9th Dec 2022 10:34
(Alliance News) - Procook Group PLC on Friday reduced its full year revenue guidance after seeing "weaker sales performance" over the "peak trading period".
Shares in Procook slumped 15% to 28.00 pence each in London on Friday morning.
The Gloucester-based kitchenware retailer said that as a result of the "challenging consumer environment", it now expects full year revenue of between GBP60 and GBP65 million. It previously expected revenue to be in line with last year's figure of GBP69.2 million.
It said profit before tax will be "approximately breakeven" for the 2023 financial year. This was a result of lower year-on-year sales, higher costs and "additional marketing and promotional activity".
Last year it posted a small profit of GBP94,000, although in October this year, it said it expected underlying pretax profit to be between GBP4 million and GBP6 million.
However, Procook said it is starting to see the benefits of lower shipping costs in new product intake. This, alongside cost reductions agreed with suppliers, will "support a recovery in our gross margins next financial year".
It has also attempted to reduce operating costs by GBP3 million on an annualised basis through efficiency savings, a reduction in board costs, and a range of "identified procurement and cost reduction initiatives".
Looking forward, the company said it remains "well-placed to capture increased share of the large kitchenware market and deliver long term growth and value to all stakeholders."
By Chris Dorrell, Alliance News reporter
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