Procook’s latest quarterly results highlight continued growth, marking its fifth consecutive quarter of increased revenue.
- The company’s revenue rose to £17 million, an 8.8% increase compared to the same period last year.
- Significant growth was noted in its Ecommerce sector, which experienced a 12% rise in sales.
- The retail segment also showed robust performance, increasing its revenue by 7.1%.
- Despite a stock price drop since its IPO, the company is showing signs of recovery.
Procook, a Gloucester-based kitchenware retailer, continues its upward trajectory by reporting a fifth consecutive quarter of revenue growth. The company’s revenue climbed to £17 million for the quarter ending March 27, reflecting an 8.8% increase from the previous year. This growth is largely attributed to a substantial 12% surge in Ecommerce sales, as reported by financial analysts.
Despite the significant gains in Ecommerce, Procook’s retail division also demonstrated strong performance, achieving a 7.1% increase to reach £11.1 million. When considering like-for-like metrics, Ecommerce led with a 10.7% growth, while the retail segment posted a modest 1.6% growth. Analysts from Peel Hunt credit this success to improved staff training, strategic local marketing, and selecting higher-traffic locations for new store openings.
While the company has faced challenges, such as an 84% drop in stock price since its IPO in November 2021 due to a market crash in spring 2022, recent figures indicate a recovery of nearly 22% over the past year. The firm reported a net debt of £4.2 million by the end of the first half, an increase of £1 million, citing an augmented inventory position, and available liquidity of £11.8 million.
Procook’s management, as noted by Chief Executive Lee Tappenden, remains confidently forward-looking, with a strong trading momentum observed in the second quarter. The company plans to open ten additional stores, which is expected to enhance brand awareness and capture a larger share of the fragmented kitchenware market. Peel Hunt analysts have maintained their ‘Buy’ rating on Procook shares, with a target price set at 50 pence, reflecting optimism in the company’s strategic approach.
Tappenden affirms Procook’s commitment to delivering on their growth strategy, emphasising the expanding range of high-quality products and exceptional customer service that resonates well with consumers. He is optimistic about maintaining the current trading momentum, especially through the peak trading periods, and aims for sustainable growth throughout the financial year and beyond.
Procook’s strategic initiatives and consistent growth reinforce its position in the kitchenware industry, showcasing resilience and adaptability.
