ProCook upbeat for coming year, shares spark

26th Jun 2024 10:21

(Sharecast News) - Shares in ProCook Group jumped on Wednesday, after the kitchenware brand flagged strong current trading and forecast an improvement in revenues.

The firm said total revenues in the year to 31 March were largely flat, up just 0.4% at £62.6m, or 1.7% once Amazon channels it has since exited were excluded. On a like-for-like basis, revenues eased 2%.

The group, a direct-to-consumer specialist, said that within that, underlying retail sales had sparked 2.8%, helped by new product launches and a renewed focus on customer service.

In contrast, e-commerce sales fell 8.7%, due to disruption caused by the transition to a new online platform.

Looking to current trading, however, and ProCook said the new website was now delivering stronger conversation rates.

In the first quarter of the current year, like-for-like online sales were up 5.5% and retail 2.4%, giving total growth of 3.5%.

It continued: "The group has had a strong start to the new financial year, with trading momentum continuing to build.

"While mindful of the uncertain macro backdrop, we are confident in our unique specialist proposition and encouraged by the improved momentum we have been delivering over the last year.

"In the 2025 full year we expect to deliver modest revenue growth, primarily driven by a recovery in e-commerce sales...and the planned opening of ten new stores.

"Our refreshed strategy and strengthened customer focus is beginning to deliver improved performance."

As at 1015 BST, shares in ProCook were up 9% at 18.5p.

Lee Tappenden, chief executive, said: "We have made good strategic progress and improved our trading performance throughout the last year, growing revenue, returning to profitability and reducing net debt."

Underlying pre-tax profits came in at £1m in the year to 31 March, compared to a pre-tax loss of £200,000 a year previously.

ProCook currently has 58 own-brand retail stores in the UK.