We originally highlighted ProCook’s (PROC) recovery and re-rating potential at 29p in October 2024, calling out the direct-to-consumer specialist kitchenware brand’s scope for profitable growth under a refreshed strategy.
We noted the Lee Tappenden-led company had delivered five consecutive quarters of retail like-for-like growth at the time and was hungry for market share, being back on the front foot in terms of brick and mortar store expansion.
WHAT HAS HAPPENED SINCE WE SAID TO BUY?
Despite a challenging market backdrop, the kitchenware designer and retailer is cooking up sales growth and securing market share under the stewardship of chief executive Tappenden and finance director Dan Walden.
Total sales grew 17.8% £15.5 million in a strong fourth quarter to 30 March 2025, including total like-for-like growth of 8.8%, with progress made across all product categories.
Retail like-for-likes rose 1.9%, marking a seventh consecutive quarter of positive organic growth as momentum builds, while e-commerce revenue shot up 23.4% to £5.9 million driven by increase traffic and average spend year-on-year and a successful relaunch on the Amazon UK marketplace.
WHAT SHOULD INVESTORS DO NOW?
Our buy call is 13.8% in the money and we are staying bullish given ProCook has tasty growth opportunities ahead from further store expansion and like-for-like initiatives and has also improved its presence on social media.
Admittedly, full-year pre-tax profit is expected to come in slightly below previous guidance, but this reflects investment in the additional new stores opened in the year as well as currency volatility rather than any problems with the business, while year-end net cash should come in better than expected at £1 million.
ProCook is also confident in making good progress toward its medium-term ambitions of 100 stores, up from 66 currently, £100 million in revenue and a 10% operating margin.
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