REG - ProCook Group PLC - Second quarter trading update

PROCOOKAnnouncement

16/10/2024 07:00

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RNS Number : 3106I  ProCook Group PLC  16 October 2024

16 October 2024

 

ProCook Group plc

 

Second quarter trading update

 

Strong trading momentum, delivering on our plan to accelerate profitable
growth

 

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 13 October 2024.

 

                   Quarter Two     Year to date
 £m                FY25    YoY(1)  FY25     YoY(1)

 Revenue           17.0    8.8%    28.3     7.5%
 Ecommerce         5.9     12.2%   10.0     9.4%
 Retail            11.1    7.1%    18.3     6.5%

 LFL Revenue(2)    16.1    4.7%    27.0     4.2%
 Ecommerce LFL(2)  5.8     10.7%   9.9      8.5%
 Retail LFL(2)     10.3    1.6%    17.1     1.9%

 

Trading update

Total revenue of £17.0m in the second quarter increased by +8.8% year on
year, reflecting continued trading momentum and market outperformance. Total
like for like revenue grew by 4.7% with positive growth in both Retail and
Ecommerce channels.

Retail revenue increased by +7.1% benefitting from the fifth consecutive
quarter of positive like for like growth (+1.6%) and the impact of new store
openings which added a further +5.5% points.

Ecommerce revenue increased by +12.2% reflecting a significantly improved
performance on last year (which was impacted by the new website migration)
driven by conversion and marketing improvements. The planned relaunch of sales
on the Amazon UK marketplace to broaden our customer reach contributed +1.5%
points of non-like for like growth in the second quarter.

First half revenue of £28.3m was +7.5% year on year, and +4.2% on a like for
like basis with gross profit and operating costs in line with our expectations
given the second half weighting of the Group's profitability for the full
year.

Net debt at the end of the first half was £4.2m (H1 FY24: £3.2m), reflecting
an increased inventory position as a result of prudent intake planning due to
the global supply chain disruption, with available liquidity of £11.8m.

Outlook

Strong progress against the Group's strategic priorities has been made in the
first half of the year as we accelerate profitable growth to deliver our
medium term objectives of 100 retail stores, £100m revenue and 10% operating
margin.

In line with our plan to open ten new stores in FY25, we have opened four new
stores in the first half of the year, and we are legally committed to open a
further six in the second half, with the majority anticipated to be open in
time for the peak trading season. These new stores are in popular regional
retail destination centres which benefit from strong visitor numbers that will
support increased awareness of our brand. Performance of the four new stores
since opening is encouraging.

We have launched phase three of our new Electricals range during the summer
and performance in this new category is supporting growth. We will be
launching phase four (our new range of coffee machines and accessories) as
planned during H2.

We continue to make good headway in improving omnichannel service and in
growing our customer base, as well as strong progress with our supply chain
transformation programme which will deliver operating efficiencies and
improved availability for our customers.

We are well positioned for peak with enhanced Black Friday and Christmas
campaigns planned, and strong inventory levels which we have prudently secured
in advance given the significant disruption to the global freight markets.

The Board is confident in the Group's unique own-brand and direct-sourced
operating model and is encouraged by the continued momentum in trading
performance and the strong strategic progress made in recent months. Together
this is establishing a solid platform for profitable growth in the period
ahead.

Lee Tappenden, Chief Executive Officer, commented

"We have continued to build on recent momentum and outperform the market, with
strong trading in the second quarter, as we made significant progress in
delivering our clear plan to accelerate profitable growth.

"We are pleased to be expanding our store network with ten new stores in
prominent retail destination centres. Our growing range of high quality
products at unbeatable value, combined with our outstanding customer service,
resonates very well with customers and these new stores will bring our offer
to more customers in the UK, enabling improved brand awareness and an
increased share of the fragmented Kitchenware market.

"The Group's trading momentum, encouraging performances from our new stores
and strong product availability, positions us well for the important peak
trading period. We look forward to continuing to build a stronger
customer-focused business and deliver sustainable and profitable growth for
all our stakeholders in the current financial year and beyond."

 

(1) YoY reflects year on year performance between the relevant financial
periods of FY25 (52 weeks ending 30 March 2025) and FY24 (52 weeks ending 31
March 2024).

(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 1 April 2024, 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)7884 494112
 Hunt

 Robert Collett-Creedy

 

Next scheduled event:

ProCook expects to release its FY25 interim results in mid December 2024.

 

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
61 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.

 

FY25 store opening programme:

 Location              Retail Centre  Anticipated opening
 Bracknell             Lexicon        Opened April 2024
 Birmingham, Solihull  Touchwood      Opened August 2024
 Newcastle             Metrocentre    Opened September 2024
 Oxford                Westgate       Opened September 2024
 Epsom                 Ashley Centre  October 2024
 Norwich               Chantry Place  November 2024
 Exeter                Princesshay    November 2024
 Guildford             High Street    November 2024
 Birmingham, Dudley    Merry Hill     November 2024
 Bournemouth           Castlepoint    January 2025

 

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