REG - Angling Direct PLC - Final Results
16/05/2023 07:00
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RNS Number : 4793Z Angling Direct PLC 16 May 2023
16 May 2023
Angling Direct PLC
('Angling Direct', the 'Company' or the 'Group')
Final Results
Continued sales growth across all markets despite significant consumer
headwinds
Angling Direct PLC (AIM: ANG), the leading omni-channel specialist fishing
tackle and equipment retailer, is pleased to announce its financial results
for the twelve months ended 31 January 2023 (FY23).
£m FY23 FY22 % Change
Revenue 74.1 72.5 2.2%
UK sales 71.0 69.8 1.6%
Retail store sales 41.3 38.7 6.8%
Online sales 32.8 33.8 (3.0)%
UK Online sales 29.6 31.1 (4.8)%
European Online sales 3.1 2.7 18.4%
Of which European key territory sales 3.0 2.2 32.3%
Gross profit 25.8 26.6 (3.1)%
Gross margin % 34.8% 36.7% -190bps
EBITDA (pre IFRS-16) 2.2 5.2 (57.2)%
Profit before tax 0.7 4.0 (83.4)%
Basic EPS 0.70p 3.98p (82.4)%
Financial highlights:
● Group revenue increased by 2.2% to £74.1m
● Store sales increased by 6.8% against FY22 (£38.7m) as the store rollout
strategy continued
● Like-for-like store sales were £38.0m (including the previously reported
disruption caused by the unusually hot weather in the UK and Europe in August
2022), flat against the prior year
● UK online sales, representing 90% of total online sales, decreased by 4.8%,
driven by tough H1 comparatives returning to growth in H2 against the prior
year
● UK online sales were 57.9%, and the UK business 47.3% above pre-Covid levels,
illustrating a significant step change in the Group's omni-channel offering
● Our key European territories of Germany, France and The Netherlands grew 32.3%
year on year
● Gross margin declined by 190 bps as we consciously invested in customer prices
to gain market share
● Positive operating cashflow of £1.5m, with a strong balance sheet and net
cash position of £14.1m. Securely positioned to meet short-term challenges
and take advantage of any potential market consolidation
Operational highlights:
● Successfully opened our European distribution centre in March 2022
● Market share gains in all key territories including strong growth in new
unique customers
● Continued store rollout strategy, with a total of 45 stores at period end
(FY22: 42) with Cardiff opening in early FY24. Three new stores in unserved
catchments
● Angling Trust qualified coaches deployed across all stores to ensure our
customers enjoy the very best experience
● Significant focused investment in Advanta stock and new ranges delivered 24%
growth in own brand sales
● Over 55,000 App downloads, further user enhancements summer 2023, optimising
digital capability
● As announced separately today, Sam Copeman will join the Company as CFO on 5
June 2023 and will be appointed to the Board on conclusion of the Company's
AGM on 22 June 2023
Current trading and outlook
● Despite the turbulent consumer environment and sustained cost pressures,
management remains focused on delivering profitable growth and market share
gains in the UK and Europe over the medium to long term
● Total Q1 FY24 sales growth of 11.0%, with growth across all channels,
including accelerated growth in Europe
● Whilst management is pleased with this early sales performance it remains
vigilant to the ongoing inflationary cost pressures being experienced by
consumers
● However, given the fundamental strengths of the business, management believes
there is a significant opportunity to gain market share in a weakening
competitor landscape
Andy Torrance, CEO of Angling Direct, said:
"The last twelve months have seen Angling Direct continue to grow sales
despite significant consumer headwinds, including inflation and cost of living
pressures across all of the Company's key markets. Our omni-channel business
model continues to demonstrate considerable financial and operational
resilience and we are pleased to have increased revenues to £74.1m. This
performance is largely due to the outstanding work of my colleagues who
continue to go above and beyond for our customers and I would like to thank
them, on behalf of the Board, for their continued dedication.
Throughout the period, we continued to make good progress against our
strategic objectives - establishing our European Distribution Centre,
continuing our store rollout strategy as well as improving our omni-channel
proposition. Looking through the current uncertain macroeconomic backdrop, our
strategy remains unchanged as we continue to focus on gaining market share
both in the UK and Europe over the medium term.
Looking ahead, we will continue to evolve our customer offering across all
channels but with a particular focus on sustainable profitable growth and our
European presence. With significant cash on the balance sheet, the Group will
continue to strategically invest so long as it remains prudent to do so, and
only to the extent that it retains both strong liquidity and its robust
balance sheet.
In my last report as CEO, I am confident that Angling Direct is in good shape.
Whilst we are vigilant as to the continuing challenging macroeconomic
backdrop, I remain cautiously optimistic when I look to the future, confident
that the strong foundations we have put in place through FY23 will ensure the
Group is well-placed to capitalise on the numerous opportunities that will
arise through the remainder of 2023 and beyond.
Finally, I would like to take this opportunity to welcome Sam Copeman to the
Company who will join us on 5 June in the role of CFO. Having conducted a
rigorous search and selection process, we are delighted to have chosen Sam to
work alongside Steve to deliver on the next stage of our growth journey. I
look forward to working with both of them as I move into my role of
Non-executive Chairman."
For further information please contact:
Angling Direct PLC +44 (0) 1603 258 658
Andy Torrance, Chief Executive Officer
Steven Crowe, Chief Financial Officer
Singer Capital Markets - NOMAD and Broker +44 (0) 20 7496 3000
Peter Steel
Tom Salvesen
Alex Bond
James Fischer
FTI Consulting - Financial PR +44 (0) 20 3727 1000
Alex Beagley anglingdirect@fticonsulting.com
Sam Macpherson
Alice Newlyn
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, .nl and .eu) 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 28,000 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 46 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 January 2022 Angling Direct acquired an
additional 3,900 sq. metres 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.
Chairman's Statement
Introduction
I am pleased to present another year of significant strategic and operational
progress where we have once again achieved record sales. This is despite the
headwinds resulting from the continuing conflict in Ukraine, the global energy
crisis, high inflation and resulting pressure on costs impacting consumer
confidence and spending. All this has, not unexpectedly, made trading very
challenging which has impacted results for most retail businesses and
particularly discretionary retail.
We are however a specialist business with increased scale and a growing and
loyal customer base of anglers passionate about their fishing. We remain
focused on our strategy and strong sense of purpose. We believe that we are
continuing to take market share as we pursue our beliefs that everyone should
have the opportunity to get out by the waterside and experience the proven
wellbeing benefits of fishing.
We continued our UK store roll-out with the opening of three new stores in the
year. Since the year end, we have opened one store in Cardiff, taking our
total to 46, with further planned openings in the pipeline this year.
We successfully opened our European Distribution Centre during the year, which
forms the base to drive our expansion into the EU and, importantly, overcomes
some of the issues caused by Brexit. This significant operational step
provides access to target markets three times the size of the UK, with similar
characteristics. Whilst sales to the EU were affected by the turmoil in
Ukraine, there remains a material opportunity for growth in the medium term,
and we are beginning to see encouraging progress that will hopefully grow as
this current year progresses.
In terms of our digital trading proposition, we have continued to improve the
Angling Direct App with further major upgrade releases under development.
Similarly, we have focused on continually improving our website user
experience, paying particular attention to promotional trading and ease of
checkout.
Finally, Andy Torrance will step down from his role as CEO and will take my
place as Non-Executive Chairman. Steve Crowe, the Group's CFO, has been chosen
by the Board to replace Andy and will become CEO. These changes will take
place when Steve's successor, Sam Copeman is appointed to the Board following
the conclusion of the Company's AGM on 22 June 2023.
Financial overview
The Group achieved a record revenue of £74.1m in the financial year to 31
January 2023 (2022: £72.5m, up 2.2%).
Store sales increased by 6.8% to £41.3m (2022 £38.7m) and online sales
decreased by 3.0% to £32.8m from £33.8m. Within this, UK online sales
decreased by 4.8% to £29.6m, driven by tough H1 comparatives. Significantly,
however, UK online sales remain 57.9% above pre-Covid levels, illustrating the
advancements we have made in that area of our business.
As a result of our continuing focus on realising operational efficiencies and
despite all the headwinds, the Group delivered pre- IFRS 16 EBITDA of £2.2m
(2022: £5.2m) and a pre-tax profit of £0.7m (2022: £4.0m). The Group ended
the year with a strong balance sheet and net cash of £14.1m as at 31 January
2023 (2022: £16.6m).
People & community
One of our strong founding beliefs is that we should help improve the lives of
everyone who engages with us. We aim to not just enhance the lives of anglers,
colleagues and customers, but also to have a positive impact on our suppliers,
shareholders, local communities, and the environment.
Our aim is to introduce the many benefits of fishing to as many people as
possible and to help all anglers to have more success and enjoyment in the
pursuit of their passion. We are achieving that aim through our superb
colleagues who share our vision and are passionate in delivering the very best
experience to our angling community. This includes having qualified angling
coaches in every store and also coaching at "Get Fishing" events organised in
conjunction with the Angling Trust.
Indeed, our outstanding colleagues are key to all we do and we endeavour to
support them with our ambition to be the best employer in our sector, not only
in terms of reward but also in caring for wellbeing and fulfilment. I remain
humbled by and so grateful for their unwavering passion and dedication.
We continue to endorse evidence that fishing is a great way to improve all
round wellbeing and we support bodies set up to encourage those with
disabilities, of any kind, to benefit from fishing.
Last year we set up our Environmental Policy Group (EPG) which I am pleased to
Chair. This has enabled us to formulate a focussed action plan and we have
made some excellent progress with this strategy, as highlighted in our Annual
Report.
Looking ahead
I doubt anyone could have predicted the events that have disrupted the world
over these last few years and their impact on virtually all businesses. It is
clear that the more challenging economic environment will carry on well into
this year but we are all hopeful that interest rates and energy price
pressures will begin to ease as the year progresses and with that will come a
return of consumer confidence and an upturn in the economy.
