
|
2 April
2023
|
|
Weighted average number of
shares
|
108,956,624
|
108,956,624
|
|
Impact of share options
|
7,072,398
|
9,126,940
|
|
Number of shares for diluted
earnings per share
|
116,029,022
|
118,083,564
|
|
|
|
|
Restated3
|
|
52 weeks
ended
|
52 weeks
ended
|
52 weeks
ended
|
52 weeks
ended
|
|
31 March
2024
|
31 March
2024
|
2 April
2023
|
2 April
2023
|
£'000
|
Underlying1
|
Reported
|
Underlying1
|
Reported
|
Profit/(loss) for the
period
|
842
|
610
|
(153)
|
(6,092)
|
Earnings per ordinary share -
basic
|
0.77p
|
0.56p
|
(0.14)p
|
(5.59)p
|
Earnings per ordinary share -
diluted2
|
0.73p
|
0.53p
|
(0.14)p
|
(5.59)p
|
|
|
|
|
|
|
| |
1 Underlying earnings per ordinary share is a non-IFRS
measure.
2 In the 52 weeks ended 2 April 2023 the impact of share
options was anti-dilutive.
3 The deferred tax asset in the financial years ending 3 April
2022 and 2 April 2023 has been restated in relation to share based
payments. Further information relating to this restatement is set
out in note 11.
8. Intangible assets
£'000
|
Software
|
Assets
under construction
|
Total
|
Cost
|
|
|
|
At 3 April 2022
|
257
|
158
|
415
|
Additions
|
-
|
-
|
-
|
Transfers out of Assets under
construction
|
158
|
(158)
|
-
|
At 2 April 2023
|
415
|
-
|
415
|
Additions
|
-
|
-
|
-
|
31
March 2024
|
415
|
-
|
415
|
Accumulated amortisation
|
|
|
|
At 3 April 2022
|
52
|
-
|
52
|
Charge for the period
|
128
|
-
|
128
|
At 2 April 2023
|
180
|
-
|
180
|
Charge for the period
|
131
|
-
|
131
|
31
March 2024
|
311
|
-
|
311
|
Net
book value
|
|
|
|
At 3 April 2022
|
205
|
158
|
363
|
At 2 April 2023
|
235
|
-
|
235
|
31
March 2024
|
104
|
-
|
104
|
Amortisation was recognised in the
Consolidated Statement of Income within operating expenses
throughout the period.
9. Property, plant and equipment
£'000
|
Land and
Buildings
|
Plant and
Machinery
|
Fixtures
and Fittings
|
Motor
Vehicles
|
Assets
under Construction
|
Total
|
Cost
|
|
|
|
|
|
|
At 3 April 2022
|
12
|
487
|
8,462
|
29
|
425
|
9,415
|
Additions
|
-
|
-
|
1,112
|
-
|
3,816
|
4,928
|
Transfers
|
175
|
21
|
2,418
|
-
|
(2,614)
|
-
|
Disposals
|
-
|
-
|
(241)
|
-
|
-
|
(241)
|
At
2 April 2023
|
187
|
508
|
11,751
|
29
|
1,627
|
14,102
|
Additions
|
-
|
153
|
1,327
|
-
|
364
|
1,844
|
Transfers
|
-
|
-
|
1,532
|
-
|
(1,532)
|
-
|
Disposals
|
-
|
(296)
|
(615)
|
-
|
(35)
|
(946)
|
31
March 2024
|
187
|
365
|
13,995
|
29
|
424
|
15,000
|
Accumulated depreciation and impairment
|
|
|
|
|
|
At 3 April 2022
|
3
|
63
|
3,541
|
7
|
-
|
3,614
|
Charge for the period
|
3
|
34
|
925
|
5
|
-
|
967
|
Disposals
|
-
|
-
|
(204)
|
-
|
-
|
(204)
|
Impairment
|
1
|
101
|
1,838
|
4
|
-
|
1,944
|
At
2 April 2023
|
7
|
198
|
6,100
|
16
|
-
|
6,321
|
Impairment
reallocation1
|
132
|
(10)
|
(121)
|
(1)
|
-
|
-
|
Charge for the period
|
-
|
29
|
903
|
4
|
-
|
936
|
Disposals
|
-
|
(130)
|
(359)
|
-
|
-
|
(489)
|
31
March 2024
|
139
|
87
|
6,523
|
19
|
-
|
6,768
|
Net
book value
|
|
|
|
|
|
|
At 3 April 2022
|
9
|
424
|
4,921
|
22
|
425
|
5,801
|
At 2 April 2023
|
180
|
310
|
5,651
|
13
|
1,627
|
7,781
|
At
31 March 2024
|
48
|
278
|
7,472
|
10
|
424
|
8,232
|
1 A detailed review of prior year impairment allocation to
individual assets was performed during the period, resulting in a
revised allocation of the charge across the different asset
classes, As the overall effect of the reallocation is immaterial to
the financial statements, retrospective application has not been
required.
Assets under construction includes
retail store equipment and fixtures acquired but not yet in
use.
Impairment tests have been carried
out where appropriate, with no impairment charges recognised in the
52 weeks ended 31 March 2024 (FY23: £1.9m).
