REG - Angling Direct PLC - Half Year Results
24/10/2023 07:00
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RNS Number : 0310R Angling Direct PLC 24 October 2023
24 October 2023
Angling Direct PLC
('Angling Direct', the 'Company' or the 'Group')
Half Year Results
Strong sales growth across UK & Europe coupled with tangible strategic
progress in retail and online
Angling Direct PLC (AIM: ANG), the leading omni-channel specialist fishing
tackle and equipment retailer, is pleased to announce its unaudited financial
results for the six months ended 31 July 2023 (H1 FY24).
EBITDA
£m H1 FY24 H1 FY23 % Change
Revenue 43.3 38.9 +11.4%
Retail store sales 24.4 21.9 +11.3%
UK online sales 16.5 15.3 +8.3%
Total UK sales 40.9 37.2 +10.1%
European Online sales 2.4 1.7 +39.9%
Gross profit 15.2 13.4 +13.0%
Gross margin % 35.1% 34.6% +50bps
EBITDA (pre IFRS-16) 2.3 1.9 +26.6%
Profit before tax 1.7 1.1 +52.4%
Basic EPS 1.71p 1.14p +50.0%
Financial highlights:
· Group revenue increased by 11.4% to £43.3m
· Retail store estate experienced another strong period of growth with
total store sales increasing by 11.3% against H1 FY23
· Like-for-like store sales increased by 4.9%(1) underpinned by
improved conversion
· UK online sales growth of 8.3% with strong average transaction value
growth
· In Europe, online sales grew by 39.9% with online sales to our key
European territory of Germany growing 61.5%
· Gross margin increased by 50 bps, with progress in both the UK and
Europe
· Group Pre IFRS 16 EBITDA growth of 26.6% to £2.3m (45.7% excluding
cyber recoveries from FY22(2)):
o UK EBITDA increased by 24.1%(2) to £2.8m
o Europe's EBITDA loss reduced by 27.2% to £0.5m
· Positive operating cashflow of £5.5m (H1 FY22: £2.4m)
· Strong balance sheet with Group net cash of £17.6m at 31 July 2023
(31 January 2023: £14.1m, 31 July 2022: £17.1m)
· The Group remains well capitalised and securely positioned to
continue investing in strategic opportunities to capture further market share
in the UK and Europe
Operational highlights:
· Launched MyAD, the loyalty and repeat purchase membership model, in
the UK, attracting 110k members from launch in June to the period end
· Increased our UK digital reach by signing an exclusive agreement with
"Catch", the fishing peg booking App
· Gross profit on higher margin own brand products grew by 15.7%, both
through the launch of the new entry level brand "Discover" as well as further
progress on our established Advanta brand
· Improved in-store retail proposition through new on-shelf labelling
technology, the use of our BAITS assisted selling programme, and new own brand
merchandising
· Continued new store rollout in the UK in the period with new
locations in Cardiff, (the Company's first store outside of England) and Goole
Current trading and outlook
· Cumulative August and September sales were in line with expectation,
up 13.9% versus FY23. This was against a softer comparative period, with the
prolonged extreme temperatures in the prior year.
· The Company has gained further market share both in the UK and Europe
and believes that a significant opportunity remains in both of these markets
· The Group will continue to invest digitally and physically in the UK,
to further drive market share growth, leveraging its strong balance sheet to
ensure it is well placed competitively as consumer confidence returns
· The European market remains a highly competitive landscape, driven by
more intense price competition. The Group has continued to take market share
and will continue to invest prudently, to ensure it is well positioned once
markets and consumer confidence stabilise
· The Board remains confident that a combination of continued UK sales
momentum and optimising European growth means that the Group is well placed to
deliver revenue and pre-IFRS 16 EBITDA for the current year in line with
market expectations(3)
Steve Crowe, CEO of Angling Direct, said:
"We are pleased to have achieved robust sales growth during H1 FY24 of 11.4%
against a challenging consumer backdrop, highlighting the strength of our
omni-channel model.
In the UK, we achieved strong growth in both retail stores and online sales
which saw total UK sales increase by 10.1%. Simultaneously we made strong
progress on our strategic priorities in the UK growing our store estate and
unveiling our MyAD loyalty programme which attracted 110,000 members in its
first two months.
Despite the more competitive market conditions in Europe, European sales in H1
FY24 were 39.9% ahead of H1 FY23, re-validating the significant growth
opportunity that Europe represents for the business. We are committed to
building a sustainably profitable international business and have taken steps
to develop margin and optimise costs in H1 FY24 and this will continue into H2
and beyond.
The Board is optimistic about the long-term growth prospects of the Group,
underpinned by its robust balance sheet. The UK angling market remains
resilient, with strong demand for a compelling product offering alongside
quality service. Following positive H1 FY24 results, the Board remains
confident that the full year results will be in line with market
expectations(3) and would like to acknowledge and thank all members of the
Angling Direct team for their efforts and we look forward to sharing continued
success in the future."
(1) 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 2.6% including Reading.
(2) Excluding insurance recoveries received during H1 FY23 in respect of the
cyber-attack in the FY22 year
(3) Note: Angling Direct believes that consensus market expectations for the
year ending 31 January 2024 are for revenues of £83.0 million and pre-IFRS 16
EBITDA of £2.7 million.
Investor Meet Company presentation - 30 October 2023
Management will provide a live presentation via the Investor Meet Company
platform at 2.00 p.m. GMT on 30 October. The presentation is open to all
existing and potential shareholders. Questions can be submitted pre-event via
your Investor Meet Company dashboard up until 9.00 a.m. the day before the
meeting or at any time during the live presentation. Investors can sign up to
Investor Meet Company for free to meet Angling Direct plc via:
https://www.investormeetcompany.com/angling-direct-plc/register-investor
(https://www.investormeetcompany.com/angling-direct-plc/register-investor) .
Investors who already follow Angling Direct on the Investor Meet Company
platform will automatically be invited.
For further information please contact:
Angling Direct PLC +44 (0) 1603 258 658
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, James Fischer (Corporate Finance)
Tom Salvesen (Corporate Broking)
FTI Consulting - Financial PR +44 (0) 20 3727 1000
Alex Beagley
Sam Macpherson
Hannah Butler
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 .de,
.fr and .nl) and other third-party websites.
Angling Direct is committed to supporting its active customer base and
widening access to the angling community through its passionate colleagues,
store-based qualified coaches, social media reach and ADTV YouTube 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 brands 'Advanta', and the recently
launched entry level offering 'Discover'.