We have focused on tight cost controls and good cash management to offset
these impacts and will continue to closely monitor the evolving political and
economic situations and take appropriate actions where necessary. As with past
downturns, I believe that opportunities will arise for those that are prepared
and capable of seizing and delivering upon them. We have a strong balance
sheet and are well placed and ready to progress our growth strategy and take
such opportunities.
We will continue moving forwards with both our proven successful omni-channel
and purpose driven consolidation model in the UK and Europe as we look to
capitalise on the growth opportunity we perceive, benefitting our colleagues,
our shareholders, the angling community, the wider society and, not least, the
environment.
Board changes
The Board welcomed Chis Keen on 5 April 2022 and Nicola (Nicki) Murphy on 16
June 2022 as Non-Executive Directors. Chris and Nicki have already had a
positive impact and I know their vast breadth of experience will continue to
bring significant benefit to the Company.
I would also like to offer my heartfelt thanks to Dilys Maltby and Paul Davies
for everything they have done for the Company during their period in office.
Dilys stepped down as Non-Executive Director on 15 May 2022 and Paul likewise
on 31 January 2023. Paul had been with us since before our IPO in 2017 and
played an integral role until he stepped down.
And finally, as announced post year end on 28 February 2023, I have decided to
step down as Chairman having proudly served in this position since the IPO,
and before. I will however stay on as a Non-Executive Director, helping the
business stay firmly on course with our strategic aims, our beliefs, purpose
and culture. Being passionate about the environment I will also continue as
Chair of our EPG.
Concurrently, Andy Torrance will step down from his role as CEO and will take
my place as Non-Executive Chairman. After a thorough process, Steve Crowe, the
Group's CFO, has been chosen by the Board to replace Andy and will become CEO.
We are pleased to have announced that Sam Copeman will join the Group in early
June to work alongside Steve to deliver the Group's growth strategy. Sam will
join the Board as CFO following conclusion of the AGM in June at which point
the above outlined Board changes will be implemented.
Yours sincerely,
___________________________
Martyn Page
Non-Executive Chairman
Chief Executive's Review
'Continued focus on our clear purpose and bold ambition has allowed us to grow
and further extend our market leading position against a difficult consumer
backdrop. We've protected the strength of our balance sheet whilst continuing
to make significant strategic progress.'
Introduction
FY23 has seen Angling Direct continue to grow sales despite significant
consumer headwinds, including inflation and cost of living pressures across
all of the Group's key markets. Against this backdrop, our omni-channel
business model continues to demonstrate considerable financial and operational
resilience. Thanks to our trading agility, I'm pleased to report total sales
increased by 2.2% to a record £74.1m, reflecting further market share gains
at the expense of smaller, less contemporary competitors. Not only has our
amazing 'Team AD' been able to maintain our strong sales record, but they have
also risen to the challenge and ensured that we continue to make solid
strategic progress across the business, delivering real points of difference
for our valued customers. I would like to sincerely thank all my colleagues
for their exceptional commitment, ongoing resilience, and above all, their
forward-looking enthusiasm again during this year.
As the UK market leader with a purpose of Getting Everyone Fishing, Angling
Direct is uniquely placed to deliver further profitable growth both within the
UK and the significant European fishing tackle market, as people of all
backgrounds discover the restorative pleasure, challenge and wellbeing
benefits of angling.
During my third full financial year as CEO, our ambition was to continue to
profitably grow market share in the UK, while simultaneously executing our
plan to expand trade in the significant and highly fragmented European fishing
tackle market. Our strong financial position has allowed us to continue to
invest in order to strengthen the Group, to align with its purpose and
strategic growth ambition. We focused those investments to generate a
sustainable return for all stakeholders by innovatively developing both our
digital and physical customer offer, consciously investing in customer prices
in order to maintain our leading competitive position, and securing stock
supply to provide record levels of product availability.
Our store teams are supporting their customers by being the 'Best in Town'.
Total store sales increased 6.8% against FY22 including £0.9m sales from the
three new stores opened in the year. Online, we continued to develop our
customer experience to optimise both conversion rates and average transaction
values. Total online sales declined modestly by 3.0% driven by tough H1 prior
year comparatives. UK online sales, representing 90% of total online sales,
decreased by 4.8%, however, UK online sales returned to growth in H2 (against
prior year) as channel trading returned to more normal post pandemic levels.
Furthermore, despite online sales falling across the year as a whole, UK
online sales were still 57.9% above pre-Covid levels illustrating the
significant step change in the Group's omni-channel offering. Following the
successful opening of our European Distribution centre in March 2022, our
European revenue saw a return to growth as sales increased by 18.4%, with
sales in our key European territories of Germany, France and the Netherlands
increasing by 32.3%. The initiative represents a significant strategic step
for the Group in expanding our total addressable market and we expect Europe
to play an increasingly important role in the future growth of the business.
Given the well understood pressure on consumer discretionary spend, we
consciously invested in customer prices to underpin our competitive pricing
advantage. This was particularly prevalent as we sought to establish material
levels of European revenue by attracting and acquiring new customers. We
continued to maintain a disciplined trading approach, promoting all that
Angling Direct has to offer, whilst continually refreshing our ranges with the
latest innovative, sought after product ranges. Consequently, we saw a 190bps
decline in gross margin to 34.8% and a 3.1% reduction in gross profit versus
the prior year. This, combined with a larger than expected first year European
trading loss of £1.3m and £0.9m removal of prior year Government Covid-19
support, resulted in a reduction in profit before tax to £0.7m.
We continued to optimise stock investment resulting in record product
availability to customers ahead of the 2023 fishing season, as well as a
curated range to satisfy our European growth plans. Our resilient trading
performance and associated cash conversion has substantially mitigated these
working capital investments, enabling us to continue our store roll out
strategy. Operating cashflow remained positive at £1.5m resulting in a net
cash position of £14.1m as at 31(st) January 2023.
I am pleased that we have remained focused on our clear purpose and strategic
opportunities across the breadth of our business. In particular, the opening
of our new European distribution centre in the Netherlands marked a
significant step towards facilitating the full Angling Direct omni-channel
offering within this attractive and sizeable market. I am confident that the
investments we have made and will continue to make, ensure we are well
positioned to get even more people fishing and continue to deliver
sustainable, profitable growth.
Business review
Focused strategic progress against a challenging consumer backdrop
We set out to maintain our UK growth momentum while opening a new EU online
distribution centre to accelerate European expansion. Against a difficult
consumer backdrop, we were clear we needed to remain agile to navigate
competitive challenges brought about by pressure on discretionary spend and
rising cost inflation. We have continued to focus on developing operational
excellence, return on capital, and improving our customers' experience via
whichever sales channel they choose.
Operational excellence
Digitally we have continued to improve our customers' experience across all
five of our websites and our trading App, with a focus on an improved buying
journey and checkout experience in order to aid conversion. As a result, we
continue to improve search relevance and site speed, maximising conversion
opportunity. Our web trading App, we believe the first of its kind, saw 55,000
unique users in its first full year with sales participation peaking at 10.9%
during promotional periods, supporting customer loyalty and repeat purchase.
Our new email marketing platform increased email sales participation rate by
26%. These initiatives along with an ongoing drive to develop fresh and
relevant digital content, meant UK online conversion remained strong at 5.69%.
We continued to promote not only our everyday price competitiveness but also
the breadth of our ranges, including our own Advanta brand, the quality of our
service and customer inspiration.
A key strategic growth priority was to open our new EU distribution centre in
Venlo, NL. This online fulfilment facility became fully operational on
schedule on 1(st) March 2022 and now serves our four international websites
(www.anglingdirect.de, www.angling direct.fr, www.anglingdirect.nl and
www.anglingdirect.eu) allowing us to locally tailor our customer offer,
overcome post Brexit trading restrictions and increased costs, whilst
continuing to drive market share gains in the c€1.8bn target European
market.
In the UK distribution centre, we focused on protecting recent efficiency
gains, investing in colleagues' benefits and logistics management. Rising
costs and external industrial action led to a change in parcel carriers later
in the period, to the extent that we now anticipate cost and shrinkage
efficiencies in the coming year.
Recent investments in supply chain management along with ongoing range and
space optimisation, both in store and online, meant that we have achieved
record on shelf product availability for our customers as we enter the 2023
fishing season. Our Category team has continued to build positive
relationships with our product suppliers leading to a growing programme of
innovative and often exclusive new product launches, one example being the new
One More Cast (OMC) terminal tackle range.
All store colleagues are now engaged in our BAITS bespoke active selling
programme, designed to ensure our customers receive the very best advice to
support their angling ambitions. As a result, we have seen consistently strong
store customer footfall conversion. Our Angling Trust qualified angling
coaches are deployed in all stores and are now available for customers to book
personalised dedicated instore coaching sessions. Additionally, all stores now
offer fishing reel spooling, and several have dedicated Pole Experts to assist
customer trial and selection of these higher priced specialist items. We
continue to utilise footfall counters to match colleagues with customer demand
to improve service and to help alleviate the impact of significant statutory
wage (national minimum living wage) inflation.
In the UK we continue to target customer catchments unserved by Angling
Direct, opening three new stores in the year in Coventry, Stockton and
Washington, bringing the total by the end of the period to 45. Fitted out to
our latest market leading concept and built by our newly outsourced store
development partners, these stores opened in record time with minimal impact
on existing store operations, and we are pleased with their early performance.
Return on capital
Focused on continually tailoring ranges across the five major fishing
disciplines, Carp, Coarse, Predator, Sea and Game, our Category Management
team continues to evolve, concentrating on more efficient space utilisation
and further margin development. This ongoing approach will ensure Angling
Direct remains the 'go to' fishing tackle retailer for all anglers, regardless
of ability or fishing discipline. Category management also increasingly
informs our product supplier strategy as our key partners align with our
purpose and growth objectives for mutual benefit.
In a fragmented and consolidating market, with discretionary consumer spending
under pressure, it is vital that Angling Direct continues to act responsibly
whilst also remaining price competitive. To this end, whilst improving product
supply terms, we consciously invested in customer pricing, the net effect on
UK gross margin being a reduction of 170bps. In the EU, to prompt new customer
trial, marketing campaigns were initially heavily price promoted, particularly
during H1. As a result, the Group's overall margin across all channels reduced
by 190bps to 34.8% for the period.
