ProCook H1 gross profits increase as margins expand
ProCook Group
33.80p
15:29 20/12/24
Kitchenware brand ProCook said on Wednesday that gross profits had improved in the six months ended 15 October as margins expanded following the unwinding of heightened costs.
Household Goods & Home Construction
10,969.32
17:14 20/12/24
ProCook said H1 gross profits had risen 5.1% to £17.6m, while gross margins had expanded 570 basis points to 66.7%.
Underlying pre-tax losses improved 39.5% to £1.7m, while reported pre-tax losses narrowed 7.9% to £3.2m, driven by stronger gross margins and ongoing cost discipline.
Like-for-like revenues, on the other hand, declined 3.8% to £26.3m on the back of a "volatile first half in difficult trading conditions", impacted by "teething issues" following the launch of ProCook's new website. Net debt also widened from £1.3m to £3.2m.
ProCook added that in the first eight weeks of its second half, including Black Friday and the early part of Christmas trading, total revenues were 1.5% higher year-on-year, outperforming the market during the period.
Chief executive Lee Tappenden said: "Whilst the consumer macro backdrop remains challenging, we are pleased to have delivered a robust Black Friday campaign and an improvement in recent trading, as we enter the important pre-Christmas trading period.
"Whilst we remain cautious about the timing and pace of market recovery, we are confident in our proposition and are making good strategic progress in building a stronger customer-focused business ready to accelerate growth as trading conditions improve and deliver profitable and sustainable growth for all stakeholders."
As of 0835 GMT, ProCook shares were up 2.97% at 27.65p.
Reporting by Iain Gilbert at Sharecast.com