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 47 retail stores. In 2015, the Company opened a 2,800 sq.
metres central distribution centre in Rackheath, Norfolk, where the Company's
head office is also located. In March 2022, Angling Direct opened a 3,940
square metre distribution centre in Venlo, Netherlands to service its
established, and rapidly growing, presence in Europe with native language
websites set up in key regions to address demand.
Angling Direct PLC
Interim Report - 31 July 2023
Angling Direct PLC
Chief Executive Officer's Review
31 July 2023
The Group is pleased to have continued to grow sales and improve earnings in
the UK and Europe despite the persistent cost of living pressures facing
consumers. This performance is testament to the resilience of our model and
market leading position.
Our growth strategy is centred around becoming Europe's first choice fishing
tackle destination, for all anglers, regardless of experience or ability. As a
result of our increasingly differentiated, market leading omni-channel trading
platform the Group gained further market share in the period, making good
progress against all of its stated strategic priorities. Encouraged by the
sales growth and market share gains achieved, as well as the longer-term
growth opportunity, the Group maintained its programme of strategic investment
in the UK in H1 FY24 despite the economic headwinds.
As well as new opportunities, H1 FY24 has presented several significant
challenges, most notably balancing our ambition to rapidly grow turnover in
our key European territories, against intense price competition. Despite these
challenges, the European market offers a significant medium term growth
opportunity alongside the established UK business where we continue to build
an increasingly modern, contemporary and cash generative omni-channel
business.
We have assumed that the current cost of living pressures will persist into H2
FY24 and beyond which will inevitably impact many of our current and potential
new customers. During this time, we will continue to invest in profitable
growth in the UK, alongside prudently investing in our strategic objective to
grow a European business capable of delivering meaningful economic returns as
consumer confidence returns.
The H1 FY24 results reflect the resilience of our model and continued
professionalism and dedication of our colleagues in providing high quality
advice and service to our customers and I would like to take this opportunity
to thank them for their significant contribution.
Results
Group revenue increased by 11.4% to £43.3m for the six months ended 31 July
2023 (H1 FY23: £38.9m). The Company recorded strong sales growth across both
channels in the UK, leveraging existing infrastructure, as well as new space
from the physical retail estate. Overall H1 FY24 UK revenues grew 10.1%
against 3.4% in H2 FY23.
European revenues grew by 39.9% as the Group continued to optimise its
European growth trajectory against a backdrop of striving to write only
profitable business.
Gross profit increased by 13.0% to £15.2m (H1 FY23: £13.4m) and gross margin
grew 50 bps to 35.1%, 40 bps in the UK and 510 bps in Europe.
Pre IFRS 16 EBITDA grew by 26.6% to £2.3m (H1 FY23: £1.9m). The UK grew
12.2% (24.1% excluding Cyber-attack insurance recoveries received in H1 FY23
relating to the FY22 cyber incident) with progression in both stores and
online (18.3% growth in stores, 10.0% growth online).
The Company retains a strong net cash position at 31 July 2023 of £17.6m (31
July 2022: £17.1m), with positive cash generation in the period having
increased working capital investment in retail space and securing record stock
availability, alongside continued capital expenditure investment in the store
portfolio in the period.
Operational Review
Retail Stores
Total store sales in the period increased 11.3% to £24.4m (H1 FY23: £21.9m).
Like-for-like store sales grew by 4.9% (excluding Reading, which hasn't
materially traded in the period due to a fire in the first week of February).
New space (Washington, Stockton, Coventry, Cardiff and Goole) contributed
£1.9m of sales in the period.
Our evolving "BAITS" assisted selling programme alongside our new on shelf
labelling technology and own brand merchandising has delivered significant
value with in-store conversion in the period improving 300 bps. To enhance
this initiative, we launched MyAD in June, our loyalty and repeat purchase
free to join membership club. The proposition enables our customers to access
a range of products at preferential pricing, alongside tailored offers based
on their shopping history with Angling Direct. The App based technology will
for the first time enable us to understand our customer base across both our
store and online business with early positive insight. Bringing these aspects
together is designed to support our purpose of Getting Everyone Fishing, and
ensures our customers consistently get the very best advice and support
tailored to their specific needs and fishing ambitions. This is crucial for
driving conversion, creating satisfied, loyal customers, and prompting
recommendation.
During the period we also started to explore alternative paid for services in
store with the launch of our reel spooling and pole elastication services.
Since our investment in footfall counting technology in FY22, we have been
able to deploy customer-targeted store colleague working rotas, which are
helping to mitigate significant inflationary wage pressures from the c10%
increase in living wage in April 2023. Whilst store footfall across the
existing estate was broadly flat, there was significant progress in conversion
in the like-for-like stores (360 bps) underpinning our increase in transaction
volumes. Deployment models more than offset the living wage drag with an
improved colleague cost to sales ratio.
In line with our strategic commitment to being the first choice omni-channel
fishing retailer in all our markets, we continue to invest in new UK retail
stores. Continuing to utilise out-sourced development contractors we built two
new stores in the period, opening in Cardiff in February and Goole in May. We
continue to seek out opportunities within unserved catchments with one further
store opening targeted for H2 FY24, as well as our Reading store re-opening.
Alongside this, we are observing an increasing trend where customers in
certain catchments are underserved by existing retailers, presenting an
opportunity for Angling Direct to penetrate these markets with a reduced
footprint. We also continue to re-evaluate our store refresh and merchandising
concepts across the estate. In the period we re-sited the Guilford store as
well as refreshing our Farlows store.
UK Online
UK online sales in the period grew by 8.3% to £16.5m (H1 FY23: £15.3m) as
our everyday low-price proposition alongside our focus on availability during
peak season resulted in UK online taking greater share of the higher ticket
capital item market. Website sessions and customer numbers remained broadly
flat against the more challenging consumer landscape reflected in modestly
reduced conversion and increased pressure on paid advertising bidding costs.
As part of our drive to grow market share and customer loyalty, we are
continuing to invest in contemporary digital infrastructure and customer
marketing, to ensure we stand apart from our competitors.
As a precursor to the launch of MyAD in June we continued to develop our App
offering, with c5% of total orders now placed through the App. Alongside this
our paid subscription model AD+ accounted for c17% of the orders in the
period, showing the strength of our repeat custom model despite the
increasingly uncertain consumer and competitive landscape.
During the period we signed an exclusive agreement with "Catch", the fishery
peg booking App. The first stage of this relationship has focused on
transparency of partnership and respective offerings across our respective
platforms, with the emphasis now moving towards embedding the offer as part of
our respective digital customer journeys.
