Half Year Trading Update and Notice of Results
18/08/2022 07:00
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RNS Number : 3936W Angling Direct PLC 18 August 2022
18 August 2022
Angling Direct plc
("Angling Direct" the "Company" or the "Group")
Half Year Trading Update and Notice of Results
Angling Direct plc (AIM: ANG), the leading omni-channel specialist fishing
tackle and equipment retailer, provides an update on trading for the six
months ended 31 July 2022 ('H1 23').
Financial Highlights
£m H1 2023 H1 2022 Change
Revenue 38.9 38.4 1.3%
Retail store sales 21.9 19.9 9.8%
Online sales 17.0 18.5 -7.9%
UK Online sales 15.3 17.2 -11.1%
European Online sales 1.7 1.3 36.9%
Of which European key territory sales* 1.6 1.0 55.0%
Net cash and cash equivalents as at 31 July 2022: £17.1m (31 July 2021:
£19.6m).
Trading Performance Summary
The Company has made further progress on its strategic objectives in H1 23
whilst growing sales despite the continuation of significant unforeseen
macro-economic factors impacting customers, suppliers and colleagues.
The Company recorded sales growth of 5.4% in Q1 23 (against the same period in
the prior year), however the well documented pressure on discretionary
spending and consumer confidence significantly impacted Q2 23, with sales
reducing marginally by 1.6% against the prior year, meaning an overall H1 23
growth rate for the Group of 1.3%.
Total store sales grew strongly by 9.8% in H1 23, with like for like store
sales increasing by 4.6% supported by a period free from any COVID-19 trading
restrictions. During H1 23, the Company opened one new store, in Washington,
in July, and now operates a total of 43 stores across the UK. A further two
new stores are scheduled to open in Q3 23.
As expected, given the annualisation of prior year COVID-19 store
restrictions, total online sales declined by 7.9%. UK online sales reduced by
11.1% in H1 23, recovering to -0.2% in Q2 23. Following the successful opening
of the Company's European Distribution Centre in March 2022, sales from its
key European territories* grew by 55% in the period, accelerating to 87.5% in
Q2 23, highlighting the long-term growth opportunity for the Group.
Strategy
The Board has remained focused on delivering its long-term omni-channel
strategy of profitable growth through both online and bricks and mortar
stores. Additionally, considerable management focus has been spent on
maintaining growth whilst managing gross margins and mitigating cost
inflation. Whilst facing similar economic challenges to the UK, the highly
fragmented European market remains a very attractive strategic priority for
the Group to accelerate market share. To deliver on its strategic objectives,
the Company continued its planned investment to drive European customer
acquisition and has also invested in margin, where appropriate, to further
establish its competitive position.
The Company continues to strengthen its customer proposition by developing
several innovative, digital first and industry leading initiatives, including
the ongoing refinement of its trading app, expanding its own brand penetration
and developing a range of exclusive branded products, all of which further
differentiate the Company from its competitors.
Outlook
The Company's focus remains on gaining market share both in the UK and Europe
over the medium to long term. The Group will therefore continue to drive
market share growth, leveraging its market leading position in the UK and
strong balance sheet to ensure it is best placed competitively when consumer
confidence returns.
Despite the current exceptional macro-economic circumstances, the Board
continues to proactively manage operations and believes the Company is gaining
market share and demonstrating resilience in the UK. However there has been an
inevitable impact from the ongoing cost of living pressures, declining
consumer confidence and unavoidable inflationary pressures on trading. More
recently, adverse fishing conditions caused by the heatwave and its resulting
effect on river levels and fish health has also impacted trading in the
usually busy month of August. In addition, the same factors have impacted
sales growth and profitability to a similar extent in Europe as the Company
continues to invest in the early stages of its European rollout.
As a result of these market headwinds the Group now expects to generate
revenues marginally below current market expectations for FY 2023. However,
Pre-IFRS 16 EBITDA is now expected to be materially behind current market
expectations for FY 2023 and in a range of between £3.0 million and £3.4
million.**
*Sales through German, French and Dutch native language websites
**Angling Direct believes that market expectations for the year ending 31
January 2023 prior to this announcement were revenue of £82.0 million and
pre-IFRS 16 EBITDA of £4.3 million.
Notice of Results
The Company will announce its half year results for the six months ended 31
July 2022 on 12 October 2022.
For further information please contact:
Angling Direct plc +44 (0) 1603 258658
Andy Torrance, Chief Executive Officer
Steven Crowe, Chief Financial Officer
Singer Capital Markets - NOMAD and Broker +44 (0) 20 7496 3000
Peter Steel, Alex Bond, James Fischer (Corporate Finance)
Tom Salvesen (Corporate Broking)
FTI Consulting - Financial PR +44 (0) 20 3727 1000
Alex Beagley
Sam Macpherson
Alice Newlyn
The information communicated in this announcement is inside information for
the purposes of Article 7 of Regulation 596/2014.
The information communicated in this announcement is inside information for
the purposes of Article 7 of Regulation 596/2014.
About Angling Direct
Angling Direct is the leading omni-channel specialist fishing tackle retailer
in the UK. The Company sells fishing tackle products and related equipment
through its network of retail stores, located strategically throughout the UK
as well as through its leading digital platform (www.anglingdirect.co.uk
(https://www.anglingdirect.co.uk/) .de, .fr and .nl) and other third-party
websites.
Angling Direct is committed to supporting its active customer base and
widening access to the angling community through its passionate colleagues,
store-based qualified coaches, social media reach and ADTV YouTube
(https://www.youtube.com/channel/UCOenrSpp_3DpdT14EBrPkWA) channel. The
Company currently sells over 20,000 fishing tackle products, including capital
items, consumables, luggage and clothing. Angling Direct also owns and sells
fishing tackle products under its own brand 'Advanta', which was formally
launched in March 2016.
From 1986 to 2002, the Company's founders acquired interests in a number of
small independent fishing tackle shops in Norfolk and, in 2002, they acquired
a significant premise in Norwich, which was branded Angling Direct. Since
2002, the Company has continued to acquire or open new stores, taking the
total number up to 43 retail stores. In 2015, the Company opened a 2,800 sq.
metres central distribution centre in Rackheath, Norfolk, where the Company's
head office is also located. In March 2022, Angling Direct opened a 3,940
square metre distribution centre in Venlo, Netherlands to service its
established, and rapidly growing, presence in Europe with native language
websites set up in key regions to address demand.
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