REG - ProCook Group PLC - Fourth quarter trading update

PROCOOKAnnouncement

19/04/2023 07:00

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RNS Number : 7222W  ProCook Group PLC  19 April 2023

19 April 2023

 

ProCook Group plc

 

Fourth quarter trading update

 

Full year performance in line with expectations

 

 

ProCook Group plc ("ProCook" or "the Group"), the UK's leading
direct-to-consumer specialist kitchenware brand, today reports on Q4 trading
results for the 12 weeks ended 2 April 2023 and the full year (unaudited).

 

                   Quarter Four             Full Year
 £m                FY23   YoY(1)   Yo3Y(2)  FY23  YoY(1)   Yo3Y(2)

 Revenue           12.6   (9.7%)   64.6%    62.3  (9.9%)   60.0%
 Ecommerce         4.9    (21.1%)  33.1%    25.7  (20.7%)  77.1%
 Retail            7.7    (0.7%)   93.5%    36.7  (0.4%)   49.9%

 LFL Revenue(3)    10.8   (9.4%)   103.2%   54.1  (10.7%)  112.2%
 Ecommerce LFL(3)  4.9    (12.6%)  151.6%   24.9  (11.0%)  207.6%
 Retail LFL(3)     5.9    (6.6%)   64.1%    29.2  (10.4%)  52.5%

 

Trading update

Total revenue of £12.6m in Q4 was -9.7% year on year, reflecting ongoing
uncertainty in the consumer backdrop and driven primarily by a reduction in
Ecommerce revenue, against strong comparatives, with revenue from Retail
broadly flat. Excluding revenue from discontinued Amazon channels, Ecommerce
LFL revenue for Q4 was -12.6%, contributing to a total LFL revenue decline of
-9.4%, although this remained +103.2% compared to FY20 (pre-pandemic).

Full year revenue of £62.3m was in the middle of our expected range,
declining -9.9% year on year, or -5.0% excluding the discontinued Amazon
channels.

During the quarter we opened one new store in Kingston Upon Thames, increasing
the total number of retail stores to 58 at the year end (FY22: 55). We also
completed the development of our new Distribution Centre and HQ which will
support future operational efficiencies as we grow, and began the transition
into the site during March.

We are pleased to have been recognised recently by Which? as a Recommended
Provider (Furniture and Homeware), ranking 4(th) amongst a large peer group
based on customer feedback, noting particularly our product quality and range.

The Board anticipates that FY23 underlying PBT will be approximately
breakeven, in line with our previous guidance.

 

Daniel O'Neill, Chief Executive Officer & Founder, commented:

"The last year has been very difficult for consumers as real disposable
incomes have fallen, which is reflected in our softer sales performance
against our significant growth and market outperformance last year.

"While we expect trading conditions to remain challenging and unpredictable,
we continue to grow our customer base by attracting new customers to the brand
and remain confident in our value-for-money, specialist offer. Certain
inflationary cost pressures, including wages, remain high, however we are
seeing some easing in other areas, and we expect to realise the benefits of
our recent actions to reduce operating costs in the current financial year and
beyond.

"In our 27-year history, we have endured difficult trading conditions before
and emerged stronger. We have made good strategic progress this year,
investing in areas that will strengthen our foundations and improve our
customer proposition. We therefore look forward with confidence to building
the ProCook brand, equipping more customers with the tools to enjoy everyday
cooking, and returning to profitable growth."

 

(1) YoY reflects year on year performance between the relevant financial
periods of FY23 (52 weeks ending 2 April 2023) and FY22 (52 weeks ended 3
April 2022).

(2) Yo3Y reflects year on year performance between the relevant financial
periods of FY23 and FY20 (pre-pandemic).

(3) LFL (Like For Like) revenue reflects:

-        Retail YoY - Continuing Retail stores which were trading for at
least one full financial year prior to the 3 April 2022, inclusive of any
stores which may have moved location or increased/ decreased footprint within
a given retail centre.

-         Retail Yo3Y - Continuing Retail stores which were trading for at
least one full financial year prior to the 29 March 2020, inclusive of any
stores which may have moved location or increased/ decreased footprint within
a given retail centre.

-          Ecommerce YoY and Yo3Y - ProCook direct website channel only.

 

For further information please contact:

   ProCook Group plc                                         investor.relations@procook.co.uk

   Daniel O'Neill, Chief Executive Officer & Founder

   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 FY23 preliminary results in late June 2023.

 

Notes to editors:

ProCook is the UK's leading direct-to-consumer specialist kitchenware brand.
ProCook offers a direct-to-consumer proposition, designing, developing, and
retailing a high-quality range of cookware, kitchenware and tableware which
provides customers with significant value for money.

The brand sells directly through its website, www.procook.co.uk, and through
58 own-brand retail stores, located across the UK.

Founded over 25 years ago as a family business, selling cookware sets by
direct mail in the UK, ProCook has grown into a market leading, multi-channel
specialist kitchenware company, employing over 600 colleagues, and operating
from its HQ in Gloucester.

ProCook has been listed on the London Stock Exchange since November 2021
(PROC.L).

Further information about the ProCook Group can be found at
www.procookgroup.co.uk.

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