Alongside these trading initiatives the team has changed its customer delivery
carrier arrangements following a re-tendering process. The improvements being
observed in service (reducing lost parcels) and unit cost economics have
positively impacted the latter part of the period. Alongside the improvement
in average transaction value, this has significantly improved the carriage and
packing ratio, offsetting the cost of paid advertising and colleague living
wage inflationary pressures.
UK Trading
We are committed to providing the most comprehensive range of products for
major fishing disciplines, ensuring that we always deliver a variety of
choice, value, quality and stock availability.
The MyAD programme launched in June and attracted 110,000 members by the
period end. The early insights from this data are encouraging, pointing to
loyalty, repeat purchase and value for customers.
The Company's category management process remains firmly embedded in the
business. As stock availability across our sector returned to more
historically normal levels post COVID, depressed consumer demand in FY23
against the COVID sales spike left many suppliers with excess inventory
positions. Our team has been nimble, navigating this through buying into
ranges and volumes where AD has more ability to manage its price point.
Higher margin own brand gross profit in the period grew by a pleasing 15.7%
against a backdrop of increasing sales of these items by 6.4%. The launch of
our entry level brand, 'Discover' later in the period, alongside the strategy
of developing ranges in smaller dimension higher margin categories,
underpinned the growth in the gross profit. Stock availability within own
brand ranges remains at good levels and presents a strong platform from which
to develop further in H2 FY24.
As we deepen our relationships with key suppliers, we have increasingly
secured stocks at favourable trade terms with a view to enhancing margins,
whilst giving supplier partners surety of volume and cashflow. In conjunction
with this, during the period we formalised our approach to the selling of
physical and digital space to join up with our MyAD strategy. The pipeline and
appetite from key suppliers for further development of this in H2 FY24 and
beyond is strong. Alongside this we continue to grow the number of innovative
products to market exclusively for our customers. These include the extension
of the One More Cast terminal tackle range by leading angler Ali Hamedi and
developing product bundle concepts with key partners such as Korda fishing
tackle and Sticky Baits. This approach provides further opportunity for us to
develop value levers exclusively through the MyAD offer.
As a result of these strategies alongside the 10.1% increase in sales, the UK
delivered a 40 bps improvement in its gross margin to 35.5%.
Europe
The opportunity for growth of market share within Europe remains clear,
despite the European digital trading landscape intensifying as a result of
competitive pricing and paid advertising costs.
During the period, our team has focused upon optimising trading and
efficiencies to support our first full financial year of trading directly from
The Netherlands.
As a result of these positive advancements, active unique customer numbers in
our key European territories have increased by 41.3% to 25,100, with the
conversion rate increasing by 63 bps to 3.13%. European key territory sales
increased by 39.9% in H1 FY23 to £2.4m (H1 FY22: £1.7m).
We are committed and see a significant opportunity to build a sustainably
profitable international business and have taken steps to develop margin and
optimise costs in H1 FY24 until such time that more normal pricing trends
resume. In the period gross margins improved 510 bps to 27.4%, contribution
improved 990 bps to -5.0%, operating margin improved 1,240 bps to -13.9% and
pre IFRS 16 EBITDA losses reduced 27.2% to £0.5m.
The Board continues to believe that the full Angling Direct omni-channel model
will be attractive to European customers and that, in the medium term, bricks
and mortar retail stores will complement our growing online business. We have
carefully evaluated the trading strategies required for this opportunity to
create shareholder value. We are now focused on securing ranges and locations
which deliver these metrics and will continue to monitor and review our
progress against these plans closely over the coming months.
Environmental and Organisational Development
We remain fully committed to acting responsibly and sustainably within our
environment and communities. We continue to develop our approach to
sustainability with key successes in the period of particular note around
reducing our waste sent to landfill, reducing plastic packaging within our own
brand ranges, and continuing our roll out of LED lighting in our store estate.
We have also extended our fishing line recycling programme to source recycling
bins for fisheries from suppliers, introduced recycling points in our 2024
built stores and commenced our angler engagement programme through our
collaboration with the Pike Anglers Club of Great Britain to discourage warm
water pike fishing. To complement this, we have also commenced sign posting to
our communities through our sustainability digital content a number of
established environmental campaigns which would support the sustainability of
angling.
Within the context of the current highly inflationary environment, it is more
important than ever to ensure we rigorously scrutinise any incremental
organisational investment, whilst ensuring we appropriately plan and resource
for future share growth in our consolidating markets. In the period, we have
continued to supplement and upskill key capabilities within our digital and IT
development teams.
At the start of the period the Group announced its Board succession plan with
Andy Torrance stepping down from his role as CEO and appointed Non-executive
Chair. Martyn Page consequently stepped down from his role as Non-Executive
Chair and remains on the Board as a Non-executive Director. These changes
facilitated myself stepping up to CEO and following this we successfully
concluded a CFO search and were delighted to welcome Sam Copeman to the Board
in June at the completion of the AGM. Christian (Chris) Keen and Nicola
(Nicki) Murphy continue as the Company's Independent Non- Executive Directors.
Chris continues as Chair of the Audit Committee with Nicki moving to Chair of
the Remuneration Committee.
Current trading and Outlook
We remain confident of continued growth and delivery of our strategic goals.
The UK angling market remains resilient, with good demand for a compelling
product offering alongside quality service. Our customer loyalty programme
MyAD will further help to meet the needs of our customers and at the same time
drive loyalty and repeat purchase. We will continue our investment in the UK
in our people, technology and our physical estate in order to support further
organic growth. This will be augmented by investment in selective acquisitions
and development of exceptional greenfield sites in the UK. This investment in
the UK will be targeted at driving further market share growth and leveraging
our strong balance sheet to ensure we are best placed competitively as
consumer confidence returns.
Europe retains a more competitive landscape which means growing profitable
digital customer acquisition is challenging as we build scale. However
selective bricks and mortar remains a realistic target to deliver value within
these markets to leverage existing investments already made. The Group will
continue to invest to drive market share, where prudent to do so, to ensure it
is well positioned as markets stabilise post and the macroeconomic consumer
challenges impacting these markets.
Following strong H1 2024 results, cumulative August and September sales were
in line with expectation, up 13.9% versus FY23. This was against a softer
comparative period, with the prolonged extreme temperatures in the prior year.
The Board remains confident that the full year results will be in line with
consensus market expectations. The Board would like to acknowledge and thank
all members of the Angling Direct team for their efforts, and we look forward
to sharing continued success in the future.
