ProCook H1 gross profits increase as margins expand

Kitchenware brand ProCook said on Wednesday that gross profits had improved in the six months ended 15 October as margins expanded following the unwinding of heightened costs.

ProCook said H1 gross profits had risen 5.1% to £17.6m, while gross margins had expanded 570 basis points to 66.7%.

Underlying pre-tax losses improved 39.5% to £1.7m, while reported pre-tax losses narrowed 7.9% to £3.2m, driven by stronger gross margins and ongoing cost discipline.

Like-for-like revenues, on the other hand, declined 3.8% to £26.3m on the back of a "volatile first half in difficult trading conditions", impacted by "teething issues" following the launch of ProCook's new website. Net debt also widened from £1.3m to £3.2m.

ProCook added that in the first eight weeks of its second half, including Black Friday and the early part of Christmas trading, total revenues were 1.5% higher year-on-year, outperforming the market during the period.

Chief executive Lee Tappenden said: "Whilst the consumer macro backdrop remains challenging, we are pleased to have delivered a robust Black Friday campaign and an improvement in recent trading, as we enter the important pre-Christmas trading period.

"Whilst we remain cautious about the timing and pace of market recovery, we are confident in our proposition and are making good strategic progress in building a stronger customer-focused business ready to accelerate growth as trading conditions improve and deliver profitable and sustainable growth for all stakeholders."

As of 0835 GMT, ProCook shares were up 2.97% at 27.65p.

Reporting by Iain Gilbert at Sharecast.com