Kitchenware brand ProCook has slipped to a loss as inflationary pressures squeezed consumer spend.
The Gloucestershire firm reported an underlying pre-tax loss of £0.2m for the year to April - plummeting from a £9.5m profit recorded in the previous 12 months. Revenue was also down 10% year-on-year to £62.3m from £69.2m in 2022.
Bosses at the London-listed retailer, which sells its products through its website and a portfolio of more than 50 UK stores, said the slide reflected lower sales, inflated operating costs and investment in new facilities to drive growth, including a new distribution centre and headquarters in Gloucester.
Chief executive and founder Daniel O'Neill said: “This year the economic backdrop has been one of the toughest I have experienced in my career. Our customers and colleagues have felt the squeeze on disposable incomes as inflation has soared upwards. We have faced challenging trading conditions before, and emerged stronger, more nimble, and more determined to press ahead with our mission to become the customers' first choice for kitchenware.
"I am pleased with the strong strategic progress we have made this year, despite the challenging economic backdrop. In opening our new distribution centre, simplifying our operations to focus on the UK, improving our in-store and online experience, and becoming a B Corp, while also extending and improving our product ranges, we have made significant steps forward.”
ProCook said inflation and further interest rate increases had continued to impact trading conditions in its current financial year. During the first quarter to June revenue was £10.7m was 6.7% lower year on year, with the company saying the warm weather during the period had played a part.
The board said: “The outlook remains challenging and much is uncertain. While there are indications that inflationary pressures will ease over the months ahead, UK consumers have suffered a significant adverse impact on disposable incomes and discretionary spending power.”
The company told investors that despite the challenges it faced it had “broadly held” its share of the kitchenware market and there were “clear opportunities ahead” to attract more customers and for “future profitable growth”.
Directors had previously downgraded full-year profit forecasts from between £4m and £6m to “approximately break even”, amid “weaker” than anticipated sales in the run-up to Christmas.
ProCook reported an ongoing market led shift back towards retail shopping. The company said its retail stores were "outperforming" its online channels, with 0.2% growth in retail like-for-like revenue in the first quarter this year, and total retail revenue growth of 7.3%. Revenue from its website meanwhile was down by almost a fifth year-on-year, which ProCook said was partly impacted by a higher level of promotional activity last year.
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