TIDMPROC
RNS Number : 6108J
ProCook Group PLC
14 December 2022
14 December 2022
ProCook Group plc
Interim results for the 28 weeks ended 16 October 2022
Challenging trading conditions, good strategic progress
ProCook Group plc ("ProCook" or "the Group"), the UK's leading
direct-to-consumer specialist kitchenware brand, today announces
its interim results for the first half of FY23 (the 28 weeks ended
16 October 2022).
GBPm H1 FY23 H1 FY22 YoY
Revenue 27.4 32.0 (14.5%)
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Gross profit 16.7 21.3 (21.8%)
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Gross margin % 61.0% 66.6%
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Underlying (loss) / profit
before tax(1) (2.8) 3.8
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Reported (Loss) / profit
before tax (3.5) 2.4
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Net (debt) / cash (1.3) 0.9
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New customers acquired ('000) 320 319 +0.2%
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Number of active customers
L12M ('000)(2) 1,001 733 +36.5%
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12 month repeat rate %(3) 25.3% 24.7% +0.6%pts
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Financial and strategic highlights
-- Revenue of GBP27.4m against strong prior year comparatives
was -14.5% YoY (FY22 H1: +34.4% YoY) but remained +119.7% higher
than FY20 pre-pandemic levels on a LFL(4) basis
-- Challenging trading conditions driven by the combined effects
of heightened pressures on consumer spending and the prolonged hot
summer weather
-- Excluding Amazon marketplaces, revenue was -8.6% YoY,
marginally below the UK kitchenware market(5) (which was -6.3% YoY)
after ProCook's considerable out-performance last year; tracking
slightly ahead of the market in the eight weeks since H1
-- Gross margin impacted by cost pressures, including shipping,
with underlying loss reflecting challenging market conditions
-- Net debt at the end of the first half was -GBP1.3m (FY22 year
end: -GBP1.8m) with available liquidity of GBP14.7m
-- ProCook proposition remains attractive to new and existing customers:
o Attracted 320,000 new customers to shop with ProCook for the
first time
o Increased our 12 month repeat purchase rate to 25.3% (FY22 H1:
24.7%)
o Active customers in the last 12 months increased to in excess
of one million (+36.5% YoY)
-- Continued strategic progress to build a stronger and more
sustainable business for all stakeholders:
o One new store and two relocations to larger sites opened in
first half
o Development of new Distribution Centre and Head Office
progressing on track to deliver future operational efficiencies
o ProCook became the first London Stock Exchange listed retailer
to achieve B Corp certification
Current trading and outlook
In the eight weeks to date of H2, including the important Black
Friday period and the early part of Christmas trading, revenue was
significantly improved on the first half. However, it has remained
weaker than we anticipated at -5.7% YoY. Total LFL revenue was
-6.4% which was +116.0% compared to the same period in FY20
pre-pandemic.
Total retail revenue in this eight week period was +0.7% YoY,
albeit Retail LFL revenue remained -6.9% lower. Ecommerce revenue
was -12.6% YoY, including a -6.6%pts impact of our exit from EU
marketplaces. UK website sales remained softer year on year at
-6.0%. However, website revenue remains up +201.0% on pre-pandemic
levels in H1 FY20. Whilst traffic and footfall remain reasonably
strong, conversion rates both in store and online continue to be
significantly down year on year and ATV remains down year on year
in Retail.
As announced in our trading update on 9 December 2022, we now
expect our full year revenue for FY23 to be between GBP60 - GBP65m.
The combination of the continued softer year on year sales
performance and heightened costs due to shipping and foreign
exchange impacts, additional marketing and promotional activity,
and investing in our operational teams to serve higher volumes,
means that we now expect that full year FY23 underlying PBT will be
approximately breakeven.
We have initiated a plan to maximise our trading performance and
profitability, and have begun taking action to reduce operating
costs by GBP3m on an annualised basis.
We are confident this plan will enable us to emerge stronger
from this difficult trading environment to become customers' first
choice for kitchenware. The Group remains well placed to capture
increased share of the large kitchenware market and deliver long
term growth and value to all stakeholders.
Daniel O'Neill, CEO & Founder, commented:
"This has been a difficult trading period, reflecting the wider
consumer environment and also a very strong comparable period in
our last financial year. However, ProCook has traded through tough
conditions in the past and we remain confident in our specialist
offer and ability to continue taking long-term decisions to build a
stronger and more sustainable business.
"Our B Corp certification reflects that focus and is a huge
achievement for the whole team at ProCook. We've also made good
progress with our store roll-out and the development of our new
Distribution Centre and Head Office, which will provide us with a
much improved and efficient base from which to take the business
forward.
"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."
Analyst Presentation
There will be a live presentation for analysts and institutional
investors this morning at 9.00am, hosted via a webinar with a
facility for Q&A. For details, please contact
procook@mhpgroup.com .
For further information please contact:
ProCook Group plc investor.relations@procook.co.uk
Daniel O'Neill, Chief Executive Officer
& Founder
Dan Walden, Chief Financial Officer
MHP (Financial PR Adviser) procook@mhpgroup.com
Katie Hunt Tel: +44 (0)7709 496 125
Catherine Chapman
Next scheduled event:
ProCook expects to release its third quarter trading update in
mid January 2023.
Notes to editors
ProCook is the UK's leading direct-to-consumer specialist
kitchenware brand. ProCook offers a direct-to-consumer proposition,
designing, developing and retailing a high-quality range of
cookware, kitchenware and tableware which provides customers with
significant value for money.
The brand sells directly through its website, www.procook.co.uk
, and via over 50 own-brand retail stores, located across the UK.
ProCook products are also available in Germany and France with
delivery options extending to Belgium, Austria, Luxembourg, the
Netherlands and Poland.
Founded over 25 years ago as a family business, selling cookware
sets by direct mail in the UK, ProCook has grown into a market
leading, multi-channel specialist kitchenware company, employing
over 600 colleagues and operating from its Head Office in
Gloucester.
ProCook has been listed on the London Stock Exchange since
November 2021 (PROC.L).
Quarterly revenue performance
FY23 (52 weeks ending 2 April 2022)
Q1 Q2 H1 Q3 Q4 H2 FY
--------- --------- --------- --- --- --- ---
Revenue GBP11.4m GBP15.9m GBP27.4m
--------- --------- --------- --- --- --- ---
Revenue growth
% (22.6%) (7.6%) (14.5%)
--------- --------- --------- --- --- --- ---
Yo3Y revenue growth
% 35.5% 54.0% 45.6%
--------- --------- --------- --- --- --- ---
LFL revenue(4) GBP10.0m GBP13.6m GBP23.6m
--------- --------- --------- --- --- --- ---
LFL growth % (17.1%) (15.6%) (16.2%)
--------- --------- --------- --- --- --- ---
Yo3Y LFL growth
% 133.3% 110.4% 119.7%
--------- --------- --------- --- --- --- ---
FY22 (52 weeks ending 3 April 2022)
Q1 Q2 H1 Q3 Q4 H2 FY
--------- --------- --------- --------- --------- --------- ---------
Revenue GBP14.6m GBP17.5m GBP32.1m GBP23.0m GBP14.0m GBP37.0m GBP69.2m
--------- --------- --------- --------- --------- --------- ---------
Revenue growth
% 84.9% 9.8% 34.6% 35.7% 11.4% 25.4% 29.5%
--------- --------- --------- --------- --------- --------- ---------
Yo2Y revenue growth
% 72.9% 69.3% 70.9% 84.0% 85.8% 84.7% 78.0%
--------- --------- --------- --------- --------- --------- ---------
LFL revenue(6) GBP11.2m GBP14.3m GBP25.5m GBP18.6m GBP10.9m GBP29.5m GBP55.0m
--------- --------- --------- --------- --------- --------- ---------
LFL growth % 96.7% 19.5% 44.4% 34.1% 7.7% 23.0% 32.1%
--------- --------- --------- --------- --------- --------- ---------
Yo2Y LFL growth
% 167.7% 131.5% 146.2% 105.7% 109.1% 107.0% 123.5%
--------- --------- --------- --------- --------- --------- ---------
Notes
(1) Underlying profit before tax is presented before
non-underlying items of GBP0.7m in FY23 in relation to IPO-related
share-based awards and pre-opening costs in respect of the Group's
new distribution centre and head office and GBP1.4m in FY22 in
relation to IPO costs
(2) Number of active customers reflects those customers on our
database who have purchased in the last 12 months
(3) 12 month repeat rate reflects the % of customers first
acquired in a previous financial year which have made at least one
subsequent purchase in the following financial year
(4) FY23 LFL (Like For Like) revenue reflects:
- Retail YoY - Continuing Retail stores which were trading for
at least one full financial year prior to the 3 April 2022,
inclusive of any stores which may have moved location or increased/
decreased footprint within a given retail centre
- Retail Yo3Y - Continuing Retail stores which were trading for
at least one full financial year prior to the 29 March 2020,
inclusive of any stores which may have moved location or increased/
decreased footprint within a given retail centre
- Ecommerce YoY and Yo3Y - ProCook direct website channel only
(5) UK Kitchenware market growth (excluding ProCook) calculated
using weekly GfK data and management estimates
(6) FY22 LFL reflects:
- Retail LFL - Continuing Retail stores which were trading for
at least one full financial year prior to 29 March 2020 inclusive
of any stores which may have moved location or increased/ decreased
footprint within a given retail centre
- Ecommerce LFL - Continuing ecommerce websites and marketplaces
that have been trading for at least one full financial year prior
to 29 March 2020, excluding the UK Marketplace which ceased trading
on 28th June 2021
CEO's Review
Introduction
The weakened macro-economic backdrop has created one of the most
challenging consumer environments in recent years and, coupled with
the unusually hot weather over the summer, has led to significantly
weaker trading conditions. Despite these near-term challenges, we
continue to take long term decisions for the business and have made
good strategic progress, whilst accelerating those initiatives that
are central in helping us manage the difficult backdrop.
