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ProCook cautious about full-year outlook as revenue declines

20th Oct 2023 08:50

(Alliance News) - ProCook Group PLC shares fell sharply on Friday as the company remains "cautious" about its full-year outlook, despite feeling "well prepared" for the pivotal Christmas period.

ProCook shares fell 16% to 18.12 pence each on Friday morning in London.

The Gloucester-based kitchenware retailer said revenue in the second quarter ended October 15 fell 1.8% year-on-year to GBP15.7 million. Revenue however was 0.8% higher on a "continuing business basis", excluding Amazon EU where it discontinued sales last year.

The company said its exit from Amazon in the EU resulted in a modest UK market share gain.

Its last financial year ended on April 2.

ProCook said: "The second quarter results reflect a strong Summer Sale performance during July and August, aided by considerably more favourable weather year on year. Trading in September and into early October has been markedly softer, with lower footfall and traffic, and customers increasingly seeking out greater value and promotional offers."

ProCook, which generates around 60% of its full-year sales in the second half of its financial year, said it is "well prepared for this peak trading period".

It added: "However, the board remains cautious with regards to the FY24 outlook given the highly challenging market conditions which persist, and the current trading volatility and sales trends over recent weeks, with customers seeking more value and taking more time to research before committing to purchase.

Looking ahead, the company noted "strong progress" as it focuses on providing greater value to customers.

"Whilst forecasting the specific timing and pace of the market recovery is challenging, the board is confident it will recover given the attractive market dynamics. When it does recover, the board believes ProCook is well positioned to deliver improved financial performance and further market share gains given the strength of the brand and operating model."

By Tom Budszus, Alliance News reporter

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