REG - Angling Direct PLC - Full Year Trading Update and Notice of Results

Angling DirectAnnouncement

21/02/2024 07:00

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RNS Number : 6628D  Angling Direct PLC  21 February 2024

 

 

21 February 2024

 

Angling Direct plc

("Angling Direct" or the "Company" or the "Group")

 

Full Year Trading Update and Notice of Results

 

Angling Direct plc (AIM: ANG), the leading omni-channel specialist fishing
tackle and equipment retailer, provides the following unaudited trading update
in relation to the financial year ended 31 January 2024 ("FY24"), ahead of
announcing its Final Results on 14 May 2024. The Board expects to report
overall trading for FY24 in line with market expectations(1).

 

 

Financial Highlights

 

 £m                                 FY 2024  FY 2023  Change

 Revenue                            81.7     74.1     10.2%

 UK sales                           77.4     71.0     9.0%

 Retail store sales                 44.4     41.3     7.6%

 Online sales                       37.2     32.8     13.5%

             UK Online sales        32.9     29.6     11.1%
             European Online sales  4.3      3.1      36.3%

 

 

Since the Company's last update on 24 October 2023, trading has been robust
despite the challenging consumer landscape and disruption to fishing caused by
named storm events in the final few weeks of FY24, with the Company delivering
a 10.2% increase in revenue to £81.7m (FY23: £74.1m).

 

Resilient UK store sales (up 7.6% to £44.4m) were underpinned by stronger
conversion and new store openings (Cardiff in February and Goole in April),
increasing the Group's store footprint from 45 to 47. These new stores,
alongside those stores opened in FY23, contributed £3.6m of sales in the
year. Like for like store sales were £40.7m(2), representing 3.1% growth and
demonstrating strength against FY23 where the growth rate was flat.

 

Total online sales increased 13.5% to £37.2m (FY23: £32.8m) driven in part
by a 36.3% increase in European online sales to £4.3m, as the Company
executes on its strategy of developing its European business proposition and
increasing its market share in this jurisdiction. UK online sales increased by
11.1%, driven by strong average transaction value growth and reflecting
increasing engagement in the Company's loyalty and repeat purchase membership
model, MyAD. The programme surpassed 220,000 members at the period end after
launching in June.

 

Management has continued to optimise stock investment, driving down underlying
working capital requirements. The robust trading performance and associated
cash conversion has enabled the Group to continue its store roll out strategy.
This has delivered an increased net cash position at 31 January 2024 of
£15.8m (31 January 2023: £14.1m).

 

Steve Crowe, CEO of Angling Direct, commented:

 

"Angling Direct has continued to gain market share in the UK and Europe, and
we believe there are significant further growth opportunities in both markets.
The Group will continue to invest in its digital and physical footprint in the
UK to capture further market share growth, leveraging its strong balance sheet
to ensure it is competitively placed as consumer confidence returns. Since the
period end, the UK business has completed one small footprint store
acquisition in Crewe and opened one new store in Cannock, alongside committing
substantial capital investment to an automated customer order packaging
solution for the UK distribution centre.

 

"The European market creates a significantly larger addressable market, but
remains highly competitive, driven by even more intense price competition.
Despite this, the Group delivered strong growth, whilst retaining pricing
discipline, leading to further market share gains, which provides the Board
with confidence that its European strategy remains appropriate. The Group's
prudent investment strategy will be maintained to ensure it is well positioned
once markets and consumer confidence stabilise. In January 2024 we committed
to our first European store in Utrecht in The Netherlands. The store is
scheduled to open during the spring fishing season.

 

"As we progress into FY25, macro expectations for economic growth and consumer
spend both remain unpredictable. Alongside other retail businesses, we also
face cost increases from higher than anticipated wage and business rates
related cost inflation and are mindful of the possibility for supply chain
disruption, although we have observed no material impact on stock availability
to date. The Group's strong pipeline of investment opportunities, coupled with
its robust balance sheet and prudent focus on cost control, provides the Board
with the confidence that the Group remains well-positioned to navigate these
challenges and achieve further growth through this financial year."

