REG - ProCook Group PLC - Trading Update

PROCOOKAnnouncement

10/06/2022 07:00

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RNS Number : 4008O  ProCook Group PLC  10 June 2022

 

10 June 2022

ProCook Group plc

 

Trading Update

 

ProCook Group plc ("ProCook" or "the Group"), the UK's leading
direct-to-consumer specialist kitchenware brand, today updates on trading in
the financial year to date ("FY23") and its outlook for the full year.

 

Trading update

Since the Group updated on its performance for the fourth quarter ended 3
April 2022, trading has been impacted by increasingly challenging market
conditions, with customers affected by the well-documented exceptional
pressures on discretionary spend.

In the current quarter we are trading against exceptionally strong
comparatives from the prior year, when we benefited from pent-up demand
following the lifting of Covid-19 restrictions and the reopening of retail
stores, and our like-for-like sales have weakened across all channels, in line
with the wider kitchenware market(1).  Our revenues remain significantly
higher than the comparative pre-Covid period in 2019.

We continue to attract an encouraging number of new customers to the ProCook
brand (89,000 in the first 8 weeks of the year), reflecting the strength of
our value-for-money, quality kitchenware offer, however, we are seeing an
impact on average spend, conversion and repeat rates in light of the difficult
consumer backdrop.

Outlook

Considering the more recent trading conditions and the ongoing pressures on
discretionary consumer spend, we now assume the kitchenware market will remain
highly challenging for the remainder of FY23. As such, we now anticipate that
revenue for FY23 will be broadly in line with that achieved in FY22 (FY22
revenue: £69.2m).

Our expectations are that gross margins will remain broadly consistent year on
year, and we will continue to manage our costs carefully to ensure we operate
an efficient business model.

In light of the above, the Board now expects the Group to deliver Adjusted PBT
of between £4-6m for FY23.

The Group will continue to pursue the multiple long term growth opportunities
available, but we will sharpen our short term focus on the core organic UK
opportunity, creating a stronger platform for future growth.

 

Daniel O'Neill, CEO & Founder, commented:

"There are clear and numerous pressures on consumers at present which are
impacting discretionary spend across retail as a whole and kitchenware is no
exception. Whilst we are still seeing lots of new customers discovering the
ProCook brand and buying our products, it is clear that many are tightening
their belts. This creates a difficult short-term trading environment, but does
not distract us from our strategic priorities, as we work towards our mission
of becoming the first choice for kitchenware."

(1)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

 Daniel O'Neill, Chief Executive Officer & Founder

 Dan Walden, Chief Financial Officer

 

 MHP Communications (Financial PR Adviser)                                                      procook@mhpc.com

 Katie                                                                                          Tel: +44 (0)7711 191 518
 Hunt

 Catherine Chapman

 

Next scheduled event:

ProCook expects to release its FY22 preliminary results in late June 2022.

 

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
55 own-brand retail stores, located across the UK. ProCook products are also
available in Germany and France with delivery options extending to Belgium,
Austria, Luxembourg, the Netherlands, and Poland.

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 approximately 700 colleagues, and
operating from its Head Office in Gloucester.

ProCook has been listed on the London Stock Exchange since November 2021
(PROC.L) and has a current market capitalisation of approximately £85m.

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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