Procook: Kitchenware brand serves up ‘pleasing’ results

Kitchenware brand Procook offered a “pleasing” set of quarterly results, analysts said, as the group delivered a fifth consecutive quarter of retail growth.

Procook’s revenue jumped to £17m in the quarter, an 8.8 per cent increase from the previous year, thanks largely to a 12 per cent increase in Ecommerce sales.

However, the larger retail section of the business wasn’t much slower, growing by 7.1 per cent from last year to £11.1m.

When like-for-like calculations are applied, Ecommerce came out on top, with 10.7 per cent LFL revenue growth compared to just 1.6 per cent LFL growth in retail.

“New stores are really starting well now (better staff training, local marketing), plus they are in much higher-footfall locations,which should help brand awareness,” said Peel Hunt analysts Jonathan Pritchard, John Stevenson and Ruben Pathmanathan.

The firm, which floated in November 2021, is down by 84 per cent since IPO. However, it is up almost 22 per cent over the last year, with the crash in its stock price occurring in the spring of 2022.

Net debt at the end of the first half was £4.2m, up by £1m, reflecting what the firm said was an increased inventory position, with available liquidity of £11.8m.

“Management is confident that its Black Friday ranges and marketing will be effective,but it is too soon to raise forecasts,” the Peel Hunt analysts said, but reiterated their ‘Buy’ rating and target price of 50 pence, almost double the current share price.

“We have continued to build on recent momentum and outperform the market, with strong trading in the second quarter, as we made significant progress in delivering our clear plan to accelerate profitable growth,” said Procook chief executive Lee Tappenden.

“We are pleased to be expanding our store network with ten new stores in prominent retail destination centres. Our growing range of high quality products at unbeatable value, combined with our outstanding customer service, resonates very well with customers and these new stores will bring our offer to more customers in the UK, enabling improved brand awareness and an increased share of the fragmented Kitchenware market.

“The group’s trading momentum, encouraging performances from our new stores and strong product availability, positions us well for the important peak trading period. We look forward to continuing to build a stronger customer-focused business and deliver sustainable and profitable growth for all our stakeholders in the current financial year and beyond.”