Revenues fall at cookware firm as consumer market continue to struggle

Revenues at kitchen and cookware firm Procook have fallen by almost 10 per cent as the consumer market continues to struggle.

The Gloucestershire business had revenues of £12.6m in the final quarter of the year.

As a result  the company expects to break even by the end of the financial year in line with previous guidance.

The company said the drop in revenues was a reflection of ongoing uncertainty in the consumer market and was driven primarily by a reduction in ecommerce revenue.

During the same period  revenue from retail stores was broadly flat.

Excluding revenue from discontinued Amazon channels, ecommerce revenue for the final quarter fell by 12.6 per cent.

Full year revenue of £62.3m was in the middle of the expected range, falling by just under 10 per cent year on year.

During the quarter Procook opened one new store in Kingston Upon Thames, increasing the total number of retail stores to 58 at the year end.

The company also completed the development of its new distribution centre and head office which will support future operational efficiencies,

Chief executive and founder Daniel O’Neill said: “The last year has been very difficult for consumers as real disposable incomes have fallen, which is reflected in our softer sales performance against our significant growth and market outperformance last year.

“While we expect trading conditions to remain challenging and unpredictable, we continue to grow our customer base by attracting new customers to the brand and remain confident in our value-for-money, specialist offer.

“Certain inflationary cost pressures, including wages, remain high, however we are seeing some easing in other areas, and we expect to realise the benefits of our recent actions to reduce operating costs in the current financial year and beyond.”

He added: “In our 27-year history, we have endured difficult trading conditions before and emerged stronger. We have made good strategic progress this year, investing in areas that will strengthen our foundations and improve our customer proposition.

“We therefore look forward with confidence to building the ProCook brand, equipping more customers with the tools to enjoy everyday cooking, and returning to profitable growth.”