REG - ProCook Group PLC - Annual Results
Wed 07:02
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250625:nRSY3348Oa&default-theme=true
RNS Number : 3348O ProCook Group PLC 25 June 2025
25 June 2025
ProCook Group plc
Annual Results for the 52 weeks ended 30 March 2025
Strong trading performance, significantly outperforming the market, delivering
improved profitability and cash position whilst continuing to invest for
growth
Confident in proposition and ability to deliver on medium term strategy
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 30 March 2025.
FY25 FY24 YoY
Revenue £69.5m £62.6m +11.0%
LFL revenue growth 4.9% -2.0%
Gross Profit £45.7m £41.1m +11.2%
Gross profit margin % 65.8% 65.7% +10bps
Underlying operating profit(1) £3.2m £2.1m +51.1%
Underlying operating profit % 4.6% 3.4% +120bps
Underlying EBITDA(1&2) £8.9m £6.8m +31.3%
Underlying EBITDA % 12.8% 10.9%
Underlying profit before tax(1) £1.5m £1.0m +50.9%
Underlying profit before tax % 2.2% 1.6%
New customers acquired ('000) 737 687 +7.1%
Number of active customers L12M ('000)(3) 1,130 1,047 +7.9%
12 month repeat rate %(4) 20.5% 21.3% -80bps
Financial highlights
- Total revenue increased to £69.5m, +11.0% YoY, reflecting
positive momentum in both Ecommerce and Retail channels. Total like for like
revenue increased by +4.9% YoY
o Retail revenue increased by +10.3% benefitting from like for like growth
of +1.5%, with seven consecutive quarters of positive like for like growth
achieved, and new store openings contributing a further +8.8% points
o Ecommerce revenue increased by +12.3%, reflecting like for like growth of
+10.3% driven by increased traffic and average spend year on year, and sales
on Amazon UK contributing +2.0% points of growth
- Outperformed the UK kitchenware market (excluding kitchen
electricals)(5) driven by volume growth, by +7%
- Strong discipline of gross profit margins which improved by
+10bps, absorbing heightened shipping costs as a result of the Middle East
conflicts, and delivered an encouraging Q4 rate of 66.8% (Q4 FY24: 64.5%)
- Underlying EBITDA increased by 31.3% YoY to £8.9m, with margin
expansion achieved through strong cost discipline and improved marketing
efficiency. Underlying operating profit increased to £3.2m (+51.1% YoY)
- Underlying PBT of £1.5m (FY24: £1.0m) reflects investment in
additional new stores opened in the year and a -£0.4m adverse impact YoY of
recent FX volatility
- Strong cash and working capital management delivered a net cash
position of £1.0m at year end (FY24: net debt of £0.7m) despite investing
for growth, including £4.1m of capital expenditure in the year, primarily in
new stores. Available liquidity in cash and finance facilities was £17m at
year end
Strategic highlights
Strong delivery of our plan to achieve 100 retail stores in the UK, £100m
revenue, and 10% operating profit margin over the medium term:
1. Accelerate profitable sales growth:
o Opened twelve new stores in the year in leading retail destinations, ahead
of our planned range of five to ten per year (closed three smaller garden
centres), taking our store estate up to 66 at year end (FY24 year end: 57)
o Launched third and fourth phases of new small kitchen electricals
including coffee machines which are already performing ahead of our initial
expectations
o Improved seasonal and promotional campaigns at key trading periods
(Autumn, Black Friday, Christmas and January Sale)
o Grew L12M active customers to 1.13m, +7.9% YoY. Successfully attracted
737,000 new customers to shop with the brand in FY25, with encouraging
progress made in social marketing channel
2. Improve our operating efficiency:
o Improved product availability in store for customers whilst implementing
new transport partner to improve delivery efficiency
o New technology solutions supporting a significant increase in marketing
efficiency and improving Customer Experience
3. Create an even better place to work:
o Retained commitment to Real Living Wage, increasing hourly paid colleagues
pay by over 40% since 2021
o Continued focus on colleague engagement with annual survey result
increasing to 77% (FY24: 66%)
o Ranked in top 100 UK's Best Workplaces(TM) (large category) and Great
Place to Work® certified for 4th year running
4. Being a force for good:
o Increased total charitable fundraising activities by 75% YoY including our
work with Life's a Beach and our charity of the year Foodcycle, and doubled
our fully-paid Good Causes days for colleagues to volunteer for charities of
their choice
o Completed transition to 100% renewable energy across our own operations
o B Corp impact report 2024 issued and re-certification underway
Current trading and outlook
We have had a good start to the new financial year with total revenue during
the first quarter (12 weeks ended 22(nd) June 2025) of FY26 increasing by
13.7% year on year, building on the momentum we have established. We delivered
total like for like sales growth of 2.0%, marking the sixth consecutive
quarter of growth, with Retail up 0.3% on a LFL basis (held back by lower
footfall due to the warm weather) and Ecommerce LFL up 4.9% year on year.
During the quarter, we opened three new stores, and closed one, increasing the
size of our retail estate to 68 stores and resulting in total Retail revenue
growth of 16.9%. Including the impact of the Amazon channel relaunch, total
Ecommerce revenue increased by 8.2%.
While we are mindful of the uncertain geopolitical backdrop, our momentum is
underpinned by record active customers and customer acquisition, and we are
confident we will continue to gain market share with our unique specialist
proposition and that we will continue to realise the benefits of the strategic
progress we have made in the last year.
In FY26 we expect to deliver continued revenue growth, primarily driven by
progress in digital marketing and Ecommerce performance and the benefit of the
annualisation and increasing maturity of new Retail stores opened last year,
coupled with the planned opening of between five and ten net new stores in the
current year. We anticipate a modest improvement in gross margins, and with
our continued focus on cost discipline across our business, we expect to
mitigate cost pressures including the recent NIC increases, allowing us to
re-invest responsibly 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 delivered a strong full year performance, achieving record sales and
improving the Group's profitability and cash position, reflecting considerable
progress with the execution of our clear strategy. Our successful store
opening programme, electricals range expansion and improved promotional and
seasonal offerings, combined with enhanced marketing and customer experience,
have enabled us to build momentum through the year and significantly
outperform the market.