Angling Direct PLC
Consolidated statements of profit or loss and other comprehensive income
For the period ended 31 July 2023
Unaudited six months Audited year ended 31 January
ended 31 July
Note 2023 2022 2023
£'000 £'000 £'000
Revenue from contracts with customers 4 43,341 38,898 74,096
Cost of sales of goods (28,149) (25,450) (48,307)
Gross profit 15,192 13,448 25,789
Other income 5 111 268 287
Interest revenue calculated using the effective interest method 140 26 104
Expenses
Administrative expenses (11,820) (10,699) (21,742)
Distribution expenses (1,656) (1,689) (3,260)
Finance costs (246) (225) (509)
Profit before income tax expense 1,721 1,129 669
Income tax expense 7 (400) (251) (130)
Profit after income tax expense for the period attributable to the owners of 1,321 878 539
Angling Direct PLC
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation (81) - 127
Other comprehensive income for the period, net of tax (81) - 127
Total comprehensive income for the period attributable to the owners of 1,240 878 666
Angling Direct PLC
Pence Pence Pence
Basic earnings 15 1.71 1.14 0.70
Diluted earnings 15 1.69 1.12 0.69
Angling Direct PLC
Consolidated statements of financial position
As at 31 July 2023
Unaudited six months Audited year ended 31 January
ended 31 July
Note 2023 2022 2023
£'000 £'000 £'000
Non-current assets
Intangibles 8 6,007 6,124 6,060
Property, plant and equipment 9 7,916 7,158 7,534
Right-of-use assets 10 11,150 10,771 11,418
Total non-current assets 25,073 24,053 25,012
Current assets
Inventories 20,013 17,564 17,813
Trade and other receivables 751 1,093 447
Income tax refund due - - 58
Prepayments 763 474 603
Cash and cash equivalents 17,624 17,084 14,127
Total current assets 39,151 36,215 33,048
Current liabilities
Trade and other payables 11 11,702 9,398 6,765
Contract liabilities 481 425 727
Lease liabilities 1,809 1,709 1,793
Derivative financial instruments 32 - 51
Income tax 315 566 -
Total current liabilities 14,339 12,098 9,336
Net current assets 24,812 24,117 23,712
Total assets less current liabilities 49,885 48,170 48,724
Non-current liabilities
Lease liabilities 9,583 9,116 9,750
Restoration provision 840 759 801
Deferred tax 910 893 883
Total non-current liabilities 11,333 10,768 11,434
Net assets 38,552 37,402 37,290
Equity
Share capital 12 773 773 773
Share premium 31,037 31,037 31,037
Reserves 543 375 602
Retained profits 6,199 5,217 4,878
Total equity 38,552 37,402 37,290
Angling Direct PLC
Consolidated statements of changes in equity
For the period ended 31 July 2023
Share Share Retained Total equity
premium
capital account Reserves profits
Unaudited six months ended 31 July £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2023 773 31,037 602 4,878 37,290
Profit after income tax expense for the period - - - 1,321 1,321
Other comprehensive income for the period, net of tax - - (81) - (81)
Total comprehensive income for the period - - (81) 1,321 1,240
Transactions with owners in their capacity as owners:
Share-based payments - - 22 - 22
Balance at 31 July 2023 773 31,037 543 6,199 38,552
Share Share premium Retained Total equity
capital account Reserves profits
Audited year ended 31 January £'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 period - - - 539 539
Other comprehensive income for the period, net of tax - - 127 - 127
Total comprehensive income for the period - - 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
Angling Direct PLC
Consolidated statements of cash flows
For the period ended 31 July 2023
Unaudited six months ended 31 July Audited year ended 31 January
Note 2023 2022 2023
£'000 £'000 £'000
Unaudited six months ended 31 July
Audited year ended 31 January
Note
2023
2022
2023
£'000
£'000
£'000
Cash flows from operating activities
Profit before income tax expense for the period 1,721 1,129 669
Adjustments for:
Depreciation and amortisation 1,787 1,672 3,485
Share-based payments 22 109 209
Net movement in provisions 16 13 30
Net variance in derivative liabilities (19) (1) 50
Interest received (140) (26) (104)
Interest and other finance costs 230 212 429
3,617 3,108 4,768
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivables (300) (551) 95
(Increase) in inventories (2,252) (1,291) (1,540)
(Increase)/decrease in prepayments (162) 71 (58)
Increase/(decrease) in trade and other payables 4,893 1,227 (965)
(Decrease)/increase in contract liabilities (246) - 84
5,550 2,564 2,384
Interest received 140 26 104
Interest and other finance costs (230) (212) (429)
Income taxes paid - - (513)
Net cash from operating activities 5,460 2,378 1,546
Cash flows from investing activities
Payments for property, plant and equipment 9 (1,012) (841) (2,014)
Payments for intangibles 8 (116) (158) (289)
Net cash used in investing activities (1,128) (999) (2,303)
Cash flows from financing activities
Repayment of lease liabilities (885) (899) (1,720)
Net cash used in financing activities (885) (899) (1,720)
Net increase/(decrease) in cash and cash equivalents 3,447 480 (2,477)
Cash and cash equivalents at the beginning of the financial period 14,127 16,604 16,604
Effects of exchange rate changes on cash and cash equivalents 50 - -
Cash and cash equivalents at the end of the financial period 17,624 17,084 14,127
Revenue from contracts with customers 4 43,341 38,898 74,096
Cost of sales of goods (28,149) (25,450) (48,307)
Gross profit 15,192 13,448 25,789
Other income 5 111 268 287
Interest revenue calculated using the effective interest method 140 26 104
Expenses
Administrative expenses (11,820) (10,699) (21,742)
Distribution expenses (1,656) (1,689) (3,260)
Finance costs (246) (225) (509)
Profit before income tax expense 1,721 1,129 669
Income tax expense 7 (400) (251) (130)
Profit after income tax expense for the period attributable to the owners of 1,321 878 539
Angling Direct PLC
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation (81) - 127
Other comprehensive income for the period, net of tax (81) - 127
Total comprehensive income for the period attributable to the owners of 1,240 878 666
Angling Direct PLC
Pence Pence Pence
Basic earnings 15 1.71 1.14 0.70
Diluted earnings 15 1.69 1.12 0.69
Angling Direct PLC
Consolidated statements of financial position
As at 31 July 2023
Unaudited six months Audited year ended 31 January
ended 31 July
Note 2023 2022 2023
£'000 £'000 £'000
Non-current assets
Intangibles 8 6,007 6,124 6,060
Property, plant and equipment 9 7,916 7,158 7,534
Right-of-use assets 10 11,150 10,771 11,418
Total non-current assets 25,073 24,053 25,012
Current assets
Inventories 20,013 17,564 17,813
Trade and other receivables 751 1,093 447
Income tax refund due - - 58
Prepayments 763 474 603
Cash and cash equivalents 17,624 17,084 14,127
Total current assets 39,151 36,215 33,048
Current liabilities