During the year we saw a reduction in port disruption and some moderation of
shipping costs but whilst product supply lead time has improved, stock depth
and continuity varies across our supply base. Utilising our long-established
relationships, we consciously invested to optimise stock inventory ahead of
the new spring 2023 season, protecting our growth ambition and supporting the
activation of our new European distribution centre with a £2.3m stock
investment. As a result of these actions, stock turn in the year moved to 2.8x
from 3.0x.
To ensure the widest possible product availability for our online customers we
continued to develop our 'single stock file' approach. By utilising store
stock holding to supplement central stocks, we were able to fulfil direct to
customer from in-store when it was the most efficient option, improving
customer conversion and further optimising sell through and stock turn.
Sales of our own brand range, Advanta, which delivers above average margins,
grew by 24% to £5.0m following successful new product introductions,
re-branded packaging and competitive promotions. Discover, our new own brand
range of products designed for those new to angling, was soft launched ahead
of further expansion of both ranges in 2023.
We continue to focus on improved decision making and a disciplined approach to
new expenditure, including new store site selection. Our investments in timely
management data provision, revised processes, and much improved visibility of
our cashflows, have allowed more forward planning and better trading decisions
as well as tactical stock investment.
New growth opportunities - European markets
Our clear ambition is to become Europe's first choice omni-channel fishing
tackle destination for all anglers, regardless of experience and ability. In
the period we successfully established in-region European distribution,
reducing adverse post Brexit trading restrictions and allowing us to offer
much more competitive customer fulfilment options. The distribution centre
services all orders generated outside the UK from our well-established native
language German, French and Dutch websites, as well as our .eu site, allowing
us to despatch to all EU countries.
We anticipated first year losses in Europe as we invested to acquire a
material customer base, raise wider consumer awareness and establish growing
sales momentum. Unfortunately, the opening of our new distribution centre
coincided with the start of the war in Ukraine and ensuing pan-European
economic turbulence, manifesting in rapidly increasing inflation and European
consumer impacts similar to those experienced by other consumer businesses
across the UK. EU losses in the period were £1.2m (pre-IFRS 16 EBITDA),
exceeding our initial expectation by £0.5m, due to a combination of both
lower than modelled sales growth and reduced product margins.
These European markets, by their significant size and competitive nature, both
online and store-based, are very attractive to Angling Direct given its unique
omni-channel customer offering. Following significant development work during
H2 to optimise ranges, onboard new suppliers, and refine marketing and pricing
strategies, we remain confident of the significant growth opportunity
available, especially given more recent trading and margin development
progress.
Going forward we will continue to actively invest to grow market share in the
EU with a particular focus on our three identified key territories, namely
Germany, France, and The Netherlands, which have a combined market size of
c.£1.8bn. We continue to ensure that our four international sites replicate
our UK platform in terms of functionality and richness of content, including
our new web trading App. Our in-country teams will continue locally tailoring
ranges, bespoke local marketing and social media engagement.
We believe the opportunity for a market leading, contemporary, genuinely
omni-channel proposition in mainland Europe is clear and very attractive to a
huge group of prospective new customers. We are now actively engaged in the
search for initial store sites, ensuring that options are rigorously reviewed,
and potential actions planned to optimise returns for all stakeholders.
New growth opportunities - Digital capability
We are committed to utilising innovative contemporary digital technologies and
have been able to call upon our significant stock depth, semi-automated
distribution facility, multilingual customer care team and significant social
media reach to ensure that we can provide our customers with market leading
advice, engagement, service and inspiration.
Download and participation in our new AD fishing tackle trading App has been
encouraging. The mobile App allows our customers to interact, in multiple
languages, with the full breadth of Angling Direct's rich digital content,
offers contemporary advice and inspiration, as well as the ability to purchase
from our full product range direct from the bankside. The next phase of App
development, MyAD, will launch this summer with personalised membership offers
both online and instore, local community features and exclusive promotions.
Scannable at the point of purchase in-store, data from the App will supplement
our existing online database with, for the first time, visibility of cross
channel shopping behaviour.
Additionally, our in-house web development team has continued to progressively
deploy our new customer journey functionality designed to improve relevance
and ease of use. Visitors have experienced further improved site speed, new
content, such as our New to Angling feature, new store locator, local pages
and improved blog navigation. Conversion rates in the UK remained strong at
5.69%. Our proactive online marketing investment gave a return on paid
advertising spend in the UK of 12.0x, a modest reduction over the prior year
as a more competitive landscape for paid advertising emerged as supply chain
issues eased.
New growth opportunities - Evolving store concepts
We are committed to delivering the very best physical retail interaction to
create loyal customers and prompt recommendation. We opened three new retail
stores during the period in Stockton-on-Tees (September 2022), Coventry
(August 2022), and Washington (July 2022) bringing the total portfolio at the
end of FY23 to 45 stores. As well as specifically tailored product ranges,
updated intensive merchandising techniques and clearer customer messaging, we
have further refined our new store fit out concept to showcase new initiatives
such as dedicated 'Learn to Fish' sections, space intensive hands-on rod and
reel displays, tech demo areas, less space intensive checkouts and dedicated
personal finance areas.
Location-wise, we remain focused on the concentration of fishing licence sales
as well as local competitive profile. Our property investment model ensures
any new site is targeted with delivering appropriate returns within a minimum
acceptable time. As a destination retailer our preference is convenient, easy
to access sites. It remains to be seen how the continued demise of premium
High Street retail space impacts upon the cost and availability of our target
destination locations and we continue to monitor developments closely.
Through our exclusive retail partnership of the Angling Trust's "Get Fishing"
campaign, we have continued to develop our team of Angling Trust certified
fishing coaches to ensure that our customers get the very best advice and
support regardless of their fishing ability. Now with over 80 coaches and
growing, several colleagues have also achieved their Level 2 qualification.
Customers of all experience levels can now book dedicated timeslots with our
coaches who can offer support in store as well as angling tuition at external
bankside events.
Organisational capability.
As a growing business we continue to proactively invest in people capability
as well as capacity to support our growth plans. During the year we appointed
a new Technology Director who is focused upon developing a secure, resilient
and scalable IT infrastructure to support our future growth.
We always seek to develop a good proportion of our future talent in-house
ensuring a healthy mix of experienced, enthusiastic anglers. We did also
welcome new colleagues into our UK and European teams, including experienced
Web trading, Marketing, and Supply managers.
Our colleagues and our role in the community
Our colleagues are the face of Angling Direct to our customers and are key to
delivering an excellent service, both in store and online. They also play a
key role in the angling community. We differentiate ourselves by providing
expert help, trusted advice and inspiration for customers to get the most from
their fishing.
We continue to progressively develop our Team AD employment benefits package,
aligned with our objective to become the leading employer within our market.
We believe high performing colleagues should be recognised and rewarded for
their contribution to our success. As well as again paying all colleagues a
Christmas bonus as a thank you for their hard work, we continue to develop
annual incentives targeting outperformance across various measures aligned
with both our short and longer term business objectives. To promote our desire
to 'Get Everyone Fishing', each team member now has the opportunity to take
first time angling friends and family fishing for the day utilising an extra
day's paid leave.
ADVoice, our colleague listening council, continues to thrive chaired by a
colleague-elected representative and attended by the CEO as well as other
members of the senior leadership team. All colleagues receive at least one
personal development review during the year.
At Angling Direct, we passionately believe in the general wellbeing benefits
of fishing and are very supportive of moves to include fishing as part of a
programme for NHS social prescribing. Working with Anglia Ruskin University
(ARU) we have previously co-funded significant research in this area, the
resultant data having now been peer reviewed and published, further raising
awareness of not just the health benefits of angling but also the need to
broadly invest in order to improve access for more people to fish.
We continue to work closely with Tackling Minds, a pioneering mental health
charity which uses fishing as therapy. We offer support through the donation
of fishing tackle, the utilisation of our social reach, our IT equipment, our
colleagues' time at their events, as well as consulting expertise where
necessary.
As market leaders we have a key role to play supporting fishing participation
for the wider benefit of our industry. After a very successful first two years
as exclusive retail sponsors of the Angling Trust's 'Get Fishing campaign',
designed to attract new anglers through a bankside coaching programme, we're
delighted to continue into a third year. We also remain active supporters of
the Angling Trades Association 'National Fishing Month' designed to get more
people out on the bank. We have co-funded the training of over 80 Angling
Direct colleagues as certified angling coaches who will offer advice and
support to anglers of all abilities, both in store and at local events.
We continued to extend our social media and YouTube reach. In the period, our
Facebook followers exceeded 160,000 for the first time. We have seen
particular success with our 'how to' style, 'Quick Bites' skills development
features. Building on our inclusive approach, we have featured various
articles with colleagues of a broad range of ages, genders, fishing abilities
and disciplines, designed to appeal to an ever more diverse customer base.
We take our responsibilities seriously and that extends to ensuring Angling
Direct is a sustainable business across the areas of environmental protection,
economic viability, and social equality.
Board Succession Plan
Post period end, we announced the Board Succession Plan, which will involve
the following changes:
● Andy Torrance will step down from his role as Chief Executive Officer (CEO)
and be appointed Non-executive Chairman
● Steve Crowe, Angling Direct's Chief Financial Officer (CFO), has been chosen
by the Board to replace Andy and will be appointed CEO
● Martyn Page, will step down from his role as Non-executive Chairman and will
remain on the Board as a Non-executive Director
● The Board conducted a thorough search for a CFO and has announced that Sam
Copeman will join the Group on 5 June 2023 and be appointed to our Board at
the conclusion of our AGM on 22 June
Current Trading and Outlook
I am pleased to report that, despite the ongoing inflationary pressure on
consumers, the Group has experienced growth across all channels in the first
three months of our financial year, delivering total Q1 sales growth of 11.0%.
