Since listing on the London Stock Exchange in November 2021, the kitchenware specialist’s share price has fallen 71.8%. That means a £5,000 investment at the IPO is now worth just £1,410 – a brutal loss by any measure.

But in the last four months, something’s shifted. The shares have suddenly surged over 50%. And after reading the latest annual results, it’s not hard to see why.

So is now the time to buy?

Why the share price is bouncing back

For its 2026 fiscal year (ending in March), ProCook delivered revenue of £85.5m. That’s a 23% year-on-year increase, not only beating its own guidance but those of analysts as well, who were expecting £83.5m.

Subsequently, EBITDA jumped 39.6% to £12.5m, operating profit surged 51.4% to £4.9m, and pre-tax profits rose 64.5% to £2.5m. Free cash flow more than doubled to £3.5m, leaving the business debt-free with £4.4m net cash on the balance sheet.

But perhaps most impressively, ProCook outperformed the wider UK kitchenware market by 20 percentage points despite the soft state of consumer confidence.

Needless to say, those are some pretty strong numbers. And according to CEO Lee Tappenden, the best has yet to come:

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.

Since then, the business momentum’s continued. For the first quarter of its 2027 fiscal year, revenue’s already up 21.5%, with online like-for-like sales growing an extraordinary 27.9%.

The business is now targeting 100 stores, £100m in revenue, and a 10% operating profit margin as its medium-term goals. And with solid progress already made across all three objectives, the company appears to be firing on all cylinders.

But is it all rosy?

While boosting profitability’s a medium-term goal, in the short term, gross margins are expected to remain relatively flat. And management’s warned that profitability could actually suffer if ongoing supply chain disruptions worsen or if the firm is forced to increase its promotional activities to attract an ever-weakening consumer.

What’s more, with 95% of its products sourced from non-UK suppliers, the company has to handle significant foreign currency exposure.

Put simply, internally the business seems to be running well. But externally, it’s exposed to numerous macroeconomic and geopolitical factors beyond management’s control. So the question is, is this a risk worth taking?

A recovery story worth watching?

ProCook’s still a loss-making investment over the last five years for early investors. But the underlying business is growing faster than almost any other UK retailer right now, and the balance sheet’s never been healthier.

With expanding operating margins and an enormous addressable market still ahead, the foundation for a meaningful recovery is quietly being built. And if the business can maintain its current pace, then patient investors could enjoy a powerful recovery over the coming years.

That’s why it’s a penny share I’m keeping a close eye on.

Should you invest £5,000 in ProCook Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if ProCook Group Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

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