Trade and other payables 11 11,702 9,398 6,765
Contract liabilities 481 425 727
Lease liabilities 1,809 1,709 1,793
Derivative financial instruments 32 - 51
Income tax 315 566 -
Total current liabilities 14,339 12,098 9,336
Net current assets 24,812 24,117 23,712
Total assets less current liabilities 49,885 48,170 48,724
Non-current liabilities
Lease liabilities 9,583 9,116 9,750
Restoration provision 840 759 801
Deferred tax 910 893 883
Total non-current liabilities 11,333 10,768 11,434
Net assets 38,552 37,402 37,290
Equity
Share capital 12 773 773 773
Share premium 31,037 31,037 31,037
Reserves 543 375 602
Retained profits 6,199 5,217 4,878
Total equity 38,552 37,402 37,290
Angling Direct PLC
Consolidated statements of changes in equity
For the period ended 31 July 2023
Share Share Retained Total equity
premium
capital account Reserves profits
Unaudited six months ended 31 July £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2023 773 31,037 602 4,878 37,290
Profit after income tax expense for the period - - - 1,321 1,321
Other comprehensive income for the period, net of tax - - (81) - (81)
Total comprehensive income for the period - - (81) 1,321 1,240
Transactions with owners in their capacity as owners:
Share-based payments - - 22 - 22
Balance at 31 July 2023 773 31,037 543 6,199 38,552
Share Share premium Retained Total equity
capital account Reserves profits
Audited year ended 31 January £'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 period - - - 539 539
Other comprehensive income for the period, net of tax - - 127 - 127
Total comprehensive income for the period - - 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
Angling Direct PLC
Consolidated statements of cash flows
For the period ended 31 July 2023
Unaudited six months ended 31 July Audited year ended 31 January
Note 2023 2022 2023
£'000 £'000 £'000
Unaudited six months ended 31 July
Audited year ended 31 January
Note
2023
2022
2023
£'000
£'000
£'000
Cash flows from operating activities
Profit before income tax expense for the period 1,721 1,129 669
Adjustments for:
Depreciation and amortisation 1,787 1,672 3,485
Share-based payments 22 109 209
Net movement in provisions 16 13 30
Net variance in derivative liabilities (19) (1) 50
Interest received (140) (26) (104)
Interest and other finance costs 230 212 429
3,617 3,108 4,768
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivables (300) (551) 95
(Increase) in inventories (2,252) (1,291) (1,540)
(Increase)/decrease in prepayments (162) 71 (58)
Increase/(decrease) in trade and other payables 4,893 1,227 (965)
(Decrease)/increase in contract liabilities (246) - 84
5,550 2,564 2,384
Interest received 140 26 104
Interest and other finance costs (230) (212) (429)
Income taxes paid - - (513)
Net cash from operating activities 5,460 2,378 1,546
Cash flows from investing activities
Payments for property, plant and equipment 9 (1,012) (841) (2,014)
Payments for intangibles 8 (116) (158) (289)
Net cash used in investing activities (1,128) (999) (2,303)
Cash flows from financing activities
Repayment of lease liabilities (885) (899) (1,720)
Net cash used in financing activities (885) (899) (1,720)
Net increase/(decrease) in cash and cash equivalents 3,447 480 (2,477)
Cash and cash equivalents at the beginning of the financial period 14,127 16,604 16,604
Effects of exchange rate changes on cash and cash equivalents 50 - -
Cash and cash equivalents at the end of the financial period 17,624 17,084 14,127
Angling Direct PLC
Notes to the consolidated financial statements
31 July 2023
Note 1. General information
The financial statements cover Angling Direct PLC as a Group consisting of
Angling Direct PLC ('Company' or 'parent entity') and the entities it
controlled at the end of, or during, the half-year (collectively referred to
in these financial statements as the 'Group'). The financial statements are
presented in British Pound Sterling ('GBP'), which is Angling Direct PLC's
functional and presentation currency.
Angling Direct PLC is a listed public company limited by shares incorporated
under the Companies Act 2006, listed on the AIM (Alternative Investment
Market), a sub-market of the London Stock Exchange. The Company is
incorporated and domiciled in England and Wales within the United Kingdom. The
registered number of the Company is 05151321. Its registered office and
principal place of business is:
2d Wendover Road,
Rackheath Industrial Estate
Rackheath
Norwich
Norfolk
NR13 6LH
The principal activity of the Group is the sale of fishing tackle through its
websites and stores. The Group's business model is designed to generate growth
by providing excellent customer service, expert advice and ensuring product
lines include a complete range of premium equipment. Customers range from the
casual hobbyist through to the professional angler.
The financial statements were authorised for issue, in accordance with a
resolution of Directors, on 23 October 2023. The Directors have the power to
amend and reissue the financial statements.
Note 2. Significant accounting policies
These financial statements for the interim half-year reporting period ended 31
July 2023 have been prepared in accordance with the AIM Rules for Companies,
International Accounting Standard IAS 34 'Interim Financial Reporting' and the
Companies Act for for-profit oriented entities.
These interim financial statements do not include all the notes of the type
normally included in annual financial statements. Accordingly, these financial
statements are to be read in conjunction with the annual report for the year
ended 31 January 2023 and any public announcements made by the Company during
the interim reporting period.
The interim consolidated financial information has been prepared on a
going-concern basis.
The principal accounting policies adopted are consistent with those set out on
pages 74 to 100 of the consolidated financial statements of Angling Direct PLC
for the year ending 31 January 2023, except for taxation which has been
accounted for as described in note 7.
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and
Interpretations issued by the International Accounting Standards Board that
are mandatory for the current reporting period. There was no impact on the
adoption of these new or amended Accounting Standards and Interpretations
Any new or amended Accounting Standards or Interpretations that are not yet
mandatory have not been early adopted.
Note 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. It has three native language
web sites for Germany, France and the Netherlands.
Operating segments
The Group is split into three operating segments (Stores, UK Online and Europe
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.
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.