I am extremely proud that ProCook became the first London Stock
Exchange listed retailer to be B Corp certified. This is the result
of huge efforts across the Group and reflects our long-held
commitment to building a responsible brand.
We are well placed to manage the current challenges with a
resilient and flexible business model, a clear strategy for
sustainable and profitable growth, and a customer proposition
focused on exceptional value, quality and service. We have
prioritised the actions and initiatives that will best support our
performance in the near term and drive our brand forward for the
longer term, making ProCook a stronger business for all of our
stakeholders.
I would like to thank all of our people who have supported our
customers so tirelessly over these recent months. I would also like
to express my sincere thanks to both Steve Sanders (COO) and
Gillian Davies (NED) who both step down from the Board today, as
previously announced. Steve remains with ProCook as COO until his
retirement in Spring 2023.
Challenging trading conditions compounded by a long hot
summer
First half revenue of GBP27.4m was down -14.5% year on year, yet
was +119.7% higher, on a like for like basis, than H1 FY20
(pre-pandemic) reflecting our significant growth over the previous
two years, or +45.6% higher on a reported basis.
Our trading performance during the first half, against strong
prior year comparative results, reflects the challenging market
conditions driven by the combined effects of heightened pressures
on consumer spending and the prolonged hot summer weather.
Additionally, it reflects the annualisation of our strategic exit
from Amazon UK in June 2021, and our withdrawal as planned from the
Amazon EU marketplaces during the first half of this year.
The UK kitchenware market has remained reasonably resilient in
the first half, declining -6.3% year on year against strong growth
last year. ProCook revenue, excluding revenue from Amazon
marketplaces, declined by -8.6% partly reflecting our strong
performance in the comparative period when our sales growth
outperformed the market by +60.8% in H1 FY22.
In the year to date, we have attracted 320,000 new customers to
shop with ProCook for the first time and we have increased our 12
month repeat purchase rate to 25.3% (FY22 H1: 24.7%). As a result,
the number of active customers in the last 12 months has now
increased to above one million (+36.5% year on year).
Whilst like for like footfall and website traffic remained
relatively resilient in the first half (-2.5% and -3.3%
respectively year on year), conversion rates and average
transaction values (ATV) have both declined, reflecting the
challenging consumer environment. In Retail, like for like
conversion dropped by -12.0% year on year whilst ATV declined by
-3.9%. ATV held up well on our website, but conversion rates
dropped by -9.1% year on year.
In the first half we have made an underlying loss before tax of
-GBP2.8m (H1 FY22: profit of +GBP3.8m) reflecting the lower year on
year revenue performance, reduced gross margins due to shipping and
foreign exchange impacts and additional promotional activity
required to help convert sales. Year on year, our cost base is
higher, however we have managed this carefully, identifying and
implementing efficiencies where possible, as we continue to invest
in areas that will support the long term growth and efficiency of
the business.
Further detail on our financial performance in the first half is
set out in the CFO's Review.
Becoming the customers' first choice for Kitchenware
Well positioned, with a large market opportunity
Despite the challenging consumer macro environment, the UK
kitchenware market has, unusually, contracted throughout the first
half of this financial year against strong growth last year. The
market as a whole has continued to shift back towards Retail (from
Ecommerce channels) since Covid-19 restrictions eased, with
Ecommerce sales mix at 24.5% (H1 FY22: 26.1%). The effects of price
increases are evident in the market with volumes down -12% in the
first half.
Our value for money credentials, accompanied by our stores in
leisure-focused retail destinations, and our strong service levels
both in-store and online, provide a level of resilience to the
current macro challenges, albeit we are not immune to the general
weakening of consumer confidence in the period.
We have made considerable progress with developing our
operational capabilities to drive revenue in the current climate
and position us well for the significant opportunity we have to
raise brand awareness and increase market share, which we estimate
was just 2.2% in the UK in 2021, as we pursue our mission to become
customers' first choice for kitchenware.
Attract, engage and retain more customers
During the first half we have made good progress with our
marketing strategy. We have attracted 320,000 new customers to shop
with our brand (similar to the same period last year) and further
improved our 12 month repeat purchase rate.
We have completed the implementation of our new customer
experience platform in the first half which we will now put to good
use to drive forward our retention marketing activities following a
period of disruption in the first half. We have begun to use
improved customer segmentation to enhance re-targeting across our
sales channels. Additionally, we have taken steps to increase the
rate of email collection in both our Retail and Website channels to
increase the size and value of our customer database.
We have launched our first digital catalogues to extend our
reach to more customers in the future, alongside trials of
programmatic brand campaigns which are underway utilising digital
content created in our own cookery school and photography studio.
We have also recently implemented automated paid media bidding
which will ensure we optimise the capture of in-market demand and
better control the higher cost per acquisition we have incurred in
H1 FY23.
During the first half, given the macro backdrop, we have focused
more on promotional marketing to appeal to customers. We have
strengthened our offers assisting the sell-through of clearance
products, and developed a new Build Your Own set saving mechanism
which further sets us apart in the kitchenware market and offers
customers even greater choice and flexibility.
Developing our proposition
I am pleased with the progress we have made in developing our
website during the first half. We have successfully completed the
re-platforming of our website to our new codebase which provides
site speed benefits, enhanced security features and faster future
development time. We will now deploy user experience improvements
far more rapidly, helping to improve conversion rates.
We have been winding down our activity on our remaining Amazon
EU marketplaces in recent months in order to focus fully on our own
website and the priority UK market.
We continue to invest in our retail portfolio, confident that
our stores provide customers with an inspirational experience and a
convenient opportunity to test, seek advice and take products home
the same day, whilst also acting as a beacon for the ProCook brand.
We have opened one new store during the first half, and one last
week, taking our current total to 57 retail stores, and we have
also relocated two successful and established stores (Mansfield and
York) to larger units within existing retail centres, building on
our track record of successfully growing sales through footprint
expansion in other locations. We currently expect to open a further
one to two new stores in the remainder of this financial year.
Our product range has continued to move forward with 11.4% of
our range refreshed in the first half and five new range launches
including our new Micarta knife sets and Malmo white tableware - an
extension of our popular existing Malmo ranges. As planned, we have
adjusted pricing where possible to reflect the higher cost of
product intake, and we continue to monitor the effect carefully.
Whilst prices in the wider market have moved up, and we have moved
broadly in line, prices have not been sufficiently increased to
fully offset the increased shipping costs incurred post Covid.
Design and development of the first phases of our new ranges of
Kitchen Electricals is progressing well, and we have identified a
key supplier to partner with as we prepare to launch this new
category to provide another reason for customers to shop with
ProCook.
Building on our foundations
In September we took possession of our new BREEAM-certified
Distribution Centre and Head Office site in Gloucester. The build
programme was delivered to plan and we are now progressing with the
internal fit out. We currently expect to have the site operational
around the end of this financial year. This will improve efficiency
and capacity in our logistics operations and provide an inspiring
working environment for our colleagues for the years ahead.
Our technology teams have delivered a series of successful
roadmap initiatives in the first half to support trading
performance, operational efficiency and improve system security and
resilience. A further pipeline of work is scheduled for the second
half of the year.
One of our proudest achievements in the first half is our B Corp
certification which was awarded in October, making ProCook the
first London Stock Exchange listed retailer to be certified. The
certification reflects our long-held commitment to building a
responsible brand with a strong purpose. Alongside our existing
sustainability goals, and the roadmap we are creating to reach Net
Zero emissions by 2030, our new membership of B Corp provides a
stringent framework by which we can continue to measure our
performance and progress.
Daniel O'Neill
Chief Executive Officer
13 December 2022
CFO's Review
The macro and consumer environment has created increasingly
challenging trading conditions resulting in weaker sales and profit
performance over the first half compared to last year. We are
highly focused on driving our financial performance and managing
our cost base whilst still investing in the areas that will support
our medium and long term growth and performance.
During the first half we have made good progress with reducing
inventory levels, which has supported stronger year on year free
cash flow. Our net debt reduced to GBP1.3m from GBP1.8m at FY22
year end, with available liquidity of GBP14.7m.
Revenue
GBPm H1 FY23 YoY % Yo3Y %
Revenue 27.4 (14.5%) 45.6%
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Ecommerce 11.4 (24.5%) 102.6%
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Retail 16.0 (5.6%) 21.2%
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LFL Revenue(1) 23.6 (16.2%) 119.7%
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LFL Ecommerce 10.7 (13.6%) 258.8%
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LFL Retail 12.9 (18.3%) 49.1%
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Total revenue of GBP27.4m in the first half was -14.5% lower
than H1 FY22, however remained +119.7% on a like for like basis
compared to H1 FY20 (pre-pandemic).
Revenue of GBP11.4m from Ecommerce channels was -24.5% year on
year. This includes a -GBP2.3m (-15.0%pt) impact of the reduction
in sales from Amazon marketplaces (following the exit of Amazon UK
in June 2021, and the withdrawal from Amazon EU during the year to
date). Additionally, this includes a further -9.5%pt impact of the
lower like for like performance on our UK website as consumers
continue to migrate back towards retail, and as a result of lower
conversion rates year on year. Our website revenue remains up
+258.8% on pre-pandemic levels in H1 FY20.
Retail revenue of GBP16.0m was -5.6% year on year. On a like for
like basis revenue was -18.3% reflecting the challenging retail
conditions and hot weather over the summer, and extremely strong
comparatives in the prior year, when like for like stores were
+95.0% on H1 FY21 and +77.7% on H1 FY20 as a result of pent-up
demand after the lifting of Covid restrictions. Revenue from like
for like stores remained +49.1% ahead of pre-pandemic performance
during the first half of this year.
