Procook Share Discussion Threads

[topvest] 10/6/2022 18:36

I think Central Bankers were at least 6m late on tightening. It was plainly obvious nearly a year ago that the economy was overheating. Procook floated off the back of it. Up until then, the bankers had handled the crisis pretty well, but I think they just overdid things. Somewhere they then forgot the Central Banker golden rule of being proactive and not reactive. They are now scrambling to catch-up. Trouble is there is now a very high risk of a major policy mistake. They have put themselves into a horrible position. The politicians will go into overdrive blaming the Central Bankers. The blame game has probably already started.

Anyway, back to Procook. I will research the annual report when it gets released as it may be an interesting opportunity in 2023. I much prefer the UPGS business model over this though.

[debsdowner] 10/6/2022 16:53

Dr Bio, furlough and working from home and 900 billion pumped in the economy allowed many to go on a spending spree with all those savings and some of this was predictable. The company should have known this they had been here before in the last fincial crisis in 2007/8.

[debsdowner] 10/6/2022 16:46

topvest, tomboy, I couldn't agree more and with interest rates on the rise we are heading for a crash. Mitchigen consumer expectations came in at 46.8 v 54.5.

Even large footsie companies are seeing discretionnary spend down and an AIM company trying to expand by opening shops is a dissaster in the making imo.

[dr biotech] 10/6/2022 16:09

A big part of the problem is that no one foresaw the Covid hit and Ukraine invasion - which is fair enough. That the government has hugely overspent and are all in debt is obvious and the only way out is a period of sustained inflation. Effectively interest rates are now at -9% so every way the holder of debt are poorer whilst the debtors will get their debts under control (with some pain admittedly).

To look at QE as being the major direct cause I think is a bit misleading. Sure its a factor, but if you look at the classic cases of hyperinflation (ie Weimar/Zim) then inflation should rapidly follow money printing and given the long period since the financial crisis this hasn't proved to be the case. Perhaps they should have quit sooner. Having the bank of England (owned by HMG) hold a large proportion of govt debt is an interesting situation. I don't think we'll ever buy it back through quantitative tightening..

[babbler] 10/6/2022 15:43

unexpected by who? Anyone could see that coming.

[tomboyb] 10/6/2022 14:45

US inflation figures just out -

Unexpected 40 year high!

Avoid all retail -

[topvest] 10/6/2022 14:42

debsdowner - commentators are well behind the curve in my view. Growth is, in my view, obviously negative right now - we will most likely be in recession by the end of Q3, with Q2 likely to be negative.
There may be nominal growth, but real growth must be negative as the first quarter of negative growth.
Remember inflation is c10%, so you need 11% growth to hit 1% GDP growth. No chance!
All this talk of a possible recession next year, appears very optimistic thinking. It will be here well before that in my view.

[topvest] 10/6/2022 14:30

Like many IPOs it was offered after a very strong performance. There was no way it was going to level or beat those numbers in the current environment. It's a good company, but no rush to buy at this stage. On the watchlist.

[debsdowner] 10/6/2022 10:53

Daniel O'Neill, CEO & Founder, commented:

"There are clear and numerous pressures on consumers at present which are impacting discretionary spend across retail as a whole and kitchenware is no exception. Whilst we are still seeing lots of new customers discovering the ProCook brand and buying our products, it is clear that many are tightening their belts. This creates a difficult short-term trading environment, but does not distract us from our strategic priorities, as we work towards our mission of becoming the first choice for kitchenware."

You can buy pots and pans in most UK supermarkets and when consumers tighten their belts this is the last thing they will be buying. There was a lot of pent up demand after lockdown and furthermore WFM built up cash and that cash will be gradually dissapated with higher mortgages, higher energy costs and higher food costs.

Opening up new outlets in this envireoment could end in a dissaster with disscretionary spend collapsing, 1 in 6 people go to food banks and UK growth is set to stall next year to zero growth so worse is to come.

Profit warnings come in threes one after another like London red busses !

Market cap to high for a company which is warning of PBT of between 4-6 Million.

[albert arthur] 10/6/2022 10:34

That update was a perfect example of how to shave a queens head off your IPO price...

[babbler] 10/6/2022 10:13

120k buy delayed.