"The Group has had a solid start to the new financial year with continued
trading momentum to deliver the seventh quarter of consecutive revenue growth.
"Looking forward, whilst we are mindful of the uncertain geopolitical
backdrop, our ongoing momentum is underpinned by record active customers and
customer acquisition. We will continue to realise the benefits of the
strategic progress we have made in the last year, including our store
expansion programme and the improved brand awareness that brings. We have the
opportunity to accelerate this further through continued progress in digital
marketing and Ecommerce performance and further new store openings in the
current year.
"We are, therefore, confident that our refreshed strategy and strengthened
customer focus, together with our unique specialist proposition will deliver
sustainable, profitable growth in line with our medium term ambitions for 100
stores, £100m revenue, and 10% margin."
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)7884 494 112
Hunt
Next scheduled event:
ProCook expects to release its FY26 quarter two trading update in mid October
2025.
Notes to editors:
ProCook is the UK's leading direct-to-consumer specialist kitchenware brand.
ProCook designs, develops, and retails a high-quality range of direct-sourced
and own-brand kitchenware which provides customers with significant value for
money.
The brand sells directly through its website, www.procook.co.uk, and through
68 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.
As a B Corp, a Real Living Wage employer and a certified Great Place to
Work(TM), ProCook is committed to being a socially responsible and
environmentally conscious business for the benefit of all stakeholders.
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
FY26 (52 weeks ending 29 March 2026)
£m Q1 Q2 H1 Q3 Q4 H2 FY
Revenue 12.8
Revenue growth % 13.7%
LFL revenue(6) 11.2
LFL growth % 2.0%
FY25 (52 weeks ending 30 March 2025)
£m Q1 Q2 H1 Q3 Q4 H2 FY
Revenue 11.3 17.0 28.3 25.6 15.5 41.2 69.5
Revenue growth % 5.6% 8.8% 7.5% 11.2% 17.8% 13.6% 11.0%
LFL revenue(7) 10.7 15.9 26.6 22.7 13.6 36.3 62.9
LFL growth % 3.6% 4.7% 4.3% 3.3% 8.8% 5.3% 4.9%
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 revenue(8) 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 operating profit, Underlying EBITDA and Underlying profit
before tax is presented before non-underlying items of £0.3m in FY25, and
£0.3m in FY24.
(2) FY24 EBITDA has been restated following a reassessment of Right Of Use
asset depreciation addbacks
(3) Number of active customers reflects those customers on our database who
have purchased in the last 12 months.
(4) 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.
(5) UK Kitchenware market (excluding kitchen electricals) growth calculated
using weekly GfK data and management estimates.
(6) FY26 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 30 March 2025, inclusive of any stores
which may have moved location or increased/ decreased footprint within a given
retail centre.
(7) FY25 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 31 March 2024, inclusive of any stores
which may have moved location or increased/ decreased footprint within a given
retail centre.
- The LFL revenue growth % by quarter for Q1, Q2 and Q3 FY25 has
been adjusted to exclude the closures of two garden centre stores which were
closed during Q3 FY25 and one garden centre store which closed during Q4 FY25
and were previously included within LFL revenue.
(8) FY24 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 2 April 2023, inclusive of any stores
which may have moved location or increased/ decreased footprint within a given
retail centre.
Chair's introduction
I am pleased to report that substantial progress has been made in the last 12
months as this year saw strong growth in sales, record customer numbers,
improved profitability and cash generation. As an own-brand, direct-sourced
category specialist, ProCook has a unique position in our sector. Our
proposition is highly differentiated, providing customers with high quality
products at far greater value than other well-known kitchenware brands,
complemented by outstanding omnichannel service both in-store and online.
The opportunity to profitably grow market share and brand awareness is
significant, offering sustainable value creation potential for all
stakeholders. The strategy set out by the Leadership Team last June, is
focused on capturing this opportunity and accelerating profitable growth. We
are confident that we are on track to achieve our medium-term objectives of
100 stores, £100m revenue and 10% operating profit margin, and we believe
that there is much that can be achieved in the years ahead.
In order to ensure that planned growth investment is self-funded, in areas
such as new stores which will support improved future profitability and cash
generation, the Board is not recommending a dividend payment for this
financial year.
Culturally, the business continues to evolve, with the Leadership Team that
Lee has established since he joined in September 2023 building strength
together, uniting around shared objectives and focusing more purposefully on
stores and customers. Discipline around strategic execution is now embedded,
combined with the improved day to day rigour needed to trade effectively in a
competitive retail environment.
Our role as a Board is to support and challenge the development of the
business, adding value to the strategy through the combined experience that we
bring and our robust approach to governance. These two parallel tracks are key
to generating a sustainable business that delivers for all of our
stakeholders. The Non-Executive Directors continue to work very well with the
Executives and wider Leadership Team, bringing a combination of pragmatic
counsel and relevant sector experience with appropriate challenge on
strategic, operational and governance matters.
As a B Corp, and the first UK listed retailer to achieve the certification in
2022, we believe that we must 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. We continue to take the right
steps to progress our ambition to achieve net zero by 2040 as a responsible
retailer.
Ensuring that ProCook remains a great place to work is important, and we are
pleased that the results of colleague engagement surveys this year highlight
an improving trend in colleague satisfaction. ProCook has been a committed
member of the Living Wage Foundation, paying the Real Living Wage since 2021,
with the average hourly paid colleague having benefitted from an increase of
over 40% in pay over the last 5 years, whilst other elements of the reward
package have also been improved, helping to provide fairer pay for all. We are
grateful for the hard work and commitment of all our people and our suppliers
across our business, and on behalf of the Board, I would like to express our
sincere thanks and gratitude.