During the first half we have opened one new retail store and
two relocations to larger sites within existing centres increasing
our total retail estate to 56 stores. On 9 December 2022, we opened
one additional new store at Lakeside, Thurrock taking the total
retail estate to 57 stores.
Gross profit
We delivered gross profit of GBP16.7m in H1 FY23 (H1 FY22:
GBP21.3m) with gross margins declining to 61.0% (H1 FY22: 66.6%),
primarily driven by a combination of increased shipping and
transport costs (-430bps YoY), adverse foreign exchange impacts
(-80bps YoY), and higher levels of promotions to convert sales
(-40bps YoY), partly offset by price increases (+60bps).
Prior year adjustment
At the FY22 year end, we reported the costs associated with
transporting inventory to its final selling location within gross
profit. We have adjusted for this in the first half results of that
year to aid comparability, reducing H1 FY22 gross margin by
-120bps. A corresponding credit has been made to reduce operating
costs, with the remaining cost being held in inventory at the end
of the half resulting in GBP0.2m net improvement to profits in the
first half of FY22.
Operating expenses and other income
Underlying operating expenses net of other income
Total underlying operating expenses net of other income were
GBP19.1m (H1 FY22: GBP17.8m) representing 69.7% of sales (H1 FY22:
55.6%). This growth in costs was driven by a number of key
factors:
-- Ecommerce: +GBP1.0m saving year on year driven by exit from
Amazon (+GBP0.6m), lower sales volumes and efficiencies (+GBP1.2m),
partly offset by cost per acquisition increasing from GBP16 last
year to GBP24 this year (-GBP0.8m)
-- Retail: -GBP1.9m increase year on year driven by business
rates following the end of Covid-reliefs (-GBP0.9m), inflationary
pressures (-GBP0.5m) and new stores (-GBP1.4m) partly offset by
volume and efficiency savings (+GBP0.9m)
-- Annualisation of plc costs: +GBP0.9m partly offset by lower
brand marketing spend year on year of -GBP0.5m
Non-underlying operating expenses
Non-underlying operating expenses in H1 FY23 of GBP0.7m include
employee share-based IPO awards of GBP0.6m and pre-opening costs in
relation to the new Distribution Centre and Head Office of GBP0.1m.
Expenses in relation to these IPO awards are expected to continue
through relevant vesting periods to FY25, albeit these costs reduce
over time. In H1 FY22 non-underlying operating expenses of GBP1.4m
related to IPO costs.
Operating profit / (loss)
Total underlying operating loss for the period was GBP2.4m (H1
FY22: GBP3.5m profit) with H1 FY22 boosted by the favourable
trading conditions and pent-up demand following the lifting of
Covid-19 restrictions. Ecommerce operating profitability declined
from 23.1% of revenue to 10.8% as demand and gross profit margins
reduced and cost per acquisition increased back to pre-pandemic
levels. Retail profitability reduced from 26.1% of revenue to 7.3%,
reflecting the hot summer weather impact on footfall compared to
the heightened demand last year as shops reopened, and the
increased cost base year on year.
GBPm H1 FY23 H1 FY22
Underlying operating (loss) / profit
-------- --------
Ecommerce 1.2 3.5
-------- --------
Retail 1.2 4.4
-------- --------
Central costs (4.8) (4.5)
-------- --------
Total (2.4) 3.4
-------- --------
As a % revenue
-------- --------
Ecommerce 10.8% 23.1%
-------- --------
Retail 7.3% 26.1%
-------- --------
Central costs (17.5%) (14%)
-------- --------
Total (8.7%) 10.7%
-------- --------
Total reported operating loss, after the GBP0.7m of
non-underlying costs in the first half, was -GBP3.0m (H1 FY22:
profit of GBP2.2m).
Profit / (loss) and earnings per share
The underlying loss before tax was GBP2.8m in the first half of
the year (H1 FY22: GBP3.8m profit).
During the first half there was a net cost of GBP0.4m (H1 FY22:
GBP0.2m net gain) in respect of financial items in the period.
Financial items included interest expenses on lease liabilities and
borrowings of -GBP0.4m (H1 FY22: -GBP0.3m) reflecting the rise in
interest rates year on year. Foreign exchange losses were GBP17k in
the first half compared with gains of GBP0.5m H1 FY22.
After non-underlying costs, loss before tax was GBP3.5m (H1
FY22: GBP2.4m profit). Reported loss after tax was GBP2.8m (H1
FY22: GBP1.9m profit).
The effective tax rate for the first half based on underlying
(loss) / profit before tax was 18.7% (H1 FY22: 21.8%).
Earnings per Share
Underlying basic earnings per share for the first half reduced
to -2.12 pence (H1 FY22: +3.10 pence) and underlying diluted
earnings per share reduced to -1.98 pence (H1 FY22: 2.85
pence).
Reported basic earnings per share for the first half were -2.61
pence (H1 FY22: +1.92 pence) and reported diluted earnings per
share were -2.44 pence (H1 FY22: +1.77 pence).
New distribution centre and head office
During the first half, the Group took possession of the new
distribution and head office site in Gloucester. This new site
provides additional capacity for logistics operations and central
administrative functions, and will enable efficiency improvements
to be realised in the years ahead compared to the current two
warehouse set-up. The fit out of the site is underway and we
currently expect to occupy the site around the end of this
financial year. The Group entered into a lease agreement for the
new site on 22 September 2022 which, on inception, had a right of
use asset value of GBP10.7m, lease liability of GBP10.7m and a
lease term of 15 years.
Dividends
During the first half the Group paid the final dividend in
respect of FY22 of 0.9p per share. Dividend waivers by the O'Neill
family shareholders to preserve cash within the business have
reduced the total dividend paid by GBP0.6m to GBP0.3m.
Due to the ongoing challenging consumer environment and the
uncertainty that it creates around trading performance, the Board
have concluded that no interim dividend will be paid in respect of
FY23.
Cash generation and net cash / debt
The Group had a free cash inflow of GBP0.4m in the current
period (H1 FY22: outflow of GBP1.2m) and ended the first half with
net debt of GBP1.3m (FY22 year end: GBP1.8m net debt; H1 FY22:
GBP0.9m net cash).
GBPm H1 FY23 H1 FY22
Reported profit before tax (3.5) 2.4
-------- --------
Depreciation, amortisation, impairment
and profit/loss on disposal 2.5 1.9
-------- --------
Share based payments 0.6 -
-------- --------
Finance expense 0.4 0.3
-------- --------
Unrealised FX (gains)/losses (0.2) (0.5)
-------- --------
Net working capital outflow 3.8 (0.7)
-------- --------
Tax paid - (1.5)
-------- --------
Net operating cash flow 3.8 1.9
-------- --------
Net capital expenditure (1.1) (1.9)
-------- --------
Interest (0.4) (0.3)
-------- --------
Payment of lease liabilities (1.8) (0.9)
-------- --------
Free Cash Flow 0.4 (1.2)
-------- --------
Cash and Cash equivalents 2.1 4.3
Borrowings (3.4) (3.4)
-------- --------
Net (Debt)/ Cash (1.3) 0.9
-------- --------
During the first half we have made good progress in reducing our
inventory position whilst still maintaining strong availability,
supporting an improved net working capital position and cash inflow
of GBP3.8m in the period (H1 FY22: GBP0.7m outflow). Total
inventory at the end of the first half was GBP12.8m (down from
GBP16.8m at the FY22 year end and down 7.8% year on year). The
reduction in inventory was partly offset by increases in trade and
other receivables largely relating to increased prepayments on
property rates due to the ending of the government rates relief
programme. We maintain a higher-than-normal VAT payable balance
(GBP1.9m), as a result of the Group's application to HMRC to create
a VAT Group a year ago, but we expect to make payment of this
historical balance in the second half of the financial year.
Net capital expenditure of GBP1.1m in the first half primarily
related to the one new store and two relocations which opened
during the half. Capital expenditure on the new Distribution Centre
and Head Office will largely be incurred in the second half.
We continue to manage cash flows carefully, cognisant of the
capital spend planned for the second half in respect of the new
distribution centre and head office, and the Group's lower
profitability.
Prior Year restatement
As reported for the year ended 3 April 2022, as part of the full
transition to IFRS, the Group has undertaken a comprehensive review
of its historical reporting to consider the accuracy and integrity
of the historical financial statements. As a result, a number of
prior year adjustments to the amounts previously disclosed in the
IFRS Transition within the FY22 interim results, have been
identified. The adjustments are set out in note 14 to the financial
statements and are consistent in approach to those identified at
the FY22 year end.
Banking agreements
On 20 April 2022 the Group entered into an agreement for a
committed GBP10m Revolving Credit Facility (RCF) to provide
additional cash headroom to support operational and investment
activities. This facility expires in April 2025 and has two
one-year extension options. The terms of the facility are
consistent with normal practice and include covenants in respect of
leverage (net debt to be no greater than 2.0x EBITDA) and fixed
charge cover (EBITDAR to be no less than 1.7x fixed charges). Both
covenants are calculated on a pre-IFRS 16 basis.
As part of this agreement, the Company has retained its access
to the existing GBP6.0m trade finance facility (although this is
now an uncommitted facility), which is due to expire in September
2023. The terms of the facility are consistent with normal
practice.
Additionally, the RCF agreement provides an accordion option,
subject to the lender's approval, to extend the facility by a
further GBP5m.
Capital allocation and dividend policy
The Board believes that it is important to maintain a minimum
level of unrestricted liquidity headroom. The Board determines the
level of headroom it deems appropriate on an annual basis, or more
frequently as required. Maintaining this headroom provides a level
of flexibility sufficient to fund ProCook's working capital needs
as well as setting aside an appropriate operating reserve for
unexpected events.
The Group's dividend policy targets an ordinary dividend pay-out
ratio of 20% to 30% of profit after tax during the financial year
to which the dividend relates.
