Kitchenware retailer Procook says it is “confident” in delivering growth after reporting an underlying operating loss of £1.8m for the first half of the year - up from £1.5m a year earlier.
The Gloucestershire-based firm said it had “outperformed” the market over the 28 weeks ended October 13. Revenue over the period increased 7.5% to £28.3m, with underlying revenue up 4.2%.
In the first eight weeks ending December 8, including Black Friday and the early part of Christmas trading, total revenue increased by +7.5%, with like-for-like revenue up 0.9%. The company opened four stores in the period, with plans in the pipeline for 10 new sites in total over the financial year.
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But shares in Procook fell 16% on the news of its increased first-half losses.
Lee Tappenden, chief executive, said Procook had delivered a "strong performance" in the first half and had grown the company's customer base.
“We have made good progress against our strategic priorities and continue to invest carefully in the areas that will support profitable growth in the medium term," he said.
“We are pleased with trading results in the first half of the year. Whilst the important Q3 trading period had a subdued start in the early weeks coinciding with the Budget event, and a later Black Friday year on year, we are well positioned to take advantage of the improved momentum we are now experiencing, supported by our Christmas campaign, new product launches and strong inventory levels."
Procook's expectations for the full-year remain unchanged. It added that it anticipated a "typical second half weighting" of revenue and profitability.
“We remain confident in delivering continued strategic progress and sustainable growth over the medium term, as we work towards our ambitions of 100 stores, £100m revenue and 10% operating profit margin," added Mr Tappenden.