ProCook lifts full-year profit outlook

(Sharecast News) - ProCook lifted its full-year profit outlook on Tuesday following solid trading in the fourth quarter. In the 12 weeks to 29 March, total revenue rose 19.2% to £18.5m, with total like-for-like revenue up 9.9%. Retail revenue was ahead 19.4%, reflecting an eleventh consecutive quarter of LFL growth as the retailer benefitted from its focus on "service excellence", with new stores contributing a further 15.5% points of revenue growth.

Revenue from ecommerce was 18.9% higher, with LFL growth of 18.2%, driven mainly by increased traffic.

The kitchenware retailer hailed record full-year revenue of £85.5m, ahead of market expectations of £83.5m and up 23% on the year and 11.8% on a LFL basis.

ProCook said it outperformed the UK kitchenware market by 13% points in Q4, and by 20% across the full year.

It now expects FY earnings before interest, tax, depreciation and amortisation to be "slightly" ahead of market expectations of £11.7m, driven by trading performance and an acceleration in new store openings.

Operating profit is set to meet market expectations of £4.8m, it said, reflecting the dilutive impact of new stores prior to reaching maturity, and pre-opening costs. Pre-tax profit is also set to be in line with expectations of £2.3m, after the impact of significant forex volatility.

Chief executive Lee Tappenden said: "We have delivered a strong fourth quarter and full year performance, significantly outperforming the market and improving profitability, whilst accelerating investment in our new store opening programme. Strong revenue growth across both our expanding store footprint and online reflects substantial increases in new customers attracted to our brand and repeat purchases, demonstrating that our unique product proposition and service focus is really resonating with consumers.

"Whilst we are mindful of the potential macroeconomic effects of any protracted geopolitical instability, we look forward to building on our recent progress and continuing to increase market share as we drive profitable growth. Our ongoing store openings, initiatives to increase brand awareness, and disciplined investments to support growth, position us well to deliver on our medium term ambition of 100 stores, £100m revenue and 10% operating profit margin."

At 0950 BST, the shares were up 4.7% at 39.80p.

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