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(Sharecast News) - ProCook Group posted a sharp rise in earnings on Wednesday, after it strengthened its retail offering.
The direct to consumer specialist kitchenware brand saw revenues rise 23% in the year to 29 March to 85.5m, with underlying sales up 11.8%. Earnings before interest, tax, depreciation and amortisation surged 39.6% to 12.5m.
The company - which was founded 30 years ago as a direct mail business - is currently expanding its retail footprint. It opened 13 new stores during the year, taken the estate to 78 as at the year end, and launched a new retail format.
As a result, revenues in its retail channel jumped 23.1%, with new store openings contributing 17.4% of that. E-commerce sales rose 22.9%.
Lee Tappenden, chief executive, said the brand was "clearly resonating" with customers.
He continued: "We have driven excellent profitable, cash generative growth, significantly outperforming the market by expanding our store network, extending and refreshing our product range and attracting more customers to our brand through lifestyle-led social campaigns.
"With just a 1.9% share of our highly-fragmented kitchenware market, we see many opportunities ahead and have clear plans in place to capture more share as we increase the awareness of our brand."
Looking to the current year, ProCook said that while it remained "mindful of the potential macroeconomic effects of any protracted geopolitical instability, we are confident in delivering 2027 full year market expectations".
The current year had started robustly, it noted, with total revenue up 21.5% in the first quarter, or by 11.5% on a like-for-like basis.
ProCook is targeting 100 stores, 100m revenues and a 10% operating profit margin over the medium term.
As at 0830 BST, the stock was up 3% at 39.63p.
Canaccord Genuity said: "ProCook is carrying good momentum with a strategic plan that is gaining traction. [It] trades on a 4.7x 2027 full-year EV/EBITDA, which we believe does not reflect the growth opportunities available from further store expansion and like-for like initiatives. We reiterate our 'buy' rating and 62p target price."
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