Looking ahead, we will continue to evolve our customer offering across all
channels but with a particular focus on sustainable profitable growth and our
European presence. With significant cash on the balance sheet, the Group will
continue to strategically invest in market share gains within the UK and
Europe as long as it remains prudent to do so, and only to the extent that it
retains both strong liquidity and its robust balance sheet.
In my last report as CEO, I am confident that Angling Direct is in good shape.
Whilst we are vigilant as to the continuing challenging macro-economic
backdrop, I remain cautiously optimistic when I look to the future, confident
that the strong foundations we have put in place through FY23 will ensure the
Group is well-placed to capitalise on the numerous opportunities that will
arise through the remainder of 2023 and beyond.
___________________________
Andy Torrance
Executive Director and Chief Executive Officer
15 May 2023
Chief Financial Officer's statement
Well positioned for growth whilst navigating the more uncertain macro-economic
environment
The Group has continued to deliver on its strategic priorities throughout FY23
despite the adverse consumer dynamics of reduced demand post COVID-19
alongside the current cost of living pressures for consumers. The Group
maintained its strong balance sheet and liquidity position, which presents
opportunity as further market consolidation occurs and more favourable
consumer dynamics return.
Financial highlights
In FY23 the Group continued to generate revenue growth. This was driven by UK
retail stores through the space effect of new and prior year store openings,
alongside establishing in-Europe distribution capability.
FY23 saw focus on margin preservation within the UK through greater focus from
our category management teams on buying and pricing as increasing stock
availability in the supply chain alongside tougher consumer spend dynamics
resulted in more disruptive customer pricing within the market. Our resilience
in this area enabled the Group to remain profitable whilst absorbing the
start-up losses of the European online business, alongside £0.9m lower direct
government support (in the form of Coronavirus Job Retention Scheme "CJRS" the
Restart Grant Scheme "RGS"). Profit after tax was £0.5m (FY22 £3.1m).
The discussion of our financial performance and position in this section is
primarily on an IFRS 16 basis for all years presented. We have also included
an analysis of pre-IFRS 16 EBITDA as an alternative performance measure that
we consider as a key measurement of performance internally as well as within
our covering Broker's market forecasts.
Note 6 provides more information and reconciliations relating to EBITDA on
both a pre and post-IFRS 16 basis. An explanation of the difference between
the reported operating profit figure and adjusted EBITDA is shown below:
Financial Highlights
Year ended 31 January 2023 2023 2022 2022 Change % Change %
Post-IFRS 16 Pre-IFRS 16 Post-IFRS 16 Pre-IFRS 16 Post-IFRS 16 Pre-IFRS 16
Revenue (£m) 74.1 74.1 72.5 72.5 2.2% 2.2%
EBITDA (£m) 4.6 2.2 7.3 5.2 (37.9%) (57.2%)
Operating profit (£m) 1.1 0.7 4.4 3.8 (75.7%) (80.6%)
Profit before tax (£m) 0.7 0.8 4.0 3.8 (83.2%) (79.2%)
Basic earnings per share (pence) 0.70 3.98 (82.4%)
· Adjusted financial measures are defined in the Annual Report and
reconciled to the financial measures defined by International Financial
Reporting Standards ("IFRS"). Management uses EBITDA on a pre IFRS16 as the
basis for assessing the financial performance of the Group. These terms are
not defined by IFRS and therefore may not be directly comparable with other
companies adjusted profit measures.
Another year of revenue growth
Revenue grew 2.2% year on year (in the UK 1.6%) with store sales increasing
6.8% and the online business contracting 3.0%, UK online sales reduced 4.8%,
but remained 57.9% ahead of the pre-COVID FY20 year. The UK growth was driven
by increased transaction volumes as in store conversion and the store
footprint increased. The total UK business now having delivered 47.3% growth
against the pre-COVID FY20 year. The Group's European business grew 18.4%. In
Q1 FY23 the Group opened its own European distribution facility to serve its
European customers. Located in The Netherlands and supplied primarily directly
from a European supplier base this facility negated much of the post Brexit
challenges around cross border supply and customer fulfilment. The Group
continues to focus on European territories that have the market size to
deliver both strong sales growth and promising levels of profitability. Our
key territories of Germany, France, and The Netherlands increased sales year
on year by 32.3%. These territories now represent 94.3% of total international
sales (FY22: 84.4%). These European markets have also been materially impacted
by consumer dynamics as well as the geopolitical events in Ukraine, and
therefore whilst the timing of the launch of the in Europe fulfilment has
proved challenging, from a medium-term perspective these remain attractive
markets, given the need, post Brexit, to fulfil these products directly from
within the EU.
Revenue 31 January 31 January
2023 2022
£m £m
UK Revenue 71.0 69.8
Germany, France and Netherlands revenue 3.0 2.2
Other countries revenue 0.2 0.4
74.1 72.5
Retail stores revenue 41.3 38.7
Ecommerce revenue 32.8 33.8
74.1 72.5
Stores were not impacted by COVID trading restrictions during FY23, unlike
FY22 where Q1 was impacted by such restrictions. Like-for-like store sales
were flat year on year with Q1 reflecting the restrictions 34.1% higher, Q2
9.7% lower, with this softening to 1.1% lower by Q4. The increase in store
sales from the expansion of the Group's three new stores during the year was
£0.9m with £2.4m from the four new store openings in FY22, collectively
contributing £3.3m (8.1%) to total stores revenue.
UK online sales reduced 4.8% year on year, reflecting a COVID influenced H1
FY22 comparatives. Customer demand has proved volatile throughout the year
with monthly performance against prior year periods (excluding November -
anniversary of cyber-attack in FY22) ranging from 26% down to 12% up.
Our own brand product range Advanta contributed 6.8% (FY22 5.6%) of total
sales, £5.0m, during the year (FY22: £4.1m) an increase of 24.2% on prior
year.
Gross margin
Our gross profit decreased by 3.1% to £25.8m (FY22: £26.6m). Gross margin
reduced by 190 bps to 34.8% (FY22: 36.7%). UK gross margins reduced to 35.3%
from 37.0%. The UK business was unable to pass through all product price
inflation into the customer's basket, as well as investing in price to grow
market share. Against this consumer spend headwind the UK business was
successful in supporting the gross margin by increasing its penetration of own
brand sales, as well as improving the margins from sell through of
discontinued lines.
Other income
As highlighted above the Group did not access direct government support during
FY23 relating to the COVID-19 pandemic. In FY22 the Group accessed £0.9m of
support, comprising £0.7m for RGS and £0.2m for CJRS.
The Group was the subject of a malicious cyber-attack during Q4 FY22 which
resulted in 7 days lost trading for the online business. The incident was
subject to an insurance claim with the Group's insurers and this was
successfully settled in FY23 with the Group recovering a payment of £0.3m.
Administrative expenses
Total administrative expenses increased by 10.4% to £21.7m (FY22: £19.7m)
compared to a 2.2% increase in revenue. Of the increase £0.6m relates to the
European segment, £0.4m as the European segment incurred higher levels of
variable cost as revenues grew, £0.5m of higher fixed costs relating to the
European property and colleagues, with a £0.3m saving on advisors' fees
incurred during the setup phase during FY22.
In the UK head office administrative expenses reduced £0.4m as the Group
continued to challenge itself to ensure its growth leveraged its fixed cost
base. UK stores increased £1.5m (17%), an increased depreciation charge of
£0.4m for new space alongside the loss of government support for business
rates and living wage increases materially contributed to the change. The UK
online business administrative expenses increased £0.4m as living wage
challenges and business rates relief also impacted this segment.
Segmental Analysis
The Group has for the first time disclosed its European business as a separate
reporting segment as the Board now evaluates this aspect of the business as a
separate operating segment.
The stores, despite increasing revenue year on year by 6.8%, reduced their
EBITDA to £6.7m (FY22 £7.1m) and profit before tax year on year to £3.9m
(FY22 £4.8m). Operational efficiencies were unable to fully offset the impact
of COVID Business Rates relief falling away (£0.3m), impact of c7% living
wage increase and softer gross margins year on year (70 bps) as the Group
consciously invested margin to retain customers as consumer spend became more
challenged. All stores remain pre-IFRS 16 EBITDA profitable post three-year
maturity.
The UK online business despite contracting 4.8% in revenues year on year
delivered £2.8m of profit before tax and £3.4m of EBITDA. The segment
experienced more challenging dynamics on gross margin than the stores given
the relative mix in the online business to higher value capital items.
The European segment delivered a loss before tax of £1.3m and an EBITDA loss
of £1.0m. The in-country customer fulfilment model commenced in March which
coincided with the start of the war in Ukraine and more challenging European
customer dynamics. Whilst the sales ambitions for the start-up European
business were not delivered in the year the Group worked hard to balance
growth and levels of losses. H2 in FY23 saw the Group reduce the EBITDA losses
to £0.4m from the £0.6m in H1 against a backdrop of maintaining an annual
fixed cost base of c£0.8m.
The Head Office segment modestly increased its loss before tax to £4.8m (FY22
£4.7m) despite the loss of £0.9m of government COVID-19 support. Payroll
costs in the segment reduced £0.5m year on year as the Group continued to
evaluate colleague investment levels against the more challenging consumer
environment.
Segmental analysis 2023 2022
Year ended 31 January £m Stores UK online Europe online Head office Total Stores Online Head office Total
Revenue 41.3 29.7 3.1 - 74.1 38.7 33.8 - 72.5
Net assets 14.4 3.3 3.4 16.2 37.3 12.7 4.6 19.1 36.4
Profit / (loss) before tax 3.9 2.8 -1.3 -4.8 0.7 4.8 3.9 -4.7 4.0
EBITDA post IFRS 16 6.7 3.4 -1.0 -4.5 4.6 7.1 4.5 -4.3 7.3
EBITDA pre IFRS 16 4.9 3.2 -1.2 -4.7 2.2 5.3 4.3 -4.5 5.2
Profit before tax and EBITDA
Profit before tax decreased 83% to £0.7m (FY22: £4.0m) with the ratio to
sales reducing from 5.5% in FY22 to 0.9%, gross margin representing 1.9% of
the movement, the cost base 2% and reduced government support net of the cyber
insurance recovery 0.7%. EBITDA reduced 38% to £4.6m (FY22: £7.3m), as a
ratio of sales 6.2% (FY22: 10.1%) and on a pre IFRS 16 basis 57% to £2.2m
(FY22: £5.2m), as a ratio of sales 3.0% (FY22: 7.2%).
