REG - ProCook Group PLC - Third quarter trading update

PROCOOKAnnouncement

10/01/2024 07:00

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RNS Number : 1628Z  ProCook Group PLC  10 January 2024

10 January 2024

 

ProCook Group plc

 

Third quarter trading update

 

Gaining 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 Q3 trading
results for the 12 weeks ended 7 January 2024.

 

                 Quarter three     Year to date
 £m              FY24     YoY(1)   FY24     YoY(1)

 Revenue         23.1     3.0%     49.4     (0.8%)
 Ecommerce       8.8      (6.0%)   17.9     (13.8%)
 Retail          14.3     9.5%     31.5     8.6%

 LFL Revenue(2)  21.7     (0.4%)   47.0     (2.6%)
 Ecommerce       8.8      (5.1%)   17.9     (10.2%)
 Retail          12.9     3.1%     29.1     2.8%

 

Trading update

Total revenue of £23.1m in Q3, which included the important peak trading
period, increased by +3.0% year on year outperforming the UK kitchenware
market by approximately 10% points(3). Total LFL revenue was similar year on
year in the quarter at -0.4%, building on the improving trend in previous
quarters (Q1: -7.9%, Q2: -1.8%).

Ecommerce LFL revenue was -5.1% in Q3, reflecting disruption during the first
6 weeks of the quarter following the launch of the new website at the end of
Summer, which was largely resolved in time for Black Friday campaigns and
benefiting, in the latter part of the quarter, from the prior year adverse
impact of home delivery strikes.

Retail revenue growth of 9.5% in Q3 benefited from the opening of two new
stores in the quarter, as well as continued momentum in LFL revenue with
growth of 3.1%.

At the end of the third quarter, the Group held a net cash position of £2.6m
(FY23 Q3: £3.1m) with available liquidity of £18.6m.

Outlook

Trading during the important peak period has been in line with the Board's
expectations. However, the macro environment remains difficult for consumers,
impacting bigger ticket and discretionary purchases. Nevertheless, the Group
has made good progress with improving customer experience both online and in
store and enhancing value for customers through price reductions across much
of our range, supported by year on year cost reductions and efficiency
improvements.

Whilst mindful of the geopolitical impact on supply chains as shipments avoid
the Suez canal, which has the potential to cause disruption and increase costs
if sustained over a prolonged period, we are well placed in the short term due
to strong levels of inventory availability across the product range.

We remain confident that, as a specialist retailer, our high-quality and
carefully curated product range which is 100% direct-sourced and own-brand,
paired with our excellent customer service both in store and online, stands us
apart from our competitors.  We are making good strategic progress in
building a stronger customer-focused business ready to accelerate as
conditions improve, to deliver profitable and sustainable growth for all
stakeholders.

Lee Tappenden, Chief Executive Officer, commented:

"I am pleased that trading metrics are continuing to improve despite the
difficult consumer backdrop, and that we have delivered a robust Black Friday
and Christmas trading period, outperforming our market.

"Whilst we remain cautious about the timing and pace of market recovery, we
are confident in our proposition and energised by the opportunities available
to us to build an even stronger customer-focused business as we continue to
make good strategic progress which will allow us to accelerate profitable
growth 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.

(3) UK Kitchenware market growth (excluding ProCook) calculated using weekly
GfK data and management estimates

 

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 Q4 trading update in mid-April 2024.

 

Notes to editors:

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

The brand sells directly through its website, www.procook.co.uk, and through
its 60 own-brand retail stores, conveniently located across the UK.

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

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

 

 

 

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