The Group's full capital and dividend policy is available on our
website at www.procookgroup.co.uk .
Going concern
As at 16th October 2022, the date of the interim financial
statements, the Group had net debt of GBP1.3m and available
liquidity of GBP14.7m including a GBP6m uncommitted trade finance
facility.
As reported in the trading update on 9th December 2022, trading
in the first eight weeks of the second half of the financial year
was below the Board's expectations. However, due to the seasonal
profile of cash generation, available liquidity has increased to
GBP15.6m as at 11th December 2022.
At the time of approving these financial statements, the Board
of Directors are required to consider whether the Group has
sufficient resources to continue in operational existence for the
foreseeable future and hence support the use of the going concern
basis. In doing this, the Board has considered the forecast future
cash position and profitability of the Group under a range of
forecast scenarios taking into consideration the Group's principal
risks and uncertainties.
The Board considers that the factors which present the greatest
risk to performance over the next twelve months are:
-- Competition, market and macro-economic risks - in light of
the challenging economic and consumer market conditions
-- Financial and treasury risks - impact of increased interest
rates and volatile foreign exchange movements
The potential impacts of these factors are reflected in the
downside scenarios below.
Base Case scenario
The Base Case for the scenario modelling reflects the Board's
latest forecast outturn performance for FY23 and FY24. These
forecasts assume a partial recovery from the level of revenue
decline seen in the first half of the financial year, based on
recent run rate trading performance applied to a historical average
profile, but despite this, revenue for FY23 as a whole remains
below the previous year. A recovery in FY24 is assumed given the
new store opening programme and website improvements we plan to
deliver, bringing sales in that year to a similar level as achieved
in FY22. Prudent cost and cash management are also assumed
throughout.
Under this scenario, the Group will remain within its GBP10m
committed borrowing facilities and will meet relevant banking
covenants (leverage and fixed charge cover).
Downside scenario
The Directors consider that the principal risks to achieving the
Base Case scenario relate to the broad ranging macro conditions
affecting consumer confidence and disposable income. Therefore, a
downside scenario has been prepared which assumes an 8% sales
underperformance compared to the Base Case in the remainder of
FY23, reflecting our year to date run rate performance (including
the impacts of a very hot summer, and ignoring the recent improved
trend that we have delivered), and a 3% lower sales performance
throughout FY24 compared to the Base Case.
Under this scenario, and before mitigating actions, the Group
would remain within its GBP10m committed borrowing facilities
throughout the next 12 months and remain compliant with the
leverage covenant, however would breach the Fixed Charge covenant
(Debt Service plus Rent / EBITDAR) at the quarterly test date at
the end of the fourth quarter of FY23 only.
Severe downside scenario
This scenario reflects a further and pronounced deterioration in
trading conditions during the remainder of FY23 such that sales
performance reduces by 18% compared to the Base Case in the
remainder of the current financial year (with LFL sales declining
year on year by a further -5%pts compared to year to date
performance), and by 7% in FY24. Additionally, given the
uncertainty and volatility around foreign exchange rates, this
scenario reflects a reduction in anticipated gross profit margins
by 100bps in FY24 compared to the base case. This scenario also
incorporates a further 100bps increase in the FED rate throughout
FY24 for interest incurred on the Group's trade finance facility
and a 100bps increase in the BOE rate throughout FY24 for interest
incurred on any utilisation of the revolving credit facility.
Under this severe scenario, and before mitigating actions, the
Group would remain within its GBP10m committed borrowing facilities
throughout the next 12 months. However, it would breach the
leverage covenant at the quarterly test dates of Q4 FY23, Q1 and Q2
FY24, and would breach the Fixed Charge covenant at the quarterly
test dates of Q3 and Q4 FY23, Q1 and Q2 FY24 before recovering.
Mitigating actions
The Group has numerous mitigating actions available to improve
liquidity if this were required, including (but not limited
to):
-- Seek to renegotiate banking covenants or other terms with partners for the relevant periods
-- Reduce discretionary expenditure (not including performance marketing)
-- Reduce capital expenditure
-- Reduce paid media marketing spend to enhance ecommerce profitability
-- Reduce reward arrangements (including pay rises and bonuses)
-- Reduce costs in operational functions to reflect the lower sales volumes
-- Extend payment terms with suppliers, or delay product intake or other activities
-- Additional promotional activity to accelerate trading performance and reduce stock levels
Conclusion
Having considered the range of scenarios, including the main
risks within them and the available mitigating actions described
above, the Directors believe that there is low likelihood of the
Group failing to operate within its liquidity headroom over the
twelve months from the date of this report. Accordingly, the
financial statements have been prepared under the going concern
basis of accounting.
However, the Directors recognise that in a plausible downside or
severe downside scenario, the Group is likely to breach one or more
of its banking covenants, requiring it to negotiate covenant
waivers or other new banking terms. The Directors note the positive
and long-standing relationship the Group has with HSBC. However,
there can be no certainty that covenant waivers will be granted,
the Directors therefore acknowledge a material uncertainty
surrounding the Group's going concern status.
Principal risks and uncertainties
The Board regularly reviews and monitors the risks and
uncertainties which could have a material effect on the Group's
results. A summary of the principal risks is set out below.
During the first half of the FY23 financial year we have
experienced a significant and rapid worsening in the consumer and
wider macro-economic landscape. Inflationary pressures post-covid
(e.g. supply chain and fuel) have been compounded with the effects
of the war in Ukraine, a tight labour market and further upward
pressure across many day to day costs including energy and food,
pushing inflation rates up to the highest levels in 40 years.
Interest rates have risen accordingly, in efforts to combat
inflation. The effects of political turmoil in the UK and the
mini-budget caused significant short term uncertainty and foreign
exchange market volatility. Consumer spending and disposable
incomes have been significantly impacted, and consumer confidence
remains at record lows.
In the context of this backdrop the Board have carefully
considered the principal risks and whether there are any new
emerging risks which ProCook faces. The Board has not identified
any new or emerging risks which were not previously captured in the
Group's risk register. However, it has been determined that there
are five risks in which the inherent risk has increased since the
FY22 financial year end, four have not changed, and one has
decreased.
Risk Impact Risk vs
FY22
Competition, Failure to adapt to changing consumer needs and to Increased
market maintain a compelling customer offer compared to
and competitors could limit or reduce profitability and
macroeconomic opportunities for growth. Macroeconomic factors which
reduce consumer confidence and / or disposable incomes
or create additional cost pressures could impact
revenue growth and profit generation.
------------------------------------------------------------- ---------
Strategy Failure to design and effectively implement appropriate No change
and business strategies could slow or limit the growth of the
change business, and / or impact the overall customers proposition
- in turn impacting revenue growth and profit generation
------------------------------------------------------------- ---------
Brand and Reputational damage due to a variety of issues such No change
customer as data loss, product quality or safety, and ethical
or sustainability issues in the supply chain could
negatively impact the Group.
------------------------------------------------------------- ---------
Climate Changing customer needs and preferences, impacts No change
change on supply chain, increased compliance burden, and
changes to product and packaging requirements could
lead to lower revenues or increased costs.
------------------------------------------------------------- ---------
Supply chain Delays or higher costs in the supply chain could Decreased
impact product availability and customer satisfaction,
or increased costs. This could lead to lower revenues
and profitability or reduced repeat rates in the
future.
------------------------------------------------------------- ---------
IT platforms, Failing to develop and maintain appropriate technology No change
data loss to support operations, or the loss of key platforms
and or data due to cyber-attacks or other failures, could
cyber security lead to reputational damage and fines and a loss
of customer confidence in the Group.
------------------------------------------------------------- ---------
People and Failing to attract, retain and motivate high calibre Increased
culture employees, and to maintain our unique culture could
lead to operational challenges and failure to execute
the Group strategy.
------------------------------------------------------------- ---------
Marketing Loss of ability to attract new customers and retain Increased
effectiveness existing customers in a cost-effective way could
slow growth, and lead to loss of sales and / or profits.
------------------------------------------------------------- ---------
Finance Failure to manage financial matters such as liquidity, Increased
and foreign exchange, access to capital and effective
treasury financial planning and reporting could impact growth
and efficiency.
------------------------------------------------------------- ---------
Regulatory Adverse reputational risk and potential higher costs No change
compliance incurred due to failure to comply with legal and
regulatory requirements, accompanied by potential
fines or other penalties, relating to a broad range
of regulatory issues such as health and safety, legal
and financial compliance.
------------------------------------------------------------- ---------
Dan Walden
Chief Financial Officer
13 December 2022
Statement of Directors' responsibilities
The Directors confirm that these condensed interim financial
statements have been prepared in accordance with International
Accounting Standard 34, 'Interim Financial Reporting', as adopted
by the European Union and that the interim management report
includes a fair review of the information required by DTR 4.2.7 and
DTR 4.2.8, namely:
- An indication of important events that have occurred during
the first half of the year and their impact on the condensed set of
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year;
and
- Material related-party transactions in the first half of the
year and any material changes in the related-party transactions
described in the last annual report.
The Directors of Company are listed in the Company's annual
report for 3 April 2022. A list of current Directors is maintained
on the Company's corporate website: www.procookgroup.co.uk.
