6th Jul 2022 10:00
(Alliance News) - ProCook Group PLC on Wednesday posted a lower full-year profit as it was hit by one-off float costs and employee share-based initial public offering awards.
ProCook, whose shares tanked last month after an earnings warning, reported an annual revenue hike but once again cautioned on kitchenware market strife.
The pots and pans seller's annual revenue climbed 30% to GBP69.2 million in its financial year to April 2 from GBP53.4 million the year before. However, pretax profit tumbled to GBP94,000 from GBP8.3 million a year earlier.
The firm proposed a final dividend of 0.9 pence per share.
"Current market conditions have changed rapidly with consumer confidence deteriorating to lows not seen for many years," explained Chief Executive Officer & Founder Daniel O'Neill.
ProCook's bottom line was hit by GBP9.4 million of one-off costs, including float costs and employee share-based IPO awards.
The Gloucester-based retailer said the UK kitchenware market fell 12% during the first quarter of the company's new financial year, citing figures from German data provider GfK. It said total ProCook revenue during the quarter was GBP11.4 million, down 22% yearly but up 36% from pre-virus levels.
"The rapid deterioration in the consumer and macro environment means that we have now had to adjust and re-prioritise our focus. We are well placed to manage these current challenges with a strong financial position, a resilient business model, a clear strategy for sustainable and profitable growth, and a customer proposition focused on exceptional service, quality and value," the company said.
ProCook expects financial year 2023 revenue to be broadly in line with last year, and underlying pretax profit around GBP4 million to GBP6 million, "reflecting ongoing investment in future growth, cost inflation and a return to a more typical seasonal second half weighting."
Underlying pretax profit for the recently ended financial year came in at GBP9.5 million.
O'Neill added: "We are energised by the longer term opportunities we see ahead of us to develop the ProCook brand and our sharpened focus on the core UK market opportunity during these difficult times, will give us the capacity to reinforce and strengthen our market position and customer proposition, leaving us better placed to capture wider growth opportunities as trading conditions improve."
ProCook shares were 1.4% higher at 41.17 pence each in London on Wednesday morning.
By Tom Budszus; [email protected]
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