9th Apr 2024 11:04
(Alliance News) - ProCook Group PLC on Tuesday predicted an annual profit beat, giving its shares a boost and signalling brighter days may be ahead for the pots and pans seller which has endured a difficult few years since floating.
ProCook was one of the 'Covid winners'. Stay at home measures meant the consumer could pump more into kitchenware. Life after the pandemic was less lucrative for ProCook, however.
The company on Tuesday predicted annual profit to be "marginally" ahead of market expectations, shaking off "subdued" economic conditions.
The Gloucester-based kitchenware company reported revenue of GBP13.2 million for the fourth quarter for the year ended March 31, a rise of 4.8% on-year. It would mean full year revenue of GBP62.6 million, an increase of 0.4% from the previous year.
Like-for-like revenue increased by 1.5% in ProCook's fourth quarter.
Total retail revenue grew by 8.9% on-year in the final quarter, though e-commerce revenue fell 1.8%. On a like-for-like basis, retail revenue rose 4.3% in the fourth-quarter, though e-commerce slipped 2.5%.
ProCook said its fourth-quarter sales were in line with board expectations. It also noted "strong margin and cost discipline". It means it expects full-year underlying pretax profit to be between GBP500,000 and GBP1.0 million, which would top the current company-compiled consensus of GBP400,000. It would represent a swing from a GBP200,000 loss in financial 2023.
Chief Executive Officer Lee Tappenden said: "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."
Peel Hunt analysts noted it is the fourth successive quarter that ProCook has improved its like-for-like performance.
"The company continued to win market share, with online sales contributing to this growth as the customer proposition improved. Pricing has also tightened, to positive effect," Peel said.
"We hold our outer years forecasts at this stage. Markets are very tough for discretionary items, so to be in positive LFL territory is a good effort. The changes in approach are resonating with customers, and whilst the consumer is not out of the woods yet, ProCook enters any bounce back in good shape. The shares are cheap, in our view."
ProCook floated in November 2021 at 145 pence per share.
Shares traded at 26.78p on Tuesday morning in London, up 7.5% on the day, but down over 80% since its IPO.
By Eric Cunha, Alliance News news editor
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