REG - Angling Direct PLC - Interim Results

Angling DirectAnnouncement

08/10/2018 07:05

RNS Number : 2004D
Angling Direct PLC
08 October 2018
 


8 October 2018
 
Angling Direct plc
 
("Angling Direct" or the "Company" or the "Group")
 
Half-yearly report for the period ended 31 July 2018
 
Angling Direct plc (AIM: ANG), the UK's largest specialist fishing tackle and equipment retailer, is pleased to announce its unaudited financial results for the six months ended 31 July 2018.
 
Financial Highlights:
·      Group revenue of £21.94 million up by 55.8% (H1 2018: £14.08 million)
·      Gross profit of £7.22 million up by 52.6% (H1 2018: £4.73 million)
·      Pre-tax profit of £0.57 million (H1: 2018 £0.09 million) after accelerated investment in European expansion
·      EPS increased by 1.44 pence to 1.11 pence from a loss of 0.33 pence in H1 2018
·      Cash and cash equivalents at 31 July 2018 of £0.78 million (H1 2018: £4.10 million)
 
Operational Highlights:
·      Online sales up 60% to £11.69 million
·      Store sales up 60% to £9.93 million, including like-for-like store growth of 4.2%
·      Continued investment in online marketing, customer service, logistics and distribution
·      Introduction of our first International Website in Germany
·      Acquired Ted Carter Fishing Tackle a well-established retail store in Preston in June
 
Post-Period End:
·      Opening of Guildford store in September 2018
·      Like-for-like store sales in August up by 15.4% & September by 12%
 
 
Martyn Page, Executive Chairman, said: "It has been another highly successful period for the Group with impressive growth achieved across our network of stores and online. We have executed on our strategy to develop a strong pipeline of new store openings and acquisitions and remain on track to meet our full year targets.
"Our online business has been developing at an exceptional rate and we successfully launched our first international Angling Direct website in Germany in June. Further international expansion is expected to take place, with websites for France and Benelux being developed for the second half of this year.
"I would like to thank my fellow directors and the whole of the Angling Direct team for their continued efforts over this period."
 
  For further information:
 




Angling Direct PLC
Martyn Page, Executive Chairman
Darren Bailey, Chief Executive Officer
 


+44 (0) 1603 258658




Cenkos Securities - NOMAD and Broker
Stephen Keys (Corporate Finance)
Russell Kerr (Sales)
 


+44 (0) 20 7397 8900




Yellow Jersey - Financial PR
Charles Goodwin
Harriet Jackson
Katie Bairsto


 
+44 (0) 7747 788 221
+44 (0) 7544 275 882




 
 
Chief Executive's review
 
I am pleased to report a strong set of interim results for the six-month period ended 31 July 2018. In-store and online have both performed well throughout the half despite the challenging winter weather conditions that we faced earlier in the year. Revenue for the period was £21.94 million, an increase of £7.86 million or 55.8% (H1 2018: £14.08 million). Adjusted EBITDA was £0.74 million, a decrease of £0.19 million (H1 2018: £0.93 million) as a consequence of the decision to bring forward our investment in the future growth of the online business in the UK and Europe. As well as infrastructure, we also made additional investment in marketing and customer services to support this growth.
 
The income statement shows a pre-tax profit of £0.57 million, an increase of £0.48 million or 530% on last year (H1: 2018 £0.09 million); and EPS increased by 1.44 pence to 1.11 pence from a loss of 0.33 pence per share in H1 2018.
 
Half Year Trading
The Group enjoyed a strong start to the year, with retail store revenue increasing by 60% to £9.93 million (H1 2018: £6.21 million) demonstrating continued growth, backed with like-for-like sales up by 4.2%. This was despite a 1.2% drop in footfall due to the adverse winter weather, which again confirms our in-store stock ranges and merchandising are going as planned. Average baskets in the stores are up 5.5% to £33.72 (H1: 2018 £31.96).
 
Online revenue from the Company's website increased by 64% to £10.84 million (H1 2018: £6.59 million) helped by further investment in the Company's e-commerce platform, and focused marketing both in the UK and Europe. The average basket value was lower at £78.97 (H1 2018: £96.96) due to our decision to reduce the postage free values to attract a higher frequency of sales for our smaller, higher margin items below £40. This has had a reassuringly positive impact, with the frequency of returning customers ordering sub £40 baskets increasing by over 200%.
 
The number of unique users visiting the website increased by 30% and we are delighted with the conversion increase to 5.24% (H1 2018: 3.74%).
 
