ProCook Group PLC on Friday reported a significant fall in its quarterly revenue as it attempts to recover from a damaging Summer trading statement.
For the 16 weeks ended October 16, ProCook recorded a 9.1% fall in revenue to £15.9 million against a ‘strong prior year comparative results’. Compared to the most recent equivalent pre-pandemic quarter, revenue was up 54%.
In the year to date, ProCook attracted 320,000 new customers and increased its 12-month repeat purchase rate to 25.3% from 24.7% last year.
As a result, the number of active customers in the last 12 months increased to above one million, up 37% year-on-year. However, average transaction values have declined, largely driven by the sales mix shift back towards retail.
The Gloucester-based kitchenware retailer drew attention to ‘challenging market conditions’, including the prolonged hot weather, return of overseas holidays and pressures on consumer spending. However, the company was ‘encouraged by the much-improved run-rate’ it exited the second quarter.
Looking ahead to the company’s peak trading quarter, ProCook said it was ‘focused on building on our recent trading momentum whilst managing our cost base carefully to support profitability’. Although it was difficult to forecast full year results, the company expects full year underlying pretax profit to be within the previously guided range of £4 million to £6 million announced in June.
In June, ProCook posted a profit warning in a poorly-received trading statement, as the growing cost of living crisis impacted the likelihood of consumers buying the company’s premium kitchenware.
Chief Executive Officer & Founder Daniel O’Neill said: ‘Whilst the consumer and macro environment remains uncertain, we are pleased to have seen a marked improvement in recent trading, as we enter the important pre-Christmas trading period. We remain confident in our specialist offer, with quality product ranges and fantastic service underpinned by our value-for-money credentials across all price points.’
Shares in ProCook were trading 1.2% lower at 35.56 pence each in London on Friday morning.
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