For and on behalf of the Board
Dan Walden
Chief Financial Officer
13 December 2022
Consolidated Income Statement (Unaudited)
For the 28 weeks to 16 October 2022
28 weeks ended 16 October 28 weeks ended 17 October
2022 2021
Restated(1)
------------------------------------------ ------------------------------------------
GBP'000s Note Underlying Non-underlying(2) Reported Underlying Non-underlying(2) Reported
--------------------- ------- ----------- ------------------ --------- ----------- ------------------ ---------
Revenue 1 27,382 - 27,382 32,038 - 32,038
Cost of sales (10,680) - (10,680) (10,692) - (10,692)
--------------------- ------- ----------- ------------------ --------- ----------- ------------------ ---------
Gross profit 16,702 - 16,702 21,346 - 21,346
Operating expenses (19,113) (655) (19,768) (18,104) (1,355) (19,459)
Other income 25 - 25 294 - 294
--------------------- ------- ----------- ------------------ --------- ----------- ------------------ ---------
Operating (loss) /
profit (2,386) (655) (3,041) 3,536 (1,355) 2,181
Finance expense (430) (14) (444) (269) - (269)
Other (losses)/gains (17) - (17) 514 - 514
--------------------- ------- ----------- ------------------ --------- ----------- ------------------ ---------
(Loss) / profit
before
tax (2,833) (669) (3,502) 3,781 (1,355) 2,426
Tax credit/(expense) 4 524 132 656 (683) 181 (502)
(Loss) / profit for
the period (2,309) (537) (2,846) 3,098 (1,174) 1,924
--------------------- ------- ----------- ------------------ --------- ------------------ ---------
Total comprehensive
(loss) / income (2,309) (537) (2,846) 3,098 (1,174) 1,924
--------------------- ------- ----------- ------------------ --------- ----------- ------------------ ---------
Earnings per
ordinary
share - basic 6 (2.12)p (2.61)p 3.10p 1.92p
Earnings per
ordinary
share - diluted 6 (1.98)p (2.44)p 2.85p 1.77p
--------------------- ------- ----------- ------------------ --------- ----------- ------------------ ---------
52 weeks ended 3 April
2022
------------------------------------------
GBP'000s Note Underlying Non-underlying(2) Reported
----------------------- ------- ----------- ------------------ ---------
Revenue 1 69,154 - 69,154
Cost of sales (24,111) - (24,111)
----------------------- ------- ----------- ------------------ ---------
Gross profit 45,043 - 45,043
Operating expenses (36,277) (9,400) (45,677)
Other income 407 - 407
----------------------- ------- ----------- ------------------ ---------
Operating loss 9,173 (9,400) (227)
Finance expense (623) - (623)
Other gains 944 - 944
----------------------- ------- ----------- ------------------ ---------
Profit before tax 9,494 (9,400) 94
Tax expense 4 (1,900) 1,720 (180)
Loss for the period 7,594 (7,680) (86)
----------------------- ------- ----------- ------------------ ---------
Total comprehensive
loss 7,594 (7,680) (86)
----------------------- ------- ----------- ------------------ ---------
Earnings per ordinary
share - basic 6 7.34p (0.01)p
Earnings per ordinary
share - diluted 6 6.76p (0.01)p
----------------------- ------- ----------- ------------------ ---------
(1) See note 14 for further information
(2) See note 2 for further information
Consolidated Statement of Financial Position (Unaudited)
As at 16 October 2022
As at 16 October As at 17 October As at 3 April
2022 2021 2022
GBP'000s Note Restated(1)
----------------------------- ----- ------------------ ------------------ ---------------
Assets
Non-current assets
Intangible assets 313 155 363
Property, plant, and
equipment 6,551 4,810 5,801
Right-of-use assets 7 31,846 18,225 20,985
Deferred tax asset 1,112 - 1,175
----------------------------- ----- ------------------ ------------------ ---------------
Total non-current
assets 39,822 23,190 28,324
----------------------------- ----- ------------------ ------------------ ---------------
Current assets
Inventories 8 12,761 13,845 16,759
Trade and other receivables 3,148 1,731 1,975
Current tax asset 965 577 271
Cash and cash equivalents 9 2,116 4,287 3,782
----------------------------- ----- ------------------ ------------------ ---------------
Total current assets 18,990 20,440 22,787
----------------------------- ----- ------------------ ------------------ ---------------
Total assets 58,812 43,630 51,111
----------------------------- ----- ------------------ ------------------ ---------------
Liabilities
Current liabilities
Trade and other payables 9,160 8,769 8,278
Lease liabilities 7 3,287 3,167 2,844
Provisions 141 179 173
Borrowings 10 3,390 3,419 5,540
Total current liabilities 15,978 15,534 16,835
----------------------------- ----- ------------------ ------------------ ---------------
Non-current liabilities
Trade and other payables 896 - 816
Lease liabilities 7 30,497 17,169 19,605
Provisions 530 435 444
Deferred tax liability - 63 -
Total non-current
liabilities 31,923 17,667 20,865
----------------------------- ----- ------------------ ------------------ ---------------
Total liabilities 47,901 33,201 37,700
----------------------------- ----- ------------------ ------------------ ---------------
Net assets 10,911 10,429 13,411
----------------------------- ----- ------------------ ------------------ ---------------
Equity and reserves attributable to shareholders of ProCook Group plc
Share capital 1,090 - 1,090
Share option reserve 6,454 - 5,801
Share premium 1 - 1
Retained earnings 3,366 10,429 6,519
----------------------------- ----- ------------------ ------------------ ---------------
Total equity and reserves 10,911 10,429 13,411
----------------------------- ----- ------------------ ------------------ ---------------
(1) See note 14 for further information
The interim financial statements were approved by the Board of
Directors on 13 December 2022 and were signed on its behalf by:
Dan Walden
Chief Financial Officer
13 December 2022
Consolidated Statement of cash flows (Unaudited)
For the 28 weeks to 16 October 2022
28 weeks 28 weeks 52 weeks
ended ended ended
GBP'000s 16 October 17 October 3 April 2022
2022 2021
Note Restated(1)
----------------------------------------- ----- ----------- ------------- -------------
Cash flows from operating activities
Profit before tax (3,502) 2,426 94
Adjustments for:
Depreciation of property, plant,
and equipment 521 334 860
Amortisation of Intangible assets 50 18 52
Loss on disposal of property,
plant, and equipment 38 63 135
Profit on disposal of leases (24) (104) (50)
Amortisation of right-of-use assets 7 1,916 1,599 3,056
Unrealised FX gains (150) (514) (1,098)
Share Based Payments 649 - 5,837
Finance expense 444 269 623
----------------------------------------- ----- ----------- ------------- -------------
Decrease/(Increase) in inventories 8 3,998 (3,758) (6,671)
Increase in trade and other receivables (1,173) (276) (372)
Increase in trade and other payables 1,016 3,118 3,881
Corporation tax paid 4 - (1,466) (2,041)
------------- -------------
Net cash flows from operating
activities 3,783 1,709 4,306
----------------------------------------- ----- ----------- ------------- -------------
Investing activities
Purchase of property, plant, and
equipment (1,309) (1,638) (3,165)
Purchase of intangible assets - (106) (348)
Lease start-up costs 222 (182) (248)
Net cash used in investing activities (1,087) (1,926) (3,761)
----------------------------------------- ----- ----------- ------------- -------------
Financing activities
Interest (139) (24) (156)
Interest paid on lease liabilities 7 (305) (245) (467)
Proceeds from borrowings 10 11,033 3,419 28,320
Repayment of borrowings 10 (13,322) (2,803) (25,583)
Principle movement on lease liabilities 7 (1,827) (722) (2,910)
Proceeds from the issue of shares - - 54
Dividends paid 5 (307) (1,000) (1,900)
Net cash used in financing activities (4,867) (1,375) (2,642)
----------------------------------------- ----- ----------- ------------- -------------
Net decrease in cash and cash
equivalents (2,171) (1,592) (2,097)
----------------------------------------- ----- ----------- ------------- -------------
Cash and cash equivalents at beginning
of the period 4,287 5,879 5,879
------------- -------------
Cash and cash equivalents at
end of period 9 2,116 4,287 3,782
----------------------------------------- ----- ----------- ------------- -------------
(1) See note 14 for further information
Consolidated statement of changes in equity (Unaudited)
For the 28 weeks to 16 October 2022
Share
Share Share option Retained Total
GBP'000 Note capital premium reserve earnings equity
-------------------------------------- ----- ---------- ---------- ---------- ----------- ---------
As at 5 April 2021 - - - 9,505 9,505
Total comprehensive profit
for the period - - - 1,924 1,924
Ordinary dividends paid 5 - - - (1,000) (1,000)
As at 17 October 2021 (Restated)(1) - - - 10,429 10,429
-------------------------------------- ----- ---------- ---------- ---------- ----------- ---------
Total comprehensive loss for
the period - - - (2,010) (2,010)
Bonus issue 117,300 - - (117,300) -
Capital reduction (116,300) - - 116,300 -
Share options exercised 54 1 - - 55
Issue of shares 36 - (36) - -
Employee Share Based Payment
Awards - - 5,837 - 5,837
Ordinary dividends paid 5 - - - (900) (900)
As at 3 April 2022 1,090 1 5,801 6,519 13,411
-------------------------------------- ----- ---------- ---------- ---------- ----------- ---------
Total comprehensive loss for
the period - - - (2,846) (2,846)
Employee Share Based Payment
Awards - - 653 - 653
Ordinary dividends paid 5 - - - (307) (307)
As at 16 October 2022 1,090 1 6,454 3,366 10,911
-------------------------------------- ----- ---------- ---------- ---------- ----------- ---------
(1) See note 14 for further information
Consolidated Financial Statements Accounting Policies
(Unaudited)
For the 28 weeks to 16 October 2022
General Information
The Group financial statements consolidate those of the ProCook
Group plc (the 'Company') and its subsidiaries, together referred
to as the 'Group'.
ProCook Group plc is a public limited company incorporated and
domiciled in England and Wales under the Companies Act 2006
(Registration number: 13679248). The registered office is ProCook,
Davy Way, Waterwells, Gloucester, GL2 2BY.
The principal activity of the Company together with its
subsidiary undertakings throughout the period is the sale of
kitchenware and related products in stores and via ecommerce
platforms.
The Group's financial results and cashflows are subject to
seasonal trends throughout the financial period. Typically, revenue
and profit are higher in the last 24 weeks of the financial year
due to the seasonal impact of increased trade in the run up to
Christmas.