Greg Hodder
Chair
24 June 2025
CEO's review
We have made strong progress over the last 12 months as we have delivered on
the initial priorities we set out last year in our refreshed strategic plan.
The results of this work have been encouraging, with a return to meaningful
sales growth, market share gains and improved profitability.
We ended the financial year with record sales, record customer acquisition
numbers and active customers, and record levels of colleague engagement.
The new talent we have brought into key roles in our senior leadership team
(Marketing, Commercial, Ecommerce and Retail) are now well-settled and forming
very strong working relationships which will help ensure we can continue to
build on the momentum we have established.
Our customer proposition and business foundations are strong, and we are
becoming better recognised by UK customers. We are well positioned to deliver
on our plans to accelerate profitable growth over the years ahead.
Strong trading momentum and improved profitability
We have continued to accelerate trading performance throughout the last
financial year, with momentum building quarter on quarter and new customer
acquisition and L12M active customers reaching new record levels. This is
despite the market backdrop having remained challenging with consumer
confidence remaining subdued, and geopolitical events creating significant
uncertainty.
Total revenue of £69.5m was up 11.0% year on year, with strong like-for-like
performance in both our Retail and Ecommerce channels resulting in total
like-for-like growth of 4.9%.
Retail performance has been pleasing with revenue increasing by 10.3%
including like-for-like growth of 1.5% and an +8.8% impact of 12 new stores
opened during the year, partially offset by the closure of three smaller
garden centre stores. Like-for-like growth was driven by continued product
innovation including the expansion of the new Electricals ranges and focus on
delivering outstanding customer service.
Ecommerce revenue grew by 12.3% including a 2.0% point benefit from the
relaunch of a small, curated range on Amazon UK, and encouraging sales
performance through our own website, which increased by +10.3% year on year.
Performance on our own website was much improved following the disruption in
the prior year from the transition to a new platform, supported by significant
improvements in social media marketing capability and improved basket-building
supporting increased average order values year on year.
Gross margins were slightly ahead year on year at 65.8% (FY24: 65.7%) as we
absorbed heightened shipping costs as a result of the Middle East conflicts
and delivered an encouraging Q4 rate of 66.8% (Q4 FY24: 64.5%). Underlying
EBITDA improved by +31% to £8.9m (FY24: £6.8m) whilst underlying operating
profit increased by 51% to £3.2m. Underlying profit before tax, which was
impacted by adverse non-cash impacts of recent FX volatility, was up 51% to
£1.5m.
The Group ended the financial year with net cash of £1.0m (FY24: net debt of
£0.7m) reflecting free cash flow generation of £1.7m after £4.1m of
investment capital expenditure primarily in new stores (FY24: £2.0m, after
£1.9m of capital expenditure) and with available liquidity at year end of
£17.0m.
Our strategy for growth
We have made excellent progress over the last year in executing the early
phases of the strategy we set out last year. Our plan will deliver sustainable
and profitable growth for all of our stakeholders and we are making good
headway towards our targets of 100 retail stores in the UK, £100m revenue,
and 10% operating profit margin over the medium term.
We have taken the first steps to expand our store network opening 12 new
stores in prominent retail destinations throughout the UK. After closing three
smaller and less profitable garden centre stores, we operated 66 stores at the
end of the financial year. The new stores are enabling more customers to shop
with us, providing us with access to over 150 million customer visits to the
centres each year in catchments which we did not previously serve. Early
performance has been encouraging and I am confident that these stores will
become strong and profitable additions to our estate as they mature, while
also serving to raise brand awareness. During the year we have developed a new
store format which we expect to trial in the year ahead, to enhance the
shopping experience for customers, adding more inspiration and warmth,
combined with cleaner visual merchandising.
High-quality and great-value products are critical to our proposition and we
have continued to strengthen our product offer expanding our new electricals
range, improving seasonal range relevance, and enhancing our promotional
campaigns at key points in the year, including Black Friday and the New Year
Sale. We are improving commercial disciplines across pricing, intake
management, and supplier engagement, while also accelerating our range
development activities.
We are proud of our excellent-rated Trustpilot score, and we have a relentless
drive to deliver best-in-class omnichannel customer service. Our teams now
monitor customer feedback in real time, using data to formulate and implement
improvements to our online and in-store experiences. We have introduced
omnichannel gift cards, added new payment options, and launched build-your-own
set capabilities in-store and online, allowing customers to personalise their
purchases.
Through the year, we have made significant headway in developing our brand
personality, tone of voice and creative styling to grow brand awareness and
customer engagement across all touchpoints. Our more inspirational and
lifestyle-centred marketing campaigns are resonating well with customers. We
have made good progress with our planned development of social marketing
capabilities in the year and this has supported improved marketing efficiency
and new customer acquisition. Our decision to re-launch a curated range on
Amazon UK, is enabling more customers to discover us for the first time, while
also providing a convenient next-day service for those who choose to shop this
way.
Our supply chain transformation programme is a multi-year initiative, and our
early progress has been strong with a number of key initiatives implemented
through the year including warehouse operations pick and pack efficiencies,
transitioning to a new delivery partner with roll cage-based deliveries for
the South-East region, introducing reverse logistics capabilities and
increased delivery frequency to improve on-shelf availability whilst reducing
store inventory levels. We have formulated a plan and roadmap to develop the
operating capacity and efficiency required to support our medium-term growth
ambition and beyond.
During the year, our technology team have worked on multiple enhancements to
operating systems and website technologies to improve both customer experience
and operating efficiency. We have a clear programme of work to progress over
the next three years to ensure we have resilient and scalable technology
solutions which support business growth whilst maintaining technical
flexibility and cost-effectiveness.