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 July 2023, £24,167,000 of non-current assets are located in the UK (31
July 2022 £22,952,000) and £906,000 of non-current assets are located in the
Netherlands (31 July 2022 £1,101,000).
Operating segment information
Stores UK Europe Head Office Total
Online
Online
31 July 2023 £'000 £'000 £'000 £'000 £'000
Revenue 24,382 16,545 2,414 - 43,341
Profit/(loss) before income tax 2,974 1,838 (518) (2,573) 1,721
EBITDA post IFRS 16 4,482 2,107 (382) (2,593) 3,614
Total assets 19,662 7,435 4,013 33,114 64,224
Total liabilities (7,574) (4,725) (1,224) (12,149) (25,672)
EBITDA Reconciliation
Profit/(loss) before income tax 2,974 1,838 (518) (2,573) 1,721
Less: Interest income - - - (140) (140)
Add: Interest expense 222 21 15 (12) 246
Add: Depreciation and amortisation 1,286 248 121 132 1,787
EBITDA post IFRS 16 4,482 2,107 (382) (2,593) 3,614
Less: Costs relating to IFRS 16 lease liabilities (959) (84) (111) (115) (1,269)
EBITDA pre IFRS 16 3,523 2,023 (493) (2,708) 2,345
Stores UK Europe Head office Total
Online
Online
31 July 2022 £'000 £'000 £'000 £'000 £'000
Revenue 21,897 15,275 1,726 - 38,898
Profit/(loss) before income tax 2,577 1,620 (707) (2,361) 1,129
EBITDA post IFRS 16 3,859 1,923 (570) (2,212) 3,000
Total assets 25,198 7,588 4,163 23,319 60,268
Total liabilities (12,726) (4,412) (1,116) (4,612) (22,866)
EBITDA Reconciliation
Profit/(loss) before income tax 2,577 1,620 (707) (2,361) 1,129
Less: Interest income - - - (26) (26)
Add: Interest expense 175 23 19 8 225
Add: Depreciation and amortisation 1,107 280 118 167 1,672
EBITDA post IFRS 16 3,859 1,923 (570) (2,212) 3,000
Less: Costs relating to IFRS 16 lease liabilities (882) (84) (107) (75) (1,148)
EBITDA pre IFRS 16 2,977 1,839 (677) (2,287) 1,852
Note 4. Revenue from contracts with customers
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Unaudited six months ended 31 July Audited year ended
31 January
2023 2022 2023
£'000 £'000 £'000
Route to market
Retail store sales 24,382 21,897 41,296
E-commerce 18,959 17,001 32,800
43,341 38,898 74,096
Geographical regions
United Kingdom 40,927 37,172 70,952
Europe and Rest of the World 2,414 1,726 3,144
43,341 38,898 74,096
Timing of revenue recognition
Goods transferred at a point in time 43,341 38,898 74,096
Note 5. Other income
Unaudited Audited year
six months ended 31 January
ended 31 July
2023 2022 2023
£'000 £'000 £'000
Net foreign exchange gain/(loss) - 8 -
Insurance claim 86 243 258
Rent income 25 17 29
Other income 111 268 287
The insurance claim income relates to the estimated loss of profit claim for
the fire in the Reading store in respect of the period between February 2023
and 31 July 2023 (2022: Cyber claim insurance income).
Note 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.
Unaudited six months ended Unaudited six months ended Audited year ended
31 July 31 July 31 January
2023
2022
2023
EBITDA reconciliation £'000 £'000 £'000
Profit before income tax expense post IFRS 16 1,721 1,129 669
Less: Interest income (140) (26) (104)
Add: Interest expense 246 225 509
Add: Depreciation and amortisation 1,787 1,672 3,485
EBITDA post IFRS 16 3,614 3,000 4,559
Less: costs relating to IFRS 16 lease liabilities (1,269) (1,148) (2,335)
EBITDA pre IFRS 16 2,345 1,852 2,224
Note 7. Income tax expense
The tax charge for the six months ended 31 July 2023 is recognised based on
management's estimate of the weighted average annual effective tax rate
expected for the full financial year, adjusted for the tax impact of any
discrete items arising in the period. Deferred tax balances are calculated
using tax rates that have been enacted or substantively enacted by the balance
sheet date and that are expected to apply in the period when the liability is
settled or the asset realised.
Note 8. Intangibles
Unaudited six months ended 31 July Audited year ended 31 January
2023 2022 2023
£'000 £'000 £'000
Non-current assets
Goodwill - at cost 5,802 5,802 5,802
Less: Impairment (182) (182) (182)
5,620 5,620 5,620
Software - at cost 1,835 1,589 1,720
Less: Accumulated amortisation (1,448) (1,085) (1,280)
387 504 440
6,007 6,124 6,060
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current financial period are set out below:
Goodwill Software Total
Unaudited six months ended 31 July £'000 £'000 £'000
Balance at 1 February 2023 5,620 440 6,060
Additions - 116 116
Amortisation expense - (169) (169)
Balance at 31 July 2023 5,620 387 6,007
Note 9. Property, plant and equipment
Unaudited Audited year ended 31 January
six months ended
31 July
2023 2022 2023
£'000 £'000 £'000
Non-current assets
Land and buildings improvements - at cost 1,002 1,002 1,002
Less: Accumulated depreciation (347) (310) (342)
655 692 660
Plant and equipment - at cost 10,096 8,253 9,158
Less: Accumulated depreciation (3,325) (2,370) (2,836)
6,771 5,883 6,322
Motor vehicles - at cost 15 15 15
Less: Accumulated depreciation (13) (12) (12)
2 3 3
Computer equipment - at cost 1,363 1,263 1,333
Less: Accumulated depreciation (875) (683) (784)
488 580 549
7,916 7,158 7,534
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current financial period are set out below:
Land and Plant and Motor Computer
buildings
improvements equipment vehicles equipment Total
Unaudited six months ended 31 July £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2023 660 6,322 3 549 7,534
Additions - 943 - 31 974
Exchange differences - (4) - (1) (5)
Depreciation expense (5) (490) (1) (91) (587)
Balance at 31 July 2023 655 6,771 2 488 7,916
Note 10. Right-of-use assets
Unaudited six months ended 31 July Audited year ended 31 January
2023 2022 2023
£'000 £'000 £'000
Non-current assets
Land and buildings - right-of-use 19,964 17,630 19,235
Less: Accumulated depreciation (8,984) (6,998) (7,984)
10,980 10,632 11,251
Plant and equipment - right-of-use 80 80 80
Less: Accumulated depreciation (59) (53) (56)
21 27 24
Motor vehicles - right-of-use 467 372 433
Less: Accumulated depreciation (329) (277) (304)
138 95 129
Computer equipment - right-of-use 59 59 59
Less: Accumulated depreciation (48) (42) (45)
11 17 14
11,150 10,771 11,418
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current financial period are set out below:
Land and Plant and Motor Computer
buildings equipment vehicles equipment Total
Unaudited six months ended 31 July £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2023 11,251 24 129 14 11,418
Additions 1,021 - 34 - 1,055
Remeasurement (273) - - - (273)
Exchange differences (19) - - - (19)
Depreciation expense (1,000) (3) (25) (3) (1,031)
Balance at 31 July 2023 10,980 21 138 11 11,150
Note 11. Trade and other payables
Unaudited six months ended 31 July Audited year ended 31 January
2023 2022 2023
£'000 £'000 £'000
Current liabilities
Trade payables 8,023 6,011 4,543
Accrued expenses 1,287 1,286 1,088
Refund liabilities 56 58 55
Social security and other taxes 1,141 1,158 589
Other payables 1,195 885 490
11,702 9,398 6,765
Contract liabilities has been reported separately on the Statement of
financial position. This was previously reported in other payables.