Basis of preparation
These condensed interim financial statements for the 28 weeks
ended 16 October 2022 have been prepared in accordance with IAS 34
"Interim financial information".
The condensed interim financial statements should be read in
conjunction with the annual financial statements for the year ended
27 June 2020, which were prepared in accordance with IFRSs as
adopted by the European Union.
The presentation of the condensed financial statements requires
the Directors to make judgements, estimates and assumptions that
affect the application of policies and reported amounts of assets
and liabilities, income and expenses. The estimates and associated
assumptions are based on historical experiences and various other
factors that are believed to be reasonable under the circumstances.
Actual results may differ from these estimates.
These condensed interim financial statements do not comprise
statutory accounts within the meaning of Section 434 of the
Companies Act 2006 and are not audited. Statutory accounts for the
period ended 3 April 2022 were approved by the Board of Directors
on 4 August 2022 and delivered to the Registrar of Companies. The
report of the auditors on those accounts was unqualified, did not
contain an emphasis of matter paragraph and did not contain any
statement under Section 498 of the Companies Act 2006.
Basis of consolidation
Group companies included in these consolidated financial
statements for FY23 include ProCook Group plc and all subsidiary
undertakings, which are those entities it controls. ProCook Group
plc controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and can
affect those returns through its power to direct the activities of
the entity. Subsidiaries are fully consolidated from the date on
which control is transferred to ProCook Group plc until the date
that control ceases. The Company assesses whether it controls an
investee if facts and circumstances indicate that there are changes
in the control indicators listed above.
On 26 October 2021, ProCook Group Limited acquired the entire
shareholding of ProCook Limited via a share-for-share exchange,
with the existing owners of ProCook Limited at that time becoming
the owners of ProCook Group Limited. ProCook Group Limited was
subsequently renamed to ProCook Group plc upon listing on the
London Stock Exchange's Main market for listed securities on the 10
November 2021. The prior period ending 17 October 2021 comparatives
are those of the former ProCook Limited Group since no substantive
economic changes have occurred.
Where necessary, amounts reported by subsidiaries have been
adjusted to conform with ProCook Group plc's accounting
policies.
Transactions eliminated on consolidation
Intra-group balances, and any unrealised gains and losses or
income and expenses arising from intra-group transactions are
eliminated in preparing the financial information. Losses are
eliminated in the same way as gains, but only to the extent that
there is no evidence of impairment.
Going concern
As at 16th October 2022, the date of the interim financial
statements, the Group had net debt of GBP1.3m and available
liquidity of GBP14.7m including a GBP6m uncommitted trade finance
facility.
As reported in the trading update on 9th December 2022, trading
in the first eight weeks of the second half of the financial year
was below the Board's expectations. However, due to the seasonal
profile of cash generation, available liquidity has increased to
GBP15.6m as at 11th December 2022.
At the time of approving these financial statements, the Board
of Directors are required to consider whether the Group has
sufficient resources to continue in operational existence for the
foreseeable future and hence support the use of the going concern
basis. In doing this, the Board has considered the forecast future
cash position and profitability of the Group under a range of
forecast scenarios taking into consideration the Group's principal
risks and uncertainties.
The Board considers that the factors which present the greatest
risk to performance over the next twelve months are:
-- Competition, market and macro-economic risks - in light of
the challenging economic and consumer market conditions
-- Financial and treasury risks - impact of increased interest
rates and volatile foreign exchange movements
The potential impacts of these factors are reflected in the
downside scenarios below.
Base Case scenario
The Base Case for the scenario modelling reflects the Board's
latest forecast outturn performance for FY23 and FY24. These
forecasts assume a partial recovery from the level of revenue
decline seen in the first half of the financial year, based on
recent run rate trading performance applied to a historical average
profile, but despite this, revenue for FY23 as a whole remains
below the previous year. A recovery in FY24 is assumed, bringing
sales in that year to a similar level as achieved in FY22. Prudent
cost and cash management are also assumed throughout.
Under this scenario, the Group will remain within its GBP10m
committed borrowing facilities and will meet relevant banking
covenants (leverage and fixed charge cover).
Downside scenario
The Directors consider that the principal risks to achieving the
Base Case scenario relate to the broad ranging macro conditions
affecting consumer confidence and disposable income. Therefore, a
downside scenario has been prepared which assumes an 8% sales
underperformance compared to the Base Case in the remainder of
FY23, reflecting our year to date run rate performance (including
the impacts of a very hot summer, and ignoring the recent improved
trend that we have delivered), and a 3% lower sales performance
throughout FY24 compared to the Base Case.
Under this scenario, and before mitigating actions, the Group
would remain within its GBP10m committed borrowing facilities
throughout the next 12 months and remain compliant with the
leverage covenant, however would breach the Fixed Charge covenant
(Debt Service plus Rent / EBITDAR) at the quarterly test date at
the end of the fourth quarter of FY23 only.
Severe downside scenario
This scenario reflects a further and pronounced deterioration in
trading conditions during the remainder of FY23 such that sales
performance reduces by 18% compared to the Base Case in the
remainder of the current financial year (with LFL sales declining
year on year by a further -5%pts compared to year to date
performance), and by 7% in FY24. Additionally, given the
uncertainty and volatility around foreign exchange rates, this
scenario reflects a reduction in anticipated gross profit margins
by 100bps in FY24 compared to the base case. This scenario also
incorporates a further 100bps increase in the FED rate throughout
FY24 for interest incurred on the Group's trade finance facility
and a 100bps increase in the BOE rate throughout FY24 for interest
incurred on any utilisation of the revolving credit facility.
Under this severe scenario, and before mitigating actions, the
Group would remain within its GBP10m committed borrowing facilities
throughout the next 12 months. However, it would breach the
leverage covenant at the quarterly test dates of Q4 FY23, Q1 and Q2
FY24, and would breach the Fixed Charge covenant at the quarterly
test dates of Q3 and Q4 FY23, Q1 and Q2 FY24 before recovering.
Mitigating actions
The Group has numerous mitigating actions available to improve
liquidity if this were required, including (but not limited
to):
-- Seek to renegotiate banking covenants or other terms with partners for the relevant periods
-- Reduce discretionary expenditure (not including performance marketing)
-- Reduce capital expenditure
-- Reduce paid media marketing spend to enhance ecommerce profitability
-- Reduce reward arrangements (including pay rises and bonuses)
-- Reduce costs in operational functions to reflect the lower sales volumes
-- Extend payment terms with suppliers, or delay product intake or other activities
-- Additional promotional activity to accelerate trading performance and reduce stock levels
Conclusion
Having considered the range of scenarios, including the main
risks within them and the available mitigating actions described
above, the Directors believe that there is low likelihood of the
Group failing to operate within its liquidity headroom over the
twelve months from the date of this report. Accordingly, the
financial statements have been prepared under the going concern
basis of accounting.
However, the Directors recognise that in a plausible downside or
severe downside scenario, the Group is likely to breach one or more
of its banking covenants, requiring it to negotiate covenant
waivers or other new banking terms. The Directors note the positive
and long-standing relationship the Group has with HSBC. However,
there can be no certainty that covenant waivers will be granted,
the Directors therefore acknowledge a material uncertainty
surrounding the Group's going concern status.
Accounting Policies
The condensed interim financial statements have been prepared
under the historical cost convention, except for derivative
financial instruments and share based payments which are stated at
their fair value. The accounting policies adopted, as well as
significant judgements and key estimates applied, are consistent
with those in the annual financial statements for the year ended 3
April 2022, as described in those financial statements.
Notes to the Consolidated Financial Statements
For the 28 weeks to 16 October 2022
1. Revenue
Group revenue is not reliant on any single major customer or
group of customers. Management considers revenue to be derived from
one business stream being the retail of kitchenware and related
products and services.
Customers interact and shop with the Group across multiple
touchpoints and their journey often involves more than one channel.
The Chief Operating Decision-maker is the Board of Directors of
ProCook Group plc. The Board reviews internal management reports on
a frequent basis, and in line with internal reporting, the channel
reporting below indicates where customers complete their final
purchase transaction.
The majority of the Group's operations are carried out in the
UK, with a smaller proportion of the Group's revenue being
generated in the European Union. All revenue is from external
customers.
28 weeks ended 28 weeks ended 52 weeks ended
GBP'000 16 October 17 October
2022 2021 3 April 2022
---------------- --------------- --------------- ---------------
United Kingdom 26,638 30,623 66,124
European Union 744 1,415 3,030
----------------
Total revenue 27,382 32,038 69,154
---------------- --------------- --------------- ---------------
2. Non-underlying items
Due to the non-recurring nature of the Initial Public Offering
on the London Stock Exchange by the Group in the period ended 3
April 2022 and the development of the Group's new Distribution
Centre (DC) and Head Office in the period ending 16 October 2022,
the business has incurred costs which relate to non-recurring
events, and are material in nature, and so have been separately
disclosed on the face of the Consolidated Income Statement as
non-underlying items. These include non-recurring costs in respect
of employee share-based IPO awards of GBP579k (17 October 2021:
GBPnil) and pre-opening costs of GBP90k associated with the DC and
Head Office whilst it is an asset under construction. Expenses in
relation to the IPO awards are expected to continue through
relevant vesting periods to FY25, albeit these costs reduce over
time.
28 weeks ended 28 weeks ended 52 weeks ended
GBP'000 16 October 17 October
2022 2021 3 April 2022
------------------------------------ --------------- --------------- ---------------
New DC and Head office pre-opening 90 - -
costs
IPO associated costs - 1,355 2,742
IPO Share based awards 579 - 6,658
------------------------------------
Total 669 1,355 9,400
------------------------------------ --------------- --------------- ---------------
3. Segmental reporting
The Chief Operating Decision Maker (CODM) has been identified as
the Board of Directors and segmental reporting analysis is
presented based on the Group's internal reporting to the Board. At
16 October 2022, the Group had two operating segments, being
Ecommerce and Retail. Central costs are reported separately to the
Board but this is not considered an operating segment.