Tax
The Group's effective tax rate was 19.4% (FY22: 23.5%). A reconciliation of
the expected tax charge at the standard rate to the actual charge is shown
below. All the Group's revenues and the majority of its expenses are all
subject to corporation tax. The main expenses that are not deductible for tax
purposes are professional fees. Tax relief for some expenditure, mainly
unapproved share options is received over a longer period than that for which
the costs are charged to the financial statements. Corporation tax rates in
the UK and the Netherlands are comparable and therefore no material difference
arises from the UK headline corporation tax rate of 19%.
Taxation £m %
Profit before tax 0.7
Expected tax at UK standard rate of tax 0.1 19.0%
Ineligible depreciation 0.0 1.8%
Expenses not deductible for tax purposes 0.0 0.1%
Capital allowances enhanced deduction (0.1) (8.1%)
Difference in current and deferred tax rate 0.0 2.8%
Adjustments in respect of previous year's tax charge 0.0 3.7%
Actual charge / effective tax rate 0.1 19.4%
Returns and dividends
Basic earnings per share ('EPS') is 0.70p (FY22: 3.98p) reducing 82% year on
year, comparable with the rate in reduction of profit before tax. The lower
diluted earnings per share reflects the current LTIP share options in issue
which would dilute the basic earnings per share.
There were no dividends paid, recommended or declared during the current and
prior financial year. The Group is focused on delivering a strategy of
profitable growth and will reinvest all surplus cash resources back into the
business, and continues to evaluate accretive M&A opportunities as market
pricing starts to reflect post COVID-19 trading. As a result of this, in the
short term, the Directors do not recommend a dividend payment to be
distributed for the year ended 31 January 2023. The dividend policy will be
kept under review as strategic expansion plans progress.
Statement of financial position
Our consolidated statement of financial position is robust. As at 31 January
2023 the Group had a net asset position of £37.3m (FY22: £36.4m) and a net
current asset position of £23.7m (FY22: £23.2m). The Group includes £0.0m
of net assets and liabilities of its wholly owned subsidiary ADNL B.V.
The Group also had no external borrowing as at the reporting date and closed
FY23 with a cash and cash equivalents position of £14.1m (FY22: £16.6m). Net
debt* increased to (£2.6m) from (£5.6m) in FY22, (£0.6m) reflecting the
increased lease obligations in the UK stores with the remainder reflecting
investment of cash into continued UK store roll outs and European working
capital.
The table below shows the key components of the statement of financial
position, the movements of note being the increase in inventory levels
primarily reflecting the £2.3m inventory investment into the new European
distribution centre. The Group had three new stores in the estate as well as
also building up our own branded stock, Advanta, and funded these activities
through continued refinement of the wider UK stock holding without
compromising availability. Stock turn for the Group as a result of these
factors reduced to 2.8x from 3.0x. Stock turn for the UK remained at 3.0x.
Property, plant and equipment grew by £0.6m with the introduction of three
new stores. Additions in the year also included £0.1m relating to Cardiff
(opened in Q1 FY24) as well as £0.2m relating to ongoing store refresh
programmes. Right of use assets (ROU) have grown modestly by £0.4m. Three new
stores were brought into the estate comprising £1.0m of the ROU addition,
with the remaining additions relating to the existing Milton Keynes location
(new lease arrangement) and the new store in Cardiff. The addition of the
European distribution centre lease was executed Q4 FY22 and did not materially
impact the year-on-year change. Offsetting this growth in asset, the
depreciation charge grew to £2.0m (FY22: £1.6m), the Group continued to
evaluate its dilapidation obligations and associated restoration provision for
its growing physical store and distribution centre footprint. Two leases were
remeasured in line with contracted lease dates. The average length of lease
remaining for the Group has reduced to 5.6 years (FY22: 6.0 years). Additional
investment in our software and IT platforms of £0.3m was offset by a
corresponding depreciation charge as the business starts to reach a level of
maturity on its investment profile.
Statement of financial position 31 January 31 January
2023 2022
£m £m
Property, plant and equipment 7.5 6.9
IFRS 16 Right-of-use assets 11.4 11.0
Intangible assets 6.1 6.2
Total non-current assets 25.0 24.1
Stock 17.8 16.3
Cash 14.1 16.6
Other current assets 1.1 1.1
Total current assets 33.0 34.0
Trade payables (7.5) (8.7)
Lease liabilities (1.8) (1.6)
Other current liabilities (0.1) (0.5)
Total current liabilities (9.3) (10.8)
Lease liabilities (9.8) (9.4)
Other non-current liabilities (1.7) (1.5)
Total non-current liabilities (11.4) (10.9)
Net assets 37.3 36.4
*Net debt represents the Group's IFRS 16 lease liabilities less the cash
position as at the reporting date.
Cash flow and funding
During FY23 the Group generated cash from operating activities of £1.5m
(FY22: £4.8m). Operating cash generation was impacted £3.3m year on year as
a result of the reduced profit before tax as set out above. Working capital
investment year on year was broadly neutral despite the scaled investment into
the European distribution centre. The Group was also tax paying in FY23 for
the first time with £0.4m paid in respect of the FY22 year and £0.1m on
account in respect of the FY23 forecast profits.
The Group has pursued its growth strategy by continuing to deploy available
cash resources into our e-commerce platforms both in the UK and
internationally, alongside investment in our technology and inventory
management systems. During the period, the Group spent £2.0m on property
plant and equipment, capitalised spend in FY23 was £1.7m as FY23 cash
included payments in respect of prior year additions made in the closing
months of FY22 as the new European distribution centre was being
operationalised.
Total cash used in the period was £2.5m (FY22: £1.6m cash generated).
Cash flow 31 January 31 January
2023 2022
£m £m
Opening cash 16.6 15.0
Profit for year 0.7 4.0
Movement in working capital (2.4) (2.4)
Depreciation and amortisation 3.5 2.9
Taxation paid (0.5) -
Other operating adjustments 0.2 0.3
Net cash from operating activities 1.5 4.8
Net cash from investing activities (2.3) (1.5)
Net cash from financing activities (1.7) (1.7)
Increase in cash in year (2.5) 1.6
Closing cash 14.1 16.6
Going concern and viability
At the Statement of Financial Position date, the Group had cash balances of
£14.1m. The Directors consider the £14.1m enables them to meet all current
liabilities as they fall due. Since the year end, the Group has continued to
trade within the range of internal plans upon which this assessment has been
made.
After consideration of market conditions, the Group's financial position,
financial forecasts for two years, its profile of cash generation and
principal risks, the Directors have a reasonable expectation that both the
Company and the Group will be able to continue in operation and meet their
liabilities as they fall due over the period. For this reason, the going
concern basis continues to be adopted in preparing the financial statements.
Outlook
We are confident in our ability to deliver further growth despite the
continued uncertainty in the macro-economic environment and the impact on
consumer confidence and spending patterns. With the improved financial
performance in the UK business, which is now consistently delivering positive
profits in comparison to the pre-pandemic year in FY20, alongside the
strengthened balance sheet, and tight cash management, we are well positioned
to continue the programme of investment, both into the UK within the physical
estate, as well as in Europe in short term losses as the online business
continues to gain traction.
We will continue our focus on organic growth in the UK through the acquisition
of customers, both in the physical and online space and will invest further to
better understand and develop our understanding of the customer and our offer
to them. Operationally the business will continue to focus on efficiency to
mitigate as far as possible the impact of cost and wage inflation, and more
specially the living wage changes from April 2023.
As our understanding of the European market deepens, we will deploy capital
into a European omni-channel offer, primarily through greenfield sites,
augmented by investment in strategically aligned acquisitions where these can
be delivered on compelling metrics.
We have continued to focus on building disciplined financial controls both in
the UK and more latterly in Europe. In addition, our focus has been upon
achieving operational excellence, strengthening corporate governance,
maintaining the robustness of the statement of financial position and
promoting fishing as a pastime through our evolving online and store customer
offerings.
