REG - ProCook Group PLC - Trading Update

PROCOOKAnnouncement

09/12/2022 07:00

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RNS Number : 1385J  ProCook Group PLC  09 December 2022

9 December 2022

ProCook Group plc

 

Trading Update

 

ProCook Group plc ("ProCook" or "the Group"), the UK's leading
direct-to-consumer specialist kitchenware brand, today provides an update on
recent trading and outlook.

We typically see a much stronger second half trading performance due to the
positive impact of Black Friday and the Christmas period and, at the time of
the Q2 update on 21 October 2022, we were encouraged by the much-improved
trading run rate as we exited the second quarter.

However, in the recent weeks since, we have seen weaker sales performance than
we anticipated, with softer consumer demand driven by the challenging consumer
environment. Given the importance of this peak trading period we now expect
our full year revenue for FY23 to be between £60m - £65m.

The combination of the continued softer year on year sales performance and
heightened costs due to shipping and foreign exchange impacts, additional
marketing and promotional activity, and investing in our operational teams to
serve higher volumes, means that we now expect that full year FY23 underlying
PBT will be approximately breakeven.

In this context, we have developed a clear plan to maximise our trading
performance and profitability.

We are beginning to see the benefits of lower shipping costs in new product
intake which, together with cost reductions that we have agreed with our
suppliers, will support a recovery in our gross margins next financial year.

In addition, we have begun taking action to reduce operating costs by £3m on
an annualised basis, through a reduction in Board costs, efficiency savings to
bring down our logistics costs, and a range of identified procurement and cost
reduction initiatives.

We are confident this plan will enable us to emerge stronger from this
difficult trading environment to become the customers' first choice for
kitchenware. The Group remains well placed to capture increased share of the
large kitchenware market and deliver long term growth and value to all
stakeholders.

 

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 (Financial PR Adviser)                                                 procook@mhpgroup.com

 Katie Hunt                                                                 Tel: +44 (0)7884 494112

 Catherine Chapman

 

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 56 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 over 600 colleagues, and operating
from its Head Office in Gloucester.

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

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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