Substantially all of the assets of the Group are located in the
UK.
28 weeks ended 28 weeks ended 52 weeks ended
GBP'000 16 October 17 October
2022 2021 3 April 2022
---------------------------- --------------- --------------- ---------------
Revenue
Ecommerce 11,431 15,144 32,332
Retail 15,951 16,894 36,822
---------------------------- --------------- --------------- ---------------
Total revenue 27,382 32,038 69,154
---------------------------- --------------- --------------- ---------------
Operating profit
Ecommerce 1,238 3,557 8,056
Retail 1,167 4,461 9,635
Central costs (4,779) (4,482) (8,518)
Non-underlying costs (669) (1,355) (9,400)
---------------------------- --------------- --------------- ---------------
Operating (loss) / profit (3,041) 2,181 (227)
Finance costs (444) (269) (623)
Other (losses)/gains (17) 514 944
---------------------------- --------------- --------------- ---------------
(Loss) / profit before tax (3,502) 2,426 94
---------------------------- --------------- --------------- ---------------
4. Tax expense
The Group's effective tax rate for the 28 weeks ended 16 October
2022 was 18.7% (28 weeks ended 17 October 2021: 21.8%; year ended 3
April 2022: 20.0%).
The standard rate of UK corporate income tax was 19% for all
periods presented.
5. Dividends
28 Weeks ended 52 weeks ended
16 October
GBP'000 2022 03 April 2022
------------------------------------- ------------- ---------------- ---------------
Final dividend for the period ended - paid 1.0
4 April 2021 pence 1,000
Interim dividend for the period - paid 1.0
ended 3 April 2022 pence - 900
Final dividend for the period ended - paid 0.9
3 April 2022 pence 307 -
------------------------------------- ------------- ---------------- ---------------
The final dividend for the period ended 3 April 2022 of 0.9p per
share and the interim dividend for the period ended 3 April 2022 of
1.0p per share were declared, however waivers by certain
shareholders have reduced the total dividend amounts paid by
GBP(0.6)m to GBP0.3m for the final dividend for the period ended 3
April 2022 and by GBP(0.1)m to GBP0.9m for the interim dividend for
the period ended 3 April 2022.
The Group has not declared an interim dividend in respect of the
current half year period.
6. Earnings per share
Basic earnings per share is calculated by dividing the profit
for the period attributable to equity holders of the Parent by the
weighted average number of ordinary shares in issue.
Diluted earnings per share is calculated by dividing the profit
for the period attributable to equity holders of the Parent by the
weighted average number of ordinary shares in issue during the
period plus the weighted average number of ordinary shares that
would have been issued on the conversion of all dilutive potential
ordinary shares into ordinary shares.
28 weeks ended 28 weeks ended 52 weeks ended
16 October 17 October
2022 2021 3 April 2022
--------------------------------------- --------------- --------------- ---------------
Weighted average number of shares 108,956,624 100,000,000 103,509,034
Impact of share options 7,796,576 8,580,000 8,774,159
Number of shares for diluted earnings
per share 116,753,200 108,580,000 112,283,193
--------------------------------------- --------------- --------------- ---------------
28 weeks ended 52 weeks ended
16 October 2022 17 October 2021 3 April 2022
GBP'000 Underlying Reported Underlying Reported Underlying Reported
----------------------- ----------- ---------- ------------ ---------- ----------- ----------
(Loss)/Profit for the
period (2,309) (2,846) 3,098 1,924 7,594 (86)
----------------------- ----------- ---------- ------------ ---------- ----------- ----------
Earnings per ordinary
share - basic (2.12)p (2.61)p 3.10p 1.92p 7.34p (0.01)p
Earnings per ordinary
share - diluted (1.98)p (2.44)p 2.85p 1.77p 6.76p (0.01)p
----------------------- ----------- ---------- ------------ ---------- ----------- ----------
7. Leased assets
The Group leases a number of assets, with all lease payments
fixed over the lease term. Where there are leasehold properties
which hold a variable element to lease payments made these are not
capitalised as part of the right of use asset. All expected future
non-variable cash out flows are reflected within the measurement of
the lease liabilities at each period end.
As at 16 October As at 17 October As at 3 April
2022 2021 2022
------------------------- ----------------- ----------------- --------------
Number of active leases 75 63 71
------------------------- ----------------- ----------------- --------------
Right of use assets
Leasehold Plant and
GBP'000 Property Motor Vehicles Equipment Total
----------------------- ---------- ----------------- ----------- --------
Cost
At 4 April 2022 26,225 236 68 26,529
Additions 13,218 - - 13,218
Re-measurement(2) 30 - - 30
Disposals (1,042) - (16) (1,058)
----------------------- ---------- ----------------- ----------- --------
At 16 October 2022 38,431 236 52 38,719
----------------------- ---------- ----------------- ----------- --------
Amortisation
At 4 April 2022 5,430 87 27 5,544
Charge for the period 1,870 38 8 1,916
Disposals (571) - (16) (587)
----------------------- ---------- ----------------- ----------- --------
At 16 October 2022 6,729 125 19 6,873
----------------------- ---------- ----------------- ----------- --------
Net book value
At 4 April 2022 20,795 149 41 20,985
At 16 October 2022 31,702 111 33 31,846
----------------------- ---------- ----------------- ----------- --------
Lease liabilities
Leasehold Plant and
GBP'000 Property Motor Vehicles Equipment Total
-------------------- ---------- ----------------- ----------- --------
At 3 April 2022 22,269 141 39 22,449
Additions(1) 13,323 - - 13,323
Re-measurement(2) 30 - - 30
Interest expense 303 2 - 305
Lease payments (1,782) (38) (7) (1,827)
Disposals (496) - - (496)
---------- ----------------- ----------- --------
At 16 October 2022 33,647 105 32 33,784
-------------------- ---------- ----------------- ----------- --------
(1) Additions include our new distribution centre and head
office. The lease was entered into on the 22 September 2022 and on
inception had a right of use asset value of GBP10.7m, lease
liability of GBP10.7m and a lease term of 15 years.
(2) Remeasurements have arisen where store lease rental terms
and/ or lease expiry dates have been amended.
8. Inventories
As at 16 October As at 17 As at 3
October April
GBP'000 2022 2021 2022
-------------------------- ----------------- --------- --------
Finished goods and goods
for resale 12,761 13,845 16,759
-------------------------- ----------------- --------- --------
The cost of inventories recognised as an expense in the period
to 16 October 2022 amounted to GBP10,680k (17 October 2021:
10,692k).
9. Cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash
equivalents include cash on hand and in banks and investments in
money market instruments. Cash and cash equivalents at the end of
the financial year as shown in the statement of cash flows can be
reconciled to the related items in the statement of financial
position as follows:
As at 16 October As at 17 As at 3
October April
GBP'000 2022 2021 2022
--------------------------- ----------------- --------- --------
Cash at bank available on
demand 1,426 3,243 3,058
Cash in transit 690 1,044 724
--------------------------- -----------------
Total 2,116 4,287 3,782
--------------------------- ----------------- --------- --------
10. Borrowings
As at 16 October As at 17 As at 3
October April
GBP'000 2022 2021 2022
------------------ ----------------- --------- --------
Current
Bank loans 3,390 3,419 5,540
------------------ ----------------- --------- --------
Total borrowings 3,390 3,419 5,540
------------------ ----------------- --------- --------
Bank loans comprise solely of an uncommitted trade finance
facility and a revolving credit facility (RCF). As at 16 October
2022, the trade finance facility limit was GBP6.0m, whilst the
RCF's limit was GBP10m. The following amounts had been drawn down
and were outstanding at 16 October 2022: GBP3.4m (3 April 2022:
GBP5.5m).
11. Derivatives
The Group's local currency is pounds sterling however due to
international purchases in foreign currencies, the Group seeks to
reduce its foreign exchange risk by entering into forward contracts
and other derivatives. At 16 October 2022, the outstanding
contracts all mature within 8 months of the period end. At the
balance sheet date, Group was committed to buy $29,532,917.
All derivative contracts are measured at fair value, and are
determined using valuation techniques that utilise observable
inputs. The derivatives held on the balance sheet as at 16 October
2022 are recognised under level 2 of the fair value hierarchy . The
key inputs used in valuing the derivatives are the forward exchange
rates. There were no designated hedges in place during the current
or proceeding financial year.
The fair value of derivative financial assets, included within
Trade and other receivables, are as follows:
As at 16 October As at 3 April
GBP'000 2022 2022
------------- ----------------- --------------
Derivatives 298 148
------------- ----------------- --------------
Total 298 148
------------- ----------------- --------------
12. Financial Instruments
Credit risk
Credit risk is the risk of financial loss to the Group if a
customer or counterparty to a financial instrument fails to meet
its contractual obligations. To minimise the risk, the Group
endeavours only to deal with companies which are demonstrably
creditworthy and this, together with the aggregate financial
exposure, is continuously monitored. The maximum exposure to credit
risk is the carrying value of its financial receivables, trade and
other receivables and cash and cash equivalents as disclosed in the
notes to the financial information.
Interest rate risk
As at 16 October 2022 the Group's only current borrowings are
the trade finance facility at a floating interest rate linked to
the Bank of England base rate. This is variable on the amount drawn
down and there is no fixed settlement date, therefore the interest
rate risk exposure for the Group is minimal. The Group's policy
aims to manage the interest cost of the Group within the
constraints of its financial borrowings.
Foreign exchange risk
Foreign exchange risk arises when the Group enter transactions
in a currency other than their functional currency. The Group's
policy is, where possible, to settle liabilities denominated in a
currency other than its functional currency with cash already
denominated in that currency.
