ProCook (PROC) 37p 

Gain to date: 22%

Kitchenware outfit ProCook (PROC) has continued to outperform its wider market since we said in October 2024 the company was a compelling recovery play.

WHAT HAS HAPPENEND SINCE WE LAST SAID BUY?

The shares have gained more than 20% benefiting from sales generated by its relaunch on Amazon [AMZN:NASDAQ] and a decent showing across Christmas and Black Friday.  

The company said on 8 January that third-quarter retail revenue increased by 12.4%, the sixth quarterly advance in a row. In addition, third-quarter e-commerce revenue increased by 9.2%, driven by increased traffic and conversion year-on-year.

The Gloucester-headquartered group is not hesitating when it comes to opening physical retail outlets either. A further five new stores opened in the third quarter and a further three are set to open in the current quarter, bringing total openings in the 2025 financial year to 12.

WHAT SHOULD INVESTORS DO NOW?

We remain upbeat about ProCook’s continued momentum and market share gains. After it managed to ride out a soft October/November impacted by Budget uncertainty.

The company is doing well, and we think investors should sit tight after a tough few years post its 2021 IPO (initial public offering). The current valuation doesn’t reflect the growth opportunities from further store expansion and other growth initiatives.

ProCook is on track to launch phase four of its new electricals range focusing on coffee in the fourth quarter.

Canaccord’s Mark Photiades says: ‘The outlook [for ProCook] is improving and the business is carrying good momentum with a new strategic plan that is gaining traction and targets 100 UK retail stores, up from 64 at the end of third quarter 2025 and aims to deliver £100 million of revenue and a 10% operating profit margin over the medium term.’

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