I am pleased with the progress made this year as we create a great place to
work. Our colleague engagement score increased to record levels and we were
ranked 61(st) in UK's Best Workplaces(TM) list for Large companies. We have
completed our first leadership development programme with our "heads of" group
and are in the process of rolling this out across manager-level roles. We have
developed our new approach to deliver retail training excellence, including
the recruitment of our first learning and development regional trainers to
facilitate this in the years ahead.
Current trading and outlook
We have had a solid start to the new financial year with total revenue during
the first quarter of FY26 increasing by 13.7% year on year, building on the
momentum we have established. We delivered total like for like sales growth of
2.0%, marking the sixth consecutive quarter of growth, with Retail up 0.3% on
a LFL basis (impacted by lower footfall due to the warm weather) and Ecommerce
LFL up 4.9% year on year. During the quarter, we opened three new stores, and
closed one, increasing the size of our retail estate to 68 stores and
resulting in total Retail revenue growth of 16.9%. Including the impact of the
Amazon channel relaunch, total Ecommerce revenue increased by 8.2%.
While we are mindful of the uncertain geopolitical backdrop, our momentum is
underpinned by record active customers and customer acquisition, and we are
confident we will continue to gain market share with our unique specialist
proposition and that we will continue to realise the benefits of the strategic
progress we have made in the last year.
In FY26 we expect to deliver continued revenue growth, primarily driven by
progress in digital marketing and Ecommerce performance and the benefit of the
annualisation and increasing maturity of new Retail stores opened last year,
coupled with the planned opening of between five and ten net new stores in the
current year. We anticipate a modest improvement in gross margins, and with
our continued focus on cost discipline across our business, we expect to
mitigate cost pressures including the recent NIC increases, allowing us to
re-invest responsibly 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.
I am excited by the journey we are on and have a great team in place to drive
the business forward in line with our clear strategy. I would like to take
the opportunity to thank all our colleagues for their effort, commitment and
customer focus over the last financial year.
Lee Tappenden
CEO
24 June 2025
CFO's review
We have delivered encouraging results and improved trading momentum in the
first year of executing our refreshed strategic plan. Together with our
continuing focus on cost discipline and operational efficiency, we have
improved profitability and strengthened our balance sheet whilst self-funding
significant capital investments to expand our store estate.
Revenue
£m/ % FY25 FY24 YoY growth
£m £m %
Revenue 69.5 62.6 11.0%
Ecommerce 25.5 22.7 12.3%
Retail 44.0 39.9 10.3%
LFL Revenue 62.9 60.0 4.9%
Ecommerce 25.1 22.7 10.3%
Retail 37.9 37.3 1.5%
Total revenue in FY25 (the 52-week period ending 30 March 2025) increased by
11.0% to £69.5m (FY24, the 52-week period ending 31 March 2024: £62.6m).
Trading performance improved through the year with total revenue growth
increasing each quarter.
We have continued to increase our share in the UK kitchenware market during
the year, driven by the strong Ecommerce performance, and Retail revenue
growth both from expansion and in our like-for-like estate. Our mix of revenue
remains more heavily weighted to Ecommerce (37%) than the wider market (28%).
Ecommerce revenue grew by 12.3% to £25.5m (FY24: £22.7m) including a
2.0%-point benefit from the relaunch of a small, curated range on Amazon UK,
and an encouraging sales performance through our own website which increased
by 10.3% year on year. Performance on our own website was much improved
following the disruption in the prior year from the transition to a new
platform, supported by significant improvements in social media marketing
capability and improved basket-building supporting increased average order
values year on year.
Retail revenue increased by 10.3% year on year to £44.0m (FY24: £39.9m),
including like-for-like growth of 1.5% and an +8.8% impact of 12 new stores
opened in the year, partially offset by the closure of three smaller garden
centre stores. Like-for-like growth was driven by continued product
innovation, including the expansion of the new Electricals ranges and
continued focus on delivering outstanding customer service. At the end of the
financial year our UK Retail estate comprised 66 stores.
(1) Management estimates based on internal sales data and GFK weekly
kitchenware sales data.
Gross profit
Gross profit of £45.7m in FY25 (FY24: £41.1m) reflected slightly improved
gross margins of 65.8% (FY24: 65.7%) as we absorbed heightened shipping costs
as a result of the Middle East conflicts and delivered an encouraging Q4 rate
of 66.8% (Q4 FY24: 64.5%).
Operating expenses and other income
Underlying operating expenses net of other income
Total underlying operating expenses net of other income were £42.6m (FY24:
£39.0m) representing 61.2% of sales (FY24: 62.3%). The growth in costs was
driven by a number of key factors:
- Expenses in relation to the twelve new stores and one relocation
upsize opened this year and the annualisation of the two new stores opened
last year: +£1.7m
- Operational efficiencies realised in the like-for-like store
estate: -£0.2m
- Pay inflation and reward: +£2.5m
- Increased marketing efficiencies -£1.4m
- Increased volume-related ecommerce costs:+£1.0m
Other income
Total other income of £47k in FY25 (FY24: £49k) 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 FY25 were £0.3m (FY24: £0.1m).
Consistent with prior years, expenses in respect of employee share-based
awards that relate to the IPO event in FY22, which itself is non-recurring,
have been included as non-underlying costs. These expenses have concluded in
FY25 with the third anniversary of the IPO in November 2024 and the vesting of
the scheme.
In FY24, the Group initiated a restructuring of the senior management team
which finalised within FY25. The one-off costs of £0.2m (FY24: £0.7m) have
been treated as non-underlying given their material and one-off nature.
The Group carried out an impairment assessment as at 30 March 2025, which did
not result in any expense (or reversal of previous expense) to the
Consolidated Income Statement (2024: no impairment recognised).
Operating profit
Total underlying operating profit for the period was £3.2m (FY24: £2.1m).