 

(1) Angling Direct believes that current market expectations for the year
ended 31 January 2024 are revenues of £83.0 million and pre-IFRS 16 EBITDA of
£2.7 million.

 

(2) Excluding the Reading store which hasn't materially traded in the period
after it suffered a fire in the first week of February. Total like for like
stores grew 1.1% including Reading.

 

 

For further information please contact:

 

 Angling Direct plc                         via FTI Consulting
 Steven Crowe, Chief Executive Officer

 Sam Copeman, Chief Financial Officer

 Singer Capital Markets - NOMAD and Broker  +44 (0) 20 7496 3000
 Peter Steel

 Alex Bond

 Tom Salvesen

 James Todd

 FTI Consulting - Financial PR              +44 (0) 20 3727 1000
 Alex Beagley                               anglingdirect@fticonsulting.com (mailto:anglingdirect@fticonsulting.com)

 Eleanor Purdon

 Hannah Butler

 

 

About Angling Direct

 

Angling Direct is the leading omni-channel specialist fishing tackle retailer
in the UK, with an established and growing presence in Europe. Headquartered
in Norfolk UK, the Company sells fishing tackle products and related equipment
through its network of approximately 50 UK retail stores, as well as through
its leading digital platform (www.anglingdirect.co.uk
(https://eu-west-1.protection.sophos.com?d=anglingdirect.co.uk&u=aHR0cDovL3d3dy5hbmdsaW5nZGlyZWN0LmNvLnVrLw==&i=NWZmMzFiMDlmNTYxZTYwZGYyODQyMzUz&t=K2FWYTRxeDV6cWRxd2I5dVpOODk5dnFObVU2U2p5WElLNndSM01SaStUcz0=&h=704002e0ebe140b99f9f3842770cb87e&s=AVNPUEhUT0NFTkNSWVBUSVapg934Yb5nAolTQ9o0CeldsCYWuT9YetF_pLFbutVHOzk4kq9BEj_vGoYOcSbmh2Q)
) and the MyAD Fishing Club app. The Company has three further native language
websites in its key European territories (www.anglingdirect.de,
(https://eu-west-1.protection.sophos.com?d=anglingdirect.de&u=d3d3LmFuZ2xpbmdkaXJlY3QuZGU=&i=NWZmMzFiMDlmNTYxZTYwZGYyODQyMzUz&t=VVRndGRoM1kvaFpNWnRpMzZ0M3NsT2I1NFdGTEp6ZllkYnFBaFFZb2FNWT0=&h=704002e0ebe140b99f9f3842770cb87e&s=AVNPUEhUT0NFTkNSWVBUSVapg934Yb5nAolTQ9o0CeldsCYWuT9YetF_pLFbutVHOzk4kq9BEj_vGoYOcSbmh2Q)
.fr, .nl), with orders fulfilled by its international distribution centre in
The Netherlands.

 

Angling Direct's purpose is to inspire everyone to get out and enjoy an
exceptional fishing experience, regardless of background or ability, in the
great outdoors. Angling Direct's active digital channels and its 450
colleagues contribute to the Company's ethos of care for the wider community
and the environment (www.anglingdirect.co.uk/sustainability
(https://eu-west-1.protection.sophos.com?d=anglingdirect.co.uk&u=aHR0cDovL3d3dy5hbmdsaW5nZGlyZWN0LmNvLnVrL3N1c3RhaW5hYmlsaXR5&i=NWZmMzFiMDlmNTYxZTYwZGYyODQyMzUz&t=a25La0pYblhuR0diWS9OWVhUTEJtSjRiNmhCdktRWnNiUG9ibXlUMjNuTT0=&h=704002e0ebe140b99f9f3842770cb87e&s=AVNPUEhUT0NFTkNSWVBUSVapg934Yb5nAolTQ9o0CeldsCYWuT9YetF_pLFbutVHOzk4kq9BEj_vGoYOcSbmh2Q)
). Angling Direct currently sells over 25,000 fishing tackle products from
industry leading brands alongside its own brands 'Advanta', and entry level
offering 'Discover'.

 

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