The Group will make purchases of large inventory orders from
overseas, and the Group will use additional means to cover its
exposure to the foreign exchange movement. The Group will use
various financial derivatives such as forward exchange contracts,
to mitigate any predicted movement in foreign currency to restrict
losses and to ascertain control of expected cash out flows. All the
Group's foreign exchange contracts are designated to settle the
corresponding liability.
Liquidity risk
The Group seeks to maintain sufficient cash balances. The Board
reviews cash flow forecasts on a regular basis to determine whether
the Group has sufficient cash reserves to meet future working
capital requirements and to take advantage of business
opportunities.
13. Related Parties
Transactions with Quella Bicycle Limited, a related party by
virtue of one of the Group's Directors (Daniel O'Neill) holding a
financial interest, related to the renting of warehouse space from
ProCook Limited. During the period, Quella Bicycle Limited were
charged GBP9k for the warehouse rental (3 April 2022: GBP16k). No
payments were received from Quella during the period ended 16
October 2022 (3 April 2022: GBP19k). The amount receivable at 16
October 2022 was GBP9k (3 April 2022: GBP7k).
Included in other payables at the period ended 16 October 2022
was GBP19k (3 April 2022: GBP19k) owed to a Director (Daniel
O'Neill) in respect of remaining dividends payable. The balance is
non-interest bearing. Amounts paid by ProCook Group plc to the
Director in respect of this balance were GBPNil during the period
ended 16 October 2022 (3 April 2022: GBP77k).
Transactions with Life's a Beach Limited, a related party by
virtue of one of the Group's Directors (Daniel O'Neill) being a
trustee, related to charitable donations based on ProCook revenue
in respect of relevant products and other associated transactions.
During the period, ProCook revenue resulted in GBP6k of donations
payable to Life's a Beach (3 April 2022: GBP20k). During the period
ended 16 October 2022, ProCook made payments to Life's a Beach of
GBP7k (3 April 2022: GBP62k). The amount payable at 16 October 2022
was GBP6k (3 April 2022: GBP7k).
14. Transition to IFRS and other adjustments
As reported for the year ended 3 April 2022, as part of the full
transition to IFRS, the Group has undertaken a comprehensive review
of its historical reporting to consider the accuracy and integrity
of the historical financial statements. As a result, a number of
prior year adjustments to the amounts previously disclosed in the
IFRS Transition within the FY22 interim results, have been
identified. The adjustments are set out below and are consistent in
approach to those identified at the FY22 year end.
Adjustment 1
The accuracy of the adoption of IFRS 16 has been reviewed which
identified errors in the valuation of several leases and lease
modifications. Items previously classified as Property, Plant and
Equipment have also been appropriately reclassified into the Right
of use asset. The adjustments to reflect this are:
i. PPE decreased by GBP(302)k in the period ended 17 October 2021.
ii. Right of use assets of GBP1,381k were recognised in the period ended 17 October 2021.
iii. Trade and other receivables decreased by GBP(414)k in the period ended 17 October 2021.
iv. Trade and other payables decreased by GBP(898)k in the period ended 17 October 2021.
v. Current lease liabilities increased by GBP495k in the period
ended 17 October 2021. Non-current lease liabilities increased by
GBP1,468k in the period ended 17 October 2021.
vi. Operating expenses decreased by GBP(78)k in the period ended 17 October 2021.
vii. Finance expenses increased by GBP19k in the period ended 17
October 2021.
viii. Retained earnings decreased by GBP(400)k in the period
ended 17 October 2021.
Adjustment 2
Upon adoption of IFRS 15 for the first time, the Group
considered the customer's right to return products for refunds as
this is not explicitly set out under UK GAAP. The adjustment to
previous periods for the right to return is made consistently. The
adjustments to reflect this are:
i. Inventory increased by GBP11k in the period ended 17 October 2021.
ii. Current provisions increased by GBP38k in the period ended 17 October 2021 .
iii. Reduce revenue by GBP(38k) in the period to 17 October 2021.
iv. Reduce cost of sales by GBP(11k) in the period to 17 October 2021.
v. Retained earnings reduced by GBP(27k) in the period ended 17 October 2021.
Adjustment 3
Under IAS 8 a restatement of prior periods is required to
appropriately recognise provisions for dilapidations in the prior
period where they were previously omitted. The adjustments to
reflect this are:
i. ROU asset of GBP280k was recognised in the period ended 17 October 2021.
ii. Current provisions increased by GBP19k in the period ended
17 October 2021. Non-current provisions increased by GBP435k in the
period ended 17 October 2021.
iii. Increased operating expenses by GBP39k in the period ended 17 October 2021.
iv. Increased finance expenses by GBP7k in the period ended 17 October 2021 .
v. Retained earnings reduced by GBP(174k) in the period ended 17 October 2021.
Adjustment 4
A further restatement in respect of inventory is required as the
Group did not historically include directly attributable transport
and labour costs in relation to bringing inventory into its present
location. Such labour and transport costs were also previously
recognised within operating expenses - this adjustment correctly
allocates them to cost of sales. The adjustments to reflect this
are:
i. Increase in inventories of GBP289k in the period ended 17 October 2021.
ii. Increase cost of sales by GBP370k in the period ended 17 October 2021.
iii. A corresponding decrease in operating expenses of GBP(569k)
in the period ended 17 October 2021.
iv. Retained earnings increased by GBP289k in the period ended 17 October 2021.
Adjustment 5
A reclassification was required to recognise the warranty
provision as current as opposed to non-current. The adjustments to
reflect this are:
i. Increase current provisions by GBP160k in the period ended 17 October 2021.
ii. Decrease non-current provisions by GBP(160k) in the period ended 17 October 2021.
Restated Consolidated Income Statement (Unaudited)
For the 28 weeks to 17 October 2021
28 weeks ended 17 October 2021
GBP'000 Reported Adj Adj Adj Adj Restated
1 2 3 4
----------------------- --------- ----- ----- ----- ------ ---------
Revenue 32,076 - (38) - - 32,038
Cost of sales (10,333) - 11 - (370) (10,692)
----------------------- --------- ----- ----- ----- ------ ---------
Gross profit 21,743 - (27) - (370) 21,346
Operating expenses (20,067) 78 - (39) 569 (19,459)
Other income 294 - - - - 294
----------------------- --------- ----- ----- ----- ------ ---------
Operating Profit 1,970 78 (27) (39) 199 2,181
Finance expense (243) (19) - (7) - (269)
Other gains/(losses) 514 - - - - 514
----------------------- --------- ----- ----- ----- ------ ---------
Profit before tax 2,241 59 (27) (46) 199 2,426
Tax expense (502) - - - - (502)
Profit for the period 1,739 59 (27) (46) 199 1,924
----------------------- --------- ----- ----- ---------
Total comprehensive
income 1,739 59 (27) (46) 199 1,924
----------------------- --------- ----- ----- ----- ------ ---------
Earnings per ordinary
share - basic 1.74p 1.92p
Earnings per ordinary
share - diluted 1.60p 1.77p
----------------------- --------- ----- ----- ----- ------ ---------
Restated Consolidated Statement of Financial Position
(Unaudited)
As at 17 October 2021
As at 17 October 2021
Adj Adj Adj Adj Adj
GBP'000s Reported 1 2 3 4 5 Restated
------------------------------- --------- ------ ----- ------ ----- ------ ---------
Assets
Non-current assets
Intangible assets 155 - - - - - 155
Property, plant, and
equipment 5,112 (302) - - - - 4,810
Right-of-use assets 16,564 1,381 - 280 - - 18,225
------------------------------- --------- ------ ----- ------ ----- ------ ---------
Total non-current assets 21,831 1,079 - 280 - - 23,190
------------------------------- --------- ------ ----- ------ ----- ------ ---------
Current assets
Inventories 13,545 - 11 - 289 - 13,845
Trade and other receivables 2,145 (414) - - - - 1,731
Current tax asset 577 - - - - - 577
Cash and cash equivalents 4,287 - - - - - 4,287
------------------------------- --------- ------ ----- ------ ----- ------ ---------
Total current assets 20,554 (414) 11 - 289 - 20,440
------------------------------- --------- ------ ----- ------ ----- ------ ---------
Total assets 42,385 665 11 280 289 - 43,630
------------------------------- --------- ------ ----- ------ ----- ------ ---------
Liabilities
Current liabilities
Trade and other payables 9,629 (898) 38 - - - 8,769
Lease liabilities 2,672 495 - - - - 3,167
Provisions - - - 19 - 160 179
Borrowings 3,419 - - - - - 3,419
------------------------------- --------- ------ ----- ------ ----- ------ ---------
Total current liabilities 15,720 (403) 38 19 - 160 15,534
------------------------------- --------- ------ ----- ------ ----- ------ ---------
Non-current liabilities
Lease liabilities 15,701 1,468 - - - - 17,169
Provisions 160 - - 435 - (160) 435
Deferred tax liability 63 - - - - - 63
------------------------------- --------- ------ ----- ------ ----- ------ ---------
Total non-current liabilities 15,924 1,468 - 435 - (160) 17,667
------------------------------- --------- ------ ----- ------ ----- ------ ---------
Total liabilities 31,644 1,065 38 454 - - 33,201
------------------------------- --------- ------ ----- ------ ----- ------ ---------
Net assets 10,741 (400) (27) (174) 289 - 10,429
------------------------------- --------- ------ ----- ------ ----- ------ ---------
Equity and reserves attributable to shareholders of ProCook
Group plc
Share capital - - - - - - -
Share option reserve - - - - - - -
Share premium - - - - - - -
Retained earnings 10,741 (400) (27) (174) 289 - 10,429
Total equity and reserves 10,741 (400) (26) (174) 289 - 10,429
------------------------------- --------- ----- ------ ----- ---------
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END
IR BKNBPKBDBNBD
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December 14, 2022 02:00 ET (07:00 GMT)
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