We successfully launched our German website in June and the initial results have been very encouraging. We are planning to roll out other European websites later in the year, initially targeting France and Benelux.
 
eBay sales increased by 15% to £0.85 million (H1 2018: £0.74 million), while Insurance replacement sales reduced by 42% to £0.32 million (H1 2018: £0.55 million) due to a reduction in claim volumes and lower rates of theft.
 
The Group continues to invest in its own branded product range, Advanta, which contributed £0.51 million of the Group's total sales, up 13% from last year (H1 2018: £0.45 million). Additionally, we have increased our investment in stock to improve the availability throughout the year of key selling items.
 
The Group's strategy of remaining competitive with its pricing structure, as per its price checker policy, will remain. Despite competing against further discounting by our competition, online growth in Europe, especially on capital items, and price increases from suppliers in the Far East, we still managed to achieve margins of 32.9% in the period (H1 2018: 33.6%).
 
We will continue to monitor these factors and look to improve our margin by focusing on our suppliers and other specific product opportunities.
 
Store Roll-out
The Group is continuing to expand its UK store footprint through strategically placed store roll-out. The Group will continue to assess acquisition opportunities that will be a functional fit and add value to the Group's overall operations. 
 
The Group ended the period owning and operating 22 stores based around the UK (H1 2018: 15 stores). Following the period end a further store was opened in Guildford (September 2018)
 
It is anticipated that the Group will open one further store in Peterborough before the end of October 2018 and the Group, therefore, expects to own and operate 24 stores based by the end of our financial year. The new store pipeline for 2019 is already being developed and this will see expansion into new areas of the country in-line with the Company's stated strategy.
 
Outlook
The Group continues to invest in the future growth of the business, both online and in-store. As we grow, we will continue to review costs and improve operational efficiencies and margins, and the introduction of a new Kardex system in our warehouse will see beneficial efficiencies coming through next year. We are proud of the results of our online strategy and have seen continued solid trading since the period end. We believe that the platform we have established and the experience we have gained will enable us to achieve robust and sustainable growth.
 
 
Darren Bailey
Chief Executive Officer
 
 
CONSOLIDATED INCOME STATEMENT
FOR THE 6 MONTHS ENDED 31 JULY 2018
 
 




 


Notes


(Unaudited)
6 months to
31 July 2018
£ 000's


(Unaudited)
6 months to
31 July 2017
£ 000's


(Audited)
Year ended
31 Jan 2018
£ 000's




CONTINUING OPERATIONS
 


 


 


 


 




Revenue


 


21,939


14,083


30,241




Cost of sales


 


(14,722)


(9,353)


(20,387)




 


 


 


 


 




GROSS PROFIT


 


7,217


4,730


9,854




 


 


 


 


 




Distribution costs


 


(1,398)


(797)


(1,794)




Administrative expenses


 


(5,210)


(3,079)


(7,120)




 


 


 


 


 




OPERATING PROFIT BEFORE EXCEPTIONAL ITEMS
 


 


609
 


854
 


940
 




Exceptional items


3


-


(740)


(730)




 


 


 


 


 




OPERATING PROFIT


 


609


114


210




 


 


 


 


 




Finance costs


 


(37)


(28)


(51)




 


 


 


 


 




PROFIT BEFORE INCOME TAX


 


572


86


159




 


 


 


 


 




Income tax


 


(94)


(117)


(132)




 


 


 


 


 




PROFIT(LOSS) FOR THE PERIOD


 


478


(31)


27




Profit/(Loss) attributable to:
Owners of the parent


 


478


(31)


27




Earnings/(Loss) per share attributable to the ordinary equity holders of the parent:
Basic and diluted (pence)


 


1.11


(0.33)


0.10




 


 


 


 


 




 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTHS ENDED 31 JULY 2018
 
 




 


(Unaudited)
6 months to
31 July 2018
£ 000's


(Unaudited)
6 months to
31 July 2017
£ 000's


(Audited)
Year ended
31 Jan 2018
£ 000's




 
PROFIT/(LOSS) FOR THE PERIOD


478


(31)


27




 


 


 


 




OTHER COMPREHENSIVE INCOME
Item that may be reclassified subsequently
to profit or loss:


 


 


 




Bonus share issue


-


(302)


(302)




Revaluation of Property to Fair Value


-


-


86




Income tax relating to components of other comprehensive income


-


-


-




 


 


 


 




OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX
 


478
 
 


(302)
 
 


(216)
 
 




TOTAL COMPREHENSIVE INCOME FOR THE PERIOD


478
 


(333)
 


(189)
 




 
Total comprehensive income attributable to:


 


 


 




Owners of the parent


478


(333)


(189)




 


 


 


 




 


 


 


 




 


 


 


 




