ProCook Group PLC (LSE:PROC) swung to an interim loss as heightened pressures on consumer spending and the prolonged hot summer weather made trading conditions challenging for the specialist kitchenware retailer.
The results were also affected by the annualisation of the company’s strategic exit from Amazon UK in June 2021, and its withdrawal as planned from the Amazon EU marketplaces during the first half of this year.
It posted an underlying loss of £2.8mln in the 28 weeks to October 16, versus a pretax profit of £3.8mln in the year-earlier period, as year-on-year revenue dropped almost 15% and gross margins were reduced due to shipping and foreign exchange impacts.
On Friday, the cookware brand warned that it now expects pretax profit for the 2023 financial year to be around breakeven, down from its previous guidance of a £4mln-£6mln profit.
In the eight weeks to October 16, including Black Friday and the early part of Christmas trading, revenue was significantly improved on the first half, it said, although it remained weaker than it anticipated at -5.7% year-on-year.
"This has been a difficult trading period, reflecting the wider consumer environment and also a very strong comparable period in our last financial year,” said chief executive and founder Daniel O'Neill.
"We are taking cost actions to manage the current pressures and the business remains well placed to capture increased share of the large kitchenware market and deliver long term growth and value to all stakeholders."
Net debt at the end of the first half was £1.3mln and available liquidity £14.7mln.
Available liquidity increased to £15.6mln as at December 11, but the directors said they believe there is a “low likelihood” of the group failing to operate within its liquidity headroom over the next 12 months so the results were prepared on a going concern basis.