ProCook slips to full year loss amid “tough” economic backdrop
ProCook has slipped to a full year loss after facing an economic backdrop that its founder and chief executive described as one of the toughest in his career.
In the year to 2 April, the kitchenware retailer saw its revenue decline by 9.9% to £62.3 million, which it attributed in part to its decision to exit unprofitable Amazon Marketplace channels. Sales in its core UK business were down 5% year-on-year, but up 112.2% on a like-for-like basis compared to pre-pandemic levels.
Meanwhile the company posted an underlying pre-tax loss of a £0.2 million compared to a profit of £9.5 million a year earlier.
Daniel O’Neill, chief executive and founder of ProCook, said: “I am pleased that this year we have again increased our active customer base, added three more retail stores and upsized two more, and retained our excellent-rated Trustpilot score. Our value for money offer has enabled us to retain a resilient trading performance despite the many headwinds.
“This year the economic backdrop has been one of the toughest I have experienced in my career. Our customers and colleagues have felt the squeeze on disposable incomes as inflation has soared upwards. We have faced challenging trading conditions before, and emerged stronger, more nimble, and more determined to press ahead with our mission to become the customers’ first choice for kitchenware.”
ProCook said trading conditions during the first quarter of its new financial year have remained challenging as the business continues to feel the impact of inflation and further interest rate increases. Revenue of £10.7 million was 6.7% lower year-on-year while like-for-like revenue fell by 7.9% due to warm weather and a soft homewares market during May and June.
Looking ahead, O’Neill said: “We know that our proposition continues to resonate very well with customers, and with our progress this year, we have built a better business, paving the way for improved performance and future profitable growth in the years ahead.”