REG - ProCook Group PLC - Fourth quarter trading update

PROCOOKAnnouncement

09/04/2024 07:00

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RNS Number : 7594J  ProCook Group PLC  09 April 2024

 

9 April 2024

 

ProCook Group plc

 

Fourth quarter trading update

 

Continued market share gains with trading momentum improving. FY24 PBT
expected to be marginally ahead of market expectations.

 

ProCook Group plc ("ProCook" or "the Group"), the UK's leading
direct-to-consumer specialist kitchenware brand, today reports on Q4 trading
results for the 12 weeks ended 31 March 2024.

 

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

 Revenue         13.2     4.8%     62.6     0.4%
 Ecommerce       4.8      (1.8%)   22.7     (11.5%)
 Retail          8.4      8.9%     39.9     8.7%

 LFL Revenue(2)  12.2     1.5%     58.5     (2.0%)
 Ecommerce       4.8      (2.5%)   22.7     (8.7%)
 Retail          7.4      4.3%     35.8     2.8%

 

Trading update

Total revenue of £13.2m in Q4, increased by +4.8% year on year outperforming
the UK kitchenware market by approximately +2% points(3). Total LFL revenue
turned positive in the quarter, having increased by +1.5%, continuing the
improving trend from previous quarters (Q1: -8.3%, Q2: -2.1%, Q3: -0.6%)(4).

Ecommerce LFL revenue was -2.5% in Q4, improving from -5.1% last quarter as
further customer experience improvements were delivered.

Retail revenue growth of +8.9% in Q4 benefited from continued momentum in LFL
revenue growth (+4.3%), the opening of two new stores in the previous quarter
and the upsize relocation of a third store during the fourth quarter, partly
offset by the closure of three smaller garden centre stores and the Cookery
School part way through the quarter.

Full year revenue of £62.6m increased by +0.4% YoY, or +1.6% excluding the
Amazon EU channels which were exited last year.

At the end of the fourth quarter, the Group held a net debt position of £0.7m
(FY23 Q4: £2.8m) with available liquidity of £15.3m.

Outlook

Sales performance during the fourth quarter has been in line with the Board's
expectations and with strong margin and cost discipline, the Board expects
full year Underlying PBT for FY24 to be between £0.5m to £1.0m, marginally
ahead of market expectations(5).

The Group has made good strategic progress during the year, including opening
new stores, the launch in March of our new small kitchen electricals range,
improvements in customer experience online and in store, and delivering even
greater value for customers through meaningful price reductions across much of
our range.

Whilst the macro environment remains difficult for consumers, we are confident
that the work done to strengthen our business over the last two years will
support a stronger performance in the new financial year and as conditions
improve, enabling the Group to deliver profitable and sustainable growth for
all stakeholders.

We remain confident that our specialist retail proposition, with a
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.

Lee Tappenden, Chief Executive Officer, commented:

"I am pleased with the growing momentum in our performance which reflects the
enhanced range, experience and value we are delivering to our customers.

"Despite the market remaining subdued, we are gaining share giving us
confidence that our proposition continues to resonate with consumers. We look
forward to delivering further strategic progress as we continue to build an
even stronger customer-focused business which will allow us to accelerate
profitable growth as trading conditions improve."

 

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 preliminary results on 26 June 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 57 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).

 

Quarterly revenue performance:

                          FY24 (52 weeks ending 31 March 2024)
 £m                       Q1      Q2      H1      Q3      Q4      H2      FY
 Revenue                  10.7    15.7    26.3    23.1    13.2    36.2    62.6
 Revenue growth %         (6.7%)  (1.8%)  (3.8%)  3.0%    4.8%    3.6%    0.4%
 LFL revenue (2 & 4)      10.1    14.8    24.9    21.4    12.2    33.6    58.5
 LFL growth %             (8.3%)  (2.1%)  (4.7%)  (0.6%)  1.5%    0.2%    (2.0%)

 

                        FY23 (52 weeks ending 2 April 2023)
 £m                     Q1       Q2       H1       Q3      Q4      H2      FY
 Revenue                11.4     15.9     27.4     22.4    12.6    35.0    62.3
 Revenue growth %       (22.6%)  (7.6%)   (14.5%)  (2.5%)  (9.7%)  (5.2%)  (9.9%)
 Yo3Y revenue growth %  35.5%    54.0%    45.6%    78.8%   64.6%   73.4%   60.0%
 LFL revenue (6)        10.0     13.6     23.6     19.7    10.8    30.5    54.1
 LFL growth %           (17.1%)  (15.6%)  (16.2%)  (3.8%)  (9.4%)  (5.9%)  (10.7%)
 Yo3Y LFL growth %      133.3%   110.4%   119.7%   108.7%  103.2%  106.7%  112.2%

 

(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

(4) The LFL revenue growth % by quarter (also shown in the FY24 Quarterly
revenue performance table above) for Q1, Q2 and Q3 has been adjusted to
exclude the closures of 3 garden centre stores and the Cookery School which
were closed during Q4 and were previously included within LFL revenue.

 

(5) Company compiled current analyst consensus Underlying PBT of £0.4m for
FY24

(6) FY23 LFL (Like For Like) revenue reflects:

-           Retail YoY - Continuing Retail stores which were trading
for at least one full financial year prior to the 3 April 2022, inclusive of
any stores which may have moved location or increased/ decreased footprint
within a given retail centre

-           Retail Yo3Y - Continuing Retail stores which were
trading for at least one full financial year prior to the 29 March 2020,
inclusive of any stores which may have moved location or increased/ decreased
footprint within a given retail centre

-           Ecommerce YoY and Yo3Y - ProCook direct website channel
only

 

 

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