___________________________
Steve Crowe
Chief Financial Officer
15 May 2023
Consolidated statement of profit or loss and other comprehensive income
For the year ended 31 January 2023
Consolidated
2023 2022
Revenue from contracts with customers 4 (#_ArvNote_TOC) 74,096 72,474
Cost of sales of goods 7 (#_AexNote_TOC) (48,307) (45,864)
Gross profit 25,789 26,610
Other income 5 (#_AroNote_TOC) 287 914
Interest revenue calculated using the effective interest method 104 14
Expenses
Administrative expenses (21,742) (19,687)
Distribution expenses (3,260) (3,423)
Finance costs 7 (509) (406)
Profit before income tax expense 669 4,022
Income tax expense 9 (130) (945)
Profit after income tax expense for the year attributable to the owners of 539 3,077
Angling Direct PLC
Other income 5 (#_AroNote_TOC) 287 914
Interest revenue calculated using the effective interest method 104 14
Expenses
Administrative expenses (21,742) (19,687)
Distribution expenses (3,260) (3,423)
Finance costs 7 (509) (406)
Profit before income tax expense 669 4,022
Income tax expense 9 (130) (945)
Profit after income tax expense for the year attributable to the owners of 539 3,077
Angling Direct PLC
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation 127 -
Other comprehensive income for the year, net of tax 127 -
Total comprehensive income for the year attributable to the owners of Angling 666 3,077
Direct PLC
Pence Pence
Basic earnings per share 24 0.70 3.98
Diluted earnings per share 24 0.69 3.93
Consolidated statement of financial position
As at 31 January 2023
Consolidated
Non-current assets 2023 2022
Intangibles 10 (#_NaiNote_TOC) 6,060 6,176
Property, plant and equipment 11 (#_NaaNote_TOC) 7,534 6,908
Right-of-use assets 12 (#_NauNote_TOC) 11,418 11,028
Total non-current assets 25,012 24,112
Current assets
Inventories 13 (#_NasNote_TOC) 17,813 16,273
Trade and other receivables 14 (#_NarNote_TOC) 447 542
Income tax refund due 58 -
Prepayments 603 545
Cash and cash equivalents 14,127 16,604
Total current assets 33,048 33,964
Current liabilities
Trade and other payables 15 (#_ClpNote_TOC) 6,765 8,037
Contract liabilities 16 727 643
Lease liabilities 17 (#_ClmNote_TOC) 1,793 1,648
Derivative financial instruments 51 1
Income tax - 464
Total current liabilities 9,336 10,793
Net current assets 23,712 23,171
Total assets less current liabilities 48,724 47,283
Non-current liabilities
Lease liabilities 17 (#_ClmNote_TOC) 9,750 9,402
Restoration provision 18 (#_ClvNote_TOC) 801 722
Deferred tax 19 883 744
Total non-current liabilities 11,434 10,868
Net assets 37,290 36,415
Net assets 37,290 36,415
Equity
Share capital 20 (#_EqcNote_TOC) 773 773
Share premium 21 (#_EqyNote_TOC) 31,037 31,037
Reserves 22 602 266
Retained profits 4,878 4,339
Total equity 37,290 36,415
Share Share Retained Total equity
premium
capital account Reserves profits
Consolidated £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2021 773 31,037 75 1,262 33,147
Profit after income tax expense for the year - - - 3,077 3,077
Other comprehensive income for the year, net of tax - - - - -
Total comprehensive income for the year - - - 3,077 3,077
Transactions with owners in their capacity as owners:
Share-based payments - - 191 - 191
Balance at 31 January 2022 773 31,037 266 4,339 36,415
Share Share Retained Total equity
premium
capital account Reserves profits
Consolidated £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2022 773 31,037 266 4,339 36,415
Profit after income tax expense for the year - - - 539 539
Other comprehensive income for the year, net of tax - - 127 - 127
Total comprehensive income for the year - - 127 539 666
Transactions with owners in their capacity as owners:
Share-based payments - - 209 - 209
Balance at 31 January 2023 773 31,037 602 4,878 37,290
Share Share Retained Total equity
premium
capital account Reserves profits
Consolidated £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2022 773 31,037 266 4,339 36,415
Profit after income tax expense for the year - - - 539 539
Other comprehensive income for the year, net of tax - - 127 - 127
Total comprehensive income for the year - - 127 539 666
Transactions with owners in their capacity as owners:
Share-based payments - - 209 - 209
Balance at 31 January 2023 773 31,037 602 4,878 37,290
Consolidated statement of cashflows
For the year ended 31 January 2023
Consolidated
2023 2022
Cash flows from operating activities
Profit before income tax expense for the year 669 4,022
Adjustments for:
Depreciation and amortisation 3,485 2,922
Share-based payments 209 191
Net movement in provisions 30 12
Net variance in derivative liabilities 50 -
Interest received (104) (14)
Interest and other finance costs 429 394
4,768 7,527
Change in operating assets and liabilities:
Decrease in trade and other receivables 95 81
Increase in inventories (1,540) (3,792)
Increase in prepayments (58) (300)
(Decrease)/Increase in trade and other payables (965) 1,596
Increase in contract liabilities 84 30
2,384 5,142
Interest received 104 14
Interest and other finance costs (429) (393)
Income taxes paid (513) -
Net cash from operating activities 1,546 4,763
Cash flows from investing activities
Payments for property, plant and equipment (2,014) (1,202)
Payments for intangibles (289) (327)
Proceeds from disposal of property, plant and equipment - 5
Net cash used in investing activities (2,303) (1,524)
Cash flows from financing activities
Repayment of lease liabilities (1,720) (1,631)
Net cash used in financing activities (1,720) (1,631)
Net (decrease)/increase in cash and cash equivalents (2,477) 1,608
Cash and cash equivalents at the beginning of the financial year 16,604 14,996
Cash and cash equivalents at the end of the financial year 14,127 16,604
1. Basis of preparation
The Group's consolidated financial statements have been prepared in accordance
with UK adopted international accounting standards and IFRIC interpretations
and with those parts of the Companies Act 2006 applicable to reporting groups
under IFRS.
The financial information set out above does not constitute the company's
statutory accounts for 2023 or 2022. Statutory accounts for the years ended 31
January 2023 and 31 January 20222 have been reported on by the Independent
Auditors. The Independent Auditors' report on the Annual Report and Financial
Statements for the years ended 31 January 2023 and 31 January 2022 is
unqualified.
Statutory accounts for the year ended 31 January 2022 have been filed with the
Registrar of Companies. The statutory accounts for the year ended 31 January
2022 will be delivered to the Registrar in due course.
2. Going concern including liquidity
The Group has considerable financial resources together with long-standing
relationships with a number of key suppliers and an established reputation in
the retail sector across the UK and Europe.
The Directors have considered the Group's growth prospects in the period to 31
January 2025 based on its customer proposition and online offering in the UK
and Europe and concluded that potential growth rates remain strong. The Group
has no external finance outside of its right-of-use lease liabilities. The
Group has conducted various stress tests, none of which resulted in a change
to the assessment of the Group as a going concern.
In making this judgement the Directors have reviewed the future viability and
going concern position of the Group for the foreseeable future.
The Group's policy is to ensure that it has sufficient facilities to cover its
future funding requirements. At 31 January 2023, the Group had cash and cash
equivalents of £14.1m (2022: £16.6m). This significant headroom has been
factored into the Directors' going concern assessment.
Having duly considered all of these factors and having reviewed the forecasts
for the coming year, the Directors have a reasonable expectation that the
Group has adequate resources to continue trading for the foreseeable future,
and as such continue to adopt the going concern basis of accounting in
preparing the financial statements.
3. Segmental reporting
Segment information is presented in respect of the Group's operating segments,
based on the Group's management and internal reporting structure, and
monitored by the Group's Chief Operating Decision Maker (CODM).
Segment results, assets and liabilities include items directly attributable to
a segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly own brand stock in transit from the
manufacturers, group cash and cash equivalents, taxation related assets and
liabilities, centralised support functions salary and premises costs, and
government grant income.
Geographical segments
The business operated predominantly in the UK. As at 31 January 2023, it has
three native language web sites for Germany, France and the Netherlands. In
accordance with IFRS 8 'Operating segments' for the periods up to 31 January
2022 no segment results are presented for trade with European customers as
these are not reported separately for management purposes and are not
considered material for separate disclosure. Trading through the subsidiary in
the Netherlands commenced on 1 March 2022.
Operating segments
In the periods to 31 January 2022, the Group is split into two operating
segments (Stores and Online) and a centralised support function (Head Office)
for business segment analysis. In identifying these operating segments,
management follows the route to market for the generation of the customer
order for its products. Due to the commencement of trading through the
subsidiary in the Netherlands, management has made a judgement that there are
now three operating segments (Stores, UK Online and Europe Online) from 1
February 2022. The Group has not restated the previously reported segment
information for the year ended 31 January 2022, as the necessary information
is not available and the cost to develop it would be excessive.
Each of these operating segments is managed separately as each segment
requires different specialisms, marketing approaches and resources. Head
Office includes costs relating to the employees, property and other overhead
costs associated with the centralised support functions.
Where the customer contract is fulfilled by an operating segment other than
the segment to which the customer order was placed, the revenue is recognised
in the operating segment to which the order originates, and the profit
attributable to that transaction is recognised in the operating segment
fulfilling the order. In 2023, Revenue of £937,000 was recognised in the UK
Online and fulfilled by the Stores, and profit of £38,000 was transferred to
the Stores from the UK Online segment.
The CODM reviews EBITDA (earnings before interest, tax, depreciation and
amortisation) pre IFRS 16. The accounting policies adopted for internal
reporting to the CODM are consistent with those adopted in the financial
statements, save for IFRS 16. A full reconciliation of pre IFRS 16 EBITDA to
post IFRS 16 EBITDA performance is provided to the CODM.
The information reported to the CODM is on a monthly basis.
At 31 January 2023, £24,066,000 of non-current assets are located in the UK
(31 January 2022: £23,030,000) and £946,000 of non-current assets are
located in the Netherlands (31 January 2022: £nil).
There are no major customers that contribute more than 10% of the Group's
revenue.