Ecommerce operating profitability improved from 23.5% of revenue to 26.2%
benefitting from the improved gross profit margins and digital marketing
efficiency gains. Retail profitability remained broadly stable, reducing
slightly to 20.0% of revenue from 20.6% last year (reflecting a small dilutive
effect of new store openings before they reach maturity), also benefitting
from improved gross profit margins and operating efficiencies, more than
offsetting inflationary pressures. The total operating profit from the
Ecommerce and Retail channels combined was £15.5m (FY24: £13.5m). Central
costs increased by £0.9m year on year driven by increased bonus costs,
capability investment and inflation in both pay and other administrative
costs.
£m FY25 FY24
Underlying operating profit
Ecommerce 6.7 5.3
Retail 8.8 8.2
Central costs (12.3) (11.4)
Total 3.2 2.1
Underlying operating profit % of revenue
Ecommerce 26.2% 23.5%
Retail 20.0% 20.6%
Central costs (17.7%) (18.3%)
Total 4.6% 3.4%
Total reported operating profit, after the £0.3m of non-underlying expenses
set out above, was £2.9m (FY24: £2.0m).
Profit and earnings per share
Underlying profit before tax was £1.5m (FY24: £1.0m).
During the year, there was a net expense of £1.7m (FY24: £1.2m) in respect
of financial items in the period. Financial items included interest expenses
on lease liabilities and borrowings of £1.4m (FY24: £1.4m), and other losses
in respect of foreign exchange of £273k (FY24: £114k gain).
After non-underlying items, reported profit before tax was £1.2m (FY24:
£0.7m). Reported profit after tax was £1.0m (FY24: £0.6m).
The effective tax rate on underlying profit before tax was 16.3% (FY24:
16.4%).
Earnings per share
Underlying basic earnings per share for the year increased to 1.17 pence
(FY24: 0.77 pence) and underlying diluted earnings per share increased to
1.08 pence (FY24: 0.73 pence).
Reported basic earnings per share for the year increased to 0.92 pence (FY24:
0.56 pence) and reported diluted earnings per share for the year increased to
0.85 pence (FY24: 0.53 pence).
Cash generation and net debt
We have continued to carefully manage our cash position during the year,
resulting in free cash flow of £1.7m after £4.1m of investment capital
expenditure, primarily in new stores (FY24: £2.0m, after £1.9m of capital
expenditure), and a closing net cash position of £1.0m (FY24: net debt of
£0.7m) with available liquidity headroom of £17.0m (FY24: £15.3m).
£m FY25 FY24
Reported profit before tax 1.2 0.7
Depreciation, amortisation, impairment, and (profit)/ loss on disposal 5.7 3.1
Share based payments 0.3 0.2
Finance expense 1.4 1.4
Unrealised FX (gains)/ losses 0.2 (0.4)
Net working capital 2.2 3.6
Tax paid (0.0) (0.0)
Net operating cash flow 11.0 8.6
Net capital expenditure (4.1) (1.9)
Interest (1.4) (1.3)
Payment of lease liabilities (3.8) (3.4)
Free cash flow 1.7 2.0
Movement in borrowings (0.9) (2.0)
Dividends paid - -
Movement in cash and cash equivalents 0.8 0.0
£m FY25 FY24
Cash and cash equivalents 2.8 2.0
Borrowings (1.8) (2.7)
Net (Debt)/ Cash 1.0 (0.7)
The reported profit before tax in the year includes £0.3m of non-underlying
operating expenses, which resulted in £0.4m of cash outflow (FY24: £2.1m
cash outflow).
A reduction in net working capital resulted in a cash inflow of £2.2m in the
year (FY24: £3.6m) reflecting controlled investment in inventory and an
increased trade payable position. Inventory on hand at the year-end (excluding
inventory in transit) was £9.7m (FY24: £8.1m) up 19.8% year on year as we
invested in inventory for new stores and increased sales volumes. Total
inventory at the year-end was £12.1m (FY24: £9.7m).
Net capital expenditure of £4.1m in the year primarily related to the opening
of 12 new stores within the year. In the prior year, net capital expenditure
of £1.9m largely related to the investment in the new SSC and two new stores.
As at 30 March 2025, the Group held a current tax asset of £0.1m (FY24:
£0.1m) and a deferred tax asset of £0.5m (FY24: £0.7m). We anticipate,
based on our current financial projections, that this deferred tax asset will
be utilised against taxable profits generated within the next three financial
years.
Banking arrangements
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 before the year-end, on the 28 March 2025, the Group successfully
arranged a one-year extension to the RCF which extends the expiry date out
from April 2026 to April 2027. Additionally, the terms in respect of leverage
cover have been amended for Q2 test dates for FY26 and FY27 with net debt to
be no greater than 3.0x EBITDA. It remains at 2.0x for all other test dates.
The fixed charge covenant test remains unchanged, requiring EBITDAR to be no
less than 1.4x fixed charges. 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 28 February 2026, 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
In order to ensure that planned growth investment is self-funded, in areas
such as new stores which will support improved future profitability and cash
generation, the Board is not recommending a dividend payment for this
financial year.
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 £1.2m after non-underlying items
for the financial year ended 30 March 2025 (FY24: profit before tax of £0.7m)
and had a net asset position of £9.7m as at 30 March 2025 (31 March 2024:
£8.4m), with a net current liabilities position of £2.0m (31 March 2024: net
current liabilities position of £1.2m). The Group had net cash (cash and cash
equivalents less borrowings) of £1.0m at 30 March 2025 (31 March 2024: net
debt of £0.8m) with available liquidity headroom of £17.0m.
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 a slowdown in the Bank
of England base rate cutting cycle, reduced yet persistent inflationary
pressure, risks associated with increased tariffs and other 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 leverage charge covenant terms, details of
which are as follows:
- The Group's bank facility agreements and the associated
covenants are set out in the CFO's Review within this report and include a
committed £10m RCF, with a £5m accordion option to the RCF, subject to
lender approval, and an uncommitted £6m trade finance facility.
