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Procook Group PLC on Friday reduced its full year revenue guidance after seeing ‘weaker sales performance’ over the ‘peak trading period’.
Shares in Procook slumped 15% to 28.00 pence each in London on Friday morning.
The Gloucester-based kitchenware retailer said that as a result of the ‘challenging consumer environment’, it now expects full year revenue of between £60 and £65 million. It previously expected revenue to be in line with last year’s figure of £69.2 million.
It said profit before tax will be ‘approximately breakeven’ for the 2023 financial year. This was a result of lower year-on-year sales, higher costs and ‘additional marketing and promotional activity’.
Last year it posted a small profit of £94,000, although in October this year, it said it expected underlying pretax profit to be between £4 million and £6 million.
However, Procook said it is starting to see the benefits of lower shipping costs in new product intake. This, alongside cost reductions agreed with suppliers, will ‘support a recovery in our gross margins next financial year’.
It has also attempted to reduce operating costs by £3 million on an annualised basis through efficiency savings, a reduction in board costs, and a range of ‘identified procurement and cost reduction initiatives’.
Looking forward, the company said it remains ‘well-placed to capture increased share of the large kitchenware market and deliver long term growth and value to all stakeholders.’
By Chris Dorrell, Alliance News reporter
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