Note 12. Share capital
Unaudited six months ended 31 July
2023 2022 2023 2022
Shares Shares £'000 £'000
Ordinary shares of £0.01 each - fully paid 77,267,304 77,267,304 773 773
Note 13. Dividends
There were no dividends paid, recommended or declared during the current or
previous financial period.
Note 14. Contingent liabilities
The Group had no material contingent liabilities as at 31 July 2023, 31
January 2023 and 31 July 2022.
Note 15. Earnings per share
Unaudited six months Unaudited six months Audited year
ended 31 July
ended 31 July
ended 31
January
2023 2022 2023
£'000 £'000 £'000
Profit after income tax attributable to the owners of Angling Direct PLC 1,321 878 539
Number Number Number
Weighted average number of ordinary shares used in calculating basic earnings 77,267,304 77,267,304 77,267,304
per share
Adjustments for calculation of diluted earnings per share: 851,266 962,010 900,536
Options over ordinary shares
Weighted average number of ordinary shares used in calculating diluted 78,118,570 78,229,314 78,167,840
earnings per share
Pence Pence Pence
Basic earnings per share 1.71 1.14 0.70
Diluted earnings per share 1.69 1.12 0.69
The principal activity of the Group is the sale of fishing tackle through its
websites and stores. The Group's business model is designed to generate growth
by providing excellent customer service, expert advice and ensuring product
lines include a complete range of premium equipment. Customers range from the
casual hobbyist through to the professional angler.
The financial statements were authorised for issue, in accordance with a
resolution of Directors, on 23 October 2023. The Directors have the power to
amend and reissue the financial statements.
Note 2. Significant accounting policies
These financial statements for the interim half-year reporting period ended 31
July 2023 have been prepared in accordance with the AIM Rules for Companies,
International Accounting Standard IAS 34 'Interim Financial Reporting' and the
Companies Act for for-profit oriented entities.
These interim financial statements do not include all the notes of the type
normally included in annual financial statements. Accordingly, these financial
statements are to be read in conjunction with the annual report for the year
ended 31 January 2023 and any public announcements made by the Company during
the interim reporting period.
The interim consolidated financial information has been prepared on a
going-concern basis.
The principal accounting policies adopted are consistent with those set out on
pages 74 to 100 of the consolidated financial statements of Angling Direct PLC
for the year ending 31 January 2023, except for taxation which has been
accounted for as described in note 7.
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and
Interpretations issued by the International Accounting Standards Board that
are mandatory for the current reporting period. There was no impact on the
adoption of these new or amended Accounting Standards and Interpretations
Any new or amended Accounting Standards or Interpretations that are not yet
mandatory have not been early adopted.
Note 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. It has three native language
web sites for Germany, France and the Netherlands.
Operating segments
The Group is split into three operating segments (Stores, UK Online and Europe
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.
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.
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 July 2023, £24,167,000 of non-current assets are located in the UK (31
July 2022 £22,952,000) and £906,000 of non-current assets are located in the
Netherlands (31 July 2022 £1,101,000).
Operating segment information
Stores UK Europe Head Office Total
Online
Online
31 July 2023 £'000 £'000 £'000 £'000 £'000
Revenue 24,382 16,545 2,414 - 43,341
Profit/(loss) before income tax 2,974 1,838 (518) (2,573) 1,721
EBITDA post IFRS 16 4,482 2,107 (382) (2,593) 3,614
Total assets 19,662 7,435 4,013 33,114 64,224
Total liabilities (7,574) (4,725) (1,224) (12,149) (25,672)
EBITDA Reconciliation
Profit/(loss) before income tax 2,974 1,838 (518) (2,573) 1,721
Less: Interest income - - - (140) (140)
Add: Interest expense 222 21 15 (12) 246
Add: Depreciation and amortisation 1,286 248 121 132 1,787
EBITDA post IFRS 16 4,482 2,107 (382) (2,593) 3,614
Less: Costs relating to IFRS 16 lease liabilities (959) (84) (111) (115) (1,269)
EBITDA pre IFRS 16 3,523 2,023 (493) (2,708) 2,345
Stores UK Europe Head office Total
Online
Online
31 July 2022 £'000 £'000 £'000 £'000 £'000
Revenue 21,897 15,275 1,726 - 38,898
Profit/(loss) before income tax 2,577 1,620 (707) (2,361) 1,129
EBITDA post IFRS 16 3,859 1,923 (570) (2,212) 3,000
Total assets 25,198 7,588 4,163 23,319 60,268
Total liabilities (12,726) (4,412) (1,116) (4,612) (22,866)
EBITDA Reconciliation
Profit/(loss) before income tax 2,577 1,620 (707) (2,361) 1,129
Less: Interest income - - - (26) (26)
Add: Interest expense 175 23 19 8 225
Add: Depreciation and amortisation 1,107 280 118 167 1,672
EBITDA post IFRS 16 3,859 1,923 (570) (2,212) 3,000
Less: Costs relating to IFRS 16 lease liabilities (882) (84) (107) (75) (1,148)
EBITDA pre IFRS 16 2,977 1,839 (677) (2,287) 1,852
Note 4. Revenue from contracts with customers
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Unaudited six months ended 31 July Audited year ended
31 January
2023 2022 2023
£'000 £'000 £'000
Route to market
Retail store sales 24,382 21,897 41,296
E-commerce 18,959 17,001 32,800
43,341 38,898 74,096
Geographical regions
United Kingdom 40,927 37,172 70,952
Europe and Rest of the World 2,414 1,726 3,144
43,341 38,898 74,096
Timing of revenue recognition
Goods transferred at a point in time 43,341 38,898 74,096
Note 5. Other income
Unaudited Audited year
six months ended 31 January
ended 31 July
2023 2022 2023
£'000 £'000 £'000
Net foreign exchange gain/(loss) - 8 -
Insurance claim 86 243 258
Rent income 25 17 29
Other income 111 268 287
The insurance claim income relates to the estimated loss of profit claim for
the fire in the Reading store in respect of the period between February 2023
and 31 July 2023 (2022: Cyber claim insurance income).