[debsdowner] 10/6/2022 09:46

Sorry guys but looked at this as top faller and just done a brief research on the company, discretionary spend is down and it will get worse not better.

I noticed this was bought out of administration after the 2008 financial crisis well the UK is facing another financial crisis and I would avoid it looks a basket case to me.

[tomboyb] 10/6/2022 09:35

Anything retail is an avoid in these markets -

Gonna be a difficult one for these companies -

[babbler] 10/6/2022 09:17

they've said they will still match 22 revenue. Just won't be growing it. Overdone fall and the buys seem to agree.

[74tom] 10/6/2022 08:40

Still can’t believe this was tipped as a buy in the Sunday Times as recently as Feb when the share price was 152p. Utterly clueless doesn’t come close.

Now expecting an adjusted PBT of £4-6m in FY23 (unsure what they’ll be adjusting for). Current market cap is £50m which still looks optimistic given the current consumer outlook. Avoid.

[toffeeman] 01/6/2022 09:09

I bought the IPO and sold for a massive £60 profit - Have also purchased some of their products and they are really not good - so I doubt I will reinvest.

[dr biotech] 31/5/2022 20:37

Unlucky. I’ve had a few with similar sized falls, and worse. Always a shame to back a company and see struggle a bit.

[bloodhair] 31/5/2022 18:11

Yes unfortunately......

[dr biotech] 31/5/2022 15:55

This has really been crushed along with most other UK consumer retail. Lots of good companies going down with the bad, not sure how well this will do in tougher times. Anyone still in?

[km18] 21/4/2022 15:02

ProCook Group plc the UK's leading direct-to-consumer specialist kitchenware brand, today reported on Q4 trading results for the 12 weeks ended 3 April 2022 and the full year (unaudited). Revenue growth was +29.5% to £69.2m which reflected a +77.5% two-year increase on FY20. The company attracted 723,000 new customers and also increased the rate of repeat purchase within 12 months from 18.6% to 25.5% year on year. Full year gross margin was -140%bps lower than FY21, in line with expectations, predominantly due to the impact of increased marine freight costs incurred in the year. Underlying product margins remained strong and management anticipate full year adjusted PBT will be broadly in line with market expectations, currently for adjusted PBT of £10.0m in FY22. The share was newly listed in November, share price is down around 20% since IPO. Valuation is not particularly helpful, forward PE ratio at 13.6x and PS ratio at around 2.2x are both bottom third for the Household Goods sector. The business has growth and it is very profitable, but there is no rush to buy....

...from WealthOracleAM

[toffeeman] 07/2/2022 08:18

It takes a brave retailer to remove its goods from Amazon. But that’s what ProCook did last year.

It decided that selling its own-branded pots, knives and other cookware via the tech giant diluted its margins, and reckoned shoppers could be tempted onto its own website and shops.

Indeed, ProCook was so sure of itself that it listed on the London Stock Exchange in November. Reports had suggested a valuation north of £250 million, but ProCook was priced at the lower end of its range at 145p, valuing the group at £158 million. The shares closed last week at 152p, or £166.7 million.


ProCook began life as a mail-order business in 1996. It sells online and from 50 shops including flagships in the Westfield London and Stratford malls.

It has been a rocky ride for founder Daniel O’Neill, a former software developer who started the firm from his Gloucestershire cottage.



He opened his first store in 2000 but was forced to buy back the business from administrators after his bank withdrew facilities during the 2008 financial crisis. He then expanded the chain and website.

The company was one of a string of consumer brands to make the most of a lockdown-inspired surge in trading to go public — with others including Music Magpie, Made.com and Revolution Beauty. During the pandemic, ProCook benefited from the boom in home cooking, which sent sales up 37 per cent in the year to April 2021 to £53.4 million.


Its aim is to capture consumers who may look for cheaper alternatives to John Lewis or Le Creuset. According to reviews, its cookware can be a third of the price of Le Creuset — although the lower end of the market is also served by supermarkets and discounters.

A key test now is how sales respond as workers return to offices and restaurants. Rising energy bills and food prices will also take a bite out of discretionary spending, encouraging consumers to trade down.

[toffeeman] 07/2/2022 08:14

Sunday Times