  
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2018
 




ASSETS


Notes


(Unaudited)
6 months to
31 July 2018
£ 000's


(Unaudited)
6 months to
31 July 2017
£ 000's


(Audited)
Year ended
31 Jan 2018
£ 000's




NON-CURRENT ASSETS


 


 


 


 




Intangible assets


 


4,614


1,816


4,564




Property, plant and equipment


 


3,017


1,310


2,294




 


 


7,631


3,126


6,858




 


 


 


 


 




CURRENT ASSETS


 


 


 


 




Inventories


 


8,524


4,818


6,815




Trade and other receivables


 


1,002


770


617




Cash and cash equivalents


 


779


4,099


749




 


 


10,305


9,687


8,181




TOTAL ASSETS


 


17,936


12,813


15,039




 


 


 


 


 




EQUITY


 


 


 


 




SHAREHOLDERS' EQUITY


 


 


 


 




Called up share capital


4


430


430


430




Share premium


 


7,032


7,032


7032




Revaluation reserve


 


-


-


86




Retained earnings


 


1,271


650


707




TOTAL EQUITY


 


8,733


8,112


8,255




 


 


 


 


 




LIABILITIES


 


 


 


 




NON-CURRENT LIABILITIES


 


 


 


 




Trade and other payables


 


-


-


7




Financial liabilities - borrowings Interest bearing loans and borrowings


 


36


62


54




Deferred tax


 


219


163


203




 


 


255


225


264




CURRENT LIABILITIES


 


 


 


 




Trade and other payables


 


7,218


4,173


5,518




Financial liabilities - borrowings
Bank overdrafts


 


-


-


-




Interest bearing loans and borrowings


 


1,538


29


888




Tax payable


 


192


274


114




 
 
 


 


8,948
 


4,476
 


6,520
 




TOTAL LIABILITIES


 


9,203


4,701


6,784




TOTAL EQUITY AND LIABILITIES


 


17,936


12,813


15,039




 


 


 


 


 




 


 


 


 


 




 


 


 


 


 




CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTHS ENDED 31 JULY 2018
 




 


Called up share capital
£ 000's


Share premium £ 000's


Retained earnings
£ 000's


Revaluation reserve
£ 000's


Total equity
£ 000's




Balance at 31 January 2017


1,410


-


990


-


2,400




 
Changes in equity


 


 


 


 


 




Issue of share capital


420


7,402


-


-


7,822




Costs associated with share issue


-


(370)


-


-


(370)




Redemption of preference shares


(1,400)


-


-


-


(1,400)




Dividends


-


-


(7)


-


(7)




Profit/(Loss) for the period


-


-


(31)


-


(31)




Other comprehensive income


-


-


(302)


-


(302)




Balance at 31 July 2017
 


430
 


7,032
 


650
 


 
 
-


8,112
 




 


 


 


 


 


 




Changes in equity


 


 


 


 


 




Issue of share capital


-


-


-


-


-




Costs associated with share issue


-


-


-


-


-




Profit/(Loss) for the period


-


-


57


-


57




Other comprehensive income


-


-


-


86


86




Balance at 31 January 2018
 
 


430
 
 


7,032
 
 


707
 
 


 
 
86


8,255
 
 




Changes in equity


 


 


 


 


 




Issue of share capital


-


-


-


-


-




Dividends


-


-


-


-


-




Profit/(Loss) for the period


-


-


478


-


478




Other comprehensive income


-


-


86


(86)


-




Balance at 31 July 2018


430


7,032


1,271


 
 
-


8,733




 


 


 


 


 


 




 
 
CONSOLIDATED CASHFLOW STATEMENT
FOR THE 6 MONTHS ENDED 30 JULY 2018




 




 




 
 
 
 
Cash flows from operating activities


 
 
 
Notes


(Unaudited)
6 months to
31 July 2018
£ 000's


(Unaudited)
6 months to
31 July 2017
£ 000's


(Audited)
Year ended
31 Jan 2018
£ 000's


 




Cash generated from operations


1


334


85


(223)


 




Interest paid


 


(34)


(25)


(45)


 




Interest element of finance lease payments made


 


(2)


(3)


(6)


 




Taxation refund


 


-


-


-


 




Taxation paid


 


-


(3)


(139)


 




Net cash from operating activities


 


298


54


(413)


 




Cash flows from investing activities


 


 


 


 


 




Purchase of goodwill


 


(50)


-


(2,748)


 




Purchase of tangible fixed assets


 


(850)


(264)


(1,234)


 




Sale of tangible fixed assets


 


-


-


-


 




 


 


 


 


 


 




Net cash from investing activities


 


(900)


(264)


(3,982)


 




Cash flows from financing activities


 