Operating segment information
UK Europe
Stores Online Online Head office Total
Consolidated - 2023 £'000 £'000 £'000 £'000 £'000
Revenue 41,296 29,656 3,144 - 74,096
Profit/(loss) before income tax 3,925 2,771 (1,259) (4,768) 669
EBITDA post IFRS16 6,663 3,373 (977) (4,500) 4,559
Total assets 26,377 7,029 4,460 20,194 58,060
Total liabilities (12,001) (3,733) (1,084) (3,952) (20,770)
EBITDA Reconciliation
Profit/(loss) before income tax 3,925 2,771 (1,259) (4,768) 669
Less: Interest income - - - (104) (104)
Add: Interest expense 362 45 37 65 509
Add: Depreciation and amortisation 2,376 557 245 307 3,485
EBITDA post IFRS 16 6,663 3,373 (977) (4,500) 4,559
Less: Costs relating to IFRS 16 lease liabilities (1,764) (178) (219) (174) (2,335)
EBITDA pre IFRS 16 4,899 3,195 (1,196) (4,674) 2,224
Stores Online Head office Total
Consolidated - 2022 £'000 £'000 £'000 £'000
Revenue 38,665 33,809 - 72,474
Profit/(loss) before income tax 4,816 3,940 (4,734) 4,022
EBITDA post IFRS 16 7,144 4,510 (4,318) 7,336
Total assets 25,983 8,724 23,369 58,076
Total liabilities (13,262) (4,095) (4,304) (21,661)
EBITDA Reconciliation
Profit/(loss) before income tax 4,816 3,940 (4,734) 4,022
Less: Interest income - - (14) (14)
Add: Interest expense 330 49 27 406
Add: Depreciation and amortisation 1,998 521 403 2,922
EBITDA post IFRS 16 7,144 4,510 (4,318) 7,336
Less: Costs relating to IFRS 16 lease liabilities (1,813) (182) (140) (2,135)
EBITDA pre IFRS 16 5,331 4,328 (4,458) 5,201
EBITDA Reconciliation
Profit/(loss) before income tax 3,925 2,771 (1,259) (4,768) 669
Less: Interest income - - - (104) (104)
Add: Interest expense 362 45 37 65 509
Add: Depreciation and amortisation 2,376 557 245 307 3,485
EBITDA post IFRS 16 6,663 3,373 (977) (4,500) 4,559
Less: Costs relating to IFRS 16 lease liabilities (1,764) (178) (219) (174) (2,335)
EBITDA pre IFRS 16 4,899 3,195 (1,196) (4,674) 2,224
Stores Online Head office Total
Consolidated - 2022 £'000 £'000 £'000 £'000
Revenue 38,665 33,809 - 72,474
Profit/(loss) before income tax 4,816 3,940 (4,734) 4,022
EBITDA post IFRS 16 7,144 4,510 (4,318) 7,336
Total assets 25,983 8,724 23,369 58,076
Total liabilities (13,262) (4,095) (4,304) (21,661)
EBITDA Reconciliation
Profit/(loss) before income tax 4,816 3,940 (4,734) 4,022
Less: Interest income - - (14) (14)
Add: Interest expense 330 49 27 406
Add: Depreciation and amortisation 1,998 521 403 2,922
EBITDA post IFRS 16 7,144 4,510 (4,318) 7,336
Less: Costs relating to IFRS 16 lease liabilities (1,813) (182) (140) (2,135)
EBITDA pre IFRS 16 5,331 4,328 (4,458) 5,201
4. Revenue from contracts with customers
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Consolidated
2023 2022
£'000 £'000
Route to market
Retail store sales 41,296 38,665
E-commerce 32,800 33,809
74,096 72,474
Geographical regions
United Kingdom 70,952 69,818
Europe and Rest of the World 3,144 2,656
74,096 72,474
Timing of revenue recognition
Goods transferred at a point in time 74,096 72,474
5. Other income
Consolidated
2023 2022
£'000 £'000
Net foreign exchange (loss) - (18)
Government grants - 932
Insurance claim 258 -
Rent income 29 -
Other income 287 914
As a result of the economic impacts of the Covid-19 pandemic, a number of
government programmes were put into place to support businesses and consumers.
Examples of such initiatives include the UK's Coronavirus Job Retention
Scheme. In accounting for the impacts of these measures, the Group has applied
IAS 20: 'Government Grants'.
No government grants were received during the current year. During prior year
to 31 January 2022, the Group recognised an amount totalling £216,000
receivable under the UK Government's Coronavirus Job Retention Scheme and an
amount totalling £716,000 receivable under UK Governments Restart Grants.
As a result of the economic impacts of the Covid-19 pandemic, a number of
government programmes were put into place to support businesses and consumers.
Examples of such initiatives include the UK's Coronavirus Job Retention
Scheme. In accounting for the impacts of these measures, the Group has applied
IAS 20: 'Government Grants'.
No government grants were received during the current year. During prior year
to 31 January 2022, the Group recognised an amount totalling £216,000
receivable under the UK Government's Coronavirus Job Retention Scheme and an
amount totalling £716,000 receivable under UK Governments Restart Grants.
6. EBITDA reconciliation (earnings before interest, taxation, depreciation and
amortisation)
The Directors believe that adjusted profit provides additional useful
information for shareholders on performance. This is used for internal
performance analysis. This measure is not defined by IFRS and is not intended
to be a substitute for, or superior to, IFRS measurements of profit. The
following table is provided to show the comparative earnings before interest,
tax, depreciation and amortisation ("EBITDA") after adjusting for rents,
dilapidation charges and associated legal costs, where applicable, relating to
IFRS 16 lease liabilities.
Consolidated
2023 2022
£'000 £'000
EBITDA reconciliation
Profit before income tax expense post IFRS 16 669 4,022
Less: Interest income (104) (14)
Add: Interest expense 509 406
Add: Depreciation and amortisation 3,485 2,922
EBITDA post IFRS 16 4,559 7,336
Less: costs relating to IFRS 16 lease liabilities (2,335) (2,135)
EBITDA pre IFRS 16 2,224 5,201
7. Expenses
Consolidated
2023 2022
£'000 £'000
Profit before income tax includes the following specific expenses:
Cost of sales
Cost of inventories as included in 'cost of sales' 48,307 45,864
Depreciation
Land and buildings improvements 39 16
Plant and equipment 862 643
Motor vehicles 2 2
Computer equipment 204 282
Land and buildings right-of-use assets 1,904 1,454
Plant and equipment right-of-use assets 7 56
Motor vehicles right-of-use assets 56 61
Computer equipment right-of-use assets 6 6
Total depreciation 3,080 2,520
Amortisation
Software 405 402
Total depreciation and amortisation * 3,485 2,922
Finance costs
Interest and finance charges paid/payable on lease liabilities 430 393
Interest and finance charges on restoration provision 30 12
Change in fair value of forward foreign currency hedges 49 1
Finance costs expensed 509 406
Foreign exchange losses 18 18
Leases
Short-term lease payments 40 51
Low-value assets lease payments 47 16
Total leases expensed 87 67
* Depreciation and amortisation expense is included within "administrative
expenses" in the Statement of profit or loss and other comprehensive income.
* Depreciation and amortisation expense is included within "administrative
expenses" in the Statement of profit or loss and other comprehensive income.
8. Staff costs
Consolidated
2023 2022
£'000 £'000
Aggregate remuneration:
Wages and salaries 9,711 9,591
Social security costs 963 815
Other pension costs 377 347
Total staff costs 11,051 10,753
The average number of employees during the year was as follows:
Consolidated
2023 2022
Stores 300 272
Warehouse 46 45
Administration 45 41
Marketing 28 27
IT and web 12 12
Management 9 9
Other 2 4
Average number of employees 442 410
Staff costs above include Directors' salaries, social security costs and other
pension costs. Directors' remuneration is detailed in the Remuneration report
which forms part of these financial statements.
The average number of employees during the year was as follows:
Consolidated
2023 2022
Stores 300 272
Warehouse 46 45
Administration 45 41
Marketing 28 27
IT and web 12 12
Management 9 9
Other 2 4
Average number of employees 442 410
Staff costs above include Directors' salaries, social security costs and other
pension costs. Directors' remuneration is detailed in the Remuneration report
which forms part of these financial statements.
9. Income tax expense
Consolidated
2023 2022
£'000 £'000
Income tax expense
Current tax 25 464
Deferred tax - origination and reversal of temporary differences 80 305
Deferred tax - rate change - 179
Current tax adjustment recognised for prior periods (34) -
Deferred tax adjustment recognised for prior periods 59 (3)
Aggregate income tax expense 130 945
Numerical reconciliation of income tax expense and tax at the statutory rate
Profit before income tax expense 669 4,022
Tax at the statutory tax rate of 19% 127 763
Tax effect amounts which are not deductible/(taxable) in calculating taxable
income:
Non-qualifying depreciation 12 7
Super deduction rate (54) (54)
Non-deductible expenses 1 53
Deferred tax rate impact 19 179
105 948
Adjustment recognised for prior periods 25 (3)
Income tax expense 130 945
10. Intangibles
Consolidated
2023 2022
£'000 £'000
Non-current assets
Goodwill - at cost 5,802 5,802
Less: Impairment (182) (182)
5,620 5,620
Software - at cost 1,720 1,431
Less: Accumulated amortisation (1,280) (875)
440 556
6,060 6,176
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current and previous financial year are set out below:
Goodwill Software Total
Consolidated £'000 £'000 £'000
Balance at 1 February 2021 5,620 631 6,251
Additions - 327 327
Amortisation expense - (402) (402)
Balance at 31 January 2022 5,620 556 6,176
Additions - 289 289
Amortisation expense - (405) (405)
Balance at 31 January 2023 5,620 440 6,060
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current and previous financial year are set out below:
Goodwill Software Total
Consolidated £'000 £'000 £'000
Balance at 1 February 2021 5,620 631 6,251
Additions - 327 327
Amortisation expense - (402) (402)
Balance at 31 January 2022 5,620 556 6,176
Additions - 289 289
Amortisation expense - (405) (405)
Balance at 31 January 2023 5,620 440 6,060
11. Property, plant and equipment
Consolidated
2023 2022
£'000 £'000
Non-current assets
Land and buildings improvements - at cost 1,002 1,002
Less: Accumulated depreciation (342) (303)
660 699
Plant and equipment - at cost 9,158 7,640
Less: Accumulated depreciation (2,836) (1,974)
6,322 5,666
Motor vehicles - at cost 15 15
Less: Accumulated depreciation (12) (10)
3 5
Computer equipment - at cost 1,333 1,118
Less: Accumulated depreciation (784) (580)
549 538
7,534 6,908
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current and previous financial year are set out below:
Land and Plant and Motor Computer
buildings
improvements equipment vehicles equipment Total
Consolidated £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2021 715 4,726 7 571 6,019
Additions - 1,588 - 249 1,837
Disposals - (5) - - (5)
Depreciation expense (16) (643) (2) (282) (943)
Balance at 31 January 2022 699 5,666 5 538 6,908
Additions - 1,511 - 214 1,725
Exchange differences - 7 - 1 8
Depreciation expense (39) (862) (2) (204) (1,107)
Balance at 31 January 2023 660 6,322 3 549 7,534
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current and previous financial year are set out below:
Land and Plant and Motor Computer
buildings
improvements equipment vehicles equipment Total
Consolidated £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2021 715 4,726 7 571 6,019
Additions - 1,588 - 249 1,837
Disposals - (5) - - (5)
Depreciation expense (16) (643) (2) (282) (943)
Balance at 31 January 2022 699 5,666 5 538 6,908
Additions - 1,511 - 214 1,725
Exchange differences - 7 - 1 8
Depreciation expense (39) (862) (2) (204) (1,107)
Balance at 31 January 2023 660 6,322 3 549 7,534
12. Right-of-use assets
Consolidated
2023 2022
£'000 £'000
Non-current assets
Land and buildings - long leasehold - right-of-use 19,235 16,979
Less: Accumulated depreciation (7,984) (6,080)
11,251 10,899
Plant and equipment - right-of-use 80 80
Less: Accumulated depreciation (56) (49)
24 31
Motor vehicles - right-of-use 433 326
Less: Accumulated depreciation (304) (248)
129 78
Computer equipment - right-of-use 59 59
Less: Accumulated depreciation (45) (39)
14 20
11,418 11,028
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current and previous financial year are set out below:
Land and Plant and Motor Computer
buildings equipment vehicles equipment Total
Consolidated £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2021 9,490 409 82 26 10,007
Additions 2,519 - 57 - 2,576
Disposals - (322) - - (322)
Remeasurement 344 - - - 344
Depreciation expense (1,454) (56) (61) (6) (1,577)
Balance at 31 January 2022 10,899 31 78 20 11,028
Additions 2,142 - 107 - 2,249
Remeasurement 73 - - - 73
Exchange differences 41 - - - 41
Depreciation expense (1,904) (7) (56) (6) (1,973)
Balance at 31 January 2023 11,251 24 129 14 11,418
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current and previous financial year are set out below:
Land and Plant and Motor Computer
buildings equipment vehicles equipment Total
Consolidated £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2021 9,490 409 82 26 10,007
Additions 2,519 - 57 - 2,576
Disposals - (322) - - (322)
Remeasurement 344 - - - 344
Depreciation expense (1,454) (56) (61) (6) (1,577)
Balance at 31 January 2022 10,899 31 78 20 11,028
Additions 2,142 - 107 - 2,249
Remeasurement 73 - - - 73
Exchange differences 41 - - - 41
Depreciation expense (1,904) (7) (56) (6) (1,973)
Balance at 31 January 2023 11,251 24 129 14 11,418
13. Inventories
Consolidated
2023 2022
£'000 £'000
Current assets
Finished goods - at cost 17,813 16,273
Finished goods include £nil (2022: £0.3m) of provisions to remove certain
product lines from the Group as part of a product ranging exercise and
includes £0.1m (2022: £nil) of provisions for obsolescence. This write down
to reflect net realisable value of these product lines was recognised as an
expense during the year to 31 January 2023.
