Kitchenware retailer ProCook swings to first-half loss

14th Dec 2022 09:14

(Sharecast News) - Kitchenware retailer ProCook said on Wednesday that it swung to a first-half loss as revenues fell amid challenging trading conditions.

In the 28 weeks to 16 October, the company swung to an underlying pre-tax loss of £2.8m from a profit of £3.8m in the same period a year earlier, and to a reported pre-tax loss of £3.5m from a profit of £2.4m.

Revenues declined 14.5% to £27.4m, with ProCook pointing to strong prior year comparatives and challenging trading conditions, driven by heightened pressures on consumer spending and the prolonged hot summer weather.

As far as current trading is concerned, the company said that in the eight weeks to date, including Black Friday and the early part of Christmas trading, revenue was significantly improved on the first half. However, it has remained weaker than expected, down 5.7% year-on-year.

Last Friday, shares in ProCook tumbled after it cut its full-year guidance following weaker-than-expected trading in recent weeks. It said at the time that it now expects FY23 revenue of between £60m and £65m and for underlying pre-tax profit to be around breakeven, down from previous guidance of £4m to £6m.

Chief executive officer and founder Daniel O'Neill said in Wednesday's update: "This has been a difficult trading period, reflecting the wider consumer environment and also a very strong comparable period in our last financial year.

"However, ProCook has traded through tough conditions in the past and we remain confident in our specialist offer and ability to continue taking long-term decisions to build a stronger and more sustainable business.

"We are taking cost actions to manage the current pressures and the business remains well placed to capture increased share of the large kitchenware market and deliver long term growth and value to all stakeholders."