- On the 28 March 2025, the Group successfully arranged a one-year
extension to the RCF, which extends the expiry date out from April 2026 to
April 2027. Additionally, the terms in respect of leverage cover have been
amended for Q2 test dates for FY26 and FY27 with net debt to be no greater
than 3.0x EBITDA. It remains at 2.0x for all other test dates. The fixed
charge covenant test remains unchanged, requiring EBITDAR to be no less than
1.4x fixed charges.
The base case for the scenario modelling extends from the Group's annual
budget plan that was approved by the Board in March 2025. Forecasts for FY27
are based on the Group's strategic objectives and its medium-term financial
plan, which projects forwards from the latest FY26 budget.
Key assumptions include Ecommerce and Retail like for like ("LFL") 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 geopolitical tensions and the resulting
macro-economic factors, including supply chain disruption risk, and depressed
consumer confidence having the potential to drive a longer time reduction in
demand and a resulting increase in competition within the kitchenware market.
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 economic uncertainty, and additional cost impacts driven
by continued supply chain disruption associated with the Suez Canal diversions
and other geo-political tensions. The impacts of these factors have been
reflected in a 10% lower revenue performance in the FY26 year compared to base
case, increasing to a 15% decrease in FY27, combining to reflect a 99%
reduction in Group revenue growth over the assessment period compared to the
base case
- Fewer new store openings in FY27 are included 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 of -100bps increasing to
-200ps for FY27 compared to the base case to reflect the risk of heightened
supply chain costs and potential increased promotional requirements to
stimulate demand in a more competitive market
Under this severe but plausible downside scenario, and before mitigating
actions, the Group would remain within its available borrowing facilities
throughout the assessment period and remain compliant with all covenants
related to its banking arrangements.
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 that would result
in a breach of financial covenants. A reduction in revenue, with no
mitigations applied, of 12% compared to the base case in FY26 would be
required to breach the fixed charge covenant at the quarter two test date in
FY26. The sales decline required to trigger a breach of the fixed charge
covenant would need to be sustained over a number of months, with mitigating
actions available to Management, which have not been factored into the
scenario. Such a scenario is therefore not considered by the Board to be
reasonably likely to occur, or to threaten the Group's existence as a going
concern.
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 that 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
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.
Conclusion
The Board has undertaken a comprehensive review and assessment of going
concern. Having reviewed current performance, financial projections under a
variety of scenarios related to the Group's principal risks and uncertainties,
total facilities and liquidity (including the reduced liquidity risk resulting
from the revised leverage covenant attached to the RCF), and debt servicing
requirements, the Board expects the Group to have 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, Failure to adapt to changing consumer needs given external macro factors, and
market and to maintain a compelling customer offer compared to competitors could limit or
macroeconomic 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 Any failure to effectively manage our financial affairs and ensure an
treasury 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 Any failure to comply with legal and regulatory obligations, or our wider
compliance 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
24 June 2025
Consolidated Income Statement
For the 52 weeks to 30 March 2025
52 weeks ended 30 March 2025 52 weeks ended 31 March 2024
£'000s Note Underlying Non-underlying Reported Underlying Non-underlying Reported
Revenue 1 69,493 - 69,493 62,585 - 62,585
Cost of sales (23,778) - (23,778) (21,486) - (21,486)
Gross profit 45,715 - 45,715 41,099 - 41,099
Operating expenses 2 (42,555) (344) (42,899) (39,025) (145) (39,170)
Other income 47 - 47 49 - 49
Operating profit/(loss) 3,207 (344) 2,863 2,123 (145) 1,978
Finance expense (1,415) - (1,415) (1,230) (132) (1,362)
Other (losses)/gains (272) - (272) 114 - 114
Profit/(loss) before tax 1,520 (344) 1,176 1,007 (277) 730
Tax (expense)/credit 5 (247) 73 (174) (165) 45 (120)
Profit/(loss) for the period 1,273 (271) 1,002 842 (232) 610
Total comprehensive income/(loss) 1,273 (271) 1,002 842 (232) 610
Earnings per ordinary share - basic 7 1.17p 0.92p 0.77p 0.56p
Earnings per ordinary share - diluted 7 1.08p 0.85p 0.73p 0.53p
Consolidated Statement of Financial Position
As at 30 March 2025
£'000s Note As at 30 March 2025 As at 31 March 2024
Assets
Non-current assets
Intangible assets 8 26 104
Property, plant, and equipment 9 10,767 8,232
Right-of-use assets 10 20,958 20,522
Deferred tax asset 5 526 655
Total non-current assets 32,277 29,513
Current assets
Inventories 12,095 9,716
Trade and other receivables 2,480 3,742
Current tax asset 101 145
Cash and cash equivalents 2,762 2,005
Total current assets 17,438 15,608
Total assets 49,715 45,121
Liabilities
Current liabilities
Trade and other payables 13,932 10,431
Lease liabilities 10 3,708 3,347
Provisions 273 253
Borrowings 1,805 2,754
Total current liabilities 19,718 16,785
Non-current liabilities
Trade and other payables 77 48
Lease liabilities 10 19,586 19,295
Provisions 639 565
Total non-current liabilities 20,302 19,908
Total liabilities 40,020 36,693
Net Assets 9,695 8,428
Equity and reserves attributable to Shareholders of ProCook Group plc
Share capital 1,090 1,090
Share option reserve 2,241 4,099
Share premium 1 1
Retained earnings 6,363 3,238
Total equity and reserves 9,695 8,428
Consolidated statement of cash flows
For the 52 weeks to 30 March 2025
52 weeks ended 52 weeks ended
£'000s Note 30 March 2025 31 March 2024
Cash flows from operating activities
Profit before tax 1,176 730
Adjustments for:
Depreciation of property, plant, and equipment 9 1,234 936
Amortisation of intangible assets 8 78 131
Loss on disposal of property, plant, and equipment 2 45 457
Gain on disposal of leases 2 - (2,301)
Depreciation of right-of-use assets 10 4,356 3,945
Unrealised FX losses/(gains) 219 (411)
Share Based Payments 495 514
Cash outlay on exercise of share options (230) (360)
Finance expense 1,415 1,362
Operating cash flows before movements in working capital 8,788 5,003
(Increase)/Decrease in inventories (2,379) 1,799
Increase/(Decrease) in trade and other receivables 1,220 (1,459)
Increase in trade and other payables 3,229 3,255
Increase in provisions 94 5
Income taxes paid - (9)
Net cash flows from operating activities 10,952 8,594
Investing activities
Purchase of property, plant, and equipment 9 (3,828) (1,844)
Lease inception costs (249) (71)
Lease incentives received - 60
Net cash used in investing activities (4,077) (1,855)
Financing activities
Interest paid on borrowings (419) (367)
Interest paid on lease liabilities (975) (982)
Proceeds from borrowings 22,521 23,974
Repayment of borrowings (23,470) (25,923)
Lease principal payments 10 (3,775) (3,398)
Net cash (used in) financing activities (6,118) (6,696)
Net movement in cash and cash equivalents 757 43
Cash and cash equivalents at beginning of the period 2,005 1,962
Cash and cash equivalents at end of period 2,762 2,005
Consolidated statement of changes in equity
For the 52 weeks to 30 March 2025
£'000s Note Share Share Premium Share Option Reserve Retained earnings Total
capital equity
As at 2 April 2023 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
Total comprehensive profit for the period - - - 1,002 1,002
Employee share-based payment awards - - 495 - 495
Exercise of share options - - (2,353) 2,123 (230)
As at 30 March 2025 1,090 1 2,241 6,363 9,695
Notes to the consolidated financial statements
For the 52 weeks ending 30 March 2025
General Information
The financial information set out herein does not constitute the Company's
statutory financial statements for the periods ended 30 March 2025 or 31 March
2024 but is derived from those financial statements. The financial statements
were approved by the Board of directors on 24 June 2025. Statutory financial
statements for 2025 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) did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying their report and
(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.
52 weeks ended 52 weeks ended
£'000 30 March 2025 31 March 2024
United Kingdom 69,493 62,585
Total revenue 69,493 62,585
2. Operating expenses
Operating profit for the periods is stated after charging:
52 weeks ended 52 weeks ended
£'000 30 March 2025 31 March 2024
Depreciation of tangible fixed assets 1,234 936
Amortisation of Intangible assets 78 131
Depreciation of right-of-use assets 4,356 3,945
Variable lease payments 516 637
Gain on disposal of leases - (2,301)
Loss on disposal of property, plant and equipment 45 457
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 have concluded in
FY25 with the third anniversary of the IPO in November 2024 and the vesting of
the schemes.
In FY24, the Group initiated a restructuring of the senior management team
which finalised within FY25. The one-off costs of £0.2m (FY24: £0.7m) have
been treated as non-underlying given their material and one-off nature. The
Directors consider 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.
In the prior year the Group transitioned to its new Store Support Centre,
incurring transition and dual-running costs prior to the assignment of the two
previous warehouse leases, disposal of related assets, and the reversal of
£1.1m of impairment provisions.
52 weeks ended 52 weeks ended
£'000 30 March 2025 31 March 2024
SSC transition-related costs 14 1,213
Net profit on reassignment of leases - (1,867)
Senior management restructuring costs 179 718
Share based payments 151 81
Non-underlying operating expenses 344 145
Non-underlying finance expense - 132
Non-underlying loss before tax 344 277
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 30 March 2025, 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. The Board reviews segment
performance based on underlying operating profit.
52 weeks ended 52 weeks ended
£'000 30 March 2025 31 March 2024
Revenue
Ecommerce 25,476 22,695
Retail
44,017 39,890
Total revenue
69,493 62,585
Operating profit
Ecommerce
6,676 5,325
Retail
8,824 8,220
Central costs (12,293) (11,422)
Non-underlying operating costs (344) (145)
Operating profit 2,863 1,978
Finance costs (1,415) (1,230)
Other (losses)/gains (272) 114
Non-underlying finance costs(1) - (132)
Profit before tax 1,176 730
(1)Non-underlying finance costs are the interest costs on the lease
liabilities for the disused warehouses which were disposed of in the prior
year.
Operating profit includes depreciation and amortisation of £4,388k relating
to the Retail segment (FY24: £3,350k) and £1,280k relating to the Central
segment (FY24: £1,246k).
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 30 March 2025 31 March 2024
Current taxation
Corporate income tax charge for the period - -
Adjustments in respect of previous years 44 (119)
44 (119)
Deferred tax
Origination and reversal of temporary differences 483 336
Impact of change in tax rate - -
Adjustments in respect of prior periods (353) (97)
Total tax expense 174 120
The tax charge reconciles with the standard rate of UK corporate income tax as
follows:
52 weeks ended 52 weeks ended
£'000 30 March 2025 31 March 2024
Profit on ordinary activities before tax 1,176 730
UK Corporate income tax at standard rate of 25% (2024: 25%) 294 183
Factors effecting the charge in the period:
Tax effect of expenses that are not deductible for tax purposes 131 153
Adjustments in respect of prior years 44 (119)
Other permanent differences 58 (128)
Fixed asset differences - 9
Adjustments in respect of prior periods (deferred tax) (353) (97)
Adjustments to brought forward values - (13)
Remeasurement of deferred tax - 132
Total tax expense 174 120
The taxation expense for the period as a percentage of reported profit before
tax (the effective tax rate) was 14.8% (2024: 16.4%).
The standard rate of UK corporate income tax was 25% for the 52 weeks ended 30
March 2025 (31 March 2024: 25%). Deferred tax balances reflect future
corporation tax rates of 25%.