Note 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.
Unaudited six months ended Unaudited six months ended Audited year ended
31 July 31 July 31 January
2023
2022
2023
EBITDA reconciliation £'000 £'000 £'000
Profit before income tax expense post IFRS 16 1,721 1,129 669
Less: Interest income (140) (26) (104)
Add: Interest expense 246 225 509
Add: Depreciation and amortisation 1,787 1,672 3,485
EBITDA post IFRS 16 3,614 3,000 4,559
Less: costs relating to IFRS 16 lease liabilities (1,269) (1,148) (2,335)
EBITDA pre IFRS 16 2,345 1,852 2,224
Note 7. Income tax expense
The tax charge for the six months ended 31 July 2023 is recognised based on
management's estimate of the weighted average annual effective tax rate
expected for the full financial year, adjusted for the tax impact of any
discrete items arising in the period. Deferred tax balances are calculated
using tax rates that have been enacted or substantively enacted by the balance
sheet date and that are expected to apply in the period when the liability is
settled or the asset realised.
Note 8. Intangibles
Unaudited six months ended 31 July Audited year ended 31 January
2023 2022 2023
£'000 £'000 £'000
Non-current assets
Goodwill - at cost 5,802 5,802 5,802
Less: Impairment (182) (182) (182)
5,620 5,620 5,620
Software - at cost 1,835 1,589 1,720
Less: Accumulated amortisation (1,448) (1,085) (1,280)
387 504 440
6,007 6,124 6,060
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current financial period are set out below:
Goodwill Software Total
Unaudited six months ended 31 July £'000 £'000 £'000
Balance at 1 February 2023 5,620 440 6,060
Additions - 116 116
Amortisation expense - (169) (169)
Balance at 31 July 2023 5,620 387 6,007
Note 9. Property, plant and equipment
Unaudited Audited year ended 31 January
six months ended
31 July
2023 2022 2023
£'000 £'000 £'000
Non-current assets
Land and buildings improvements - at cost 1,002 1,002 1,002
Less: Accumulated depreciation (347) (310) (342)
655 692 660
Plant and equipment - at cost 10,096 8,253 9,158
Less: Accumulated depreciation (3,325) (2,370) (2,836)
6,771 5,883 6,322
Motor vehicles - at cost 15 15 15
Less: Accumulated depreciation (13) (12) (12)
2 3 3
Computer equipment - at cost 1,363 1,263 1,333
Less: Accumulated depreciation (875) (683) (784)
488 580 549
7,916 7,158 7,534
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current financial period are set out below:
Land and Plant and Motor Computer
buildings
improvements equipment vehicles equipment Total
Unaudited six months ended 31 July £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2023 660 6,322 3 549 7,534
Additions - 943 - 31 974
Exchange differences - (4) - (1) (5)
Depreciation expense (5) (490) (1) (91) (587)
Balance at 31 July 2023 655 6,771 2 488 7,916
Note 10. Right-of-use assets
Unaudited six months ended 31 July Audited year ended 31 January
2023 2022 2023
£'000 £'000 £'000
Non-current assets
Land and buildings - right-of-use 19,964 17,630 19,235
Less: Accumulated depreciation (8,984) (6,998) (7,984)
10,980 10,632 11,251
Plant and equipment - right-of-use 80 80 80
Less: Accumulated depreciation (59) (53) (56)
21 27 24
Motor vehicles - right-of-use 467 372 433
Less: Accumulated depreciation (329) (277) (304)
138 95 129
Computer equipment - right-of-use 59 59 59
Less: Accumulated depreciation (48) (42) (45)
11 17 14
11,150 10,771 11,418
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current financial period are set out below:
Land and Plant and Motor Computer
buildings equipment vehicles equipment Total
Unaudited six months ended 31 July £'000 £'000 £'000 £'000 £'000
Balance at 1 February 2023 11,251 24 129 14 11,418
Additions 1,021 - 34 - 1,055
Remeasurement (273) - - - (273)
Exchange differences (19) - - - (19)
Depreciation expense (1,000) (3) (25) (3) (1,031)
Balance at 31 July 2023 10,980 21 138 11 11,150
Note 11. Trade and other payables
Unaudited six months ended 31 July Audited year ended 31 January
2023 2022 2023
£'000 £'000 £'000
Current liabilities
Trade payables 8,023 6,011 4,543
Accrued expenses 1,287 1,286 1,088
Refund liabilities 56 58 55
Social security and other taxes 1,141 1,158 589
Other payables 1,195 885 490
11,702 9,398 6,765
Contract liabilities has been reported separately on the Statement of
financial position. This was previously reported in other payables.
Note 12. Share capital
Unaudited six months ended 31 July
2023 2022 2023 2022
Shares Shares £'000 £'000
Ordinary shares of £0.01 each - fully paid 77,267,304 77,267,304 773 773
Note 13. Dividends
There were no dividends paid, recommended or declared during the current or
previous financial period.
Note 14. Contingent liabilities
The Group had no material contingent liabilities as at 31 July 2023, 31
January 2023 and 31 July 2022.
Note 15. Earnings per share
Unaudited six months Unaudited six months Audited year
ended 31 July
ended 31 July
ended 31
January
2023 2022 2023
£'000 £'000 £'000
Profit after income tax attributable to the owners of Angling Direct PLC 1,321 878 539
Number Number Number
Weighted average number of ordinary shares used in calculating basic earnings 77,267,304 77,267,304 77,267,304
per share
Adjustments for calculation of diluted earnings per share: 851,266 962,010 900,536
Options over ordinary shares
Weighted average number of ordinary shares used in calculating diluted 78,118,570 78,229,314 78,167,840
earnings per share
Pence Pence Pence
Basic earnings per share 1.71 1.14 0.70
Diluted earnings per share 1.69 1.12 0.69
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