Bosses at kitchenware brand ProCook have revised down profit forecasts after a “weaker” than anticipated sales in the run-up to Christmas and rising operating costs.
The Gloucestershire firm, which listed on the London Stock Exchange last year, had previously said it had seen renewed trading momentum after a “challenging” summer, amid a squeeze on consumer spending due to the cost-of-living crisis.
In October, the board said it was still expecting full-year underlying profit before tax to be between £4m and £6m - which would have reflected a drop from £9.5m accumulated last year.
In the company's latest trading update, directors at the family-run retailer - which sells its products through its website and a portfolio of more than 50 UK stores - downgraded this, saying they now expect to “approximately break even”.
ProCook added that full-year revenue for the 2023 financial year would be between £60m and £65m, which would be lower than the £69.2m reported for 2022.
The firm said it had seen “softer consumer demand driven by the challenging consumer environment” during its peak trading period. It added that “heightened” shipping and foreign exchange costs, as well as additional investment in marketing and staffing had impacted its margins.
ProCook said it had begun an action plan to reduce operating costs by £3m a year, including a reduction in board costs, efficiency savings to bring down logistics costs, and “a range of identified procurement and cost reduction initiatives”.
The board said it was "confident" the measures would help the company “emerge stronger from this difficult trading environment”.
Read next:
- Gloucestershire hotel manager to chair national industry group
- Gloucester Rugby chief executive highlights 'opportunities' after Premiership Rugby turmoil
- FTSE-100 business Spirax-Sarco completes acquisition of Durex Industries for $342m
- Dale Vince shelves Ecotricity sale due to energy ‘turbulence’
Like this story? Why not sign up to get the latest South West business news straight to your inbox.
