Angling Direct LON:ANG, the AIM-listed, retailer of fishing tackle and bait published its half-year results to end-July today (8th October).
After a difficult, weather-affected 2022, the Norwich-based retailer had a much better 2023 under the new leadership of Steve Crowe, who moved from CFO to CEO last year.
Although trading remained muted, the management team at Angling Direct know the waters and have just let the bait sit, and in its latest update reeled in a much better catch with group revenue up 5.6% to GBP45.8m and UK sales up 6.2% to GBP43.5m, with an encouraging performance at the start of fishing season where UK sales rose 7.2% year-on-year in 2Q24.
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Retail bricks and mortar sales brisk
The company has both a bricks and mortar and online retail presence, as previously reported, both in the UK and Europe. In the UK retail sales were brisk, with total sales from its UK retail real estate by 8.4%, with like-for-like store sales up 1.8% on the back of improved customer footfall. On its digital side, UK online sales were up 2.8%. However, across the water in Europe, overall sales were flat at GBP2.4m, but the German market was encouraging.
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Gross margins increased by 160 basis points, which was helped by Angling Direct’s own brand sales taking a more significant part of the overall sales mix. Profit before tax increased 35.7% to GBP2.3m. The company has maintained a strong balance sheet with group net cash of GBP17m, slightly down from GBP17.6m y-o-y, which was a result of continued investment in its estate and undertaking three new acquisitions. Angling Direct now has 52 stores in the UK and during the year secured a new UK logistics facility in the West Midlands as well and opening a new store in Utrecht, the Netherlands.
Angling Direct targeting £100m annual revenue
The company is still targeting GBP100m annual revenue over the medium-term with adjusted earnings of more than GBP6m and getting its European business to a break-even position, whilst deploying surplus capital into building its business through targeted acquisitions, primarily in the UK. Crowe said: “Looking forward, I am pleased that the strong trading has continued into the second half with revenue in the first two months increasing 19.8% on the same period last year. The solid foundations that we have established ensure that the group is well placed to take advantage of the significant growth opportunities available in the UK, alongside prudent and controlled expansion in Europe which will significantly grow our addressable market and support our longer term growth ambitions.”
Angling Direct shares opened today at 36.05p, up 6% over one-year but down 14% year-to-date with its shares ranging between 31.04p and 45p over a 52-week period. The company has a market cap of GBP27.4m.
Angling Direct’s half-year results have cast a line of optimism over the company’s future. With a strong balance sheet, a growing presence in the UK and Europe, and a focused leadership team, the retailer is well-positioned to reel in continued success. As the Norfolk retailer continues to navigate the waters of the fishing tackle market, Angling Direct’s shareholders can look forward to a promising catch.