REG - ProCook Group PLC - Second quarter trading update

PROCOOKAnnouncement

20/10/2023 07:00

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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
 £m                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 £15.7m 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 £26.3m 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 £3.2m (FY23 year end: £2.8m) with
available liquidity of £12.8m.

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                                                                                        Tel: +44 (0)7711 191 518
 Hunt

 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.

 

Information contained within this announcement is deemed to constitute inside
information as stipulated under the Market Abuse Regulations (EU) No.
596/2014. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 

 

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