 


 


 


 




New loans in period


 


650


-


850


 




Loan repayments in period


 


-


(1,515)


(1,515)


 




Capital repayments in period


 


(18)


(15)


(30)


 




Share issue


 


-


7,520


7,520


 




Cost of share issue


 


-


(370)


(370)


 




Redemption of preference shares


 


-


(1,400)


(1,400)


 




Equity dividends paid


 


-


(7)


(7)


 




 


 


 


 


 


 




Net cash from financing activities


 


632


4,213


5,048


 




(Decrease)/Increase in cash
and cash equivalents


 


30


4,003


653


 




Cash and cash equivalents at beginning
of period


 


749


96


96


 




Cash and cash equivalents at end of period


2


779


4,099


749


 




 
NOTES TO THE CASH FLOW STATEMENT
FOR THE 6 MONTHS ENDED 31 JULY 2018




 




1. RECONCILIATION OF PROFIT BEFORE TAX TO CASH GENERATED FROM OPERATIONS




 




 




 




 


(Unaudited)
6 months to
31 July 2018
£000's


(Unaudited)
6 months to
31 July 2017
£000's


(Audited)
Year ended 31 Jan 2018
£000's
 




Profit before income tax


572


86


159




Depreciation charges


127


75


163




Impairment of goodwill


-


-


-




Profit on disposal of fixed assets


-


-


-




Finance costs


37


28


51




 


736
 


189
 


373
 




(Increase)/Decrease in inventories


(1,709)


(440)


(2,437)




(Increase)/Decrease in trade and other receivables


(385)


(274)


(121)




Increase/(Decrease) in trade and other payables


1,692


610


1,962




 


 


 


 




Cash generated from operations
 


334
 


85
 


(223)
 




 
 
 




2. CASH AND CASH EQUIVALENTS
 




The amounts disclosed on the cash flow statement in respect of cash and cash equivalents are in respect of the statement of financial position amounts:
 




Period ended 31 July 2018


(Unaudited)
As at 31 July 2018
£000's


(Audited)
As at 31 Jan 2018
£000's




Cash and cash equivalents


779


749




Bank Overdrafts


-


-




 


779


749




 
 




Period ended 31 July 2017


(Unaudited)
 As at 31 July 2017
£000's


(Audited)
 As at 31 Jan 2017
£000's




Cash and cash equivalents


4,099


283




Bank Overdrafts


-


(187)




 


4,099


96




 
 




Period ended 31 January 2018


(Audited)
As at 31 Jan 2018
£000's


(Audited)
As at 31 Jan 2017
£000's




Cash and cash equivalents


749


283




Bank Overdrafts


-


(187)




 


749


96




 
 
NOTES TO THE FINANCIAL STATEMENTS UNAUDITED RESULTS
FOR THE 6 MONTHS ENDED 31 JULY 2018
 
1. Basis of preparation
 
These interim financial statements for the six-month period ended 31 July 2018 have been prepared using the historical cost convention, on a going concern basis and in accordance with applicable International Financial Reporting Standards as adopted by the European Union ("IFRS") and with those parts of the UK Companies Act 2006 applicable to companies reporting under IFRS as adopted by the European Union. They have also been prepared on a basis consistent with the accounting policies expected to be applied for the year ending 31 January 2019 and which are also consistent with the accounting policies applied for the year ended 31 January 2018 except for the adoption of any new standards and interpretations.
 
These interim results for the six months ended 31 July 2018 are unaudited and do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The financial statements for the year ended 31 January 2018 have been delivered to the Registrar of Companies and filed at Companies House and the auditors' report on those financial statements was unqualified and did not contain a statement made under Section 498(2) or Section 498(3) of the Companies Act 2006.
 
2. Profit per share
 
Basic Earnings Per Share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares of 42,999,993 (31st January 2018, and 31st July 2018) outstanding during the period.
 
3. Exceptional items
 
There were no exceptional items in the period.
 
 
4. Called up Share Capital




 


(Unaudited)
 31 July 2018
£


(Unaudited)
 31 July 2017
£


Audited
 31 Jan 2018
£




Allotted, called up and fully paid
 


 


 


 




Ordinary shares of £1 each


-


-


-




Ordinary shares of 1p each


430,000


430,000


430,000




Preference shares of £1 each


-


-


-




 


430,000
 


430,000
 


430,000
 




 


 


 
No of Ordinary 1p shares


 




Balance at 31 July 2017


 


42,999,993


 




Balance at 31 January 2018


 


42,999,993


 




Balance at 31 July 2018


 


42,999,993


 




 
 
5. Post balance sheet events
 
There are no post balance sheet events to report
 




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