The deferred tax asset has arisen due to the timing of future vesting dates in
respect of share-based payments, carried forward losses from the previous
financial year offset by accelerated capital allowances on items of property,
plant and equipment. amounts have been presented on a net basis to follow the
way in which they will be recouped by the Group.
Movement in the year:
£'000 Short-term timing differences Accelerated capital allowances Share based payments Carried forward losses Total
Deferred tax asset/(liability) as at 31 March 2024 - (1,080) 343 1,631 894
(Debit)/credit to profit and loss 112 (516) (132) 297 (239)
Deferred tax asset as at 31 March 2024 112 (1,596) 211 1,928 655
(Debit)/credit to profit and loss (38) (158) (110) 177 (129)
Deferred tax asset as at 30 March 2025 74 (1,754) 101 2,105 526
(1) Underlying earnings per ordinary share is a non-IFRS measure
Carried forward tax losses arise from losses incurred in FY23. 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
No dividends were declared or paid in the 52 weeks to 30 March 2025 or 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.
Non-underlying expenses relating to share based payments differ from the
standard rate of tax due to movements in related deferred tax assets, the
value of which is dependent on the Group's share price at the reporting date,
and the statutory deduction received which depends on the share price on the
exercise date. The resulting effective tax rate on these costs was 16.6%.
Other non-underlying items were deductible at the standard rate of 25%, giving
an overall effective tax rate on non-underlying items of 21.4%.
52 weeks ended 52 weeks ended
30 March 2025 31 March 2024
Weighted average number of shares 108,956,624 108,956,624
Impact of share options 8,634,223 7,072,398
Number of shares for diluted earnings per share 117,590,847 116,029,022
52 weeks ended 52 weeks ended 52 weeks ended 52 weeks ended
30 March 2025 30 March 2025 31 March 2024 31 March 2024
£'000 Underlying(1) Reported Underlying(1) Reported
Profit/(loss) for the period 1,273 1,002 842 610
Earnings per ordinary share - basic 1.17p 0.92p 0.77p 0.56p
Earnings per ordinary share - diluted 1.08p 0.85p 0.73p 0.53p
(1) Underlying earnings per ordinary share is a non-IFRS measure.
8. Intangible assets
£'000 Software Total
Cost
At 2 April 2023 415 415
Additions - -
At 31 March 2024 415 415
Additions - -
30 March 2025 415 415
Accumulated amortisation
At 2 April 2023 180 180
Charge for the period 131 131
At 31 March 2024 311 311
Charge for the period 78 78
30 March 2025 389 389
Net book value
At 2 April 2023 235 235
At 31 March 2024 104 104
30 March 2025 26 26
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 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)
At 31 March 2024 187 365 13,995 29 424 15,000
Additions - 7 3,277 - 544 3,828
Transfers - - 303 - (303) -
Disposals - - (112) - (26) (138)
30 March 2025 187 372 17,463 29 639 18,690
Accumulated depreciation and impairment
At 2 April 2023 7 198 6,100 16 - 6,321
Impairment reallocation(1) 132 (10) (121) (1) - -
Charge for the period - 29 903 4 - 936
Disposals - (130) (359) - - (489)
At 31 March 2024 139 87 6,523 19 - 6,768
Charge for the period - 26 1,204 4 - 1,234
Disposals - - (79) - - (79)
30 March 2025 139 113 7,648 23 - 7,923
Net book value
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
30 March 2025 48 259 9,815 6 375 10,767
(1)A detailed review of 2023 impairment allocation to individual assets was
performed during the prior 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 30 March 2025 (FY24: £nil).
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 2 April 2023 36,484 182 39 36,705
Additions 2,712 - 53 2,765
Re-measurement(1) 1,021 - - 1,021
Disposals (8,876) (57) - (8,933)
At 31 March 2024 31,341 125 92 31,558
Additions 4,395 110 - 4,505
Re-measurement(1) 348 - - 348
Disposals (2,076) (73) - (2,149)
At 30 March 2025 34,008 162 92 34,262
Accumulated depreciation and impairments
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
Charge for the period 4,280 57 19 4,356
Disposals (2,028) (60) - (2,088)
Impairment - - - -
At 30 March 2025 13,168 91 45 13,304
Net Book Value
At 2 April 2023 25,335 85 30 25,450
At 31 March 2024 20,425 31 66 20,522
At 30 March 2025 20,840 71 47 20,958
(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.
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 a longer-term growth rate 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 11.7% (FY24: 13.4%). Impairment
tests have been carried out where indicators of impairment exist, with no
impairment charges recognised in the 52 weeks ended 30 March 2025 (FY24: nil).
Lease liabilities included in the Consolidated Statement of Financial Position
were as follows:
£'000 Leasehold Property Motor Vehicles Plant and Equipment Total
At 2 April 2023 29,161 76 29 29,266
Additions 2,665 - 53 2,718
Remeasurement(1) 1,126 - - 1,126
Interest expense 978 1 3 982
Lease payments (4,311) (48) (21) (4,380)
Disposals(2) (7,070) - - (7,070)
At 31 March 2024 22,549 29 64 22,642
Additions 4,040 110 - 4,150
Remeasurement(1) 351 - - 351
Interest expense 968 4 3 975
Lease payments (4,665) (65) (20) (4,750)
Disposals (60) (14) - (74)
At 30 March 2025 23,183 64 47 23,294
(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 prior 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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR UVRVRVOUNURRRecent news on PROCOOK
See all newsREG - ProCook Group PLC - Annual Results
AnnouncementRCS - ProCook Group PLC - Investor Presentation via Investor Meet Company
AnnouncementREG - ProCook Group PLC - Notice of Full Year Results Date
AnnouncementREG - ProCook Group PLC - Director/PDMR Shareholding
AnnouncementREG - ProCook Group PLC - Fourth quarter trading update
Announcement