ProCook Group (PROC)

Sector:

Household Goods

Index:

FTSE Fledgling

27.00p
   
  • Change Today:
      1.05p
  • 52 Week High: 33.80
  • 52 Week Low: 18.25
  • Currency: UK Pounds
  • Shares Issued: 108.96m
  • Volume: 923
  • Market Cap: £29.42m

ProCook tumbles after profit warning

By Michele Maatouk

Date: Friday 10 Jun 2022

LONDON (ShareCast) - (Sharecast News) - ProCook warned on profits on Friday as it said consumers were tightening their belts, sending shares in the kitchenware retailer tumbling.
The company said trading since the fourth quarter ended on 3 April has been impacted by "increasingly challenging" market conditions, with customers hit by well-documented pressures on discretionary spend. It also highlighted "exceptionally strong" comparatives from the prior year, when it was boosted by pent-up demand after Covid restrictions were lifted and retail stores reopened.

ProCook said its like-for-like sales have weakened across all channels, in line with the wider kitchenware market. Still, revenues remain "significantly higher" than the comparative pre-Covid period in 2019.

The group said it's still attracting an encouraging number of new customers to the brand - 89,000 in the first eight weeks of the year - but the difficult consumer backdrop has had an impact on average spend, conversion and repeat rates.

"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," it said. As a result, revenues for FY23 are expected to be broadly in line with the £69.2m achieved this year.

"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," it said.

ProCook now expects to deliver adjusted pre-tax profit of between £4m and £6m for FY23. This would be down from an expected adjusted pre-tax profit of around £10m for FY22.

Chief executive and co-founder Daniel O'Neill said: "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."

At 0815 BST, the shares were down 38% at 48.23p.

Russ Mould, investment director at AJ Bell, said "ProCook has served up a dog's dinner of a trading statement".

"The pots and pans seller joined the stock market after a period of success where the nation was stuck at home during lockdown and many people embraced their culinary skills.

"Now we've got a squeeze on consumer spending and a lot of people have found they can only afford the essentials in life. So, the idea of buying a new cast iron frying pan or a new set of knives has been put on ice and ProCook's growth expectations have been pared back.

"Companies that deliver profit warnings in their first year as a listed business typically find it takes a long time to win back the market's favour, as investors distrust anyone dishing out bad news so soon after floating."



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ProCook Group Market Data

Currency UK Pounds
Share Price 27.00p
Change Today 1.05p
% Change 4.05 %
52 Week High 33.80
52 Week Low 18.25
Volume 923
Shares Issued 108.96m
Market Cap £29.42m

ProCook Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
62.7% below the market average62.7% below the market average62.7% below the market average62.7% below the market average62.7% below the market average
58.33% below the sector average58.33% below the sector average58.33% below the sector average58.33% below the sector average58.33% below the sector average
Price Trend
25.83% below the market average25.83% below the market average25.83% below the market average25.83% below the market average25.83% below the market average
44% below the sector average44% below the sector average44% below the sector average44% below the sector average44% below the sector average
Income Not Available
Growth
52.23% below the market average52.23% below the market average52.23% below the market average52.23% below the market average52.23% below the market average
53.85% below the sector average53.85% below the sector average53.85% below the sector average53.85% below the sector average53.85% below the sector average

ProCook Group Dividends

  Latest Previous
  Final
Ex-Div 01-Sep-22
Paid 30-Sep-22
Amount 0.90p

Trades for 28-Mar-2024

Time Volume / Share Price
16:35 13 @ 27.00p
16:35 13 @ 27.00p
16:29 221 @ 26.90p
15:21 689 @ 25.30p

ProCook Group Key Personnel

CFO Daniel (Dan) Walden
CEO Lee Tappenden

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