ProCook reports another quarter of double-digit growth

(Sharecast News) - ProCook Group reported another quarter of double-digit growth on Wednesday, posting record first-half revenue and outperforming the wider market as its retail and online operations continued to expand. The UK kitchenware retailer said total revenue rose 25.1% year on year in the 16 weeks to 12 October, reaching £21.3m in the second quarter.

That lifted first-half sales by 20.6% to £34.1m, marking the company's eighth consecutive quarter of growth.

Like-for-like revenue climbed 12.2% in the quarter and 8.1% over the half year.

Retail sales increased 25% to £13.9m in the quarter, with like-for-like growth of 5.9% boosted by new store openings contributing a further 19.1 percentage points.

E-commerce revenue also rose 25.5% to £7.4m, driven by a 23.2% like-for-like increase and the relaunch of its Amazon UK marketplace channel, which added an extra 2.3 percentage points of growth.

ProCook said the strong performance reflected "improved commercial discipline" and progress across key strategic areas, including store expansion, marketing, and retail service standards.

Gross margins and operating costs remained in line with expectations, while net debt was broadly unchanged at £4.1m after £2.2m of capital investment in new stores.

The group reported £11.9m in available liquidity.

"The group's strong second quarter performance marks our eighth consecutive quarter of growth, delivering a record first half trading performance, with our disciplined approach to trading and strong execution of our clear strategy enabling us to significantly outperform the market and grow market share," said chief executive Lee Tappenden.

"With momentum building, a record number of customers shopping with us, and expanded ranges and number of stores, we are well positioned for the peak trading period.

"We remain firmly on track with delivering our medium term ambition of 100 UK retail stores, £100m revenue and 10% operating profit margin, and whilst mindful of the challenging economic backdrop, we are confident in delivering a strong full year performance, in line with market expectations."

The company said it opened six new stores in the first half, taking its estate to 71 sites, and planned to add four more ahead of the Black Friday and Christmas trading period.

At 0901 BST, shares in ProCook Group were up 4.98% at 36.22p.

Reporting by Josh White for Sharecast.com.