Depreciation was recognised in the
Consolidated Income Statement within operating expenses throughout
the period.
10.
Leased assets
Right-of-use assets included in the
Consolidated Statement of Financial Position were as
follows:
£'000
|
Leasehold
Property
|
Motor
Vehicles
|
Plant and
Equipment
|
Total
|
Cost
|
|
|
|
|
At 3 April 2022
|
26,225
|
236
|
68
|
26,529
|
Additions
|
16,336
|
-
|
-
|
16,336
|
Re-measurement1
|
(4,371)
|
-
|
-
|
(4,371)
|
Disposals
|
(1,706)
|
(54)
|
(29)
|
(1,789)
|
At 2 April 2023
|
36,484
|
182
|
39
|
36,705
|
Additions
|
2,712
|
-
|
53
|
2,765
|
Re-measurement1
|
1,021
|
-
|
-
|
1,021
|
Disposals
|
(8,876)
|
(57)
|
-
|
(8,933)
|
At
31 March 2024
|
31,342
|
125
|
92
|
31,558
|
Accumulated depreciation and impairments
|
At 3 April 2022
|
5,430
|
87
|
27
|
5,544
|
Charge for the period
|
3,959
|
64
|
11
|
4,034
|
Disposals
|
(701)
|
(54)
|
(29)
|
(784)
|
Impairment
|
2,461
|
-
|
-
|
2,461
|
At 2 April 2023
|
11,149
|
97
|
9
|
11,255
|
Charge for the period
|
3,874
|
54
|
17
|
3,945
|
Disposals
|
(4,107)
|
(57)
|
-
|
(4,164)
|
Impairment
|
-
|
-
|
-
|
-
|
At
31 March 2024
|
10,916
|
94
|
26
|
11,036
|
Net
Book Value
|
|
|
|
|
At 3 April 2022
|
20,795
|
149
|
41
|
20,985
|
At 2 April 2023
|
25,335
|
85
|
30
|
25,450
|
At
31 March 2024
|
20,425
|
31
|
66
|
20,522
|
For impairment testing purposes, the
Group has determined that each store is a separate CGU. Each CGU is
tested for impairment at the balance sheet date if any indicators
of impairment exist.
The value in use of each CGU is
calculated based on the Group's latest budget and forecast cash
flows, covering a three-year period, which have regard to historic
performance and knowledge of the current market, together with the
Group's views on the future achievable growth. Cash flows beyond
this three-year period are extrapolated using longer-term growth
rates based on management's future expectations. These have been
prepared utilising both historical experience as well as a
forward-looking estimates with respect to trading conditions and
performance, together with allocations of central overheads and an
estimate of Ecommerce contribution attributable to customers first
acquired in retail stores, reflecting the omnichannel nature of our
business, based on historical sales data.
The key assumptions in the value in
use calculations are the growth rates of sales and gross profit
margins, changes in the operating cost base, long-term growth rates
and the risk-adjusted pre-tax discount rate.
The pre-tax discount rates are
derived from the Group's weighted average cost of capital, which
has been calculated using the capital asset pricing model, the
inputs of which include a country risk-free rate, equity risk
premium, Group size premium and a risk adjustment (beta) along with
the cost of debt. The resulting pre-tax discount rate used was
13.4% (FY23: 12.8%). Impairment tests have been carried out where
appropriate, with no impairment charges recognised in the 52 weeks
ended 31 March 2024 (2023: total impairment charge of £4.4m, being
£2.5m relating to Right-of-use assets and £1.9m relating to
Property, plant, and equipment.)
Lease liabilities included in the
Consolidated Statement of Financial Position were as
follows:
£'000
|
Leasehold
Property
|
Motor
Vehicles
|
Plant and
Equipment
|
Total
|
At 3 April 2022
|
22,269
|
141
|
39
|
22,449
|
Additions
|
15,893
|
-
|
-
|
15,893
|
Remeasurement1
|
(4,371)
|
-
|
-
|
(4,371)
|
Interest expense
|
768
|
2
|
1
|
771
|
Lease payments
|
(4,318)
|
(67)
|
(11)
|
(4,396)
|
Disposals2
|
(1,080)
|
-
|
-
|
(1,080)
|
At
2 April 2023
|
29,161
|
76
|
29
|
29,266
|
Additions
|
2,665
|
-
|
53
|
2,718
|
Remeasurement1
|
1,126
|
-
|
-
|
1,126
|
Interest expense
|
978
|
1
|
3
|
982
|
Lease payments
|
(4,311)
|
(48)
|
(21)
|
(4,380)
|
Disposals2
|
(7,070)
|
-
|
-
|
(7,070)
|
At
31 March 2024
|
22,549
|
29
|
64
|
22,642
|
1 Remeasurements have arisen where rentals have been subject to
indexation or rent reviews, or where store lease rental terms and
lease expiry dates have been renegotiated.
2 Disposals in the year predominantly related to the assignment
of leases relating to two distribution centres which were surplus
to requirements after the transition to the new Store Support
Centre at the beginning of FY24. In the prior year impairment
charges of £0.9m were recognised against these leases based on a
Value In Use assessment which considered a number of estimation
factors at that time, including the length of time each property
would remain vacant.