Finished goods include £nil (2022: £0.3m) of provisions to remove certain
product lines from the Group as part of a product ranging exercise and
includes £0.1m (2022: £nil) of provisions for obsolescence. This write down
to reflect net realisable value of these product lines was recognised as an
expense during the year to 31 January 2023.
14. Trade and other receivables
Consolidated
2023 2022
£'000 £'000
Current assets
Trade receivables 26 62
Other receivables 421 480
447 542
15. Trade and other payables
Consolidated
2023 2022
£'000 £'000
Current liabilities
Trade payables 4,543 4,844
Accrued expenses 1,088 2,000
Refund liabilities 55 42
Social security and other taxes 589 711
Other payables 490 440
6,765 8,037
Contract liabilities has been reported separately on the Statement of
financial position. This was previously reporting in other payables.
.
16. Contract liabilities
Consolidated
2023 2022
£'000 £'000
Current liabilities
Contract liabilities at the start of the year 643 613
Issued in year 3,801 2,202
Redeemed in year (3,717) (2,172)
Contract liabilities at the end of the year 727 643
The contract liabilities primarily relate to unredeemed vouchers and gift
cards. This will be recognised as revenue when the vouchers and gift cards are
redeemed by customers, which is expected to occur over the next two years.
Contract liabilities has been reported separately on the Statement of
financial position. This was previously reporting in other payables.
.
16. Contract liabilities
Consolidated
2023 2022
£'000 £'000
Current liabilities
Contract liabilities at the start of the year 643 613
Issued in year 3,801 2,202
Redeemed in year (3,717) (2,172)
Contract liabilities at the end of the year 727 643
The contract liabilities primarily relate to unredeemed vouchers and gift
cards. This will be recognised as revenue when the vouchers and gift cards are
redeemed by customers, which is expected to occur over the next two years.
17. Lease liabilities
Consolidated
2023 2022
£'000 £'000
Current liabilities
Lease liability 1,793 1,648
Non-current liabilities
Lease liability 9,750 9,402
11,543 11,050
18. Restoration provision
Consolidated
2023 2022
£'000 £'000
Non-current liabilities
Restoration provision 801 722
Movements in provisions
Movements in each class of provision during the current financial year, other
than employee benefits, are set out below:
Restoration
provision
Consolidated - 2023 £'000
Carrying amount at the start of the year 722
Additional provisions recognised 49
Unwinding of discount 30
Carrying amount at the end of the year 801
Movements in provisions
Movements in each class of provision during the current financial year, other
than employee benefits, are set out below:
Restoration
provision
Consolidated - 2023 £'000
Carrying amount at the start of the year 722
Additional provisions recognised 49
Unwinding of discount 30
Carrying amount at the end of the year 801
19. Deferred tax
Consolidated
2023 2022
£'000 £'000
Non-current liabilities
Deferred tax liability comprises temporary differences attributable to:
Property, plant & equipment 1,097 893
IFRS 16 transitional adjustment (70) (82)
Unapproved share options issued (119) (67)
Tax losses (25) -
Deferred tax liability 883 744
Movements:
Opening balance 744 263
Charged/(credited) to profit or loss 80 305
Deferred tax - rate change - 179
Adjustment recognised for prior periods 59 (3)
Closing balance 883 744
The movement in the net deferred tax assets and liabilities is explained as
follows:
At 1 February Recognised in At 31 January
2022 Profit or loss 2023
£'000 £'000 £'000
Property, plant and equipment 893 204 1,097
IFRS 16 transitional adjustment (82) 12 (70)
Options issued (67) (52) (119)
Tax losses - (25) (25)
744 139 883
Movements:
Opening balance 744 263
Charged/(credited) to profit or loss 80 305
Deferred tax - rate change - 179
Adjustment recognised for prior periods 59 (3)
Closing balance 883 744
The movement in the net deferred tax assets and liabilities is explained as
follows:
At 1 February
Recognised in
At 31 January
2022
Profit or loss
2023
£'000
£'000
£'000
Property, plant and equipment
893
204
1,097
IFRS 16 transitional adjustment
(82)
12
(70)
Options issued
(67)
(52)
(119)
Tax losses
-
(25)
(25)
744
139
883
20. Share capital
Consolidated
2023 2022 2023 2022
Shares Shares £'000 £'000
Ordinary shares of £0.01 each - fully paid 77,267,304 77,267,304 773 773
21. Share premium
Consolidated
2023 2022
£'000 £'000
Share premium account 31,037 31,037
The share premium account is used to recognise the difference between the
issued share capital at nominal value and the capital received, net of
transaction costs.
The share premium account is used to recognise the difference between the
issued share capital at nominal value and the capital received, net of
transaction costs.
22. Reserves
Consolidated
2023 2022
£'000 £'000
Foreign currency reserve 127 -
Share-based payments reserve 475 266
602 266
Foreign currency reserve
The foreign currency translation reserve comprises exchange differences
relating to the translation of the net assets of the Group's foreign
subsidiary from their functional currency into the parent's functional
currency.
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to
employees and Directors as part of their remuneration, and other parties as
part of their compensation for services.
Movements in reserves
Movements in each class of reserve during the current and previous financial
year are set out below:
Foreign Share-based
currency payments Total
Consolidated £'000 £'000 £'000
Balance at 1 February 2021 - 75 75
Options granted - 191 191
Balance at 31 January 2022 - 266 266
Foreign currency translation gains 127 - 127
Options granted - 209 209
Balance at 31 January 2023 127 475 602
Foreign currency reserve
The foreign currency translation reserve comprises exchange differences
relating to the translation of the net assets of the Group's foreign
subsidiary from their functional currency into the parent's functional
currency.
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to
employees and Directors as part of their remuneration, and other parties as
part of their compensation for services.
Movements in reserves
Movements in each class of reserve during the current and previous financial
year are set out below:
Foreign Share-based
currency payments Total
Consolidated £'000 £'000 £'000
Balance at 1 February 2021 - 75 75
Options granted - 191 191
Balance at 31 January 2022 - 266 266
Foreign currency translation gains 127 - 127
Options granted - 209 209
Balance at 31 January 2023 127 475 602
23. Dividends
There were no dividends paid, recommended or declared during the current or
previous financial year.
24. Earnings per share
Consolidated
2023 2022
£'000 £'000
Profit after income tax attributable to the owners of Angling Direct PLC 539 3,077
Number Number
Weighted average number of ordinary shares used in calculating basic earnings 77,267,304 77,267,304
per share
Adjustments for calculation of diluted earnings per share:
Options over ordinary shares 900,536 1,000,912
Weighted average number of ordinary shares used in calculating diluted 78,167,840 78,268,216
earnings per share
Pence Pence
Basic earnings per share 0.70 3.98
Diluted earnings per share 0.69 3.93
Number Number
Weighted average number of ordinary shares used in calculating basic earnings 77,267,304 77,267,304
per share
Adjustments for calculation of diluted earnings per share:
Options over ordinary shares 900,536 1,000,912
Weighted average number of ordinary shares used in calculating diluted 78,167,840 78,268,216
earnings per share
Pence Pence
Basic earnings per share 0.70 3.98
Diluted earnings per share 0.69 3.93
25. Events after the reporting period
Post the reporting period, in February 2023, one of the Groups stores
(Reading) suffered a fire. The severity of the fire has resulted in the store
temporarily having to cease trading and at the date of this report the store
is being renovated by the landlord. The Group is insured for both the value of
the stock held at the location as well as loss profits from the location to
cover the period of closure (up to twelve months). The quantification of the
full claim will be subject to discussion with insurers once the store opening
date is agreed, post the required renovation works being completed.
No other matter or circumstance has arisen since 31 January 2023 that has
significantly affected, or may significantly affect the Group's operations,
the results of those operations, or the Group's state of affairs in future
financial years.
`
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